Compare all the company ratios with all the industry ratios. What does the ratios indicate

5.7 Calculating Profitability Index Bill plans to open a self serve grooming center in a storefront. The grooming equipment will cost $325,000, to be paid immediately. Bill expects after tax cash inflows of $67,000 annually for 7 years, after which he plans to scrap the equipment and retire to the beaches of Nevis. The first cash inflow occurs at the end of the first year. Assume the required return is 13 percent. What is the project’s PI? Should it be accepted?

1. Exchange Traded Funds have certain advantages over index mutual funds in terms of taxation

2. Private Equity Companies

3. Captive structures are created by intermediaries to

4. Assets that have been used to create asset-backed securities include all of the following except,

5. While life insurance companies have portfolios that are similar to pension plans, the portfolios of property casualty companies tend to be shorter term, fixed income securities.

Your brother has offered to give you either $50,000 today or$ 100,00 in 11years. If the interest rate is 5 %per​ year, which option is​ preferable?The present value of the future amount​ (amount received in11years) is ? ​(Round to the nearest​ dollar.)

Which option is​ preferable?  ​(Select the best choice​ below.)

Take the present amount offered because it is less than the future amount.

Take the future amount because it is twice as much as the amount offered today in present value terms.

Take the future amount because it is greater than the amount offered today

Take the present amount offered because it is greater than the present value of the future amount

what is a financial statement derivative.

Identify an example and how company’s use to leverage the business activities.

Problem 15-6 Additional Funds Needed (LG15-4)

Suppose that Wind Em Corp. currently has the balance sheet shown below, and that sales for the year just ended were $7.2 million. The firm also has a profit margin of 30 percent, a retention ratio of 20 percent, and expects sales of $8.2 million next year.

If all assets and current liabilities are expected to grow with sales, what amount of additional funds will Wind Em need from external sources to fund the expected growth? (Enter your answer in dollars not in millions.)  

PLEASE SHOW STEPS IN EXCEL SHEET

MC algo 26-19 Cash Disbursements Weisbro and Sons purchases its inventory one quarter prior to the quarter of sale. The purchase price is 60 percent of the sales price. The accounts payable period is 60 days. The accounts payable balance at the beginning of Quarter 1 is $25,800. What is the amount of the expected disbursements for Quarter 2 given the following expected quarterly sales?

Quarter 1: $ 67,000 Quarter 2: $ 108,000 Quarter 3: $ 100,000 Quarter 4: $ 109,000

Multiple Choice

A. $40,200

B. $61,600

C. $65,000

D. $63,200

E. $57,000

. What is the present value of the following set of cash​ flows, discounted at

10.8 %10.8%

per​ year?

b. What is the present value of the following set of cash​ flows, discounted at

10.8 %10.8%

per​ year?

c. Each set contains the same cash flows

​($ 12$12​,

$ 22$22​,

$ 32$32​,

$ 42$42​,

$ 52$52​),

so why is the present value​ different?

a. What is the present value of the following set of cash​ flows, discounted at

10.8 %10.8%

per​ year?

The present value of the cash flow stream is

​$nothing.

​(Round to the nearest​ cent.)b. What is the present value of the following set of cash​ flows, discounted at

10.8 %10.8%

per​ year?

The present value of the cash flow stream is

nothing.

​(Round to the nearest​ cent.)c. Each set contains the same cash flows

​($ 12$12​,

$ 22$22​,

$ 32$32​,

$ 42$42​,

$ 52$52​),

so why is the present value​ different?  ​(Select the best choice​ below.)

A.The present value in part

​(b​)

is higher because the larger cash flows occur sooner.

B.The present value in part

​(a​)

is higher because the larger cash flows occur sooner.

C.The present value in part

​(b​)

is lower because the larger cash flows occur sooner.

D.The present value in part

​(a​)

is lower because the larger cash flows occur sooner.

You need to save a total of $7,500 in order to buy a new motorcycle. You are starting with savings of $4,000 but will make no additional contributions. The annual interest rate is 5%. In excel compute how long you would need to wait in order to reach your goal for interest that is compounded annually, semi-annually, quarterly, monthly, weekly, and daily. Which of the following accurately depicts this calculation?

Which of the following statements is CORRECT? Group of answer choices 1) The use of debt financing will tend to lower the basic earning power ratio, other things held constant. 2) A firm that employs financial leverage will have a higher equity multiplier than an otherwise identical firm that has no debt in its capital structure. 3) If two firms have identical sales, interest rates paid, operating costs, and assets, but differ in the way they are financed, the firm with less debt will generally have the higher expected ROE. 4) The numerator used in the TIE ratio is earnings before taxes (EBT). EBT is used because interest is paid with post-tax dollars, so the firm's ability to pay current interest is affected by taxes. 5) Other things held constant, increasing the total debt to total capital ratio will increase the ROA.

Your company is considering investing in a new project and wants to know the discounted payback period. The initial investment in the project is​ $12,000 and the expected annual profit is​ $2,800 per year. You also expect to have to have to overhaul the equipment every 4​ years, which will cost​ $600 (that​ is, in years​ 4, 8,​ 12, etc. The project will also make the​ $2,800 profit in those​ years). Given an interest rate of​ 8%, what is the discounted payback​ period?

1. Martin Oil and Gas Inc was formed right after the 2012 presidential elections. The company did not fare well for the five years, but finally turned around in the sixth year of operations. Rocco’s operating income (EBIT) for its first six years of operations is reported below.
   

   Year	EBIT
   2013	-$300,000
   2014	-$250,000
   2015	-$200,000
   2016	-$150,000
   2017	-$100,000
   2018	$1,500,000

   
     
   The company follows a very conservative approach and hence does not carry any debt in its book, hence its operating income equals earnings before taxes. The corporate tax rate has remained constant at 30%. Assume that the company took full advantage of the carry-back, and carry-forward provisions in the Tax Code, and assume that the current provisions were applicable in 2013 through 2018. How much tax did the company pay in 2018?

   	a	$200,000
   	b	$175,000
   	c	$375,000
   	d	$150,000
   	e	$450,000

A security will make payments of $25 per month, plus $1000 at maturity. The price of this security is $2000. Which of the following is true? If the time to maturity is 7 years then the effective rate is 10.52%% If the time to maturity is 4 years then the effective rate is 10.52% If the time to maturity is 7 years then the effective rate is 10.05% If the time to maturity is 4 years then the yield to maturity is 10.05% If the time to maturity is 7 years then the effective rate is 3.34%

Provide Sue with financial advice on which option has the potential to yield the highest monetary value. Support your rational with calculations using time value of money and comment on the risk return relationship for each option, assume interest rate on savings is 4% and is compounded semi-annually.

Sue James is a 55-year old accountant who works at Ernst and Young (EY) who is about to retire. She has the following decision to make:

Option A – Select a lump sum gratuity payment of $120,000 with a reduced pension of $1,750 per month.

Option B – Select a monthly pension of $3,300 with no lump sum gratuity payment.

In addition, Sue has a loan of $72,000 with loan payments of $1,200 per month for the next five years.

Tony Inc began operating in 2015. The company lost money the first year but has been profitable ever since. The company’s taxable income (EBT) for its first five years is listed below. Each year the company’s corporate tax rate has been 35 percent. Year Taxable Income 2015 -$4 million 2016 1 million 2017 2 million 2018 3 million 2019 5 million Assume that the company has taken full advantage of the Tax Code’s carry-back, carry-forward provisions and that the current provisions were applicable during these years. How much did the company pay in taxes in 2018 and 2019 respectively?

a)$0, $1,750,000

b)$700,000, $1,750,000

c)$800,000, $1,750,000

d)$600,000, $700,000

e)$300,000, $800,000