Questions
McCann Co. has identified an investment project with the following cash flows. Year Cash Flow 1...

McCann Co. has identified an investment project with the following cash flows.

Year Cash Flow
1 $900           
2 1,040           
3 1,330           
4 1,160           
a.

If the discount rate is 11 percent, what is the present value of these cash flows?

b.

What is the present value at 20 percent?

c. What is the present value at 27 percent?

Please be specific and provide formulas

In: Finance

Calculate the Dollar Price quotes of the Treasury Securities in the adjacent table Maturity Coupon Price...

Calculate the Dollar Price quotes of the Treasury Securities in the adjacent table

Maturity

Coupon

Price

Dollar Price

3 Month

0

0.045

6 Month

0

0.08

12 Month

0

0.095

2 Year

0.25

99:29½

5 Year

1.25

99:21½

10 Year

2.5

98:27

30 Year

3.625

97:11½

In: Finance

Use Java to rewrite the following pseudo-code segment using a loop structure without goto, break, or...

Use Java to rewrite the following pseudo-code segment using a loop structure without goto, break, or any other unconditional branching statement:

k = (j+13)/27; //assume i,j,k are integers properly declared.

loop:

if k > 10 then goto out

k=k+1.2;

i=3*k-1;

goto loop;

out: …

In: Computer Science

Aaliyah Turner opened Turner Apple Photography on January 1 of the current year. During January, the...

Aaliyah Turner opened Turner Apple Photography on January 1 of the current year. During January, the following transactions occurred and were recorded in the company's books:

  1. Aaliyah invested $14,100 cash in the business in exchange for common stock.
  2. Aaliyah contributed $26,000 of photography equipment to the business in exchange for common stock.
  3. The company paid $2,700 cash for an insurance policy covering the next 24 months.
  4. The company received $6,300 cash for services provided during January.
  5. The company purchased $6,800 of office equipment on credit.
  6. The company provided $3,350 of services to customers on account.
  7. The company paid cash of $2,100 for monthly rent.
  8. The company paid $3,700 on the office equipment purchased in transaction #5 above.
  9. Paid $335 cash for January utilities.

Based on this information, the amount of total stockholders’ equity reported on the Balance Sheet at the end of the month would be:

Multiple Choice

  • $39,800.

  • $38,350.

  • $36,815.

  • $47,315.

  • $46,400.\

Larry Bar opened a frame shop and completed these transactions:

  1. Larry started the shop by investing $41,100 cash and equipment valued at $19,100 in exchange for common stock.
  2. Purchased $180 of office supplies on credit.
  3. Paid $2,300 cash for the receptionist's salary.
  4. Sold a custom frame service and collected $5,600 cash on the sale.
  5. Completed framing services and billed the client $310.

What was the balance of the cash account after these transactions were posted?

Multiple Choice

  • $11,020.

  • $44,710.

  • $44,530.

  • $11,330.

  • $44,400.

At the beginning of January of the current year, Little Mikey's Catering ledger reflected a normal balance of $63,000 for accounts receivable. During January, the company collected $17,000 from customers on account and provided additional services to customers on account totaling $13,600. Additionally, during January one customer paid Mikey $6,100 for services to be provided in the future. At the end of January, the balance in the accounts receivable account should be:

Multiple Choice

  • $60,300.

  • $66,400.

  • $59,600.

  • $3,400.

  • $65,700.

On December 1, Orenthal Marketing Company received $3,600 from a customer for a 2-month marketing plan to be completed January 31 of the following year. The cash receipt was recorded as unearned fees. The adjusting entry for the year ended December 31 would include:

Multiple Choice

  • a credit to Earned Fees for $2,400.

  • a debit to Unearned Fees for $1,800.

  • a debit to Earned Fees for $3,600.

  • a credit to Unearned Fees for $1,200.

  • a debit to Earned Fees for $2,400.

In: Accounting

Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,450,000. The project began...

Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,450,000. The project began in 2018 and was completed in 2019. Data relating to the contract are summarized below:

2018 2019
Costs incurred during the year $ 336,000 $ 1,870,000
Estimated costs to complete as of 12/31 1,344,000 0
Billings during the year 446,000 1,710,000
Cash collections during the year 268,000 1,795,000


Required:
1. Compute the amount of revenue and gross profit or loss to be recognized in 2018 and 2019 assuming Nortel recognizes revenue over time according to percentage of completion.
2. Compute the amount of revenue and gross profit or loss to be recognized in 2018 and 2019 assuming this project does not qualify for revenue recognition over time.
3. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2018 assuming Nortel recognizes revenue over time according to percentage of completion.
4. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2018 assuming this project does not qualify for revenue recognition over time.

Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the amount of revenue and gross profit or loss to be recognized in 2018 and 2019 assuming Nortel recognizes revenue over time according to percentage of completion. (Loss amounts should be indicated with a minus sign. Use percentages as calculated and rounded in the table below to arrive at your final answer.)

Percentages of completion
Choose numerator ÷ Choose denominator = % complete to date
Actual costs to date Estimated total costs
2018 ÷ = 0
2019 ÷ = 0
2018
To date Recognized in prior years Recognized in 2018
Construction revenue $0.00
Construction expense $0.00
Gross profit (loss) $0.00
2019
To date Recognized in prior years Recognized in 2019
Construction revenue $0.00
Construction expense $0.00
Gross profit (loss) $0.00
% complete to date
0
0
Revenue                  Gross Profit (Loss)
2018
2019

ss profit (loss)

Balance Sheet (Partial)
At December 31, 2018
Current assets:
Current liabilities:
Balance Sheet (Partial)
At December 31, 2018
Current assets:
Current liabilities:

In: Accounting

During the past years, ABG had limited its investment plans due to high cost of capital....

During the past years, ABG had limited its investment plans due to high cost of capital. Recently, however, the cost of capital seems to have fallen, and the management of the company is seriously considering the implementation of two major investment plans. Assume that you are the assistant of the ABG's financial director, who has assigned you to calculate the company's cost of capital. Your financial manager has provided the following information:

1. The corporate tax rate is 20%.

2. The company has issued a total of 11,000 non-callable bond with 3% annual nominal interest rate, the coupon of which is paid to the bond holders every six months. These bonds expire after 5 years, have a par value of €1,000 and are currently being traded at €1,030.40.

3. The current price of ABG's preferred stock on the stock market is €3.4 and the company has issued a total of 834,000 shares. The preferences share has a par value of €1 and a 20% dividend yield upon the par value, distributed to the stockholders twice a year. In case of issuance of new preferred share capital, the issue and disposal costs will be €0.30 per share.

4. The current market price of ABG's common stock on the stock market is €3.7 and the company has issued 3,835,000 shares. ABG's most recent dividend (Do) was €0.22 per share and dividends are expected to grow at a steady 2% annual rate for the foreseeable future. The beta coefficient of ABG is 1.4, the long-term government bond offer investors a yield of 2%, and the Expected Return of the Market is estimated to be 6%.

To help you with your task, the Financial Manager of the company has asked you to answer the following questions:

a. What is the (pre-tax) cost of the ABG bond loan and what is the final, after tax, cost of the loan capital to be included in the estimation of ABG’s weighted average cost of capital?

b. What is the cost of the company's preferred share capital?

c. What is the cost of ABG's common equity capital using the Capital Asset Pricing (CAPM) model?

d. What is the cost of ABG's common equity capital, using the dividend discount model?

e. What is ABG's Weighted Average Cost of Capital (WACC)? (Assume that the cost of equity capital is the average value of the two methods of c and d)Explain whether the dividend policy of a company affects its value, by describing the various theories that have been put forward in the literature. Provide for each theory at least two references from published papers in scientific journals (approximately 1,000 words).

In: Finance

A Japanese pension plan has invested a portion of the entrusted money into a well diversified...

A Japanese pension plan has invested a portion of the entrusted money into a well diversified U.S. mutual fund that focuses on large capitalization stocks.  The managers' of the pension plan want to protect their investment into the fund.  They are concerned about two risks that could diminish the value of the plan's investment: 1) falling stock prices in the U.S. and 2) depreciation of the USD against the Japanese Yen.

Based on the following information and the example given in class, set up the hedge on February 3.  What is the net value in JPY of the pension plan's investment on May 27?  Note that the CME specifies for the S&P 500 futures 0.1 index points = USD 25,- and for the foreign exchange contract 12,500,000 Japanese yen per contract.  Was the hedge effective?

Mutual Fund (JPY)

Spot (=cash) USD/JPY

June S&P 500 futures (points)

June USD/JPY futures

Feb 3

May 27

98,758,624

82,465,462

0.010802

0.011211

868.60

739.62

0.010887

0.011256

Date

Cash Market

Futures Market

Portfolio value JPY ………….

Portfolio value JPY ………….

In: Finance

Answer in JAVA Write a program that would prompt the user to enter an integer. The...

Answer in JAVA

Write a program that would prompt the user to enter an integer. The program then would displays a table of squares and cubes from 1 to the value entered by the user. The program should prompt the user to continue if they wish. Name your class NumberPowers.java, add header and sample output as block comments and uploaded it to this link.

Use these formulas for calculating squares and cubes are:

  • square = x * x
  • cube = x * x * x

Assume that the user will enter a valid integer.

The application should continue only if the user enters “y” or “Y” to continue.

Sample Output

Welcome to the Squares and Cubes table

Enter an integer: 4

Number Squared Cubed
====== ======= =====
1 1 1
2 4 8
3 9 27
4 16 64

Continue? (y/n): y

Enter an integer: 7

Number Squared Cubed
====== ======= =====
1 1 1
2 4 8
3 9 27
4 16 64
5 25 125
6 36 216
7 49 343

Continue? (y/n): n

In: Computer Science

Demand is inelastic if the price elasticity of demand is numerically (absolute value terms)   Equal to...

  1. Demand is inelastic if the price elasticity of demand is numerically (absolute value terms)
    1.   Equal to 1
    2.   Equal to 0
    3.   Less than 1
    4.   all of the above
    5.   none of the above
  2. In the long run a company that produces and sells laundry detergent increases all of its inputs by 25% and its output rises from 1,250 units to 2,000 units. For this range of output, the laundry detergent company exhibits
    1. increasing returns to scale.
    2. constant returns to scale.
    3. decreasing returns to scale.
    4. efficient scale
  3. If a profit maximizing firm is producing a quantity at which marginal costs is less than average variable cost, it will
    1.       Keep producing in the short run and exit the market in the long run.
    2. Shut down in the short run but return to production in the long run.
    3.       Shut down in the short run but exit the market in the long run.
    4. Keep producing in both the short and long run
  4. Competitive and monopolist firms maximize profits where:
    1.      Total cost equals total revenue.
    2. Price equals marginal cost
    3.      The change in profits is positive.
    4. Where marginal revenue is equal to zero.
    5.      Marginal revenue equals marginal cost
    6.       None of the above.
    7. All of the above.

In: Economics

Best Farm sells cat food and dog food. Its monthly fixed costs average $400,000. Cat food...

Best Farm sells cat food and dog food. Its monthly fixed costs average $400,000. Cat food sales represent 80% of the company's total revenue. Dog food sales constitute the remaining 20%. The company has provided the following information expressed on a per-case basis:

Sales

Conribution Conribution

Sales

Margin

Price

Margin        Margin %

Share %

Mix

Cat Food

50

15

Dog Food

30

6

Calculate: (show your calculations and round to 2 decimal places)

  1. What is the Average Contribution Margin Ratio?
  2. What is the total monthly Sales Revenue in Dollars required to break-even?
  3. What is is the total monthly Sales Revenue required to earn an Operating Income of $135,000?
  4. What is the company´s Margin of Safety at a monthly Sales level of $2,500,000?
  5. If monthly fixed costs increase by $10,000, the break-even point, expressed in sales dollars, will increase to how many dollars?
  6. How does break-even sales in (E) with increased fixed costs change if the product mix changes to 50% / 50%. The new break-even point in $ is?

In: Accounting