• Q : Find adjusting entry that company should make for interest....
    Finance Basics :

    If company praperes monthly financial statements, the adjusting entry that company should make for interest on september 30, would be?

  • Q : What is the required return....
    Finance Basics :

    Rabie, Inc., has an issue of preffered stock outstanding that pays a $3.80 dividend every year, in perpetuity. If this issue currently sells for $78.45 per share, what is the

  • Q : Financial derivatives to hedge....
    Finance Basics :

    Assume that you are an external adviser of a Chinese chemical firm which produces in Korea for a market in France. The firm uses a range of inputs, crude oil and energy being amongst them.

  • Q : Question regarding npv and irr....
    Finance Basics :

    Given that its food packaging customers have been inquiring about its ability to supply complementary products, Apex is considering coffee packaging as an additional diversification to its product l

  • Q : What must the coupon rate be on bonds....
    Finance Basics :

    Merton Enterprises has bonds on the market making annual payments, with 14 years to maturity, and selling for $972.

  • Q : Worst-case operational risk loss....
    Finance Basics :

    Suppose that there is a 1% probability that operational risk losses of a certain type exceed $10 million. Use the power law to estimate the 99.97% worst-case operational risk loss when the parameter

  • Q : What is the arithmetic average return....
    Finance Basics :

    You purchased 1,300 shares of LKL stock 5 years ago and have earned annual returns of 7.1 percent, 11.2 percent, 3.6 percent, -4.7 percent and 11.8 percent. What is your arithmetic average return?

  • Q : Find operating cash flow of project by tax shield approach....
    Finance Basics :

    The store has a marginal tax rate of 30 percent. What is the operating cash flow of the project using the tax shield approach?

  • Q : Determine the present values....
    Finance Basics :

    Determine the present values if $5,000 in the future (i.e., at the end of each indicated time period) in each of the following situations:

  • Q : What to pay for a share today....
    Finance Basics :

    The company just paid a dividend of $11.70, but management expects to reduce the payout by 4.5 percent per year, indefinitely.

  • Q : Summary of performance tests with exhibits....
    Finance Basics :

    Prepare a summary of performance tests and analysis of the target acquisition. Perform the following tests to help determine what the acquiring company will pay for the acquisition-this is a range. T

  • Q : Original purchase price....
    Finance Basics :

    Assume a local government buys a police patrol vehicle for $30,000 and plans to keep the vehicle for four years. Officials then plan to sell the truck for 15% of the original purchase price.

  • Q : Financial times series mastering....
    Finance Basics :

    "Organizations, like individuals, grow comfortable with the ways they have always looked at things and they are good at shaping the world to fit these ways. Mindsets get reinforced and worldviews be

  • Q : Detail the components of capm....
    Finance Basics :

    The capital asset pricing model (CAPM) relates the risk return trade-off of individual assets to market returns so that a security has a risk-free rate of return and a premium for risk. Explain in

  • Q : Find firm-s cost of preferred stock....
    Finance Basics :

    The preferred stock of CISO, Inc., pays an annual dividend of $6.50 a share and sells for $48 a share. What is CISO's cost of preferred stock?

  • Q : Find correlation coefficient between the returns....
    Finance Basics :

    While stock B comprises 30% of the portfolio. If the variance of return on the portfolio is .045, the correlation coefficient between the returns on A and B is _________.

  • Q : Find the firm-s investment in accounts receivable....
    Finance Basics :

    If Negus's annual sales are $4,380,000 and all sales are on credit, what is the firm's investment in accounts receivable?

  • Q : Find the annual change in the average selling price....
    Finance Basics :

    In October 2012, average house price in the United States was $223,500. In October 2003, the average price was $285,000. What was the annual change in the average selling price?

  • Q : Find the effective annual rate charging on loans....
    Finance Basics :

    Mr. Miser loans money at an annual rate of 19 percent interest with daily compounding. What is the effective annual rate Mr. Miser is charging on his loans?

  • Q : Opportunity to purchase an insurance policy....
    Finance Basics :

    You have the opportunity to purchase an insurance policy for your newborn son. You must make the payments shown in the table. After his fifth birthday no more payments are required.

  • Q : What is the book value per share and earnings per share....
    Finance Basics :

    If Tina's Track Supply's common stock is currently selling at $100 per share, what is the book value per share and earnings per share?

  • Q : Total risk-weighted-assets for credit risk....
    Finance Basics :

    What is the total risk-weighted-assets for credit risk under the Basel I and Basel II advanced IRB approach? How much Tier 1 and Tiear 2 capital is required? How does this compare with the capital r

  • Q : How much to pay for one share of the stock....
    Finance Basics :

    How much are you willing to pay for one share of this stock if you want to earn a 11.50 percent return on your equity investments?

  • Q : What should the price be if the ytm is seven percent....
    Finance Basics :

    Leatherman Corporation's bonds have 15 years till maturity, a 6% coupon rate, and semiannual payments. What should their price be if the YTM is 7%?

  • Q : What is the cost of the preferred stock....
    Finance Basics :

    The preferred stock has a par value of $83 and a dividend rate of 8.9%. The stock is selling for $51.93 in the market. What is the cost of the preferred stock?

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