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Basic Concepts in Accounting Problems

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Need help with the following 6 problems for a final review:

4) What is the NPV for the following project if its cost of capital is 12 percent and its initial after tax cost is $5,000,000 and it is expected to provide after-tax operating cash flows of $1,800,000 in year 1, $1,900,000 in year 2, $1,700,000 in year 3 and ($1,300,000) in year 4?
A) $(1,494,336)
B) $1,494,336
C) $158,011
D) Two of the above

10) A firm has a beta of 1.8. The market return equals 16 percent and the risk free rate of return equals 6 percent. The estimated cost of common stock equity is:

17) Tangshan Mining has common stock at par of $200,000, paid in capital in excess of par of $400,000, and retained earnings of $280,000. In states where the firm's legal capital is defined as the total of par value and paid-in-capital of common stock, the firm could pay out ________ in cash dividends without impairing its capital.
A) $280,000
B) $400,000
C) $480,000
D) $600,000

26) A firm has a cash conversion cycle of 60 days. Annual outlays are $12 million and the cost of negotiated financing is 12 percent. If the firm reduces its average age of inventory by 10 days, what is the annual savings? (use a 360 day year and remember that first, you have to calculate the daily expenditure.)
(a) $104,000
(b) $144,000
(c) $28,800
(d) $40,000

28) The cost of giving up a cash discount under the terms of sale 2/10 net 90 (assume a 360 day year) is
A. 9.2 percent.
B. 8.3 percent.
C. 10.7 percent.
D. 6.0 percent.

32) A firm has an outstanding bond with a $1,000 par value that is convertible at $40 per share of common stock. If the current market value of common stock per share is $45, the conversion value of the bond is
A. $ 880.
B. $1,000.
C. $1,125.
D. $1,200.

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4) What is the NPV for the following project if its cost of capital is 12 percent and its initial after tax cost is $5,000,000 and it is expected to provide after-tax operating cash flows of $1,800,000 in year 1, $1,900,000 in year 2, $1,700,000 in year 3 and ($1,300,000) in year 4?

NPV=-5000000+1800000/(1+12%)^1+1900000/(1+12%)^2+1700000/(1+12%)^3-1300000/(1+12%)^4
NPV=-1494335.86
Option A is correct
A) $(1,494,336)

10) A firm has a beta of 1.8. The market return equals 16 percent and the risk free rate of return equals 6 percent. The estimated cost of common stock equity is:
Risk Free rate=rf=6%
Market return=rm=16%
Beta=1.8
Cost ...

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Ethics and the Conceptual Framework - Since the scandals of the late '90s, a discussion has taken place about principles-based and rules-based systems for accounting.

Since the scandals of the late '90s, a discussion has taken place about principles-based and rules-based systems for accounting. Many of the scandals involved issues where the organization technically may have met the rule while clearly violating the principle involved.

Please review the attachments:

Considering George Batavick's comments regarding principles-based accounting, prepare a 700-1,050 word paper in which you do the following:

a. Evaluate the conceptual framework developed by the Financial Accounting Standards Board (FASB)
b. Analyze the role and ethical considerations of judgment and decision making in accounting.
c. Take sides on whether principles-based accounting or rules-based accounting more adequately includes the role of ethics and fits best within the conceptual framework. In your paper, state the main arguments of each side, along with evidence to substantiate the arguments. You should conclude with a brief discussion of which side of the argument is stronger and why.

Book: Abdolmohammadi,(2002), Applied research and financial reporting, New York: McGraw-Hill.

Please show references and thank you in advance.

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