Please help with the attached two questions. Instructions - Journalize transactions for investments in stocks. Q.1.) Hermes Inc. had the following transactions pertaining to investments in common stock. Jan. 1 Purchased 2,000 shares of Lanier Corporation common stock (5%) for $140,000 cash plus $2,100 broker's comm
Assume that a one-year Treasury securities yield 5%.The market anticipates that 1 year from now, one-year Treasury securities will yield 6%. So if the pure expectations theory is correct, what is the yield today for 2-year Treasury securities?
Which of the following is not a method employed by followers of the fundamental analysis? a. analysis of interest rates and other mareconomics factors b. relative strength analysis c. earnings forcasting d. all of the above are methods of fundamental analysis
If I sell a component for $20 each. Current capacity is 10,000 units per week. For the last few months, however, my company has been receiving new orders at a rate of 14,000 units per week, and now has a substantial backlog. I expected this order rate to continue, if I maintains my current price. Current operating data foll
Explain the roles of limited liability partnerships and corporations. If you were establishing your own business, under what circumstances would you choose one from the other?
You are considering an investment which would entail $5000 payments each year for 20 years. The investment will pay 7 percent interest. How much will this investment be worth at the end of the 20 years?
This is a finance problem. I know that the net income has increased and that would be classified as good news. The problem is as follows: Kwik Express specializes in the transportation of medical equipment and laboratory specimens overnight. The company has selected the following information from its most recent annual report
This is a multiple choice question. Suppose you pay 15% as a nominal annual rate on your credit card. If you make monthly payments with monthly compounding, what is your effective annual rate? A. 1.25% B. 15.00% C. 16.08% D. 18.80% E. 19.24%
What is the relationship between JIT concept and forecasting? Do the two go hand-in-hand?
You hold a diversified portfolio consisting of a $5,000 investment in each of 20 different common stocks. The portfolio beta is equal to 1.15. You have decided to sell one of your stocks, a lead mining stock whose b is equal to 1.0, for $5,000 net and to use the proceeds to buy $5,000 of stock in a steel company whose b is equ
Multiplte Choice You have just bought a security which pays $500 every six months. The security lasts for ten years. Another security of equal risk also has a maturity of ten years, and pays 10 percent compounded monthly (that is, the nominal rate is 10 percent). What should be the price of the security that you just purc
This is a multiple choice question. You have $2,000 invested in a bank account that pays a 4 percent nominal annual interest with daily compounding. How much money will you have in the account in 132 days from today? (Assume there are 365 days in each year.) a) $2,029.14 b) $2,028.93 c) $2,040.00 d) $2,023.44 e) 2,023.
1)John invested $1,000 in a risky investment and Bill invested $1,000 in a less risky investment. One year later, Bill's investment is worth $1,030. Which of the following statements is most correct? A)John's investment must be worth more than $1,030 because of the risk-return tradeoff, given that John's investment was more
There are seven years remaining on a ten year car loan. The interest rate is 10.25%. The monthly payments are $450.00. The credit union is willing to accept the present value of the loan as a pay off. develop an amortization schedule Using excel that shows how much will need to be paid at the end of each of the ten years. design
R&R Equipment Company is preparing its annual financial statements in anticipation of applying for a loan. During the last week of the year, R&R received a shipment of inventory but has not paid for it. The invoice indicates that R&R owes $5,000 for the purchase. The owner of R&R, Randy Ray, has decided to omit this asset and th
I am stuck and need help with the following problem: Problem P5-2, Chapter 5, Block & Hirt, Finance and Accounting 11th edition. Hazardous Toys Company prduces boomerangs that sell for $8 each and have a variable cost of $7.50. Fixed costs are $15,000. a) Compute the break-even point in units. b) Find the sales (i
I am stuck and need help with the following problem: Problem P4-20 Chapter 4, Block & Hirt, Finance and Accounting 11th edition Juan's Taco Company has restauraunts in five college towns. Juan wants to expand into Austin and College Station and needs a bank loan to do this. Mr. Bryan, the banker, will fin
Here is the question: The Sans Roentgen Outpatient MRI Center has asked you to detemine the price to be charged for each MRI scan for the first year of operations. Below is the relevant budget data: DESCRIPTION BUDGET Cost-------------------------------------------------------$2,
1) The prices for the Guns and Hoses Corporation for the first quarter of 2005 are given below. Find the holding period return for February. Month End Price January $135.28 February 119.40 March 141.57 2) If a corporation has operating income of $10,500,000 and it receives $245,000 in interest income and $312,00
Barry Carter is considering opening a music store. He wants to estimate the number of CDs he must sell to break even. The CDs will be sold for $13.98 each, variable operating costs are $10.48 per CD, and annual fixed operating costs are $73,500. a. Find the operating breakeven point in number of CDs. b. Calculate the total ope
1) Made-It common stock currently sells for $22.50 per share. The company's executives anticipate a constant growth rate of 10 percent and an end of year dividend of $2. A) What is your expected rate of return if you buy the stock for $22.50. B) If you require a a 17 percent return, should you purchase the stock? 2) Pio
The LOGOS Corporation is planning on issuing bonds that pay no interest but can be converted into $1,000 at maturity, 7 years from their purchase. To price these bonds competitively with other bonds of equal risk, it is determined that they should yield 9%, compounded annually. At what price should the LOGOS corporation sell the
The following cash transactions took place during March, the first month of business for Cats and Dogs Company 1.D.C. Dawg started a business, Cats and Dogs Company, by contributing $6,000. 2.The Cats and Dogs Company borrowed $2,000 from the bank on March 1. The note is a 1-year, 12% note, with both principal and interest
The bank offers to lend the required $1,000,000 on a loan which requires interest to be paid at the end of each quarter. The quoted rate is 10 percent, and the principal must be repaid at the end of the year. What is the effective annual rates (EFF%) charged by the bank?
If you owned your own business, under what conditions would you consider expanding? Would you solely rely upon your financial and liquidity? Why or Why not? 200-300 word response please.
Dear OTA, Please help me with steps. Thanks 1. Trader Joe's orders a 6-week supply of its frozen organic chocolate waffles when stock on hand drops to 400 units. The lead time for this item is 4 weeks. Demand is normal with an average of 80 units per week and standard deviation of demand is estimated 50 units per week.
For markets to be in equilibrium (that is, for there to be no strong pressure for prices to depart from their current levels), a. The expected rate of return must be equal to the required rate of return; that is, . b. The past realized rate of return must be equal to the expected rate of return; that is, . c. The required r
A new, more efficient machine will last four years and allow inventory levels to decrease by $100,000 during its life. At a cost of capital of 13%, how does the net working capital change affect the project's NPV?
P11-10 Degree of financial leverage Northwestern Savings and Loan has a current capital structure consisting of $250,000 of 16% (annual interest) debt and 2,000 shares of common stock. The firm pays taxes at the rate of 40%. a. Using EBIT values of $80,000 and $120,000, determine the associated earnings per share (EPS). b.
P11-7 Degree of operating leverage Grey Products has fixed operating costs of $380,000, variable operating costs of $16 per unit, and a selling price of $63.50 per unit. a. Calculate the operating breakeven point in units. b. Calculate the firm's EBIT at 9,000, 10,000, and 11,000 units, respectively. c. With 10,000 units as a