1.
One way of measuring the advantage of financial leverage to the owners of the company is ________.
A.
to examine the earnings per share (EPS) of a company after borrowing from debt lenders
B.
to examine the earnings per share (EPS) of a company before and after borrowing from debt lenders
C.
to examine the dividends per share (DPS) of a company before and after borrowing from debt lenders
D.
to examine the earnings per share (EPS) of a company before borrowing from debt lenders
2.
If earnings reflect a return greater than the cost of debt, then ________.
A.
the less debt the company has sold, the better off the shareholders are
B.
the more debt the company has bought, the better off the shareholders are
C.
the more debt the company has sold, the better off the shareholders are
D.
the more debt the company has sold, the worse off the shareholders are.
3.
A rising WACC ________ the values of the firm's future cash flows.
A.
increases
B.
has no effect on
C.
keeps constant
D.
reduces
4.
At the optimal
debtminus−tominus−equity
ratio, the cost of capital (WACC) is ________ for the firm. This point reflects the maximum benefit of leverage.
A.
at the midpoint
B.
the highest
C.
irrelevant
D.
the lowest
5.
True of False: Replacing equity financing with debt financing always leads to higher EPS.
a.True
b.False
In: Finance
A researcher would like to examine how the chemical tryptophan, contained in foods such as turkey, can affect mental alertness. A sample of n = 8 college students is obtained, and each student’s performance on a familiar video game (total points earned in the game) is measured before and after eating a traditional Thanksgiving dinner including roast turkey. The following table are the scores for each participant before and after the meal:
Participants: 1,2,3,4,5,6,7,8,
Before Meal (X1): 220,245,215,260,300,280,250,310
After Meal (X2) 210,220,195,265,275,290,220,285
a.For a two-tailed test, what is the null hypothesis using statistical notation?
b. For a two-tailed test, what is the alternative hypothesis using statistical notation?
c. What is the sum of the difference scores (D)?
d. What is the value of MD?
e. What is the value for Sum of Squares for the difference scores (SSD)?
f. What is the sample variance for the difference scores (sD 2 )?
g. What is estimated standard error (sMD)?
h. For a two-tailed test with α = .05, what is the value/s for tcrit?
i. What is the value for tobt?
j. Do these data indicate a significant difference between the treatments at the .05 level of significance? NOTE: simply writing that the effect is significant (e.g., only writing “reject the null”) without showing any work/calculations in parts a-e will result in point zero points.
k. Compute estimated Cohen’s d to measure the size of the treatment effect.
In: Statistics and Probability
Suppose that, prior to the passage of the Truth in Lending Simplification Act and Regulation Z, the demand for consumer loans was given by Qdpre-TILSA = 6 -100P (in billions of dollars) and the supply of consumer loans by credit unions and other lending institutions was QSpre-TILSA = 5 + 100P (in billions of dollars). The TILSA now requires lenders to provide consumers with complete information about the rights and responsibilities of entering into a lending relationship with the institution, and as a result, the demand for loans increased to Qdpost-TILSA = 20 -100P (in billions of dollars). However, the TILSA also imposed “compliance costs” on lending institutions, and this reduced the supply of consumer loans to QSpost-TILSA = 3 + 100P (in billions of dollars). Based on this information, compare the equilibrium price and quantity of consumer loans before and after the Truth in Lending Simplification Act.(Note: Q is measured in billions of dollars and P is the interest rate).
Instruction: Enter your responses for the equilibrium price in percentage terms, and round all responses to one decimal place.
Equilibrium price (interest rate) before TILSA: 0.5 percent
Equilibrium quantity (in billions of dollars) before TILSA: $ 5.5 billion
Equilibrium price (interest rate) after TILSA: __ percent
Equilibrium quantity (in billions of dollars) after TILSA: $ __ billion
(first two answers are correct, I just need help with parts 3 and 4)
In: Economics
|
Locomotive Corporation is planning to repurchase part of its common stock by issuing corporate debt. As a result, the firm’s debt–equity ratio is expected to rise from 35 percent to 50 percent. The firm currently has $3.1 million worth of debt outstanding. The cost of this debt is 8 percent per year. The firm expects to have an EBIT of $1.3 million per year in perpetuity and pays no taxes. |
| a. |
What is the market value of the firm before and after the repurchase announcement? (Enter your answers in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) |
| Market value | |
| Before | $ |
| After | $ |
| b. |
What is the expected return on the firm’s equity before the announcement of the stock repurchase plan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Expected return | % |
| c. |
What is the expected return on the equity of an otherwise identical all-equity firm? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Expected return | % |
| d. |
What is the expected return on the firm’s equity after the announcement of the stock repurchase plan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Expected return | % |
In: Finance
The Clifford Corporation has announced a rights offer to raise $15 million for a new journal, the Journal of Financial Excess. This journal will review potential articles after the author pays a nonrefundable reviewing fee of $4,000 per page. The stock currently sells for $32 per share, and there are 2.7 million shares outstanding.
a. What is the maximum possible subscription price? What is the minimum? (Leave no cells blank - be certain to enter "0" wherever required.)
b. If the subscription price is set at $24 per share, how many shares must be sold? How many rights will it take to buy one share? (Do not round intermediate calculations. Round your rights needed answer to 2 decimal places, e.g., 32.16.)
c. What is the ex-rights price? What is the value of a right? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
d. A shareholder with 2,000 shares before the offering has no desire (or money) to buy additional shares offered as rights. What is his portfolio value before and after the rights offer? (Do not round intermediate calculations and round your answers to nearest whole number, e.g., 32.)
a.The maximum possible subscription price is-
The minimum possible suscription price-
b.Number of new shares-
Number of rights needed-
c.Ex-rights price-
Value of a right-
d.Portfolio value before rights-
Portfolio value after rights-
In: Finance
Registry Java Programming
2) Interface Comparator:
The method for comparing two objects is written outside of the
class of the objects to be sorted. Several methods can be written
for comparing the objects according to different criteria.
Specifically, write three classes, DescriptionComparator,
FirstOccComparator,
and LastOccComparator that implement the interface
java.util.Comparator.
DescriptionComparator implements the interface Comparator.
The
method compare compares the description of two objects. It returns
a negative value if the description of the first object comes
before the description of the second object in the lexicographic
order, 0 if both descriptions are logically the same, and a
positive number if the description of the first object comes after
the description of the second object in the lexicographic
order;
FirstOccComparator implements the interface Comparator. It compares the start time of two events. It returns a negative value if the start time of the first event is before that of the second event, 0 if both start times are logically the same, and a positive number if the start time of the first event is after the start time of the second event;
LastOccComparator implements the interface Comparator. It compares the dates of the last recurrences of two events. It returns a negative value if the date of the last recurrence of the first event is before that of the last recurrence of the second event, 0 if the date of the last recurrence of both events is logically the same, and a positive number if the date the last recurrence of the first event is after the date of the last recurrence of the second event.
In: Computer Science
|
Locomotive Corporation is planning to repurchase part of its common stock by issuing corporate debt. As a result, the firm’s debt–equity ratio is expected to rise from 40 percent to 50 percent. The firm currently has $3.2 million worth of debt outstanding. The cost of this debt is 7 percent per year. The firm expects to have an EBIT of $1.31 million per year in perpetuity and pays no taxes. |
| a. |
What is the market value of the firm before and after the repurchase announcement? (Enter your answers in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) |
| Market value | |
| Before | $ |
| After | $ |
| b. |
What is the expected return on the firm’s equity before the announcement of the stock repurchase plan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Expected return | % |
| c. |
What is the expected return on the equity of an otherwise identical all-equity firm? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Expected return | % |
| d. |
What is the expected return on the firm’s equity after the announcement of the stock repurchase plan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Expected return | % |
In: Finance
On 1 June2020, Purchase Limited enters into a firm commitment Supply Limited to buy USD 100,000 of inventory. On 1 July 2020, the Purchase Limited enters into a hedging arrangement which meets the hedge accounting criteria stipulated by the accounting standards (Australian Accounting Standards Board (AASB) 9). Purchase Limited has designated the firm commitment hedging arrangement as a fair value hedge. On 1 August 2020, Supply Limited transfers the inventory to Purchase Limited, and on that date, the Purchase Limited makes the payment. The spot and forward rates are as follows. Date Spot rate in AUD Forward rate in AUD 1 June 2020 0.19 0.2 30 June 2020 0.2 0.25 1 August 2020 0.3 0.3 Required: a) Explain at least two determinants of determining an effectiveness of a hedge instrument against a he
ue
2. What is your subject?
dge 5 Marks b) Provide journal entries to account for the hedged item (firm commitment to buy inventory) 8 Marks i. On 1 June 2020 ii. On 30 June 2020 iii. On 1 August 2020 c) Provide journal entries to account for the hedge instrument (forward contract) 7 Marks i. On 1 June 2020 ii. On 30 June 2020 iii. On 1 August 2020
In: Accounting
Complete the required tasks utilizing excel and label everything. All work must be shown to receive credit. A 20% late penalty will be assessed for each 24 hours submitted late. Below is the activity (purchases and Sales) for inventory held by Random Creations for the month of January, 2020: Beginning Inventory: January 1, 2020 80 Units @ $50 per unit Total $ 4,000 Purchases: January 18, 2020 40 Units @ $51 per unit Total $ 2,040 January 28, 2020 40 Units at $52 per unit Total $ 2,080 Sales: January 12, 2020 Sold 30 Units January 22, 2020 Sold 30 Units January 31, 2020 Sold 45 Units Using the information above, answer the following:
a) Compute the January 31, 2020 Ending Inventory and Cost of Goods Sold assuming Random Creations uses FIFO
b) Compute the January 31, 2020 Ending Inventory and Cost of Goods Sold assuming Random Creations uses LIFO and the Perpetual System
c) Compute the January 31, 2020 Ending Inventory and Cost of Goods Sold assuming Random Creations uses LIFO and the Periodic System
d) Compute the January 31, 2020 Ending Inventory and Cost of Goods Sold assuming Random Creations uses Average Cost and the Perpetual System REMEMBER ALL WORK MUST BE SHOWN TO RECEIVE CREDIT
In: Accounting
Depreciation for Partial Periods
Bar Delivery Company purchased a new delivery truck for $36,000 on April 1, 2019. The truck is expected to have a service life of 10 years or 180,000 miles and a residual value of $3,000. The truck was driven 12,000 miles in 2019 and 16,000 miles in 2020. Bar computes depreciation expense to the nearest whole month.
Required:
| 2019 | $ fill in the blank 1 |
| 2020 | $ fill in the blank 2 |
| 2019 | $ fill in the blank 3 |
| 2020 | $ fill in the blank 4 |
| 2019 | $ fill in the blank 5 |
| 2020 | $ fill in the blank 6 |
| 2019 | $ fill in the blank 7 |
| 2020 | $ fill in the blank 8 |
| 2019 | $ fill in the blank 9 |
| 2020 | $ fill in the blank 10 |
| 2019 | $ fill in the blank 11 |
| 2020 | $ fill in the blank 12 |
| 2019 | $ fill in the blank 13 |
| 2020 | $ fill in the blank 14 |
| 2019 | $ fill in the blank 15 |
| 2020 | $ fill in the blank 16 |
In: Accounting