Question 12 What is a "warrant"? O A contract in which one party commits up front to buy or sell something at a defined price at a defined future date. A contract in which one party commits up front to buy or sell commonly traded items at a defined price and maturity date. A contact that gives the right, but not the obligation, to buy a share at a specified price over a specified period of time. A contract in which two parties agree to exchange cash flows (e.g. interest cash flows).
Q: Web Cites Research projects a rate of return of 20% on new projects. Management plans to plow back…
A: Sustainable growth rate can be calculated by using equation below.Sustainable growth rate = Return…
Q: il 1, the home mortgage balance was $226, 000 for the home owned by Susan Thomas. The interest rate…
A:
Q: An investor sells a European Put on a share for $4. The stock price is $47 and the strike price is…
A: Put option is derivative product that derive value from underlying assets and give the option to…
Q: What is the APR of return for a $10,000 treasury bill maturing in 2 months if you pay $9,800 for it?
A: Future Value = fv = $10,000Time = t = 2 / 12Present Value = pv = $9800
Q: Expected Return Standard Deviation Beta K 20% 12% 1.8 Y 21% 10% 2.2 M 10% 10% 0.8 me the risk-free…
A: CAPM model is used to find risk based required rate based on the risk free rate, market rate and…
Q: A company plans to make four annual deposits of $4,250 each to a special building fund. The fund's…
A: Accumulated value refers to an amount that is the addition of periodic deposits and interest rate…
Q: Find the present values of the following cash flow streams. The appropriate interest rate is 12%.…
A: The objective of the question is to calculate the present value of two cash flow streams (A and B)…
Q: QUESTION 1 MITISHAMBA Co., a USA-based company specializing in the supply of medical equipment to…
A: The objective of the question is to assess the best financial strategy for MITISHAMBA Co. to…
Q: Asset W has an expected return of 12.3 percent and a beta of 1.2. If the risk-free rate is 4…
A: The portfolio contains asset W and Risk free asset.Expected return on Asset W = 12.3%Expected return…
Q: XYZ stock price and dividend history are as follows: Dividend Paid at Year-End $4 Year 2018 2019…
A: Dollar Weighted Return is the Internal Rate of Return where the net present value of all the cash…
Q: Indiana Electric Company (IEC) pays $1.25 per year in dividends, has done so for many years, and we…
A: The dividend discount model (DDM) is a method used to value a company's stock by estimating its…
Q: Calculate the future value in five years of $4,000 received today if your investments pay for the…
A: Variables in the question:PV=$ 4000N=5 yearsFormula to be used:FV=PV * (1+r)^n
Q: A client has a secured home equity line of credit with a balance of $ 125,458.45 and a limit of $…
A: PMT, in financial terms, commonly denotes the periodic payment amount associated with loans,…
Q: What is the percentage expected annual rate of return on a $1 million investment for a 25% interest…
A: The expected annual rate of return on a $1 million investment for a 25% interest in a company can be…
Q: The income statement, also known as the profit and loss (P&L) statement, provides a snapshot of…
A: The objective of the question is to forecast the Year 2 income statement for Cold Goose Metal Works…
Q: Problem 1 Ziege Systems is considering the following independent projects for the next year.…
A: Capital BudgetingCompanies utilize capital budgeting, a financial procedure, to assess and rank…
Q: Derek has the opportunity to buy a money machine today. The money machine will pay Derek $35,200.00…
A: The time value of money concept will be used and applied here. As per the time value of money…
Q: What is the price of a 20 year $230,000 bond with a price quote of 102.5? $235.750 $2.300.000 O…
A: Current price of bond is the price which can be paid for purchase of the bond. It is also called…
Q: How much is the net effect of the transactions on the 2026 Statement of Changes in Equity assuming…
A: Stock price fluctuation describes the shift in a stock's market value over time and it is the…
Q: Tiger Golf Supplies has $34 million in earnings with 8 million shares outstanding. Its investment…
A: The objective of the question is to calculate the price per share that should be offered to the…
Q: An author just signed a lucrative contract with a publisher that offers to pay her the amount of…
A: The amount that will be paid in some future date will be referred as the future worth. The current…
Q: If the firm utilizes a cash basis rather than the accrual basis accounting methodology, all else…
A: If the firm utilizes a cash basis rather than the accrual basis accounting methodology, all else…
Q: Suppose a stock had an initial price of $47 per share, paid a dividend of $0.63 per share during the…
A: Initial price (P0) = $47Dividend (D) = $0.63Ending price (P1) = $38
Q: (Bond selection) Consider the four bonds having annual payments as shown in Table 39 They are traded…
A:
Q: Rousey Incorporated, had a cash flow to creditors of $17,010 and a cash flow to shareholders of…
A: > Given> Cash flow to creditors = $17010>Cash flow to stockholders = $7,622>Net fixed…
Q: A company expects a 20% return on equity invested entirely in new projects. The company's management…
A: Return on equity = 20%Retention ratio =30%Earnings per share = €3Expected return = 12%
Q: 10. A plain vanilla interest rate swap is written on a notional principal of €100m. The swap pays…
A: Notional principal (NP): €100mFixed rate (Fixed): 3.6% per annumCurrent 3-month LIBOR (LIBOR): 3.2%…
Q: Our new computer system cost us $114,400. We will outgrow it in five years. When we sell it, we will…
A: The after tax proceeds from the asset can be found by using following formula:The book value at the…
Q: Consider the following information for Watson Power Company: Debt: Common stock: Preferred stock:…
A: Weighted Average Cost of Capital (WACC) :The weighted average cost of capital, or WACC for short, is…
Q: two issue alternatives: An 7 percent semiannual coupon bond and a zero coupon bond. Your company's…
A: Bond are financial instrument, issued to raise funds from the outside market that represent a loan…
Q: Miracle Bhd requires RM500,000 ti finance its operations. The following short-term resources of…
A: Effective interest rate is the actual rate of return paid on the financing options. An alternative…
Q: What is the future value (FV) of $20,000 in four years, assuming the interest rate is 4% per year? O…
A: Future value is that amount which will be require to paid at some specified period of time. It…
Q: The owners of a corporation are called O partners O bondholders government agents shareholders
A: When you buy shares of a company, you become the owner of the company in proportion to the…
Q: What is the required rate of return on a stock with a beta of 1.2, when the risk-free rate is 3.6%…
A: Risk-free rate = 3.6%Market return = 14.4%Beta = 1.2The required rate of return on a stock is a…
Q: Suppose the real risk-free rate is 3.50%, the average future inflation rate is 2.50%, a maturity…
A: Risk-free rate = 3.50%Inflation rate = 2.50%Maturity premium = 0.20% per yearLiquidity premium =…
Q: A borrower takes out a 30-year adjustable rate mortgage loan for $200,000 with monthly payments. The…
A: Given Values:Loan amount is 200000First two years rate is 4%Reset rate is 5%Composite rate on reset…
Q: You have taken a loan of $78,000.00 for 20 years at 4.9% compounded quarterly. Fill in the table…
A: An amortization table, also known as an amortization schedule, is a financial summary that displays…
Q: Suppose you bought a stock for $47.1 per share and you sold it for $14.7 after 4 years. The stock…
A: The rate of return is used to determine the investment's profitability. It determines the gain or…
Q: Tammy Faye requires a 12% before-tax return on her real estate investments. If she invests $78,000…
A: Given that:PV=$78,000Interest Rate = 12% = =0.01Monthly Expenses = $120n=5×12=60 months
Q: A lottery corporation sells a ticket for a chance to win $500,000. If you win, the prize winnings…
A: Present Value is the current price of future value which will be received in near future at some…
Q: ECB borrows $1,000,000 USDs by issuing 6-year bonds. ECB's cost of debt is 5%, so it will need to…
A: The interest tax shield is a financial concept that highlights the tax advantages associated with…
Q: A company sells $120,000 (sales price) of goods and collects sales tax of 8%. What current liability…
A: Journal Entry to record sales entryAccount titles and…
Q: Use both the TVM equations and a financial calculator to find the following values. (Hint: If you…
A: The objective of the question is to calculate the future value of an initial investment of $800…
Q: Prove that Homotheticity is required for the method of representative agent method to find the asset…
A: In finance, the representative agent method is a popular technique for modeling the collective…
Q: A put currently has a strike price of $54 and a maturity of six months. what will be the…
A: Put option is derivative product that derive value from underlying assets and put gives option to…
Q: C Ltd is considering adding a new product line. Adding the product line would require additional…
A: The process by which a company's management chooses how much of its profits to provide to its…
Q: The Board is considering replacing or redeveloping the leading product you have chosen. This will…
A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…
Q: As of 2021, banks in the U.S. had an average ratio of equity to assets ratio of Ⓒa. 10% b. 20% c.…
A: The equity-to-assets ratio, a fundamental financial metric, gauges the proportion of a company's…
Q: An investor would like to purchase a new apartment property for $2 million. However, she faces the…
A: We have to use an excel spreadsheet tomake all the calculations.
Q: Year 0123 Cash Flow -$ 27,000 11,000 14,000 10,000 The appropriate discount rate is 16 percent. What…
A: IRR stands for internal rate of return. It is an important capital budgeting tool. IRR is the rate…
O Dr.
Step by step
Solved in 3 steps
- Question One The following trial balance relates to Succeed Limited as at 30 June 2020 K K 88,000 K1 ordinary shares – issued 88,000 44,000 8% K1 preference shares 44,000 Share premium account 11,000 Revaluation reserve - PPE 33,000 Sales 220,000 Purchases 135,300 Opening inventory 87,279 Trade receivables and prepayments 29,920 Trade payables and accruals 15,094 Bank balance 4,726 10% Loan stock 17,600 General reserve 30,800 Bad debts 374 Wages and salaries 31,020 Installment tax paid 3,850 Insurance 1,551 Dividend paid - Preference 3,520 Dividend paid - Ordinary 2,420 Postage and telephone 682 Light and heat 1,338 Loan stock interest (½ year to 31 December 2019) 880 Directors’ fees 2,750 General expenses 3,419 Vehicles (cost K21,340) 7,480…please prepare the journal entries Q1. Sold 22,500 Treasury shares at $2 each. Q2. Purchased 10% shareholding in Charlie Limited, a supplier, as a long-term investment. The fair value of the 10% shareholding was $2,900,000 as at 1 March. The purchase consideration included a $2,700,000 note receivable due from Charlie Limited and the related interest receivable balance of $144,000, $140,000 cash and a motor vehicle owned by ITI. The motor vehicle was originally obtained at $120,000. ( for depreciation details, refer to Q1 of additional information.) Q3. A 10% share dividend was declared when the market value per share was $2.1. Q4. Paid cash to acquired 30,000 shares of its own at $2.3 each. ITI intends to keep the shares for several months for management bonus.GENERAL MATHEMATICS Rose bought 400 shares of SBC stock at its 52 weeks low, P781.20 per share, and sold at 52 weeks high, P1 310.00 per share. a. How much did Rose make on this transaction, dividends not included? b. Find the broker's commission if the broker charges 3.2% of the total sale price.
- Bridgeport Inc.’s $9 par value common stock is actively traded at a market price of $15 per share. Bridgeport issues 4,800 shares to purchase land advertised for sale at $71,500.Journalize the issuance of the stock in acquiring the land. What is the date? What is credit or debit? What is the title or explanation?22 A dealer in securities has the following for the year 2018: Sale of securities held for sale in the ordinary course P4,000,000 Cost of securities held for sale in the ordinary course 2,500,000 Supplies expense, net of VAT 300,000 Rent expense, net of VAT 500,000 The Vat payable shall be:Question no 3The market price of the ordinary shares at 31 December 2020 was Rs1.60. The dividend yield on ordinary shares was 2.5 per cent. The creditor for taxation at 31 December 2019 was Rs25 000. Taxation paid in the year ended 31 December 2020 amounted to Rs22 000. The liability for taxation on the profit of the year ended 31 December 2020 is Rs31 000 and is carried forward on the Taxation account. The retained profit for the year ended 31 December 2020 was Rs60 000. The debentures were issued in 2016. The preference shares were issued at par. The summarized Balance Sheet at 31 December 2020 of Iqra Ltd was as: Fixed assets 2550000, Net current assets 950000, 6% debentures 2019/2020 150000, Ordinary shares of Rs1, 2500000, 10% redeemable preference shares of Rs1, 300000, Share Premium account 200000 Profit and Loss Account 350000. REQUIRED Prepare Iqra Ltd’s Profit and Loss Account for the year ended 31 December 2020 in as much detail as possible. The Profit and Loss Account…
- 15pointsItemSkipped PrintReferencesItem 5Mainland Resources Inc. began operations on June 5, 2023. 2023 June5 Gave 4,000 common shares to the organizers of the corporation in exchange for accounting and legal services valued at $84,700.15 Received 521 cash per share for the issuance of 77,000 common shares. 16 Issued 10,000 preferred shares for cash of $41 per share. 178,000 common shares were issued to a creditor who was owed $132,000. 18 The board of directors declared a cash dividend of $19, 700 on the preferred shares and $5, 200 on the common shares to shareholders of record on June 20, payable July 1. 30 152,000 common shares were issued in exchange for machinery with a fair market value of $2, 480, 000. The shares were actively trading on this date at $15.00 per share. July 1 The dividends declared on June 18 were paid. Required: Joumalize the above equity transactions that occurred during the first month of operations. Cash dividend account is used for declaring dividends.Q2) Fuzzy Monkey Technologies purchased as a long-term investment $80 million of 8% quoted bonds, dated January 1, on January 1, 2012. Management has the positive intent and ability to hold the bonds until maturity. For bonds of similar risk and maturity the market yield was 10%. The price paid for the bonds was $66 million. Interest is received semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31, 2012, was $70 million. Required: 1. At what amount will Fuzzy Monkey report its investment in the December 31, 2012, statement of financial position? Why? 2. How would Fuzzy Monkey's 2012 statement of cash flows be affected by this investment?10 A dealer in securities has the following for the year 2018: Sale of securities held for sale in the ordinary course P4,000,000 Cost of securities held for sale in the ordinary course 2,500,000 Supplies expense, net of VAT 300,000 Rent expense, net of VAT 500,000 The OUTPUT VAT shall be:
- Q1)Fuzzy Monkey Technologies purchased as a long-term investment $80 million of 8% quoted bonds, dated January 1, on January 1, 2012. Management has the positive intent and ability to hold the bonds until maturity. For bonds of similar risk and maturity the market yield was 10%. The price paid for the bonds was $66 million. Interest is received semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31, 2012, was $70 million. Required: 1. Prepare the journal entry to record Fuzzy Monkey's investment on January 1, 2012. 2. Prepare the journal entry by Fuzzy Monkey to record interest on June 30, 2012 (at the effective rate). 3. Prepare the journal entries by Fuzzy Monkey to record interest on December 31, 2012 (at the effective rate).Hello please help me answer this problem. With a clear proper format. Thank youuu! On January 1, 2021, Trade Company purchased 40,000 shares at P 100 per share to be held for trading . Brokerage fees amounted to P 120,000. No other transactions occurred in 2021 affecting the investment.What is the initial measurement of the investment? a. P 4,120,000 b. P 4,000,000 c. P 3,920,000 d. P 3,800,000Q 37 Question 37 If Sotheby Company issues 2,000 shares of $5 par value common stock for $140,000, Select one: a. Paid-In Capital in Excess of Par Value will be credited for $10,000. b. Common Stock will be credited for $140,000. c. Cash will be debited for $130,000. d. In Capital in Excess of Par Value will be credited for $130,000.