Kendall Corners Inc. recently reported net income of $3.1 million and depreciation of $500,000. What was its net cash flow? Assume it had no amortization expense.
Q: Bond Z is noncallable and has 20 years to maturity, a 7% annual coupon, and a $1,000 par value. Your...
A: The value of bond today is calculated by sum of present value of interest paid till maturity and pre...
Q: 3. Suppose you want to have € 0.5 million saved by the time you reach age 30 and suppose that you ...
A: GOAL $0.5 million in 10 years time Therefore Amount (A) = $ 0.5 Million ...
Q: How much do you have to invest today to have $25,000 for the purchase of a car four years from now i...
A: We will solve this by using compounding interest method , using following formula : Amount = Princip...
Q: Hello, how can I solve the activity and what is the answer? If a manufacturer of electronic devices ...
A: The project has initial investment of $660000 with annual revenue of $250000 for 10 years and salvag...
Q: Why does the required rate of return for a particular bond change over time?
A: Bond is fixed rate long term debt instrument used by a business entities to raise funds from general...
Q: Your existing mortgage with SunTrust is: - Outstanding loan amount: $230,000 • Remaining term: 10 ye...
A: In the case of mortgage refinancing, the payback period is the period of time that is needed to reco...
Q: Explain the use of a sinking-fund provision. How can it reduce the investor’s risk? What are protec...
A: 1. Sinking funds adds an element of safety for corporate bond issue to investors. Sinking fund prov...
Q: 4) explains the three fundamental areas Marketing, production and finance in international companies...
A: International business refers to the trade of goods, services, technology, capital and or knowledge ...
Q: A $8,200 loan, taken now, with a simple interest rate of 5% per year, will require a total payment o...
A: We will use the simple interest formula to solve this question , because loan taken on simple intere...
Q: Explain what this statement means: "One type of leverage affects both EBIT and EPS. The other type ...
A: Since you have asked multiple questions, we will solve the first question for you. IF you want any s...
Q: 2. What is the yield to maturity on a $1,000 par value 6⅞ percent Hilton Corporation bond if the inv...
A: Yield to maturity is the return earned from the investment of the bond if hold till maturity. ------...
Q: The use of complex math, including exponents, is instrumental in many fields. Exponents are used in ...
A: In the question, we will assume the future value of $10000 is required at the end of 15 years for a ...
Q: The officers and Board of Directors of the Philippine Institute of Civil Engineers desire to award a...
A: According, to the question The officers and Board of Directors of the Philippine Institute of Civil ...
Q: Dawn invests $2000 each year of 10 consecutive years, starting at age 25. Assume an 8% annual rate o...
A: Here, Annual Payments is $2,000 Time Duration of Investment is 10 years Interest Rate is 8%
Q: Bunnings Ltd is considering to invest in one of the two following projects to buy new equipment. Eac...
A: Capital budgeting indicates the evaluation of the profitability of possible investment and projects ...
Q: 2. What is the yield to maturity on a $1,000 par value 6⅞ percent Hilton Corporation bond if the inv...
A: Yield to maturity is the internal rate of return earned by an investor who bought the bond today at ...
Q: If a certain machine undergoes a major overhaul now, its output can be increased by 20%, which trans...
A: The present value is the current value of future cash flow at a certain rate and a certain time peri...
Q: 6. Basic bond valuation Complex Systems has an outstanding issue of $1,000-par-value bonds with ...
A: a) Working note:
Q: Explain the difference between risk and ambiguity. How might decision making differ for a risky vers...
A: The term risk would refer to harm or loss. Whereas ambiguity is a situation where there can be more ...
Q: Your company has just taken out a 1-year installment loan for $72,500 at a nominal rate of 20.0% but...
A: Working note:
Q: Solve
A: The hurdle rate, also called the minimum acceptable rate of return, is the lowest rate of return tha...
Q: The Stafford plan now offers student loans at 4% annual interest. After two years the interest rate ...
A: Interest charged on the principal amount and the interest accrued is known as Compound Interest. It ...
Q: Revenues generated by a new fad product are forecast as follows Year 1 - $56000 Year 2 - $40000 Year...
A: Net present value (NPV) is the net amount between the present worth of cash flows and present worth ...
Q: Klingon Widgets, Inc.., purchased new cloaking machinery three years ago for $7 million. The machine...
A: Book value of assets is calculated as: Current assets + Fixed assets Net working capital - Current a...
Q: How long will it take money to double if it is invested at 6.5% compounded daily?
A: To determine the time taken to double the investment at 6.5% compounded daily.
Q: 4. What is the yield to maturity on a $1,000 par value bond 9 ⅛ percent Intercontinental Hotels Grou...
A: Yield to maturity also known as YTM is the required rate of return when the present value of all the...
Q: The market value of Ted's bonds has declined from $1,200 to $1,050 per bond during the past year. In...
A: Given information: Market value of the bond is $1200 and declined to $1,050 Two semi-annual interes...
Q: A man wants to set up a 529 college savings account for his granddaughter. How much would he need to...
A: We use PMT function to calculate yearly savings
Q: The Golden Gate Bridge in San Francisco was financed with construction bonds sold for $35 million in...
A: To determine the interest rate paid on the Bonds.
Q: Lauren has a margin account and deposits R50,000. Assume the prevailing margin requirement is 40 per...
A: The formula used for calculating maximum number of shares that can be purchased with margin requirem...
Q: A cash flow at time zero (now) of $9,982 is equivalent to another cash flow that is an EOY annuity o...
A: Zero time cash flow = End of the year annuity amount × ((P/A, i5)
Q: How much should you deposit now into a certificate of deposit (CD) at a bank, if the CD matures 10 y...
A: To calculate the principal amount deposit in the bank , we have to use the following formula : A = P...
Q: Directions: Match the vocabulary definitions to the vocabulary words. Vocabulary Words 1. Credit ...
A: The given Vocabularies are pertaining to the credit scores and the credit ratings of the borrowers. ...
Q: Travis Industries plans to issue perpetual preferred stock with an $11.00 dividend. The stock is cur...
A: Formula:
Q: Wanted to get an idea how to go about this problem
A: Rate of return. The rate at which return will be received by an investor on its investment value.
Q: Atlas Moving and Storage wants to have enough money to purchase a new tractor-trailer in 4 years at ...
A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two type...
Q: 7-42 Spreadsheet Problem You have a portfolio of three bonds. The long bond will mature in 19 years ...
A: Bond price: Bond price is the present value of coupon amount and face value of the bond at a given ...
Q: You sell short 200 shares of Doggie Treats Inc. which are currently selling at $25 per share. You po...
A: Formula: Maintenance margin=Total amount-Number of shares×share priceNumber of shares×share price
Q: At a rate of 10.0%, what is the future value of the following cash flow stream? Years: 1 4 CFs: $0 $...
A: Future value is the future worth of cash flows that has occurred in the past or present.
Q: A construction company purchases $50,000 worth of equipment on July 1, 2014. The company estimates t...
A: Given: Cost of asset = $50,000 Salvage value = $5,000 Life = 9 years.
Q: You have a financial goal to reach: $1,000,000 when you retire. You are currently 20 years old and y...
A: Given: Future value (FV) = $ 1000000 Number of periods (n) = 60-20 = 40 Return (r) = 0.15
Q: Security X has an expected rate of return of 13% and a beta of 1.15. The risk-free rate is 5% and th...
A: Overpriced securities are those securities whose required rate of return is more than the expected r...
Q: Taussig Corp.'s bonds currently sell for $960. They have a 6.35% annual coupon rate and a 20-year ma...
A: The bond is a discount bond hence, its YTM is lower than the YTC but higher than the nominal yield. ...
Q: Answer both the question 1 and 2.if answered within 40mins,it would be appreciable!!
A: 1) Formula: EPS=Earnings available to common shareholdersNumber of shares
Q: 1. LNU was able to earn a apply for a loan to invest for future university expansion. If the univers...
A: Principle amount =60,000 Amount = 90,000 Time =5 years So, Simple Interest = Amount - Principle = 90...
Q: Pran and Monem group has the following assets in portfolio and returns of the assets are following....
A: Note: In this question, the Total amount contributed between Pran and Monem is not given, so we are ...
Q:
A: Formula: Future value=P×1+rt
Q: Define trustee (for bond indenture)
A: Bond is a debt instrument through which a company raises funds through borrowing and pays a fixed am...
Step by step
Solved in 2 steps
- Kendall Corners Inc. recently reported net income of $2.9 million and depreciation of $700,000. What was its net cash flow? Assume it had no amortization expense. Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000. Round you answer to the nearest dollar.JBS Inc. recently reported net income of $4,650 and depreciation of $855. How much was its net cash flow, assuming it had no amortization expense and sold none of its fixed assets? Group of answer choices $5,786.75 $5,223.25 $5,505.00 $4,955.59 $4,701.31Using the Exhibit below, assume that the depreciation expense on the Income Statement for the year was $38,000. When preparing the Statement of Cash Flow using the indirect method for the current year, which of the following statements would describe the proper presentation of depreciation expense on the Cash flow from operating activities section? EXHIBIT Increase (Decrease) Net Income (loss) $XXX Adjustments to reconcile net income to net cash flow from operating activities: Depreciation of fixed assets XXX Losses on disposal of assets XXX Gains on disposal of assets (XXX) Changes in current operating assets and liabilities:…
- Alpha Computers reports net income of $45 million. Included in that number is depreciation expense of $8 million, and a loss on the sale of land of $1 million. Records reveal decreases in Accounts Receivable, Inventory, and Accounts Payable of $5 million, $3 million, and $1 million, respectively. Calculate Alpha Computers' net cash flows from operating activities using the indirect method. (Negative value should be indicated by minus sign. Enter your answer in millions.) Net cash flows from operating activities millionChic Chalk company has charged a depreciation of $500,120 for one of its equipment, on its income statement. The company is planning for an increase in this depreciation. On the financial statements of Chic Chalk this will a. Decrease net cash flow from operations on the cash flow statement. b. Not impact the cash flow statement c. Increase in net cash flow from operations on the cash flow statement. d. No impact the Income statementCalculate the operating cash flow for Initech. (Assume that depreciation is tax deductible.) Initech Corp. Income Statement ($000's) Revenue Cost of Goods Sold SG&A Depreciation Expense. EBIT Interest Expense Income Before Taxes Taxes Net Income: $100,000 64,798 16,202 4,739 14,260 7,230 7,030 2,108 $4,922
- Sunset Acres reported net income of $58.0 million. Included in that number were trademark amortization expense of $2.7 million and gain on the sale of land of $1.4 million. Records reveal decreases in accounts receivable, accounts payable, and inventory of $1.6 million, $2.6 million, and $3.6 million, respectively. Required: What were Sunset's cash flows from operating activities? (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) ($ in millions) Cash flows from operating activities: Adjustments for noncash effects: Changes in operating assets and liabilities: Net cash flows from operating activitiesWildhorse Company reported a loss of $1586 for the sale of equipment for cash. The equipment had a cost of $39040 and accumulated depreciation of $35990. How much will Wildhorse report in the cash flows from investing activities section of its statement of cash flows?Reno Company's net income of $30,000 includes a charge for depreciation expense of $20,000. Its estimated net annual cash flow would be OA) $10,000 B) $12,500 OC) $25,000 D) $50,000 E) none of the above
- G company has an increase in its net fixed assets of $800. Depreciation = $140. How much did the company spend on net fixed assets? A source or use of cash? $800, source $800, use $940, source $940, useAbiss company has erroneously skipped recording depreciation on one of its equipment amounting to $25,000, in its income statement. The company is planning for an increase in this depreciation. On the financial statements of Abiss this wil . a. Decrease net cash flow from operations on the cash flow statement. b. Not impact the cash flow statement c. Increase in net cash flow from operations on the cash flow statement d. No impact the Income statement(a) The entity sold some tangible non-current assets, which had a net book value of $200 million. The cost of sales figure includes a loss of $10 million on this disposal. (b) Cost of sales is arrived at after charging depreciation on the tangible non-current assets of $42 million. (c) Dividends paid during the year were $55,000. Find cashflow from investing activities