Q: e risk of investing in foreign stock markets depends on exchange rate uncertainty more than the risk...
A: Risk of investing outside country involves the risk of exchange rate due to which there is large vol...
Q: Calculate the IRR of the previous project. Justify for what type of discount this investment will be...
A: Internal Rate of Return: It is the rate at which the project's net present value is equal to zero. H...
Q: For items 1-10, refer to the following: The owner of Dawn Winery decided to lend kegs of wine amount...
A: Loan is a value which is borrowed from third party like banks for a certain period and this amount i...
Q: suppose that $2700 is set aside each year and invested in a savings account that pays 8% interest pe...
A: Annual saving (A) = $2700 r = 8% compounded continuously n = 25 years
Q: A stock has a beta of 1.07, the expected return on the market is 10.1 percent, and the risk- free ra...
A: Beta = 1.07 Market return = 10.1% Risk free rate = 4.9%
Q: Find the present value of an investment that will have a future value of Php350,000 if it is investe...
A: Present Value: It is the current value of cash flows or an amount of money that is expected in the f...
Q: Your firm has the following income statement items: sales of $50,250,000; income tax of $1,744,000; ...
A: Income before tax means net income of the business after considering all operating and non operating...
Q: XYZ's receivables turnover is 4x. The accounts receivable at year-end are $600,000. The average coll...
A: Receivable turnover ratio is calculated as follows: = Net credit sales / Average account receivable
Q: You would like to have $19,928 in 12 years. If the rate is 8.45%, how much do you have to invest eac...
A: Future value required (FV) = $19928 Interest rate (r) = 8.45% Number of annual deposits (n) = 12
Q: Wyatt Oil has a net profit margin of 4.0%, a total asset turnover of 2.2, total assets of $525 milli...
A: Net profit margin = 4.0% Asset to turnover ratio = 2.2 Assets = $525 million Turnover = Assets*Asset...
Q: The Janna Company is planning to purchase a new machine. The payback period will be six years. The c...
A: The payback period is the time taken by the investment to recover its cost. The payback does not con...
Q: "s required return is 19%. a. How far away is the horizon date? I. The terminal, or horizon, date is...
A: The valuation of stock is done on the basis of variable growth rate and constant growth rate and bas...
Q: Use the table for the question(s) below. Consider the following two quotes for XYZ stock: No...
A: Exchange Rate Exchange rate refers to the quoted rate between the currencies of two countries at whi...
Q: A manual stamping machine currently valued at Rs. 1000/- is expected to last 2 years and costs Rs 40...
A: We need to find the present worth of costs for both machines. As manual machine's duration is 2 year...
Q: You have an opportunity to invest $102,000 now in return for $80,300 in one year and $29,400 in two ...
A: Given Information : Amount invested = $102,000 Return in first year = $80,300 Return in second year ...
Q: Use the following table: Series Large stocks Small stocks Average return 11.88 % 16.58 6.29 Long-ter...
A: Return on Portfolio = (W1 x Average Return on S1)+ (W2 x Average Return S2)
Q: Suppose you invest Rs 600 in IBM and Rs 400 in Merc for a month. If the realized return is 2.5% on I...
A: Overall return (%) on portfolio can be calculated as: = Sum of return on both the stocks / Initial i...
Q: Compute the present value of $1,000 paid in three years using the following discount rates: 6 percen...
A: Given information : Amount to be paid in three years $1,000.00 Interest rate in year 1 6% In...
Q: At what rate compounded annually will P50,000 earn F1 O 2.22% O 1.76% O 10.27%
A: The future value of the investment includes the value today plus interest on that also.
Q: You have followed TSLA over the last 2 years, and have compiled the following price data for the mos...
A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one...
Q: An Active manager of AMF Fund has delivered the following six -monthly returns in the last 5 Years v...
A: The information ratio is widely used by fund managers, as it only sees retun and volatility. It is a...
Q: On January 1, 20x1, Magnum Corp. acquired all the identifiable assets and assumed the liabilities of...
A:
Q: A Treasury bond that matures in 10 years has a yield of 6.25%. A 10-year corporate bond has a yield ...
A: Corporate bond yield = 10.75% Treasury bond yield (Risk free) = 6.25% Liquidity premium = 0.35%
Q: 6. Intermediaries who are agents of investors and match buyers with sellers of securities are called...
A: Intermediaries are the persons who work between investors and the main company and helps in dealing ...
Q: APPLY THE CONCEPTS: Net present value and Present value index Sutherland Engineering is looking to i...
A: Net present value = Total present value of net cash flow - Amount to be invested Present value ind...
Q: You won a lottery of $1,000,000. Office offered two options: the first one you can take it today a ...
A: The series of equal payment which is made over indefinite period of time is called as perpetuity. Th...
Q: Sheaves Corporation economists estimate that a good business environment and a bad business environm...
A: (Note - Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the questi...
Q: 16. Scenario Analysis. The common stock of Escapist Films sells for $25 a share and offers the follo...
A: Here, Selling Price of Company Esc Stock is $25 Other Details are as follows: Probability in three ...
Q: he current market exchange rate is 2.2 francs per pound. Suppose you need to buy 6 pounds using Fren...
A: In international business the exchange rate between the currencies play very important role in busin...
Q: QRW Corp. needs to replace an old machine with a new, more efficient model. The new machine being c...
A: Here, Purchase Price of Machine is $200,000 Cost of Installation is $10,000 Increase in Inventory is...
Q: A total amount of money worth $50,000 bond with rate of 8% annually pays dividend quarterly is redee...
A: We need to use the concept of time value of money (TVM). According to the concept of TVM, the value ...
Q: 13. The real interest rate is equal to the nominal rate minus inflation (True/False)
A: The nominal interest is the normal rate of interest which is to be paid on loan and debt. Real inter...
Q: Southern Tours is considering acquiring Holiday Vacations. Management believes Holiday Vacations can...
A: maximum Southern Tours should pay today to acquire Holiday Vacations = present value of future cash ...
Q: The ranking of the four alternatives from most valuable to least valuable if the interest rate is
A: Present Worth: It represents the present value of the future sum of money or the present value of a ...
Q: The market risk premium is 10% and the risk-free rate is 4%, beta of the stock is 0.75, then Expecte...
A: The Capital Asset Pricing Model (CAPM) refers to the model which tells us how the financial markets ...
Q: What lump sum of money must be deposited into a bank account at the present time so that $500 monthl...
A: Monthly withdrawals six years from now is $500 Time period of withdrawal is 5 years interest rate co...
Q: Distance, in miles 0-200 201-400 401-600 601-800 801-1000 Price per 100 Ibs $100 $120 $200 $240 $400...
A: Distance = 420 miles From the table given, Price per 100 lbs for 401-600 miles = $200
Q: If your goal is to determine how effective a firm in managing its assets, you would examine O Profit...
A: If the goal is to determine firms effectiveness in managing assets, asset management ratios should b...
Q: 3. What companies can we compare to a bank to in the financial services industry? ( e.g. like Walmar...
A: The financial services industry provides financial services to individuals, entities (profit as well...
Q: 17. Average Return and Standard Deviation. In a recent 5-year period, mutual fund manager Diana Saur...
A: Risk and return both are important factors for taking any investment decision. Return means earn an ...
Q: ch of the following defines a hedge fund the most? 1. A collective investment model based on issui...
A: Hedge fund is larger pool of investment that are collected from large number of investors and manage...
Q: What are the portfolio weights for a portfolio that has 110 shares of Stock that sell for $79 per sh...
A: Number of shares of stock A = 110 Shares Price per share stock A = $79 Number of shares of stock B =...
Q: Earl Miller deposited $25,000 at Y Bank at an interest rate of 12% compounded quarterly. The effecti...
A: Interest rate (r) = 12% Number of compounding per year (m) = 4
Q: why is profit maximization supposedly not the most important goal of a company
A: Profit Maximization: The process of raising the profit earning capacity of the business is known as ...
Q: At the birth of his daughter, Mr Lucas Dalitso Zulu invested K10,000 at 6% p.a. compounded annually....
A: Future value can be calculated using FV (rate, nper, pmt, [Pv], [type]) Rate The interest rate Nper...
Q: An Active manager of AMF Fund has delivered the following six -monthly returns in the last 5 Years v...
A: The information ratio is widely used by fund managers, as it only sees retun and volatility. It is a...
Q: Interest rates are important to financial institutions since an interest rate increase will decrease...
A: The interest rate is the amount charged by a lender to a borrower for the use of assets on top of th...
Q: A fund is to be donated by a wealthy man to provide annual scholarships to deserving students. The f...
A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one...
Q: Use the information below to answer the following question: The owner of the Krusty Krab is cons...
A: Selling value of restaurant is $350,000 Interest rate is 7% Alternative -2 Expense in year 0 is $50...
Q: Is there a difference between arithmetic and geometric average returns? Is it true that they converg...
A: Geometric average is generally used by investment professionals to measure the performance of portfo...
Step by step
Solved in 3 steps
- PQ16.05 A company has the following assets: Buildings and Equipment, less accumulated depreciation of $5,000,000 Patents Trademarks Land $25,000,000 2,400,000 10,000,000 12,000,000 Goodwill 2,000,000 Cash 8,000,000 The total amount reported under Property, Plant, and Equipment would be??PQ16.08 Equipment that cost $144,000 and on which $120,000 of accumulated depreciation has been recorded was disposed of for $36,000 cash. The entry to record this event would include ??Equipment R20 000, Accumulated Depreciation R16 000. Depreciation is calculated at 20% p. a. on a diminishing method. An old equipment was disposed for R1 500 cash on 1 December 2020. The equipment originally costed R3 000. The Accumulated depreciation is R 700.The depreciation for the disposed equipment is _________.A. R460B. R345C. R225D. R92
- Equipment that cost $879000 and had a book value of $394000 was sold for $455000. Data from the comparative balance sheets are: 12/31/21 12/31/20 Equipment $5300000 $4869000 Accumulated Depreciation 1640000 1450000 Equipment purchased during 2021 was $431000. $1310000. $829000. $919000.P12.1B (L0 1,2,3,5) (Correct Intangible Asset Account) Dolphin Co., organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020 and 2021: Instructions 3/1/2020 3/1/2020 4/1/2020 6/30/2020 9/1/2020 12/31/2020 6/30/2021 9/1/2021 Intangible Assets 10-year franchise agreement; expires 2/28/28 Organization costsAdvance payment for 2 years for office space Purchased a patent (8-year life) Cost to develop a patent (10-year life) Net operating loss for 2020Research and development costsLegal fee to successfully defend internally developed patent $ 60,000 7,000 24,000 80,000 40,000 61,000 265,000 13,500 Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. Make the entries as of December 31, 2021, recording any necessary amortization and reflecting all balances accurately as of that date. (Ignore…Equipment R20 000, Accumulated Depreciation R16 000. Depreciation is calculated at 20% p. a. on a diminishing method. An old equipment was disposed for R1 500 cash on 1 December 2020. The equipment originally costed R3 000. The Accumulated depreciation is R 700.The profit/loss for the disposed equipment is _________.A. Profit/loss R300B. Profit/loss R92C. Profit/loss R455D. Profit/loss R460
- Case E Robert Sporting Goods Company has another piece of equipment (Q102) with the following cost and accumulated depreciation at its year ended December 31, 2020: Equipment (Q102) $9 000 000 Accumulated Depreciation 3 000 000 Due to obsolescence and physical damage, the equipment was found to be impaired. At the year-end Robert Sporting Goods Company had determined the following information: Fair value less cost of Disposal $4 500 000 Value in use or discounted net cash flows 4 000 000 Undiscounted net cash flows 5 500 000 Required: Assess equipment (Q102) for impairment and prepare the journal entry (if necessary) to report any impairment loss for the year. When selecting from dropdown lists, if a…Case E Robert Sporting Goods Company has another piece of equipment (Q102) with the following cost and accumulated depreciation at its year ended December 31, 2020: Equipment (Q102) $9 000 000 Accumulated Depreciation 3 000 000 Due to obsolescence and physical damage, the equipment was found to be impaired. At the year-end Robert Sporting Goods Company had determined the following information: Fair value less cost of Disposal $4 500 000 Value in use or discounted net cash flows 4 000 000 Undiscounted net cash flows 5 500 000 Required: Assess equipment (Q102) for impairment and prepare the journal entry (if necessary) to report any impairment loss for the year. When selecting from dropdown lists, if a line item…Jackel Industries presents you with the following information. Description 00 Date Purchased 00 Cost 00 Salvage Value 00 Life in Years 00 Depreciation Method 00 Accumulated Depreciation to 12/31/21 00 Depreciation for 2022 Machine A 2/12/20 $142,500 $16,000 10 (a) $33,350 (b) Machine B 8/15/19 (c) 21,000 5 SL 29,000 (d) Machine C 7/21/18 75,400 23,500 8 DDB (e) (f) Machine D 10/15/(g) 219,000 69,000 5 SYD 70,000 (h) Instructions Complete the table for the year ended December 31, 2022. The company depreciates all assets using the half-year convention.
- 29. Analyzing Fixed Assets Pitt reported the following information for 2021 and 2022: 2021 2022 Property, plant, and equipment, cost $550,000 $ 550,000 Accumulated depreciation 170,000 220,000 Net sales 4,600,000 Depreciation expense 50,000 Required: Compute Pitt's tangible capital asset turnover ratio and the average age of tangible depreciable capital assets. Round "Tangible Capital Asset Turnover" to two decimal places and "Average Age of Tangible Depreciable Capital Asset" to one decimal place.1. The total depreciation for the year ended December 31, 2020 isa. P237,000 c. P233,250b. P232,500 d. P236,250 2. The carrying amount of production machine as of December 31, 2020 isa. P1,024,500 c. P1,069,500b. P1,029,000 d. P 990,750Robert Sporting Goods Company has another piece of equipment (Q102) with the following cost and accumulated depreciation at its year ended December 31, 2020: Equipment (Q102) $9 000 000 Accumulated Depreciation 3 000 000 Due to obsolescence and physical damage, the equipment was found to be impaired. At the year-end Robert Sporting Goods Company had determined the following information: Fair value less cost of Disposal $4 500 000 Value in use or discounted net cash flows 4 000 000 Undiscounted net cash flows 5 500 000 Required: Assess equipment (Q102) for impairment and prepare the journal entry (if necessary) to report any impairment loss for the year. When selecting from dropdown lists, if a line…