Questions
Which are the following may a military Tech spared the duck if they do not itemize...

Which are the following may a military Tech spared the duck if they do not itemize How does the military thrift savings plan different from the uniform service retirement plan

In: Finance

If a soup kitchen has marginal revenues of $3.00 per meal delivered, marginal expenses of $4.00...

If a soup kitchen has marginal revenues of $3.00 per meal delivered, marginal expenses of $4.00 per meal, $50,000 of annual fixed costs and annual donations of $150,000, it will...

Select one:

a. never reach its break-even quantity.

b. need additional donations of $1 per meal to reach its break-even quantity.

c. reach its break-even quantity when it serves 100,000 meals.

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please i need answer asap thank u You own 100 acres of timberland,with young timber worth...

please i need answer asap thank u

You own 100 acres of timberland,with young timber worth 20,000 if logged today this represent 500 cords of wood at $40 per cord. after logging the land can be sold today for 10,000($100 per acre). the opportunity cost of capital is 10%. you have made the following estimates: a) the price of a cord of wood will increase by 5% per year? b) the price of land will increase by 3% per year. c) the yearly growth rate of the cords of wood on your land are :

years 1-2: 15%:

year 3-4 :10%:

year 5-8 : 5%

years thereafter 2% please find the present value of the optimal decision.

In: Finance

Problem 12-09 Financing Deficit Garlington Technologies Inc.'s 2016 financial statements are shown below: Balance Sheet as...

Problem 12-09
Financing Deficit

Garlington Technologies Inc.'s 2016 financial statements are shown below:

Balance Sheet as of December 31, 2016

Cash $   180,000 Accounts payable $   360,000
Receivables 360,000 Notes payable 156,000
Inventories 720,000 Line of credit 0
Total current assets $1,260,000 Accruals 180,000
Fixed assets 1,440,000 Total current liabilities $   696,000
Common stock 1,800,000
Retained earnings 204,000
Total assets $2,700,000 Total liabilities and equity $2,700,000

Income Statement for December 31, 2016

Sales $3,600,000
Operating costs 3,279,720
EBIT $  320,280
Interest 18,280
Pre-tax earnings $  302,000
Taxes (40%) 120,800
Net income 181,200
Dividends $  108,000

Suppose that in 2017 sales increase by 20% over 2016 sales and that 2017 dividends will increase to $170,000. Forecast the financial statements using the forecasted financial statement method. Assume the firm operated at full capacity in 2016. Use an interest rate of 10%, and assume that any new debt will be added at the end of the year (so forecast the interest expense based on the debt balance at the beginning of the year). Cash does not earn any interest income. Assume that the all new-debt will be in the form of a line of credit. Round your answers to the nearest dollar. Do not round intermediate calculations.

Garlington Technologies Inc.
Pro Forma Income Statement
December 31, 2017
Sales $
Operating costs $
EBIT $
Interest $
Pre-tax earnings $
Taxes (40%) $
Net income $
Dividends: $
Addition to RE: $


Garlington Technologies Inc.
Pro Forma Balance Statement
December 31, 2017
Cash $
Receivables $
Inventories $
Total current assets $
Fixed assets $
Total assets $
Accounts payable $
Notes payable $
Accruals $
Total current liabilities $
Common stock $
Retained earnings $
Total liabilities and equity $

In: Finance

Question 9 4 pts You buy 1,000 shares of stock at $5.00 per share in January...

Question 9 4 pts
You buy 1,000 shares of stock at $5.00 per share in January of 2004. You sell the stock at $7.50 per share in January of 2007. What is your internal rate of return (IRR)?
Group of answer choices

14.47%

87.36%

18.00%

1.1447%
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Question 10 4 pts
A noted free agent running back just signed a four-year, 30-million dollar contract with a new team. He will get a 7-million dollar signing bonus and a 4.5-million dollar roster bonus. Additionally, he will get 3.25 million for year one, 5.25 million for year two, 5 million for year three, and 5 million for year four. Salary is paid at the end of the first year. Find the present value of his contract if money can earn 6%.
Group of answer choices

$15,897,083.78

$27,397,083.78

$30,000,000

$23,911,000.35
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Question 11 4 pts
Banks calculate the monthly payment on a loan as
Group of answer choices

as an ordinary annuity with payment made one month is advance.

as an ordinary annuity with payment made at end of month.

as an annuity due with payment made one month in advance.

as an annuity due with payment made at end of month.
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Question 12 4 pts
You have an absolutely brilliant child who is six years old and will be attending a private college in twelve years. You know that in twelve years a four-year college will cost at least $70,000 per year (total $280,000), including tuition, books, and room and board. If you can earn 12 percent on a mutual fund investment during the next twelve years, how much will you have to invest at the beginning of each year to have enough to send your child to college for four years?
Group of answer choices

$4,484.33

$10,359.20

$5,022.45

$11,602.30

In: Finance

rom Rubin, Problem 13.3: A 120. MW coal plant wants to add a SOX emissions control...

rom Rubin, Problem 13.3: A 120. MW coal

plant wants to add a SOX emissions control system to reduce its emissions. The emission

control system has a capital cost of $815 per kW and reduces SOX emissions by 98% to

0.0918 kg/MWh. Assume the life of the emission control system is 20 years and the power

plant produces 650 GWh/y.

a)What is the annualized cost of this system in dollars per year if the discount rate (interest

rate) is 7.0 percent/year? What if the discount rate is 4.0 percent/year?

b)What is the cost per 1.0399 x 10^4kWh of electricity usage (the average annual U.S.

residential electricity consumption in 2017 according to the EIA) at each of the discount

rates specified in part (a)?

c) What is the cost per metric ton of SOXremoved?

(1 metric ton = 1,000 kg = 10^6g)

In: Finance

A firm has the following project (assume that the expenditures are at the end of the...

A firm has the following project (assume that the expenditures are at the end of the year in question):
1) The land will be acquired for $ 500,000 in year zero
2) The first year, $ 1 million will be spent on the construction of the plant.
3) The equipment will be purchased on year 2 at a cost of $1.5 million.
4) The third year, $ 500,000 will be disbursed to start operating the plant.
5) The plant and equipment will depreciate in a straight line for the next 10 years, beginning year 4 (project ends in year 13). The equipment and the physical construction will be worthless after these 10 years, but the land can be sold at its original cost, when the plant is closed.
6) The annual income (during the 10 years, that is, from the 4th to the 13th year) is 2 million.
7) The annual fixed cost (excluding depreciation) will be $ 200,000
8) The variable costs are annually of $ 300,000, assuming that the plant operates at its maximum capacity during the 10 years
9) The tax rate will be 50 percent as it will be treated as if it were a private business of the state itself (i.e. treat the state as a company, that is, pure neoliberalism)

Calculate the Net Present Value of the Project, if the discount rate is 14%.

In: Finance

Question 21 4 pts Which part of Medicare includes a prescription drug plan? Group of answer...

Question 21 4 pts
Which part of Medicare includes a prescription drug plan?
Group of answer choices

Medicare part C

Medicare part A

Medicare part D

Medicare part B
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Question 22 4 pts
Which of the following is the MOST liquid of all investments?
Group of answer choices

real estate

cash

bonds

certificates of deposit
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Question 23 4 pts
Which of the following is the LEAST liquid of all investments?
Group of answer choices

bonds

real estate

certificates of deposit

cash
Flag this Question
Question 24 4 pts
Bonds sold at a value below par are sold at a ________, and bonds sold at a value above par are sold at a ________.
Group of answer choices

discount; premium

discount; markup

premium; discount

markup; discount

In: Finance

Use this scenario "How to turn a movie theater into a hotel franchise." Create of a...

Use this scenario "How to turn a movie theater into a hotel franchise." Create of a operations plan that shows how the product or service will be delivered

In: Finance

It appears that George is running a profitable business. George is aware you are in an...

It appears that George is running a profitable business. George is aware you are in an MBA Managerial Finance class and comes to you for advice on his working capital practices. More specifically George asks you to do the following:

View the following video: http://searchcenter.intelecomonline.net/playClipDirect.aspx?id=4870EEC7664070BB9D6744FDA7325EE44F45E0E47862343D60FAA8E3325D1A83C46D5C6FAB3D01A758FA30144214BB3D

Describe his working capital practices, including his methods of capital budgeting analysis techniques.

Analyze the potential pitfalls in his capital budgeting practices that George should be aware of.

Develop a simple statement of cash flows for George’s Trains using any information gleaned from the video. What areas of improvement do you recommend and why?

In: Finance

he following are estimates for two stocks. Stock Expected Return Beta Firm-Specific Standard Deviation A 8...

he following are estimates for two stocks.

Stock Expected Return Beta Firm-Specific Standard Deviation
A 8 % 1.10 25 %
B 16 1.60 36

The market index has a standard deviation of 18% and the risk-free rate is 6%.

a. What are the standard deviations of stocks A and B? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

b. Suppose that we were to construct a portfolio with proportions:

Stock A 0.30
Stock B 0.45
T-bills 0.25

Compute the expected return, standard deviation, beta, and nonsystematic standard deviation of the portfolio. (Do not round intermediate calculations. Enter your answer for Beta as a number, not a percent. Round your answers to 2 decimal places.)

In: Finance

You are the consumer staples analyst for a large corporate and investment bank. The bank’s management...

You are the consumer staples analyst for a large corporate and investment bank. The bank’s management has committed to shareholders to lift the bank ROE from the current 5% to 8% within a year and to 10% within 2 years.

Your institution can borrow money at the following maturity and cost:

Overnight 0.10% . 1-month 0.20% 3-month 0.25% 6-month 0.50%

1-year 0.75% . 3-year 1.50% . 5-year 2.00% . 7-year 2.50% 10-year 3.0%

You are looking at 2 loan applications for $200M each from Foodco and Safeco, two companies you know and cover for years, both of which have an established relationship with your bank. Foodco’s cost of borrowing in the market is UST +250 while Safeco’s UST+400. As Safeco is considered the riskier of the two, any loan towards Safeco will have to generate more loss reserves. Both loans will be senior secured and thus collateralized. Safeco pledges as collateral real estate holdings plus business receivables (50/50) while Foodco pledges delivery trucks plus $20M of cash deposits. The appraised value of the collateral covers the loan fully. For Foodco the loan reserve (based on its implied probability of default) is 30 basis points per annum while for Safeco is 60 basis points per annum. Both companies “leak” to you that they already have received bids from competitors in the neighborhood of 5.5% and 6.0% respectively for a 10yr loan. What do you do and why?

In: Finance

Assume that security returns are generated by the single-index model, Ri = αi + βiRM +...

Assume that security returns are generated by the single-index model,

Ri = αi + βiRM + ei


where Ri is the excess return for security i and RM is the market’s excess return. The risk-free rate is 2%. Suppose also that there are three securities A, B, and C, characterized by the following data:

Security βi E(Ri) σ(ei)
A 0.9 9 % 22 %
B 1.2 12 8
C 1.5 15 17

a. If σM = 18%, calculate the variance of returns of securities A, B, and C.

b. Now assume that there are an infinite number of assets with return characteristics identical to those of A, B, and C, respectively. What will be the mean and variance of excess returns for securities A, B, and C? (Enter the variance answers as a percent squared and mean as a percentage. Do not round intermediate calculations. Round your answers to the nearest whole number.)

In: Finance

1.     Consider the following Balance Sheet for Total Caribbean Bank(TCB) (in millions) ASSETS LIABILITIES Floating rate...

1.     Consider the following Balance Sheet for Total Caribbean Bank(TCB) (in millions)

ASSETS

LIABILITIES

Floating rate mortgages

120

Demand deposits

110

(currently 12% annually)

(currently 3% annually)

30 years fixed rate loans

1 year CD

50

(currently 7% annually)

80

(currently 6% annually)

Equity

40

200

200

a.      What is TCB expected net interest income (NII) at year end? (1mark)

b.     What is TCB expected net interest income at year end if interest rates grew by 500 basis points. (1 mark)

c.      What is TCB expected net interest income at year end if interest rates fell by 200 basis points on assets, but decline by 2% on liabilities.

(2 marks)

In: Finance

Suppose that there are two independent economic factors, F1 and F2. The risk-free rate is 3%,...

Suppose that there are two independent economic factors, F1 and F2. The risk-free rate is 3%, and all stocks have independent firm-specific components with a standard deviation of 52%. Portfolios A and B are both well-diversified with the following properties:

Portfolio Beta on F1 Beta on F2 Expected Return
A 1.4 1.8 30%
B 2.4 –0.18 27%

What is the expected return-beta relationship in this economy? Calculate the risk-free rate, rf, and the factor risk premiums, RP1 and RP2, to complete the equation below. (Do not round intermediate calculations. Round your answers to two decimal places.)


E(rP) = rf +P1 × RP1) +P2 × RP2)

In: Finance