ich of the following gross valuation methods on a building would most likely be used by a construction firm in its financial and management accounting of its projects? a.) Unit in place b.) Quantity survey method c.) Square Footage method d.) none of the above
Q: Professor Wendy Smith has been offered the following opportunity A law firm would like to retain her…
A: Upfront Payment $ 49,000.00 Number Hours worked in Month 8 Per Month Rate $…
Q: The covariance of returns between Exxon Mobile Corporation (XOM) and Costco Wholesale Corporation…
A: Covariance and standard deviation are related through the coefficient of correlation between the two…
Q: GS Co.’s capital structure consists entirely of long-term liabilities and common equity. The cost of…
A: Cost of long term liabilities (Kd) = 0.03 Cost of common equity (Ke) = 0.05 Tax rate (T) = 0.30…
Q: Speculating with Currency Call Options. ABC Inc., purchased 75,000 units call option on British…
A: An option is a financial derivative that gives the buyer the right to buy or sell the underlying…
Q: What is the expected return on common shares of Cisco Systems, Inc. (It designs, manufactures, and…
A: The expected return on common shares of Cisco Systems, Inc. is 11.356%.
Q: The real risk-free rate of interest, r*, is 3%. Inflation is expected to be 4% this year, 5 percent…
A: Yield on 10 years bond will be the risk free rate,inflation and maturity risk premium.
Q: Company has insufficient retained earnings to fund capital expenditures and decided to issue new…
A: Cost of equity = (Expected dividend / (Current price - Floatation cost)) + Growth rate Where…
Q: You are a personal finance advisor at the BQ bank, and you receive in your office a young couple who…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: 12. A bank offers a 272 - day discounted loan at a simple discount rate of 12%. (a) How much money…
A: Ans: (a) Loaned raised 5000 Discount 12% Time 272 days Cash received=…
Q: On the basis of these data, the real risk-free rate of return is 3% 2% 0% 1%
A: Real risk-free rate refers to the rate of interest that is expected by the investors on the…
Q: National Co. has portfolio consist of three shares below: Stock Investment Beta АВС 140,000 1.45 CDE…
A: Stock Investment Beta ABC 140000 1.45 CDE 75000 1.2 EFG 160000 0.7
Q: The company DstriBut.inc decides to take a technological shift by replacing its old distribution…
A: NPV NPV is a capital budgeting tool to decide on whether the capital project should be accepted or…
Q: Scenario D: Six months later your credit card is carrying a balance of $500. You decide that you…
A: APR is annual percentage rate is yearly generated of interest which is paid by borrower or given to…
Q: The following data are gathered: · The real risk-free rate is 1.05% · Inflation premium…
A: Risk free rate of the return, which is defined as the theoretical return rate of investment along…
Q: What is the efficient market hypothesis? Explain this concept
A: 1) Efficient market hypothesis refers that the current market price captures all past, present and…
Q: The Tech company. Inc. is currently making windfall profits from the sales of financial programming…
A: Here,
Q: Identify which anti-hostile takeover strategies are being described. [S1] A merger will only push…
A: When a prospective merger or acquisition needs to be thwarted then there are several anti-hostile…
Q: Suppose you bought a $1,000 face value bond with a coupon rate of 5.6 percent one year ago. The…
A: Real rate of return is the net actual return to the investor after adjustment of the inflation.…
Q: If the municipal bond rate is 6% and the corporate bond rate is 9%, what is the marginal tax rate,…
A: At indifference point after tax return on both the bond will be equal. Our equation will be as…
Q: You need $30000 in cash to buy a car 15 years from today. You expect to earn 14 percent, compounded…
A: Future value is important to both investors and financial planners because it helps them to predict…
Q: Calculate the nominal and real return as well as the nominal and real risk premiums for the…
A: Real rate of return is the net return to the investor after adjustment of inflation. Return on…
Q: Time value Peter just got his driver’s license, and he wants to buy a new sports car for $70,000. He…
A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…
Q: Larry wants to make a decision on a six- year amortized loan for him to buy a new car. The value of…
A: Maximum loan amount that Larry can repay in 6 Years = Present value of monthly payment of $700…
Q: Maintenance costs for a small bridge with an expected 50-yr life c o be P 2,000.00 each year for the…
A: Uniform equivalent annual maintenance cost is equivalent annual cost based on all cost that are…
Q: What is the company’s after-tax weighted average cost of capital if National Co. pays 25% taxes?…
A: Weight of long term liabilities (Wl) = 0.30 Weight of preferred stock (Wp) = 0.30 Weight of common…
Q: Assume the market rate of return is 10.1 percent and the risk-free rate of return is 3.2 percent.…
A: The systematic risk of the market (beta) is 1. Therefore the beta of Lexant = 1 - 2%, which is 0.95…
Q: Using the rule of 72, approximately how many years are needed to double a $100 investment when…
A: By the Rule of 72, the number of years taken to double the investment is computed as 72/ Rate. The…
Q: The following data are gathered: · The real risk-free rate is 1.05% · Inflation premium…
A: Treasury Bills: T-bills are the treasury bills issued by the government. These bills are risk-free…
Q: 12 Why do people buy stock/invest in Blue Apron Holdings Inc. and Apple Inc.?
A: Investing in stocks consists of purchasing stock in a publicly traded firm. Those little shares are…
Q: d. Monthly e. Continuously
A: Time value of money (TVM) refers to the method used to measure the amount of money at different…
Q: An electronic company is thinking of investing to an equipment in a new business venture with a 15%…
A: Sensitivity Analysis: It is the analyses of effect of changes made to variables in the projects…
Q: A way of spreading out the risk associated with expensive and/or dangerous business ventures among…
A: There are certain businesses that can have high risk high return profile. The business might be…
Q: Would you rather receive $1,000 now and $2,000 in two years or $2,500 in one year, using a 4%…
A: Present value = C0 + (C1 * (1+r)-1) + (C2*(1+r)-2) Where C0 = Cash flow year 0 C1 = Cash flow year 1…
Q: True or False The following statements relate to liquidation. a.) Compared to a forced liquidation,…
A: Liquidation value is total value of the company's physical assets when these assets are sold out.
Q: ou are given the financial information for the Unic Company: Earnings Before Interest and Tax…
A: Company Equity is the difference between the assets and liabilities of the company . We also…
Q: Which of the followings is the LEAST considered when developing financial strategies a.Risk of…
A: Financial strategies means financial planning to beat the competition in the market by using…
Q: Determine the rate of return on the total investment and the payout period if the annual profit is…
A: Payback (payout) period refers to the period within which the sum invested by the company in a…
Q: If the risk-free rate is 2.2 percent, the inflation rate is 1.9 percent, and the market rate of…
A: The risk premium on the U.S. Treasury bond will be zero as it is backed by US government and as…
Q: National Co.'s capital structure consists of 30% long-term liabilities, 30% preferred stock, and 40%…
A: Weighted average cost of capital is calculated as: = Sum of (Weights * Cost of instrument)
Q: 4. Solve problem 3, assuming that 50% of the initial investment is borrowed at an annual interest…
A: PW method: It is the method that is utilized to compare mutually exclusive alternatives that have…
Q: Create a plan of investment on a bank and solve its interest with respect to the rate offered and…
A: Simple interest is computed on the loan's initial main amount, but compound interest is calculated…
Q: The GS Co has a debt ratio of 30%. The unlevered beta of GS Co. is the 1.50 while the applicable tax…
A: As per formula Levered beta = Unlevered beta*[1+(1-Tax rate)*(Debt/Equity)] Where Unlevered beta =…
Q: Assume that you have been hired as a consultant by CGT, a major producer of chemicals and plastics,…
A: Weighted Average Cost of Capital is computed by using following formula: WACC=WeightEquity×Cost of…
Q: a factory savings plan, a workman deposits P 25 at the beginning of each month for 4 years, and the…
A: The amount being deposited at each month and that money grow with time and interest and period of…
Q: Which of these would NOT contribute to a retailer's use of forward buy? O A. Low holding costs O B.…
A: Forward buying - When a buyer negotiates the purchase of a commodity at current price i.e., today's…
Q: discuss the motives a company may have for engaging in currency and intrest rate swaps
A: A swap is a two-party derivative transaction that includes the exchange of pre-agreed cash flows. It…
Q: D3
A: A money market hedge is a method for securing in the value of a country's currency in a…
Q: A bond that pays interest semiannually has a price of $965.18 and a semiannual coupon payment of…
A: To calculate the current yield we will use the following formula Current yield = Annual coupon…
Q: You are considering making a movie. The movie is expected to cost $10.5 million up front and take a…
A: Payback period refers to the period within which the sum invested by the company in a project will…
Q: You are expected to assess the stand-alone risk of each of the stock using the Sharpe Ratio. The…
A: Sharpe Rario:- The excess return earned over the risk free return on portfolio to the portfolio’s…
Which of the following gross valuation methods on a building would most likely be used by a construction firm in its
a.) Unit in place
b.) Quantity survey method
c.) Square Footage method
d.) none of the above
Step by step
Solved in 2 steps
- In the summation (cost) method of valuation, which of the following steps is the ONLY one that a valuer would take in estimating value? a. Estimate the net operating income of the property. b. Determine the value of the land using the Assessed Annual Value and tax rate. c. Estimate the accrued depreciation. d. Calculate the acquisition price of the construction material used when the structure was built.Which of the following costs incurred internally to create an intangible asset is generallyexpensed? a. Research and development costs.b. Filing costs.c. Legal costs.d. All of the above.Which of the following items shall not be capitalized into the cost of property, plant, and equipment? Cost of excess materials resulting from a purchasing error. Cost of testing whether the asset works correctly. Initial delivery and handling costs. Cost of preparing the site for installation.
- Which of the following concepts is not related to depreciation? Select one: a. Historical cost concept b. Accrual concept c. Going concern concept d. Matching conceptRequired: 1. At what amount should Edwards record the cost of the land and the new building, respectively? If an input box should be blank, enter a zero. Land Building Purchase price of land Demolition of old building Architect's fees Legal fees Construction costs Salvaged materials Total 2. Next Level If management misclassified a portion of the building's cost as part of the cost of the land, what would be the effect on the financial statements?Before testing property, plant, and equipment (PPE) and finite-life intangible (FLI) assets, ________. Group of answer choices the firm will assess both PPE and FLI assets in asset groups the firm will assess PPE in asset groups and FLI assets as individual assets the firm will assess both PPE and FLI assets as individual assets or in asset groups the firm will assess PPE as individual assets and FLI assets in asset groups
- Which of the following expenditures cannot be included in R&D costs? a. indirect costsb. intangibles purchased from othersc. personnel costsd. contract services performed for othersWhich of the following statements is/are FALSE: I. Following the acquisition of an item of property, plant and equipment, subsequent expenditure for this item that will extend the asset’s useful life and increase the asset’s capacity is capitalised. II. Investment property does not get depreciated, unless it is measured at cost. III. In the statement of comprehensive income, costs can be analysed according to function or nature. Costs analysed according to function are classified into the following categories: distribution & selling costs; administrative expenses; other operating expenses (or income). IV. Because of the prudence convention, inventories are expensed in the income statement as cost of goods sold when they are sold, and not when they are bought in by the business and paid for. V. A complete set of financial statements consists of the statement of financial position, the statement of comprehensive income, the statement of changes in equity and the statement of…Classify the following fixed costs as normally being either committed or discretionary:a. Depreciation on buildings.
- Before testing property, plant, and equipment (PPE) and finite-life intangible (FLI) assets, ________. Group of answer choices the firm will assess both PPE and FLI assets as individual assets or in asset groups the firm will assess PPE as individual assets and FLI assets in asset groups the firm will assess both PPE and FLI assets in asset groups the firm will assess PPE in asset groups and FLI assets as individual assetsWhy is depreciation expense recognized? Select one: a. To provide a better estimate of the market value of the depreciated assets. b. So that the balance sheet value of plant assets will more accurately reflect the replacement cost of the assets. c. To ensure that cash will be available at the end of the assets' useful life in order to replace it. d. To match the cost of the asset against the revenue using a reasonable allocation. method. Save AnswersNextWhat do you mean by revaluation model? (Answer should be related to Property, Plant & Equipment aswell as expressed in your own words) No plagiarism What do you mean by cost model? What are some Subsequent measurement of PPE?