Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Accounting Expert

1) Given an anticipated market return of 12.0%, a beta of 0.75 for Benson Industries, and a risk-free rate of 4.0%, what is the expected return for Benson Industries?

A) 4.0%
B) 10.0%
C) 9.0%
D) 13.0%

2) Jolly Roger Kite Company has a payment cycle of 17 days, a collection cycle of 31 days, and a production cycle of 12 days. What is the average cash conversion cycle for the Jolly Roger Company?

A) 2 days
B) 60 days
C) 26 days
D) 36 days

3) What is the present value today of an ordinary annuity cash flow of $3,000 per year for forty years at an interest rate of 6.0% per year if the first cash flow is six years from today?

A) $33,730.40
B) $120,000.00 
C) $45,138.89
D) $1,327,777.67

4) Ten years ago Bacon Signs Inc. issued twenty-five-year 8% annual coupon bonds with a $1,000 face value each. Since then, interest rates in general have risen and the yield to maturity on the Bacon bonds is now 9%. Given this information, what is the price today for a Bacon Signs bond?

A) $1.085.59
B) $901.77
C) $919.39
D) $1,000

5) Endicott Enterprises Inc. has issued 30-year semi-annual coupon bonds with a face value of $1,000. If the annual coupon rate is 14% and the current yield to maturity is 15%, what is the firm's current price per bond?

A) $934.20
B) $934.34
C) $466.79
D) $1,000.00

6) Benson Biometrics Inc., has outstanding $1,000 face value 8% coupon bonds that make semiannual payments, and have 14 years remaining to maturity. If the current price for these bonds is $987.24, what is the annualized yield to maturity?

A) 8.38%
B) 8.64%
C) 8.15%
D) 8.00%

7) Consider the following four-year project. The initial outlay or cost is $180,000. The respective cash inflows for years 1, 2, 3 and 4 are: $100,000, $80,000, $80,000 and $20,000. What is the discounted payback period if the discount rate is 11%?

A) About 2.135 years
B) About 2.000 years
C) About 2.427 years
D) About 1.667 years

8) Geronimo, Inc. is considering a project that has an initial after-tax outlay or after-tax cost of $220,000. The respective future cash inflows from its four-year project for years 1 through 4 are: $50,000, $60,000, $70,000 and $80,000. Geronimo uses the net present value method and has a discount rate of 11%. Will Geronimo accept the project?

A) Geronimo rejects the project because the NPV is about -$12,375.60.
B) Geronimo rejects the project because the NPV is about -$2,375.60.
C) Geronimo rejects the project because the NPV is about -$22,375.73.
D) Geronimo accepts the project because the NPV is greater than $10,000.00.

9) Opie, Inc. is considering an eight-year project that has an initial after-tax outlay or after-tax cost of $180,000. The future after-tax cash inflows from its project for years 1 through 8 are the same at $38,000. Opie uses the net present value method and has a discount rate of 11.50%. Will Opie accept the project?

A) Opie rejects the project because the NPV is less than -$12,000.
B) Opie rejects the project because the NPV is about -$11,114.
C) Opie accepts the project because the NPV is greater than$12,000.
D) Opie accepts the project because the NPV is about $11,114.

10) Dice, Inc. is considering a very risky five-year project that has an initial outlay or cost of $70,000. The future cash inflows from its project for years 1, 2, 3, 4, and 5 are all the same at $35,000. Dice uses the internal rate of return method to evaluate projects. Will Dice accept the project if its hurdle rate is 41.00%?

A) Dice will accept this project because its IRR is about 41.50%.
B) Dice will probably accept this project because its IRR is about 41.04%, which is slightly above its hurdle rate.
C) Dice will probably reject this project because its IRR is about 39.74%, which is slightly below its hurdle rate.
D) Dice will accept this project because its IRR is over 45.50%.

11) Find the Modified Internal Rate of Return (MIRR) for the following annual series of cash flows, given a discount rate of 10.50%: Year 0: -$75,000; Year 1: $15,000; Year 2: $16,000; Year 3: $17,000; Year 4: $17,500; and, Year 5: $18,000.

A) About 6.35%
B) About 7.88%
C) About 7.35%
D) About 6.88%

12) Pigeon, Inc. is currently considering an eight-year project that has an initial outlay or cost of $80,000. The future cash inflows from its project for years 1 through 8 are the same at $30,000. Pigeon has a discount rate of 13%. Because of concerns about funds being short to finance all good projects, Pigeon wants to compute the profitability index (PI) for each project. What is the PI for Pigeon's current project?

A) About 1.70
B) About 1.80
C) About 1.60
D) About 1.50

13) Baldwin Co. purchases an asset for $50,000. This asset qualifies as a five-year recovery asset under MACRS, with the fixed depreciation percentages as follows: year 1 = 20.00%; year 2 = 32.00%; year 3 = 19.20%; year 4 = 11.52%. Baldwin has a tax rate of 35%. If the asset is sold at the end of four years for $5,000, what is the after-tax cash flow from disposal?

A) $2,592.00
B) $6274.00
C) $3,535.36
D) $3,408.22

14) Your firm has issued a 20-year $1,000.00 par value semiannual 10% coupon bond that sells for $1,000 in the market place. The proceeds from the sale of the bond issue is $975.00 per bond. What is your firm's yield to maturity on this new bond issue? Use a financial calculator to determine your answer.

A) 5.15%
B) 10.00%
C) 10.30%
D) 10.16%

15) The following information comes from the Galaxy Construction balance sheet. The value of common stock is $10,000, retained earnings equal $7,000, total common equity equals $17,000, preferred stock has a value of $3,000, and long-term debt totals $15,000. If the cost of debt is 8.00%, preferred stock has a cost of 10.00%, common stock has a cost of 12.00%, and the firm has a corporate tax rate of 30%, find out the firm's WACC adjusted for taxes.

A) 9.09%
B) 10.11%
C) 10.00%
D) There is not enough information to answer this problem.

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M93629
  • Price:- $50

Priced at Now at $50, Verified Solution

Have any Question? 


Related Questions in Financial Accounting

Assignmentin a survey 24 it professionals in chicago were

Assignment In a survey, 24 IT professionals in Chicago were asked how much their annual salary was for the year 2012. The results are shown below: $109,000 $ 65,000 $ 65,000 $ 59,000 $ 180,000 $ 101,325 $ 130,000 $95,000 ...

Financial accounting multiple choice1 preparing a bank

Financial Accounting Multiple Choice 1) Preparing a bank reconciliation enables a company to ________. A) locate any errors, whether made by the bank or by the company B) make adjustments for transactions that have alrea ...

Gaappartnershipsethics1500 words - apa formatyou are an

GAAP/Partnerships/Ethics (1,500 Words - APA Format) You are an accounting student taking a class in accounting. Your professor has given you an assignment for the weekend. He wants you to look at each ethical scenario li ...

Tootsie roll industries2015 annual report analysis

Tootsie Roll Industries 2015 Annual Report Analysis Questions Net earnings refers to net income temporary investments are current assets Q1 Where are its corporate headquarters? on What date was tootsie roll's last annua ...

Assignmentscenario for assignments 1-5for assignments 1-5

Assignment Scenario for Assignments 1-5 For Assignments 1-5, you are the new budgeting and finance administrator for your local government agency. Your first responsibility is to become familiar with the agency, the budg ...

1-balance sheet computationsbalance sheet presented below

1-Balance sheet computations. (Balance Sheet) Presented below is the trial balance of Hightower Corporation at December 31, 2017.   Debit Credit Cash 295,000   Sales Revenue   $12,150 Debt Investments (trading) (at cost, ...

Assignment performance measurement and variancesi thought

Assignment: Performance Measurement and Variances I thought the Internet would be an ideal way to distribute our products. We've had a lot of success with our direct sales, but now we can reach a much larger audience. Th ...

Assignment business plan - finalthis assignment consists of

Assignment: Business Plan - Final This assignment consists of two sections: your final business plan and your business plan financials. Note: You must submit both sections as separate files for the completion of this ass ...

Assignment purchase point media corporation ppmc

Assignment: Purchase Point Media Corporation (PPMC) INTRODUCTION Purchase Point Media Corporation (PPMC) INTRODUCTION This case is based on actual financial projections developed and provided by a publicly traded firm, P ...

Assignmentin integrative problem 86 in chapter 4 you were

Assignment In integrative problem 86 in Chapter 4, you were asked to calculate Carmin's gross income for 2013. This is the second phase, which provides the additional information necessary for you to calculate her taxabl ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen