Give typing answer with explanation and conclusion  Which one of the following is a source of cash?   issuance of debt   payment to a supplier   purchase of inventory   granting credit to a customer   repurchase of common stock

Q: The buyer of a piece of real estate is often given the option of buying down the loan. This option…

A: When the lender offers a loan to the borrower, he charges an interest rate on the borrowed amount…

Q: The amount of a firm's leverage is irrelevant because...

A: This is related to the concept of homemade leverage. It should be noted that homemade leverage is…

Q: What is a Business Combination and What tools are used in Evaluating a Business Combination…

A: A business combination occurs when two or more businesses come together to form a single entity.…

Q: Gater Products currently has $2,000,000 in accounts receivable and its days sales outstanding (AR /…

A: This is related to financial ratios. Financial ratios are based on the mathematical relationship…

Q: 28-year old Kathy has decided to contribute $3000 once every year into her retirement account that…

A:

Q: Two engineering graduates who recently got married are planning for their early retirement 20 years…

A: Given the following:  Amount required to accumulate in 20 years, FV = Php 8,000,000  Current…

Q: Discuss the unresolved academic issues in capital structure decisions and make suggestions for…

A: Capital structure refers to the way in which a company finances its operations and growth through a…

Q: Baker Industries has a 45 day accounts receivable period. The estimated quarterly sales for this…

A: Revenues: It represents the amount generated or produced from the business's normal operations. It…

Q: As part of establishing the market or product priorities, management accountants are vital in:…

A: Management accountants can provide valuable insights and financial analysis to inform decisions…

Q: Question 21: Studying Bonds Yields Good Returns Suppose there are 3 types of bonds in an economy,…

A: A bond is a debt instrument that facilitates the issuer to raise funds and also obligates him to pay…

Q: Determine the cost of Debt of the company

A: Initial cost includes the cost of equipment, installation cost and increase in net working capital.…

Q: How do price limits work with futures? Do all futures contracts have limits?

A: Futures are financial contracts that obligate the buyer to purchase an asset, and the seller to sell…

Q: og Care Co. wants to finance a new animal shelter by making eight annual deposits into a fund…

A: The question is based on the concept of Financial Management. The cost of the new animal shelter…

Q: You manage a risky portfolio with an expected rate of return of 19% and a standard deviation of 34%.…

A: Data given: E(r)=19% σ=34% Rf=8%

Q: Using this table as needed, calculate the required information for the mortgage. (Round dollars to…

A: Therefore, the number of $1000's financed is 168.3.

Q: The production planner for Fine Coffees, Inc., produces two coffee blends: American (A) and British…

A: Profit for American blend = $2.00 per pound  Profit of British blend = $1.00 per pound    Let 'A' be…

Q: Firm A has a value of $100 million and Firm B has a value of $70 million. Merging the two would…

A: value of Firm B = $70 million Present value = $20 million Purchase cost = $75 million

Q: A doctrine under which a principal or an employer is held liable for the wrongful acts committed by…

A: Option D "vicarious liability."   Explanation This is a legal principle that holds employers or…

Q: What equal deposits should be placed in a fund at the beginning of each year for 12 years in order…

A: Data given: FV=Php 20000 n=12 years Rate=5% (assumed compounded annually)   Required:  Equal…

Q: You are given the following information for Watson Power Co. Assume the company's tax rate is 25…

A: Working Note#1 Calculation of market value weight: Snapshot of cell reference: Snapshot of output:…

Q: A Philippine government bond called "Edsa Revolution Commemorative Bond" promises to pay Php 12,000…

A: Price of the bond is the PV of the par value. We can determine the Price using the formula below:…

Q: According to money.CNN.com, with mortgage rates near 35-year lows, you may be able to cut your…

A: Here, Balance of the loan amount is $218,800 Old Monthly Payment is $1,678.50 New Interest Rate is…

Q: Apollo Corporation is a private equity firm that focuses on reusable energy projects. Its major…

A: As per the given information: Debt percentage in capital structure - 40%Common equity percentage in…

Q: Melissa Gutt is thinking about buying some shares of EZLawn Equipment, at $41.63 per share. She…

A: Intrinsic Value: It represents the actual worth of financial security. One of the common ways of…

Q: Do buyers of call options have to post margin? Why is this?

A: Call option gives the right but not the obligation to buy at the strike price. To buy this option…

Q: A credit card bill of $660 was due on July 1. Purchase of $375 were made on July 7, and $310 was…

A: Credit card issuing companies charges monthly interest on any unpaid balance. For computing the…

Q: Vigour Pharmaceuticals Ltd. is considering investing in a new production line for its pain-reliever…

A: The cash flow generated by terminating and liquidating a project at the conclusion of its economic…

Q: The following table shows betas for several companies. Calculate each stock’s expected rate of…

A: The CAPM model states that the systemic risk associated with the stock can be used to find out the…

Q: A start-up entrepreneur should ask which reflective question when developing the venture?

A: option D, "How will you manage the project from your idea to full-scale launch?" is the most…

Q: Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either…

A: Expected Rate of Return: It represents the amount of loss or profit expected by the investor from…

Q: A bond with a coupon rate of 5% has a YTM of 3%. The bond is trading?   a. at a permium   b. at…

A: Bond: It represents debt security issued by the issuer to raise debt capital from the investors.…

Q: The real risk-free rate is 2.50%. Inflation is expected to be 1.50% this year and 3.75% during the…

A: Information Provided: Real risk-free rate = 2.50% Inflation premium for current year = 1.50%…

Q: What is the expected return of your portfolio?

A:

Q: Red Sun Rising Corporation has just signed a lease for its new manufacturing facility. The lease…

A: To calculate the present value of the lease liability, we need to use the present value formula,…

Q: not sure why, but that is not the correct solution to the question.

A: Present value With future value (FV), periodic interest rate (r) and period (n), the present value…

Q: You would like to save up $1184 to travel in 4 years.  To do so, you will buy a savings bond that…

A: The concept of time value of money will be used here. Money kept in an investment attracts interest…

Q: Gater Products currently has $2,000,000 in accounts receivable and its days sales outstanding (AR/…

A: This is related to financial ratios. Financial ratios are based on the mathematical relationship…

Q: An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected…

A: Optimal risky portfolio A portfolio that minimizes your risk for a certain level of return or…

Q: Ryan obtain a nine year subsidized loan of $26,000 at an annual interest rate of 4%. If Ryan…

A: Here, Loan Amount is $26,000 Annual Interest Rate is 4% Income Adjusted Repayment is $275 per month

Q: Peerless Securities has an issue of $1,000 par value bonds with 18 years remaining to maturity. The…

A: YTM is Yield To Maturity and  will be calculated using RATE function of excel as shown below :

Q: Problem 7-21 Dividend Yield [LO 3] You've collected the following information from your favorite…

A: Given: Georgette inc Amount Highest price 55.91 Low price 33.52 Dividend 1.64 Dividend…

Q: To insure you, Assurances Nochance Ltd offers the following plan: you will pay 20 annual payments of…

A: Present value is the estimation of the current value of future cash value which is likely to be…

Q: Following are the probability distribution of returns of portfolio of Stock A and Stock B in equal…

A: The expected return on the stock is the return that the company provides on average to all its…

Q: Following are the probability distribution of returns of portfolio of Stock A and Stock B in equal…

A: Expected Return: It represents the return anticipated by the investor for investing in the issuer's…

Q: Is there any chance you could add future values and explain how the calculations for caculating…

A: Future value of annuity Annuity is a series of equal periodic payments. Its future accumulated value…

Q: Duffs Co. Is growing quickly. Dividends are expected to grow at a 24% rate for the next three years,…

A: In calculation of stock price,  with consider expected dividend of the stock and considering the…

Q: Equity holders’ investment in the firm is K100 million, and the beta of the equity is 0.6. if the…

A: Annual profit is the profit earned on an investment made throughout the period of 12 months.

Q: You are set to receive an annual payment of $11,000 per year for the next 16 years. Assume the…

A: An annuity is a type of security that pays a periodic amount over a period of time. When the…

Q: Should external auditors provide advisory services to a client at the same time as providing…

A: External audit-It involves the process of examination of the business entity's financial records,…

Q: I BOND VALUATION An investor has two bonds in his portfolio that have a face value of $1,000 and pay…

A: 7-5; a. At 5% Price of Bond L = 100/1.05 +100/1.05^2 +100/1.05^3 .........1100/1.05^15 =1,518.98…

Basic Accounting Terms

Accounting terms are accounting terminology, accounting jargon, accounting acronyms, and accounting vocabulary that are commonly used to understand accounting fundamentals. It would be difficult for anyone to read, understand, and interpret the company's financial statements if they did not understand and know the meaning of the basic accounting terms.