Cliff Swatner is single, 33, and owns a condominium in New York City worth $250,000. Cliff is an attorney and doing well financially. His income last year exceeded $90,000, and he has sufficient liquid assets to supplement his condominium and other tangible assets. Several years ago, Cliff began investing in stocks and bonds. He
Limitations of the Balance Sheet include: a) Assets recorded at historical value. b) It only recognizes assets that can be expressed in monetary terms. c) Owners' equity is usually less than the company's market value. d) All of the above The costs of maintaining current assets, including the opportunity cost of capital i
The budgeting process: a) defines goals and objectives b) coordinates business activities c) motivates employees d) all of the above 33. A method of attributing costs to products based on assigning costs of resources to activities and assigning costs of activities to products is known as Unit Based Costing. a) true b) f
A cash payment received from a customer's accounts receivable would be recorded as: a) an increase in revenue b) a decrease in liability c) an increase in owner's equity d) an increase in assets 16. Which of the following statements is false? a) A company generally prefers to have a high debt ratio. b) The current ratio
Assume the following data for the questions: Company A Fixed Costs = $100,000 Company A Variable Costs per unit = $0.50 Company A price per unit = $3.00 Company B Fixed Costs = $50,000 Company B depreciation = 10 percent Company B Contribution Margin = $1.50 20. The break-even point for Company A is: a) 20,000 unit
Case 7-3 Credit Policy Review The president, vice president, and sales manager of Moorer Corporation were discussing the company's present credit policy. The sales manager suggested that potential sales were being lost to competitors because of Moorer Corporation's tight restrictions on granting credit to consumers. He stated
(This is the table) Practice 21-4 Gross Margin Comparison Which of the following companies performed better during the period based on gross margin alone? Com. A Com. B Beginning total assets $ 183,000 $ 92,000 Ending total assets 192,000
Risk management involves safety concerns not only for the employees but for a company as well. What are some ways a company can prepare the business for a natural disaster?
Show your work (Show the formula, the values of the variables in the formula, and the result of the formula). Final answers should be rounded to the nearest cent (two decimal places). Beware of rounding intermediate results. 1. A resident of the United States has a base income of $23,000 after adjustments for deductions. N
Finance Questions - Retained Earnings, K, Warrants. See attached file for full problem description.
The Zambrano family bought a house for $91,000. They paid $20,000 down and took out a 30-year mortgage for the balance at 9%. a. Find their monthly payment. b. How much of the first payment is interest? After 180 payments, the family sells its house for $136,000. They must pay closing costs of $3700 plus 2.5% of the sale pr
Find the simple interest 1) $4902 at 9.5% for 11 months Find the amount of interest earned 2) $3954 at 8% compounded annually for 12 years Find the present value 3) $17,650 in 4 years, 8% compounded quarterly Find the future value 4) $500 deposited at the end of each 6-month period for 8 years; money earns 6% co
Your firm has $100,000 available in Retrained Earnings at a cost of 12%. Additional common stock can be issued at a cost of 14%. If your company needs to raise $200,000 in equity, what rate should you assume for its cost?
TIME LOAN BALANCE YEAR-END INTEREST YEAR-END PAYMENT AMORTIZATION OF LOAN DUE ON BALANCE 0 $1,000 $80 $301.92 $221.92 1 $301.92 2 $301.92 3 $301.92 4 0 0 x 4-year amortizing loan. Borrow $1,000 initially and repay it in four equal annual year-end payme
A share of stock currently pays a dividend of D0 = $5. The dividend is expected to grow at a 20 percent annually for the next 10 years, then it will grow at a 15 percent rate for 10 more years, and then at a long-run normal growth rate of 10 percent forever. If investors require a 10 percent return on this stock, what is its c
About a personal experience with a financial market. Identify your need for the financial market and the process of selecting an intermediary-including criteria used in the selection. Discuss any barriers or unusual circumstances that were part of the experience, and if you consider your process repeatable as executed or requiri
What is the ending balance from an initial deposit of $5,000 at 14% compounded monthly for 4 years? Find the amount of interest earned on a deposit of $1,609.25 at 13% compounded monthly for 90 months. Find the present value of $10,425 in 39 months at 13.75% compounded monthly. Find the value of an annuity where $275 is
The Lottery has arrived in North Carolina. Your client has a novel idea of combining pizza sales with lottery ticket sales. You have been employed as a management consultant to recommend "for or against" the Lotto Pizza project. You have been asked to develop a business plan around your recommendation in rural eastern Johnsto
What does that term "time value of money" mean and how does it relate to the calculation of interest, present values of annuities, and payments to amortize a loan?
What would be the investor's return if a stock falls by 9% if purchased on 40% margin?
How would I find the investor's profit on a short sale at $45 if covered at a price of $30?
What is the semi-strong form of the efficient market hypothesis?
If a stock moves through a support level, which direction is the stock likely to go?
How can I calculate the value of the stock, based on the info below. D1 = $0.90 Growth rate for 7 years at 19% Long-term stable growth rate of 7% Required return on stock = 15%.
What is the expected return on a stock given the following? Risk free rate = 6% Beta = 1.25 Expected return on the market = 13%
What will be the investor's return if a stock rises by 7% if purchased on 50% margin?
Tom rears is highly risk-averse while Sonny Outlook actually enjoys taking a risk. A. which one of our four investments should Tom choose? Compute coefficients of variation to help you in your choice B. which one of our four investments should Sonny choose? Investments Returns expected value Standard deviation Buy sto
Calculate the after-tax cost of debt under each of the following conditions. Yield Corporate Tax Rate A. 8.0% 18% B. 12.0% 34% C 10.6% 15%
It takes a company about 6 days to receive and deposit checks from customers...management is considering a lockbox system to reduce collection time. It is expected that the lockbox system will reduce receipt and deposit times to 3 days. Average daily collections are $140,000 and the required rate of return is 9 % per year...
What is preferred stock? Why is preferred stock considered a hybrid security? When should a company fund with preferred stock instead of common stock or debt? Why?