QUESTION 41

1. On April 10, 2016, Samuel Jackson, CFA purchased a put option for 2,000 shares of Apple at $4.00 per share. Jackson paid $350 for the option that is exercisable until May 10, 2016. On May 10, when Apple stocks were selling at $3.60, Jackson exercised the option. Which of the following statements is false?

Determining the Proceeds from Bond Issues

Madison Corporation is authorized to issue $620,000 of 5-year bonds dated June 30, 2016, with a stated rate of interest of 11%. Interest on the bonds is payable semiannually, and the bonds are sold on June 30, 2016.

Required:

Determine the proceeds that the company will receive if it sells the following: (Click here to access the tables to use with this exercise and round your answers to two decimal places, if necessary.)

Determining the Proceeds from Bond Issues

Madison Corporation is authorized to issue $800,000 of 5-year bonds dated June 30, 2016, with a stated rate of interest of 11%. Interest on the bonds is payable semiannually, and the bonds are sold on June 30, 2016.

Required:

Determine the proceeds that the company will receive if it sells the following: (Click here to access the tables to use with this exercise and round your answers to two decimal places, if necessary.)

Determining the Proceeds from Bond Issues

Madison Corporation is authorized to issue $690,000 of 5-year bonds dated June 30, 2016, with a stated rate of interest of 9%. Interest on the bonds is payable semiannually, and the bonds are sold on June 30, 2016.

Required:

Determine the proceeds that the company will receive if it sells the following: (Click here to access the tables to use with this exercise and round your answers to two decimal places, if necessary.)

A. Use the following selected balance sheet and income statement data for Mattel Inc. (in $ thousands) to compute a) return on equity, b) profit margin (PM), c) asset turnover (AT), and d) financial leverage (FL) for fiscal 2016. Show that ROE = PM × AT × FL. (in thousands) 2016 2015 Net sales $5,456,650 $5,702,613 Operating income 619,233 640,922 Interest expense 95,118 85,270 Net income 318,022 369,416 Total assets 6,493,794 6,535,143 Total liabilities 4,086,012 3,901,889

1. Compare and contrast the Balance Sheet of Colgate-Palmolive with the Balance Sheet of the City of Dallas Governmental-Type Funds for 2016.

2. Compare and contrast the Income statement of Colgate-Palmolive with the City of Dallas Statements of Revenue, Expenditures and Changes in Fund Balances for 2016.

Note:

This is a descriptive financial analysis; no data analysis is required. This question requires us to compare a governmental fund balance sheet and Statements of revenue, expenditures and changes in fund balance with the business equivalents in the for-profit sector.

A company sells personal computeres. The price includes a two-year warranty. During 2016, the company made $920,000 in sales. On the basis of past experience, the warranty costs are estimated to be 10% of sales. One customer brought in their computer on January 10, 2017 which required warranty repairs of $200 taken from parts taken from the Repair Parts Inventory. Prepare general journal entries to record: a. the estimated warranty expense on December 31, 2016. b. The warranty repair costs

You have been asked to create a list of all MAC addresses and corresponding IP addresses and computer names in your network. Propose at least two methods for performing this task. Your network has almost 100 computers in a Windows Server 2016 domain network with statically assigned IP addresses. Using the tools available in Windows Server 2016, carry out the procedure you think will work best. Write a short report of your results and submit it to your instructor.

Companies Act 2016 introduces the solvency test. The solvency test operates on the basis that a company must ensure that it has sufficient funds to pay its debts to its creditors for the following purposes:
(a) Redemption of redeemable preference shares.
(b) Purchase by a company of its own shares under the share buyback provision.
(c) Reduction of capital.
(d) Giving financial assistance.
Discuss the relevant provisions of the Companies Act 2016 (Malaysia) which govern the solvency test and solvency statement.

416. Hedge fund AlphaBeta has a NAV of $1 million and a zero balance in its cumulative loss account on January 1, 2016.  Now suppose AlphaBeta’s annual performance (net of management fees) is + 13.9% in 2016, +12.6% in 2017, and -19.1% in 2018.  AlphaBeta charges a 20% performance fee.  Based on the high water mark reached in 2017, what minimum percentage gain the does the fund need to achieve in 2019 before performance fees can be taken again?