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18-Which of the following statements is an example of financial assets? |
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- Define asset and liabilityWhich of the following has/have the main responsibility of regulating the life, health, and property and casualty insurance industry? a) the U.S. Treasury O b) the Federal Deposit Insurance Corporation (FDIC) Oc) a State insurance commission d) all of the above e) only (b) and (c) of the above36. Assume you have placed a value of operations on Champion Inc. of $3,500,000. The firm has marketable securities of $75,000. In addition, the firm recently reported total assets of $7 million along with long-term debt of $1.5 million and preferred stock of $250,000. If Champion has 500,000 shares outstanding, what is the intrinsic value of the firm’s common stock? Only typed answer
- 2. The Ragged Mountain Running Shop (RMRS) sells running shoes and apparel in Charlottesville, VA. The owners of RMRS are considering the possibility of opening new retail locations. After careful market analysis, they estimate the expected returns at five new potential locations. These estimates are listed in the following table, along with the amount RMRS would need to borrow in order to open each location. Qty. of funds demanded $100,000 $100,000 Location Exp. Return Crozen Downtown Charlottesville 6% 4% Harrisonburg Waynesboro West End of Richmond 11% $80,000 $60,000 $200,000 2% 8% RMRS approaches the Virginia National Bank (VNB) with hopes of borrowing to expand into other locations. Which locations will RMRS open if VNB offers them a loan at an interest rate of 7%? What locations will it open if VNB offers them a loan at an interest a. rate of 5%? b. What is the total amount of loans that RMRS takes at an hterest rate of 7%? At an interest rate of 5%? c. Use the information in…Problem 15-15 The yield to maturity (YTM) on 1-year zero-coupon bonds is 5% and the YTM on 2-year zeros is 6%. The yield to maturity on 2-year- maturity coupon bonds with coupon rates of 8% (paid annually) is 5.5%. a. What arbitrage opportunity is available for an investment banking firm? The arbitrage strategy is to buy zeros with face values of $ 80 and $10800, and respective maturities of one year and two years. b. What is the profit on the activity? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Profit $ 44.04 Xeach bond23-Which of the following statements gives the correct definition of "the security issued by the company established in the form of a joint stock company to meet its fund needs"?a)Treasury bond B)financing bill NS)bank bill D)Eurobond TO)Revenue partnership deed
- The following data are taken from the financial statements of Wildhorse Co. The data are in alphabetical order. Accounts payable $27,800 Net sales $526,000 Accounts Other current $72,500 $22,500 receivable liabilities Average common Salaries and $23,000 $7,500 shares out. wages payable Stockholders' Cash $57,550 $146,400 equity Gross profit $170,000 Total assets $305,000 Net income $ 46,000 Compute the following: a. Current ratio. b. Working capital. c. Earnings per share.Joe deposits his 2200$ paycheck into his checking account at Local Bank. The bank's assets will then increase by $ enter your response here. (Round your response to the nearest whole number.)8. Which of the following occurs when someone uses confidential information to gain from the purchase or sale of stocks? A) identity theft B) a margin purchase C) insider trading D) collusion 9. What is the environment where a firm conducts business known as A) Global business environment B) Economic environment C) Domestic business environment D) Technological environment
- Sam, Inc. has current assets of $5,300, net fixed assets of $24,900, current liabilities of $4,600, and long-term debt of $10,300. What is the value of shareholder’s equity? Group of answer choices a. Cannot be determined without knowing the value of Common Stock b. $17,680 c. $60,030 d. $15,300 e. Cannot be determined without knowing the value of Retained EarningsWhich of the following is not considered a current liability? A.Unearned Revenue B.The component of a twenty-year note payable due in year 20 C.Current portion of a noncurrent note payable D.Accounts Payable3-what are the factors influencing the development of accounting systems ?
