Question 1

A-Select a publicly traded company, and describe its current distribution policy. (Pick any company you'd like, but not IBM)

B-Describe the procedures the company followed when it made the last distribution through dividend payments or through a stock repurchase.

C- Analyze how the last distribution impacted the company's intrinsic stock price per share.

D- Evaluate the company's current distribution policy, i.e. discuss the advantages and disadvantages of the company's current distribution policy.

Compute and Interpret Liquidity, Solvency and Coverage Ratios
Selected balance sheet and income statement information from Verizon Communications follows.

(a) Compute the current ratio for each year and discuss any trend in liquidity. (Round your answers to two decimal places.)
2005 current ratio = Answer

2004 current ratio = Answer

What additional information about the numbers used to compute this ratio might be useful in helping you assess liquidity? (Select all that apply)
Answeryesno The maturity schedule of current liabilities
Answeryesno The average stock price for the industry
Answeryesno The average current ratio for the industry
Answeryesno The amount of current assets that is concentrated in relatively illiquid inventories

(b) Compute times interest earned, total liabilities-to-equity, and net cash from operating activities to total debt ratios for each year. (Round your answers to two decimal places.)
2005 times interest earned = Answer
2004 times interest earned = Answer

2005 total liabilities-to-equity = Answer
2004 total liabilities-to-equity = Answer

2005 net operating cash flow to total debt = Answer
2004 net operating cash flow to total debt = Answer

Which of the following best describes the extent of Verizon's financial leverage and the company's ability to meet interest obligations?

Verizon's times interest earned ratio has decreased, total liabilities-to-equity has increased, and net operating cash flow to total debt ratio has remained the same, which suggests the company will meet its obligations.

Verizon's times interest earned ratio has increased, total liabilities-to-equity has increased, and net operating cash flow to total debt ratio has decreased, which suggests the company will not meet its obligations.

Verizon's times interest earned ratio has increased, total liabilities-to-equity has decreased, and net operating cash flow to total debt ratio has remained the same, which suggests the company will meet its obligations.

Verizon's times interest earned ratio has increased, total liabilities-to-equity has decreased, and net operating cash flow to total debt ratio has decreased, which suggests the company will not meet its obligations.

(c)Verizon's capital expenditures are expected to increase substantially as it seeks to respond to competitive pressures to upgrade the quality of its communications infrastructure. Which of the following best describes Verizon's liquidity and solvency in light of this strategic direction?

The company's profitability and operating cash flow are fairly strong, both are particularly high in relation to the company's liabilities and interest costs. The capital expenditures can be made with no borrowing or additional equity.

The company's profitability and operating cash flow are fairly weak, both are very low in relation to the company's liabilities and interest costs. The company is on the verge of bankruptcy.

The company's profitability and operating cash flow are fairly weak, both are very low in relation to the company's liabilities and interest costs. The company cannot fund any capital expenditures.

The company's profitability and operating cash flow are fairly strong, neither is particularly high in relation to the company's liabilities and interest costs. The capital expenditures may have to be funded with higher-cost equity.

1. It has been suggested that global warming may increase the frequency of hurricanes. The table given below shows the number of major Atlantic hurricanes recorded annually before and after 1990.

Does this data is sufficient enough to claim that the number of annual hurricanes increased since 1995? Do the test at 8% significance level. To do the test, answer the following: a. Write down the null and alternative hypotheses. b. Get the excel output and answer the following: i. Fill the cell with the p-value of the test with green color ii. Fill the cell with the test statistic of the test with yellow color

• Use Excel to conduct a regression of the values of the security against the predictors and verify the validity of underlying assumptions
  • Check for homoscedasticity and serial correlation
  • If necessary, rerun the regression using robust standard errors
  • Look for evidence of multicollinearity and eliminate redundant predictors if necessary

How much money would you have by the end of 2019? Problem 4. Hard problem: Suppose that you invested $x in 1980. Plot the amount of money you would have in 2019 for all values of $x between $0 and $100,000. Solve using R Studio

Consider the following assets:
(I) An investment in the shares of a company that is publicly traded on a Canadian stock exchange.
(II) An investment in a Government of Canada treasury bill, which matures in nine months.
(III) Funds held in a chequing account at the bank.
Which of the following would be classified as a short-term investment on the statement of financial position?

Using an indirect method statement of cash flows from a publicly traded company, discuss an item that was recorded when calculating net income, but is adjusted as an increase or decrease to determine cash provided by (used by) operating activities, specifically an asset, liability, gain, or loss. Include a summary of how that item impacted net income (or net loss) and why there is an adjustment necessary to determine cash from operations.

Using an indirect method statement of cash flows from a publicly traded company, discuss an item that was recorded when calculating net income, but is adjusted as an increase or decrease to determine cash provided by (used by) operating activities, specifically an asset, liability, gain, or loss. Include a summary of how that item impacted net income (or net loss) and why there is an adjustment necessary to determine cash from operations.

There are arguments to suggest many firms are yet to fully comprehend opportunities
and benefits of integrated Accounting Information Systems (AIS), which can play a key
role in contributing to or enhancing business success

A. Critically comment on this statement including inherent counter arguments and undertake a brief literature review
to examine this phenomenon within a hypothetical company or a publicly traded
company of your choosing.

B. Argue the merits/demerits of a well-designed, poorly designed, or obsolete AIS system.

research one (1) publicly traded company in which you are interested Locate the company website and financial statements. Also locate information on the types of bonds the company issues. Review the Liabilities section of the company’s Balance Sheet.

a)Imagine that you just read about another company in the same industry facing criminal charges for misrepresenting their liabilities. Naturally, you’re worried that the company you’re researching might be doing something similar. Hypothesize a scenario in which someone at the company could intentionally misstate liabilities for his or her personal financial gain. Recommend two (2) actions that these companies can take to prevent or detect intentional misstatements of liabilities for personal financial gain. Justify your response.

b)Imagine that you are advising an investor who is considering purchasing bonds issued by the selected company. Analyze the types of bonds the chosen company issues. Make a recommendation to the investor as to which type of bond would provide the most value. Justify your response.