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Valuing Securities using Accounting Information

Unrealized loses for available-for-sale securities

See attached file. When a company has an unrealized loss/gain from their available-for-sale securities, the balance in the Securities Fair Value adjustment account is supposed to be added or subtracted. Since this account doesn't have a normal balance I don't know when to add or subtract losses or gains or if I'm supposed to

Research and describe Ford and UPS securities

Conduct research on the selected securities (Ford and UPS) Examine the organizations' 10K and investment reports, general economic data, and Federal Reserve data. Describe the selected securities.

Securities & Exchange Commission

In 2009, the Securities and Exchange Commission (SEC) caught Bernard Madoff (Ponzi scheme) in lies but disregarded many concerns. What do you think about the fact that the SEC, whose purpose is to make sure that laws are obeyed, ignored these facts?

Securities Valuation: Plantics Inc, Magic Kelly Productions

The book is: Aswath Damodaran, Investment Valuation, Tools and Techniques for Determining the Value of Any Asset, Second University Edition, John Wiley & Sons, 2002 [ISBN 0-471-4190-5 (paper)] 1. Magid's operating income after taxes last year was $55 million, while net income was $30 million. Magid paid normal cash divide

Pricing securities

Calculate the pre-tax cost of debt by finding the rate that sets the present value of the bond equal to the cash flows. Prior to issuing new bonds, use the market price. After you issue new bonds, you have to use the net value. The flotation cost is 10%, so the net value is 90% of the market prices Market Price "Net Value Fo

Arantxa Corporation: Equity Securities Journal Entries

Arantxa Corporation made the following cash purchases of securities during 2008, which is the first year in which Arantxa invested in securities. 1. On January 15, purchased 10,000 shares of Sanchez Company's common stock at $33.50 per share plus commission $1,980. 2. On April 1, purchased 5,000 shares of Vicaio Co.'s co

Marketable securities

I'm looking to invest in short-term investment such as banker's acceptance,I am havign a hard time finding the crediable information. how would this company assist in a company's management goal? is this type of security safe and worth the hassel? which organization would benefit most from this type of security? Any suggestion

Weights Assigned to Individual Securities

3. The weights assigned to individual securities in a portfolio when computing the portfolio rate of return are: a. equal. b. based on the amount initially invested in each security. c. based on the current market value of each security. d. based on the betas of each security.

Valuing Stocks

Homework 1) Sybil gave her son Todd 1,000 shares of XYZ stock on January 16, 2007. The stock's high and low selling prices that day were $55 and $53. Sybil had purchased the stock in 2006 for $70 per share. At the beginning of 2008, Todd sold the shares for $62,000. Provide the details of both income an

Value and earnings for available-for-sale and trading securities

Presented below are three unrelated situations involving equity securities: Situation 1: An equity security, whose market value is currently less than cost, is classified as available-for-sale but is to be reclassified as trading. Situation 2: A noncurrent portfolio with an aggregate market value in excess of cost includ

Diluted EPS & Securities

1. Ren Inc. owns shares of Stimpy Corporation stock classified as available-for-sale securities. At December 31, 2006, the available-for-sale securities were carried in Ren's accounting records at their cost of $875,000, which equals their market value. On September 21, 2007, when the market value of the securities was $1,400,00

Accounting II

1. Unruh Corp. began operations in 2007. An analysis of Unruh's equity securities portfolio acquired in 2007 shows the following totals at December 31, 2007 for trading and available-for-sale securities: Trading Available-for-Sale

Dale Company Seasonal Sales Volume

Dale Company experiences heavy sales in the summer and early fall, after which time it has excess cash to invest until the next spring. On November 1, 20x8, the company invested $194,000 in US Treasury Bills. The bills mature in 180 days at $200,000. Prepare entries to record the purchase on November 1; the adjustment to accrue

Debt Securities and Amortization Schedules

(Debt Securities) Presented below is an amortization schedule related to Kathy Baker Company's 5-year, $100,000 bond with a 7% interest rate and a 5% yield, purchased on December 31, 2004, for $108,660. Date Cash Received Interest Revenue Bond Premium Amortization Carrying Amount of Bonds 12/31/04 $108,660 12/31/05 $7,

Alvarez Corp available for sale securities: analyze transactions

P17-12 (Available-for-Sale Securities?Statement Presentation) Alvarez Corp. invested its excess cash in available-for-sale securities during 2006. As of December 31, 2006, the portfolio of available-for-sale securities consisted of the following common stocks. Security Quantity Cost Fair Value Keesha Jones, Inc. 1,000 shares

1) If a security can easily be converted to cash without a loss in value, it 2) According to the segmented markets theory, if most investors suddenly preferred to invest in short term securities and most borrowers suddenly preferred to issue long term securities there would be

1) If a security can easily be converted to cash without a loss in value, it a. is liquid b. has a high after tax yield c. has high default risk d. is illiquid 2) According to the segmented markets theory, if most investors suddenly preferred to invest in short term securities and most borrowers suddenly preferred to i

Financial intermediaries, Securities

Please help with the following multiple choice problems. 1) Without the participation of financial intermediaries in financial market transactions, a. information and transaction costs would be lower b. transaction costs would be higher but information costs would be unchanged c. information costs would be higher but t

Money Policy: Market Interest Rates

When the Fed purchases securities, the total funds of commercial banks ________ by the market value of securities purchased by the Fed. This activity initiated by the FOMC's policy directive is referred to as a ________ of money supply growth. a. increase; loosening b. decrease; tightening c. decrease; loosening d. inc

General journal entries for trading securities

XYZ Company has the following securities in its portfolio of trading equity securities on December 31, 2007: Cost Fair Value 5,000 shares of Nicky Corp., Common $155,000 $139,000 10,000 shares of Max Stores, Common 182,000 190,000 $337,000 $329,000 All of the securities had been purchased in 2007. In 2008, XYZ c

Industries of Selected Securities: Example Problems

I need some assistance on this assignment as do not know what industries these stocks are in. Identify the industries of your six selected securities, including bonds. 1. GE (General Electric) 2. Home Depot 3. Cisco Systems 4. Microsoft 5. Wal-Mart The selected bond issued by Santa Rosa, California Wastewater S

Constant Growth Model

Medtrans is a profitable firm that is not paying a dividend on its common stock. James Weber, an analyst for A.G. Edwards, believes that Medtrans will begin paying a $1.00 per share dividend in two years and that the dividend will increase 6% annually thereafter. Bret Kimes, one of James colleagues at the firm, is less optimis

Investment in Debt Securities at a Discount

On May 1, 2007, Gipson Corp. purchased $450,000 of 12% bonds, interest payable on January 1 and July 1, for $422,800 plus accrued interest. The bonds mature on January 1, 2013. Amortization is recorded when interest is received by the straight-line method (by months and round to the nearest dollar). Assume bonds are available fo

Securities Analysis: fundamental analysis

I have to answer the questions below in 250 words. I have been reading the chapter and don't fully understand this question. What is fundamental analysis? How does fundamental analysis impact your securities analysis?

Valuing Gold Reclaimed from Old Personal Computers

A number of industrial products include gold and silver as a component since they have very good conductive properties. The S&M Smelting Company engages in the recovery of gold from such products and is considering a contract to begin extracting the gold from the recycling of personal computers. The project involves contracting

How much cash or securities must you put into your brokerage account if the broker's initial margin requirement is 50%? How high can the price of the stock go before you get a margin call if the maintenance margin is 30%? What will be your rate of return after 1 year if you close out your short position and the stock is selling at $25 ($35) per share?

Suppose you are bearish on Stock Y and decide to sell short 100 shares at the current market price of $30 per share. You earn no interest on the funds in your margin account and the cost of borrowing shares is 0.25%. a) How much cash or securities must you put into your brokerage account if the broker's initial margin require

SWIFT's implementation of the "smart card"

Question 1 SWIFT's implementation of the "smart card" is expected to a.decrease the likelihood of electronic fraud. b.remove the need for secret information to be sent through mail. c.guarantee the identity of the sender. d.all of the above Question 2 A Just-In-Time (JIT) inve