What is/are the importance of identifying the gaps to make financial projection feasible?

Q: 11. An entity received a seven year zero interest bearing note on February 1, 2019 in exchange for a...

A: Interest on the note prevailing on just December 31 will be considered as the interest rate for give...

Q: Firms with higher expected growth opportunities usually sell for: Select one: O a. the same price ea...

A: Price-earnings ratio is an financial ratio  refers to the ratio of share price and the earning per s...

Q: The firm had sales of $33 million, operating expenses of $14 million, interest of $4 million and pay...

A: Earnings before interest & taxes(EBIT) is the income generated by an entity before making paymen...

Q: Harmeling Paint Ball (HPB) Corporation needs a new air compressor that costs $90,000. HPB will need ...

A: Leasing refers to a contract under which one party agrees to rent an asset owned by another party fo...

Q: Two machinės are av ay Foods must purchase a new gumdrop machin chine 7745 has a first cost of $10,0...

A: Total present value of all cost is capital cost of equipment and the equipment having less capital c...

Q: Define “Financial assets"; list them and explain their evaluation criteria in the balance sheet

A: A balance sheet is a financial statement that shows the assets, liabilities, and the shareholder equ...

Q: This attempt took 15 minutes. Partial Question 1 Consider the following short box spread. All prices...

A: 1. Exercise price (EP) = 80 and call option is there. EP ST payoff at t=0 Payoff at t = 6mts Net ...

Q: If money is worth 1.07%, determine the present value of perpetuity of P 4.489 pavable annually, with...

A: Inputs Interest Rate = 1.07% Perpetual Amount = 4489 Payments will start at end of 5 years  

Q: a. Calculate the yield on the repo if it has a 5-day maturity. b. Calculate the yield on the repo if...

A: Repurchase Agreement: A repurchase agreement is also known as 'repo' is a short-term agreement to s...

Q: The probability of losing investment in a foreign country is known as: O confiscation O political ri...

A: Investment made in foreign countries outside jurisdiction of domestic country is subject to risk. 

Q: QUESTION 6 From the following table calculate net income after tax for 2016? Amount ($) Description ...

A: Sales = 500,000 Cost of goods sold = 300,000 Depreciation = 65,000 Interest expense = 15,000 Selling...

Q: If P=20000 then (F/P,8%,7)=?

A: Here, P is 20000 Interest Rate is 8% Time Period is 7 years

Q: Ellie wants to report the before-tax IRR on a potential project to the upper management at her compa...

A: After tax IRR = 7.9% Tax rate = 51%

Q: A Pump manufacturer expects its materials cost to be $1,000,000 this quarter and to increase by $100...

A: Present Worth(PW) is the accumulation of discounted values for all amounts in a series. It is determ...

Q: Dan is considering borrowing $500,000 to purchase a new condo. Based on that information, answer the...

A: Amortized Loan:  Amortized loan is a type of loan in which the borrower would pay periodic payments ...

Q: What is the economic order quantity for the following inventory policy. A firm sells 32,000 bags of ...

A: Annual requirement (A) = 32000 bags Cost per order (O) = P100 Carrying cost (C) = P0.85  

Q: 1. A 2 year bond that pays 4% semi-annual coupon was issued when the yield was 10%. If the yield goe...

A: Note :  As per the Honor Code , we are allowed to answer first question in case of multiple unspecif...

Q: Janice opened a franchise short of Krispy Kreme Doughnuts in her hometown. She has been working real...

A: Here we will look at the relevant costs. In finance relevant costs are those costs that will change ...

Q: sheet 3, use information to complete sheet 4 & 5 Date Closing Market Index value Closing Price for ...

A: Here, Excess Return is equal to =Return Earned - Risk Free Rate of Return Monthly Return is calcula...

Q: How much is the quarterly deposit?

A: given  FV = 25,000,000 i=2% n= 10*4=40    PMT=FV*i/((1+i)^n-1)

Q: The entity received P7,580,000 cash from the issuance of its 9%, 3-year P8,000,000 par value prefere...

A: Face Value = 80,00,000 Current MV = 75,80,000 Rate = 9% Term = 3 years Annual Interest = 8000000*9% ...

Q: Why is finance described as the most important activity in any organization? Use relevant examples t...

A: Finance is required in all fields of life be it buying, selling, lending, procuring, producing and s...

Q: Part 1 of 5 farginal cost-benefit analysis and the goal of the firm Ken Allen, capital budgeting ana...

A: (Note: Since we answer only up to 3 sub-parts, we'll answer the first 3. Please resubmit the questio...

Q: Your broker offers to sell you some shares of Bahnsen & Co. common stock that paid a dividend of $3....

A: Note : Since the Part d. and Part e. is being asked specifically to get solved , so we are solving t...

Q: If a broker quotes a price of 111.25 for a bond on September 10, what amount will a client pay per $...

A: answer Accrued interest = FV * coupon rate * (no. of days between may 15 and September 10) / 365)= $...

Q: A student borrowed P50,000 she he was freshmen in college to finance his education expenses. He is r...

A: Borrowing Amount = 50,000 N = 5 equal installments T = deferrment period = 1 year Interest rate = 10...

Q: 1. What is the present value of an ordinary annuity earning 8% interest compounded quarterly if a qu...

A: Present Value:  The present value is the value of cash flow stream or the fixed lump sum amount at t...

Q: The report should contain the following : -Introduction about the banks -Reasons for merger - Advant...

A: Bank is a financial institution which helps in the wealth creation through investments. Also, banks ...

Q: Manning Imports is contemplating an agreement to lease equipment to a customer for four years. Manni...

A: A lease is a written legal agreement between a two-party lessor and the lessee. In lease agreement l...

Q: Answer the next 4 questions using the information in the following table. You are considering the pu...

A: Bid price is the buying price at which the investors will buy the T bill. Ask price is the price at ...

Q: F10 - 8% B B. B B B. |= 6.5 % 0 1 2 3 4 5 6 7 8 9 10 1 12 18 19 20 // A A A A 100,000

A: If the deposits are made on the time they grow with time bigger amounts and than they retuned into g...

Q: Jana wants to have 52000 in her bank after 13 years. how much should she deposit if the money is wor...

A: Amount needed in 13 years (F) = 52000 n = 13 years r = 15% compounded continuously Let the deposit =...

Q: A company plans to borrow $10 million for 90 days, 180 days from today. The type of FRA and the posi...

A: A forward rate agreement between two parties where the interest on a notional principal is exchanged...

Q: Your father now has $1,000,000 invested in an account that pays 9.00%. He expects inflation to avera...

A: Inflation is the rate by which the purchasing power of a currency falls over time. The present value...

Q: A project requires an immediate investment of $10,000 for the purchase and installation of equipment...

A: A discount rate at which the net present worth of an investment is equal to zero is term as an inter...

Q: Statement I: Common shares are given preemptive rights so as not to dilute the percentage of ownersh...

A: Pre-emptive Rights are the rights which an existing shareholders have in a corporation which allows ...

Q: Which of the following best describe a speculative stock? high risk, low volatility, start-ups high ...

A: Speculative stocks are those where the price of stock changes too frequently and are quite volatile.

Q: with the age of 25, Anthony establishes an Individual Retirement Account (IRA).  If he invests P10,0...

A: The account value at age of 55 can be calculated with the help of future value of annuity.  

Q: You need to choose between making a public offering and arranging a private placement. In each case,...

A: Companies raise the funds by issuing various securities. Debt is one of the major sources of raising...

Q: If the minimum attractive rate of return is 14%, which alternative should be selected?

A: Here we are given 4 different projects and the MARR (minimum attractive rate of return) is 14%. We c...

Q: Bob Jensen Inc. purchased a $580,000 machine to manufacture specialty taps for electrical equipment....

A: Initial investment = $580,000 Time period = 10 years  Discount rate = 10% Tax = 25% Depreciation = s...

Q: A man buys a motorcycle. There will be no maintenance cost the first year as the motorcycle is sold ...

A: The present value is calculated as the sum of the product of future cash flows and present value fac...

Q: 4. If Andy borrows R350 today at CBD Bank at 15% interest rate per annum, how much will have to be r...

A: Solution:- When someone borrows an amount from bank, the bank charges interest on it. Therefore, rep...

Q: Which of the following alternatives would you rather receive, assuming an interest rate of 8% per ye...

A: alternative 1. NPV = $100

Q: The cost of discounts missed on credit terms 2/10, n/50 is (use 360 days)

A: Credit terms Credit terms are those requirements that are mentioned on an invoice that includes the ...

Q: Esquire Company needs to acquire a molding machine to be used in its manufacturing process. Two type...

A: Net present value is the net value of all the present value of benefits and cost to be incurred or a...

Q: The following are the information on the assets and liabilities of HARUTO Corporation on December 31...

A: Acid test ratio is calculated by dividing the total current assets, except for inventory, by the cur...

Q: A firm has directly placed an issue of commercial paper that has a maturity of 60 days. The issue so...

A: Commercial Paper: It is  an unsecured money market instrument issued by  highly rated corporate borr...

Q: A company plans to add an additional production line at an initial cost of $ 1,250,000 that will giv...

A: Initial Investment  $ 12,50,000.00 Gross Savings  $ 10,00,000.00 Annual operating cost  $   2,50...

Q: Which of the following are characteristics of consumer closed

A: answer   statement 2 is false  because no flexibility in timing , time is fixed.   statement 5 is fa...