ABC Co.'s current ratio is greater than 1. Purchasing raw materials on credit would: A. increase the current ratio B. decrease the current ratio C. increase net working capital D. decrease net working capital E. B and D
Q: Assume the $11,700 Treasury bill, 6% for 10 weeks. Calculate the effective rate of interest. (Use…
A: The effective rate of interest takes into account the compounding of interest, which means that…
Q: A farmer is currently growing wheat and plans to sell it in September next year. He needs to plan…
A: To lock in the future revenue for selling 2 tons of wheat in September, the farmer can make use of…
Q: Complete the following amortization chart by using Table 15.1. Note: Round your "Payment per $1,000…
A: It's important for borrowers to carefully consider the interest rate and other terms of a loan…
Q: What is Fintech? Describe the drivers of fintech innovation.
A: Introduction: Fintech- It is a combination of "financial" and "technology".
Q: Solve the following problem using either Table 11-1 or Table 11-2 from your text. When necessary,…
A: present value is computed by following formula:- PV = FV * 1(1+r)n where , PV = present value FV =…
Q: When selling prices and inventory costs are stable, a decrease in units sold would result to _sales…
A: Varaince is the difference of actual results and budgeted data.
Q: Pfizer Inc is an American multinational pharmaceutical company. After extensive medical and…
A: 1. Net present value (NPV) isa capital budgeting technique used for making investment decisions. NPV…
Q: You have deposited $28,735 in a special account that has a guaranteed rate of return. If you…
A: Present value = pv = $28,735 Withdrawal = pmt = $5000 Time = nper = 8 years
Q: 2) A U.S. firm has to pay Euros 400,000 in 1-year. The firm decides to hedge foreign exchange risk…
A: A money market hedge is a foreign currency risk exposure management technique where the value of a…
Q: A 1. limited partner II. general partner III. sole proprietor can lose, in the extreme case, her…
A: Partnership refers to the business entity in which partners are engaged in the business operations…
Q: You make $9,300 annual deposits into a retirement account that pays an APR of 9.9 percent compounded…
A: The FV of an account refers to the cumulative value of cash flows at a fixed future date assuming…
Q: QUESTION 10 4(a) and 4(b) refer to the following. 4(a) What is internal rate of return for cash flow…
A: Internal Rate of is also known as IRR. It is a Capital budgeting techniques which help in decision…
Q: the question using only equations and explain every step, DO not use excel. also draw a cashflow…
A: Future value of amount includes the amount of deposit made and amount of compounding interest…
Q: You have just purchased a new warehouse. To finance the purchase, you've arranged for a 37-year…
A: When the lender lends a loan to the borrower, he charges a rate of interest on the borrowed amount.…
Q: Oriole Bottling Corporation is considering the purchase of a new bottling machine. The machine would…
A: Capital budgeting allows businesses to make informed decisions about whether to invest in long-term…
Q: Find the accumulated value of a 12-year annuity-immediate of 100 per year if the effective rate of…
A: The accumulated value of an annuity is to be found out. Only caution here, is that interest rate…
Q: Stock options on Microsoft, September 4, 2019 Expiration Strike Call Put 27-September-2019 130 8.65…
A: A call option is a type of financial contract that gives the buyer the right, but not the…
Q: ou win the Console Lottery. They payoff is a growing “console” bond. That means that the bond will…
A: We can determine the PV of the console bond using the PV of perpetual growth formula as below: PV =…
Q: Give typing answer with explanation and conclusion Consider the following two banks: • Bank A has…
A: To calculate the change in the values of the assets and liabilities for each bank given an expected…
Q: Debra Diacono, CFO of James Ltd a listed Australian company, has approached you for advice on how to…
A: First we need to use CAPM model to calculate cost of equity. Cost of Equity =Risk free…
Q: Suppose that you are thinking about buying a car and have narrowed down your choices to two options.…
A: Loan repayments are usually made through periodic (usually monthly) fixed payments. This periodic…
Q: ssume that an investment is forecasted to produce the following cash flows: a 10% probability of…
A: By making informed investment decisions through capital budgeting, companies can increase their…
Q: ey, Incorporated, wishes to maintain a growth rate of 17 percent per year and a debt-equity ratio of…
A: Some part of net income is paid as dividend to the shareholders and some part is retained by company…
Q: Green Lantern Enterprises has just completed an initial public offering. The firm sold 1,500,000 new…
A: Underpricing cost = $5,250,000 Spread = $1.18 No. of shares offered (Primary offering) = 1,500,000…
Q: Given the following information on three stocks assuming: Stock Expected Return A B с Standard…
A: A portfolio is the combination of different assets with varied returns and risk profile. A portfolio…
Q: We are examining a new project. We expect to sell 8,800 units per year at $191 net cash flow apiece…
A: a) To calculate the NPV (Net Present Value) of the project and the value of the option to abandon,…
Q: Use the ordinary interest method to find the rate of interest that Make Over Picture Photo pays on a…
A: Principal Amount = p = $8000 Time = t = 265 days Interest Amount = i = $540
Q: Bob's is a retail chain of specialty hardware stores. The firm has 18,000 shares of stock…
A: The NPV refers to the value of the cash flows of the project after they have been discounted to the…
Q: 4. A new car sells for $29,700. It exponentially depreciates at a rate of 6.35% to $24,300. How long…
A: Rate = 6.35% With the help of exponential formulae in Excel for the actual rate. Present Value (PV)=…
Q: A written authorization given by a shareholder to someone else to represent him or her and to vote…
A: The shareholder refers to the individual that owns a part of the company through the purchase of the…
Q: $ Revenue Cost of sales Gross margins Operating expenses: Research & Development Selling, general &…
A: The ratio is a mathematical relationship between two variables that are used to evaluate the…
Q: A trader enters into two short cotton futures contracts when the futures price is 80 cents per…
A: A trader enters into two short cotton futures contracts at a contracted price. The gain/loss for the…
Q: Suppose a firm's profits increase 111 percent after sales change from $3.45 million to $4.7 million.…
A: NPV refers to the value created by a project or an investment represented in absolute dollar terms.…
Q: Previous Balance $834.74 Day 10 13 22 25 2 Month October October October October November November 4…
A: Credit Card provide credit facilities according to your paying capacity within specified days by…
Q: Consider the cash flow shown in the accompanying diagram. If the value of C is $950, calculate the…
A: When the present value of cash outflow and cash inflows both are equal than we can say that cash…
Q: A company has $20 billion of sales and $1 billion of net income. Its total assets are $10 billion.…
A: sales = s = $20 billion Net income = ni = $1 billion Total Assets = ta = $10 billion Interest rate =…
Q: Give reasons why multinational corperations expand overseas and how they manage the exchange rate…
A: Multinational corporation is said to be the company that operate in various countries that include…
Q: Given the following information, what is the standard deviation for this stock? Probability of state…
A: State of nature Probability (P) Rate of Return ( R) Recession 0.12 0.19 Normal 0.75 0.11…
Q: Friendly's Quick Loans, Inc., offers you $6.00 today but you must repay $8.15 when you get your…
A: Effective annual rate is computed after taking into account all the compounding due in a year.…
Q: Find the compound amount for the deposit and the amount of interest earned. $8900 at 8.7% compounded…
A: Future value is the estimated value of current assets that is discounted at an assumed rate of…
Q: Consider two 1-year loans with a principal of $1 million and a default probability of 2% each.…
A: To calculate the Value at Risk (VaR) and Expected Shortfall (ES) for the given scenario, we'll…
Q: 14. Sarah had some money in the piggy bank. On Monday, she took out money to buy a present. She had…
A: The amount initially placed in the piggy bank is the sum of money that the person had to start with.…
Q: As the winner of a lottery you are promised 15 payments of $0.98 million each year starting a year…
A: Annuity is the series of equal cash payments over the period.
Q: Your Case Study firm is considering whether to invest £5.8 Million in Year 0 to develop an IoT…
A: You have asked help with part (c). So, this solution revolves around part (c) only. In part (c) you…
Q: 1. You are planning on depositing $50.00 per month, with the first deposit one month from today, for…
A: Due to the compounding of interest over the period of time large amount is accumulated over the…
Q: Below is a major portion of the income statements of KTA Inc. for 2020 and 2021: Sales Cost of Sales…
A: Here, Particulars 2020 2021 Sales 80000 97200 Cost of sales 50000 72000 Gross margin 30000…
Q: Sharp Co. has generated these data for the 2 most recent years where 2021 sales price was 10% lower…
A: Sales Value in year 2020 = P 1,900,800 Sales Value in year 2021 = P 1,944,000 Let Sales Price in…
Q: Debt (riskless) MV (£'000) 4,000 Required Return (%) 5 15 Equity 16,000 The corporation tax rate is…
A: The value of the company refers to the worth of the business that can be measured using the asset…
Q: The stock market has a life of its own and the study of it rewards the investor‟ Comment. b) How…
A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: A stock's beta is 1.5 and the market risk premium is 5.6%. If the risk-free rate is 2.9%, what is…
A: The CAPM model refers to the relation between the systematic risk and the return of the stock. It is…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- 4. Which of the following transactions causes an increase in working capital? a. Sale of merchandise on credit at a price above cost. b. Sale of marketable securities at a price below cost. c. Collection of an account receivable. d. Return to supplier of defective merchandise purchased on credit. Full credit allowed by supplier.A decrease in Selling and Administrative Expenses woulddirectly impact what ratio?a. Fixed asset turnover ratio. c. Current ratio.b. Times interest earned. d. Gross profit percentage.46. Revenue, cost, and profit. The price-demand equation and the cost function for the production of HDTVS are given, respectively, by x 9,000 - 30p and C(x) = 150,000 + 30x where x is the number of HDTVS that can be sold at a price of $p per TV and C(x) is the total cost (in dollars) of produc- ing x TVs.
- Mark up can be calculated by the formula; a. Markup = Cost + Expenses b. Markup = Cost + Profit c. Markup = Selling price + Cost d. Markup = Expenses + ProfitWhich of the following ratios is always the lowest? a. The net profit margin b. The gross profit margin c. The operating margin d. The EBITDA ratioWhich one of the following will decrease net working capital? Select one: a. A decrease in accounts payable. b. A sale of inventory at a profit. c. A sale of a fixed asset for cash. d. An increase in accounts receivable. e. An increase in accounts payable.
- c. Calculate the profitability ratio which includes gross profit margin, operating profit margin, net profit margin, and NOPAT marginLet P(x) be the annual profit for a certain product, where x is the amount of money spent on advertising. (a) Interpret P(0) (b) Describe how the marginal profit changes as the amount of money spent on advertising increases. (c) Explain the economic significance of the inflection point.Calculate the following ratios: 1. Return on Capital Employed (ROCE) 2. Current Ratio 3. Gearing Ratio 4. Price/Earnings (P/E) Ratio
- Direction: Read carefully and answer the questions below. Encircle the letter of the correct answer. 1. Which of the following is an example of a variable cost? а. interest b. ingredients с. insurance d. lease 2. What type of cost varies depending on the quantity of products being produced? а. fixed b. net sales с. total d. variable 3. Which among the following concepts is usually seen on the top item in an income statement from which all costs and expenses is subtracted to arrive at net income? a. fixed cost b. net sales с. total cost d. variable cost 4. When do we obtain the break-even point? When the fixed cost is equal to the total cost When the total cost is equal to the variable cost When the variable cost is equal to the fixed cost d. When the number of units of goods sold covers the all the costs а. b. с. 5. Which of the following is NOT true? а. The fixed cost does not vary over time. b. The total cost is the sum of the fixed cost and the variable cost. с. The total cost is…Fined out: 1. Net non interest margin 2. Net profit marginWhich of the following is operating expenses ? a) Administrative expenses ratio b) Selling and Distribution expenses ratio c) Factory expenses ratio d) Finance Expenses ratio Select one: a. a, b and c b. a, b and d c. a, c and d d. a, b, c, d