5- Problem 9-04 (Nonconstant Growth Valuation) Holt Enterprises recent.pdf
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5. Problem 9.04 (Nonconstant Growth Valuation) Holt Enterprises recently paid a dividend, D 0 , of $1.25 . It expects to have nonconstant growth of 20% for 2 years followed by a constant rate of 5% thereafter. The firm's required return is 15% . a. How far away is the horizon date? I. The terminal, or horizon, date is the date when the growth rate becomes nonconstant. This occurs at time zero. II. The terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at the beginning of Year 2 . III. The terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at the end of Year 2. IV. The terminal, or horizon, date is infinity since common stocks do not have a maturity date. v. The terminal, or horizon, date is Year 0 since the value of a common stock is the present value of all future expected dividends at time zero. b. What is the firm's horizon, or continuing, value? Do not round intermediate calculations. Round your answer to the nearest cent. $ c. What is the firm's intrinsic value today, P 0 ? Do not round intermediate calculations. Round your answer to the nearest cent. $.
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5- Problem 9-04 (Nonconstant Growth Valuation) Holt Enterprises recent (1).pdf
5. Problem 9.04 (Nonconstant Growth Valuation) Holt Enterprises recently paid a dividend, D 0 ,
of $3.75 . It expects to have nonconstant growth of 14% for 2 years followed by a constant rate
of 10% thereafter. The firm's required return is 20% . a. How far away is the horizon date? I. The
terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at the
beginning of Year 2. II. The terminal, or horizon, date is the date when the growth rate becomes
constant. This occurs at the end of Year 2. III. The terminal, or horizon, date is infinity since
common stocks do not have a maturity date. IV. The terminal, or horizon, date is Year 0 since
the value of a common stock is the present value of all future expected dividends at time zero. V.
The terminal, or horizon, date is the date when the growth rate becomes nonconstant. This occurs
at time zero. b. What is the firm's horizon, or continuing, value? Do not round intermediate
calculations. Round your answer to the nearest cent. $ c. What is the firm's intrinsic value today,
P 0 ? Do not round intermediate calculations. Round your answer to the nearest cent..
Holt Enterprises recently paid a dividend, D0, of $2.25. It expects t.pdf
Holt Enterprises recently paid a dividend, D0, of $2.25. It expects to have nonconstant growth of
23% for 2 years followed by a constant rate of 10% thereafter. The firm's required return is 17%.
a. How far away is the horizon date? I. The terminal, or horizon, date is infinity since common
stocks do not have a maturity date. II. The terminal, or horizon, date is Year 0 since the value of
a common stock is the present value of all future expected dividends at time zero. III. The
terminal, or horizon, date is the date when the growth rate becomes nonconstant. This occurs at
time zero. IV. The terminal, or horizon, date is the date when the growth rate becomes constant.
This occurs at the beginning of Year 2. V. The terminal, or horizon, date is the date when the
growth rate becomes constant. This occurs at the end of Year 2. b. What is the firm's horizon, or
continuing, value? Do not round intermediate calculations. Round your answer to the nearest
cent. $ c. What is the firm's intrinsic value today, P0 ? Do not round intermediate calculations.
Round your answer to the nearest cent. $.
Holt Enterprises recently paid a dividend, D0, of $2.75. It expects t.pdf
Holt Enterprises recently paid a dividend, D0, of $2.75. It expects to have nonconstant growth of
15% for 2 years followed by a constant rate of 7% thereafter. The firm's required return is 10%.
a. How far away is the horizon date? I. The terminal, or horizon, date is Year 0 since the value of
a common stock is the present value of all future expected dividends at time zero. II. The
terminal, or horizon, date is the date when the growth rate becomes nonconstant. This occurs at
time zero. III. The terminal, or horizon, date is the date when the growth rate becomes constant.
This occurs at the beginning of Year 2 . IV. The terminal, or horizon, date is the date when the
growth rate becomes constant. This occurs at the end of Year 2. V. The terminal, or horizon, date
is infinity since common stocks do not have a maturity date. b. What is the firm's horizon, or
continuing, value? Do not round intermediate calculations. Round your answer to the nearest
cent. $ c. What is the firm's intrinsic value today, P0 ? Do not round intermediate calculations.
Round your answer to the nearest cent. $.
Holt Enterprises recently paid a dividend D0 of 275 It .pdf
Holt Enterprises recently paid a dividend, D0, of $2.75. It expects to have nonconstant growth of
16% for 2 years followed by a constant rate of 4% thereafter. The firm's required return is 20%. a.
How far away is the horizon date? I. The terminal, or horizon, date is the date when the growth
rate becomes constant. This occurs at the beginning of Year 2. II. The terminal, or horizon, date is
the date when the growth rate becomes constant. This occurs at the end of Year 2. III. The
terminal, or horizon, date is infinity since common stocks do not have a maturity date. IV. The
terminal, or horizon, date is Year 0 since the value of a common stock is the present value of all
future expected dividends at time zero. V. The terminal, or horizon, date is the date when the
growth rate becomes nonconstant. This occurs at time zero. b. What is the firm's horizon, or
continuing, value? Do not round intermediate calculations. Round your answer to the nearest cent.
$ c. What is the firm's intrinsic value today, P0 ? Do not round intermediate calculations. Round
your answer to the nearest cent. $.
Holt Enterprises recently paid a dividend, D0, of $1.50. It expects .pdf
Holt Enterprises recently paid a dividend, D0, of $1.50. It expects to have nonconstant growth of
25% for 2 years followed by a constant rate of 9% thereafter. The firm's required return is 16%.
How far away is the horizon date?
The terminal, or horizon, date is Year 0 since the value of a common stock is the present value of
all future expected dividends at time zero.
The terminal, or horizon, date is the date when the growth rate becomes nonconstant. This occurs
at time zero.
The terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at
the beginning of Year 2.
The terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at
the end of Year 2.
The terminal, or horizon, date is infinity since common stocks do not have a maturity date.
-Select-IIIIIIIVVItem 1
What is the firm's horizon, or continuing, value? Do not round intermediate calculations. Round
your answer to the nearest cent.
$
What is the firm's intrinsic value today, ? Do not round intermediate calculations. Round your
answer to the nearest cent. a. How far away is the horizon date? I. The terminal, or horizon, date
is Year 0 since the value of a common stock is the present value of all future expected dividends
at time zero. II. The terminal, or horizon, date is the date when the growth rate becomes
nonconstant. This occurs at time zero. III. The terminal, or horizon, date is the date when the
growth rate becomes constant. This occurs at the beginning of Year 2. IV. The terminal, or
horizon, date is the date when the growth rate becomes constant. This occurs at the end of Year
2. V. The terminal, or horizon, date is infinity since common stocks do not have a maturity date..
Holt Enterprises recently paid a dividend De of 3150 It .pdf
Holt Enterprises recently paid a dividend, De, of 31.50. It expects to have nonconstant growth of
18% for 2 years followed by a constant rate of 5% thereatter. The firm's required return is 12%. 3.
How far away is the horizon date? 1. The terminal, of heriton, date is the date when the growth
rate becomes constant. This occurs at the end of Year 2. If. The terminal, or herizon, date is
infinity since common stocks do not have a maturity date. IIt. The terminal, or horizon, date is Year
0 since the value of a common stock is the present value of all future expected dividends at time
rere. IV. The terminal, or harizon, date is the date when the growth rate becomes nonconstant.
This occurs at time rero. V. The terminal, or horizon, date is the date when the growth rate
becomes constant. This occurs at the beginning of Year 2. b. What is the firm's harizon, or
continuing, value? Do not round intermediate cakculations. Round your answer to the nearest
cent. 5 c. What is the firm's intrinsic value today, P0 ? Do not round intermediate calculations.
Rocind your answer to the nearest cent..
Hoit Enterprlses recently paid a dividend, Do, of 51,50 . It expects .pdf
Hoit Enterprlses recently paid a dividend, Do, of 51,50 . It expects to have noncenstant growth
of 22% for 2 years followed by a constant rate of 10\%4 thereafter. The firm's required return is
12% a. How for away is the horizon date? 1. The terminal, or horizon, date is the date when the
growth rate becomes constant. This occurs at the end of Year 2. II. The terminal, or horizon, dote
is infinity since common stocks do not have a maturity date. III. The terminal, or horizon, date is
Year 0 since the value of a common stock is the present value of all future expocted dividends at
time zero. I. The terminal, or horizon, date is the date when the growth rate becomes
nonconstant. This ocours at time rero. V. The terminai, or horizon, date is the date when the
growth rate becomes constant. This accurs at the begining of Year z. b. What is the firm's
horizon, or continuing, value? Do not round intermediate calculations. Round your ansaer to the
nearest cent. 7 c. What is the firm's intrinsic value today, P^0 ? Do not round intermedate
calculations. Round your answer to the nearest cent. 4.
Enterprises recently paid a dividend, D0, of $3.50. It expects to hav.pdf
Enterprises recently paid a dividend, D0, of $3.50. It expects to have nonconstant growth of
12% for 2 years followed by a constant rate of 10% eafter. The firm's required return is 11%. a.
How far away is the horizon date? I. The terminal, or horizon, date is Year 0 since the value of a
common stock is the present value of all future expected dividends at time zero. II. The terminal,
or horizon, date is the date when the growth rate becomes nonconstant. This occurs at time zero.
III. The terminal, or horizon, date is the date when the growth rate becomes constant. This occurs
at the beginning of Year 2 . IV. The terminal, or horizon, date is the date when the growth rate
becomes constant. This occurs at the end of Year 2. V. The terminal, or horizon, date is infinity
since common stocks do not have a maturity date..
Recommended
5- Problem 9-04 (Nonconstant Growth Valuation) Holt Enterprises recent (1).pdf
5. Problem 9.04 (Nonconstant Growth Valuation) Holt Enterprises recently paid a dividend, D 0 ,
of $3.75 . It expects to have nonconstant growth of 14% for 2 years followed by a constant rate
of 10% thereafter. The firm's required return is 20% . a. How far away is the horizon date? I. The
terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at the
beginning of Year 2. II. The terminal, or horizon, date is the date when the growth rate becomes
constant. This occurs at the end of Year 2. III. The terminal, or horizon, date is infinity since
common stocks do not have a maturity date. IV. The terminal, or horizon, date is Year 0 since
the value of a common stock is the present value of all future expected dividends at time zero. V.
The terminal, or horizon, date is the date when the growth rate becomes nonconstant. This occurs
at time zero. b. What is the firm's horizon, or continuing, value? Do not round intermediate
calculations. Round your answer to the nearest cent. $ c. What is the firm's intrinsic value today,
P 0 ? Do not round intermediate calculations. Round your answer to the nearest cent..
Holt Enterprises recently paid a dividend, D0, of $2.25. It expects t.pdf
Holt Enterprises recently paid a dividend, D0, of $2.25. It expects to have nonconstant growth of
23% for 2 years followed by a constant rate of 10% thereafter. The firm's required return is 17%.
a. How far away is the horizon date? I. The terminal, or horizon, date is infinity since common
stocks do not have a maturity date. II. The terminal, or horizon, date is Year 0 since the value of
a common stock is the present value of all future expected dividends at time zero. III. The
terminal, or horizon, date is the date when the growth rate becomes nonconstant. This occurs at
time zero. IV. The terminal, or horizon, date is the date when the growth rate becomes constant.
This occurs at the beginning of Year 2. V. The terminal, or horizon, date is the date when the
growth rate becomes constant. This occurs at the end of Year 2. b. What is the firm's horizon, or
continuing, value? Do not round intermediate calculations. Round your answer to the nearest
cent. $ c. What is the firm's intrinsic value today, P0 ? Do not round intermediate calculations.
Round your answer to the nearest cent. $.
Holt Enterprises recently paid a dividend, D0, of $2.75. It expects t.pdf
Holt Enterprises recently paid a dividend, D0, of $2.75. It expects to have nonconstant growth of
15% for 2 years followed by a constant rate of 7% thereafter. The firm's required return is 10%.
a. How far away is the horizon date? I. The terminal, or horizon, date is Year 0 since the value of
a common stock is the present value of all future expected dividends at time zero. II. The
terminal, or horizon, date is the date when the growth rate becomes nonconstant. This occurs at
time zero. III. The terminal, or horizon, date is the date when the growth rate becomes constant.
This occurs at the beginning of Year 2 . IV. The terminal, or horizon, date is the date when the
growth rate becomes constant. This occurs at the end of Year 2. V. The terminal, or horizon, date
is infinity since common stocks do not have a maturity date. b. What is the firm's horizon, or
continuing, value? Do not round intermediate calculations. Round your answer to the nearest
cent. $ c. What is the firm's intrinsic value today, P0 ? Do not round intermediate calculations.
Round your answer to the nearest cent. $.
Holt Enterprises recently paid a dividend D0 of 275 It .pdf
Holt Enterprises recently paid a dividend, D0, of $2.75. It expects to have nonconstant growth of
16% for 2 years followed by a constant rate of 4% thereafter. The firm's required return is 20%. a.
How far away is the horizon date? I. The terminal, or horizon, date is the date when the growth
rate becomes constant. This occurs at the beginning of Year 2. II. The terminal, or horizon, date is
the date when the growth rate becomes constant. This occurs at the end of Year 2. III. The
terminal, or horizon, date is infinity since common stocks do not have a maturity date. IV. The
terminal, or horizon, date is Year 0 since the value of a common stock is the present value of all
future expected dividends at time zero. V. The terminal, or horizon, date is the date when the
growth rate becomes nonconstant. This occurs at time zero. b. What is the firm's horizon, or
continuing, value? Do not round intermediate calculations. Round your answer to the nearest cent.
$ c. What is the firm's intrinsic value today, P0 ? Do not round intermediate calculations. Round
your answer to the nearest cent. $.
Holt Enterprises recently paid a dividend, D0, of $1.50. It expects .pdf
Holt Enterprises recently paid a dividend, D0, of $1.50. It expects to have nonconstant growth of
25% for 2 years followed by a constant rate of 9% thereafter. The firm's required return is 16%.
How far away is the horizon date?
The terminal, or horizon, date is Year 0 since the value of a common stock is the present value of
all future expected dividends at time zero.
The terminal, or horizon, date is the date when the growth rate becomes nonconstant. This occurs
at time zero.
The terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at
the beginning of Year 2.
The terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at
the end of Year 2.
The terminal, or horizon, date is infinity since common stocks do not have a maturity date.
-Select-IIIIIIIVVItem 1
What is the firm's horizon, or continuing, value? Do not round intermediate calculations. Round
your answer to the nearest cent.
$
What is the firm's intrinsic value today, ? Do not round intermediate calculations. Round your
answer to the nearest cent. a. How far away is the horizon date? I. The terminal, or horizon, date
is Year 0 since the value of a common stock is the present value of all future expected dividends
at time zero. II. The terminal, or horizon, date is the date when the growth rate becomes
nonconstant. This occurs at time zero. III. The terminal, or horizon, date is the date when the
growth rate becomes constant. This occurs at the beginning of Year 2. IV. The terminal, or
horizon, date is the date when the growth rate becomes constant. This occurs at the end of Year
2. V. The terminal, or horizon, date is infinity since common stocks do not have a maturity date..
Holt Enterprises recently paid a dividend De of 3150 It .pdf
Holt Enterprises recently paid a dividend, De, of 31.50. It expects to have nonconstant growth of
18% for 2 years followed by a constant rate of 5% thereatter. The firm's required return is 12%. 3.
How far away is the horizon date? 1. The terminal, of heriton, date is the date when the growth
rate becomes constant. This occurs at the end of Year 2. If. The terminal, or herizon, date is
infinity since common stocks do not have a maturity date. IIt. The terminal, or horizon, date is Year
0 since the value of a common stock is the present value of all future expected dividends at time
rere. IV. The terminal, or harizon, date is the date when the growth rate becomes nonconstant.
This occurs at time rero. V. The terminal, or horizon, date is the date when the growth rate
becomes constant. This occurs at the beginning of Year 2. b. What is the firm's harizon, or
continuing, value? Do not round intermediate cakculations. Round your answer to the nearest
cent. 5 c. What is the firm's intrinsic value today, P0 ? Do not round intermediate calculations.
Rocind your answer to the nearest cent..
Hoit Enterprlses recently paid a dividend, Do, of 51,50 . It expects .pdf
Hoit Enterprlses recently paid a dividend, Do, of 51,50 . It expects to have noncenstant growth
of 22% for 2 years followed by a constant rate of 10\%4 thereafter. The firm's required return is
12% a. How for away is the horizon date? 1. The terminal, or horizon, date is the date when the
growth rate becomes constant. This occurs at the end of Year 2. II. The terminal, or horizon, dote
is infinity since common stocks do not have a maturity date. III. The terminal, or horizon, date is
Year 0 since the value of a common stock is the present value of all future expocted dividends at
time zero. I. The terminal, or horizon, date is the date when the growth rate becomes
nonconstant. This ocours at time rero. V. The terminai, or horizon, date is the date when the
growth rate becomes constant. This accurs at the begining of Year z. b. What is the firm's
horizon, or continuing, value? Do not round intermediate calculations. Round your ansaer to the
nearest cent. 7 c. What is the firm's intrinsic value today, P^0 ? Do not round intermedate
calculations. Round your answer to the nearest cent. 4.
Enterprises recently paid a dividend, D0, of $3.50. It expects to hav.pdf
Enterprises recently paid a dividend, D0, of $3.50. It expects to have nonconstant growth of
12% for 2 years followed by a constant rate of 10% eafter. The firm's required return is 11%. a.
How far away is the horizon date? I. The terminal, or horizon, date is Year 0 since the value of a
common stock is the present value of all future expected dividends at time zero. II. The terminal,
or horizon, date is the date when the growth rate becomes nonconstant. This occurs at time zero.
III. The terminal, or horizon, date is the date when the growth rate becomes constant. This occurs
at the beginning of Year 2 . IV. The terminal, or horizon, date is the date when the growth rate
becomes constant. This occurs at the end of Year 2. V. The terminal, or horizon, date is infinity
since common stocks do not have a maturity date..
Enterbrises recently paid a dividend- Do- of 54-00- It expects to have.pdf
Enterbrises recently paid a dividend, Do, of 54.00. It expects to have nonconstant growth of 12%
for 2 years followed by a constant rate of 8% thereafter. The fermis required return is 11% . a.
How far away is the horizon date? 1. The terminal, or horizon, date is the date when the groweh
rete becomes nonconstant. This occurs at time zero. 11. The terminal, or horizon, date is the date
nhen the growth rate becomes constant. This occurs at the beginning of Year 2 . Iit. The terininal,
or harizen, date is the date ahen the growth rate becomes constant, This occurs at the end of Year
2 . TV. The terminal, or horizoo, date is infinity since common atocks do not have a maturity
date. V. The terminal, or horion, date is Year o vince the value of a common stock is the present
value of al future expected dividends at time sero. b. What is the firm's horison, or continuing,
value? Do not round intermediote caloulseions. Round your answer to the nearent cent? c. What
is the firm's intrinsic vaive today. P 6 > Do not round intermedite cakulations. Round your
mosmer to the nearest cent..
Problem 9-4 Nonconstant growth valuation Hart Enterprises recently pa.pdf
Problem 9-4 Nonconstant growth valuation Hart Enterprises recently paid a dividend, DO of
$1.00. It expects to have nonconstant growth of 14% for 2 years followed by a constant rate of
4% thereafter. The m s required return is 16% a. How far away is the horizon date? I. The
terminal, or horizon, date is infinity since common stocks do not have a maturity date. II. The
terminal, or horizon, date is Year 0 since the value of a common stock is the present value of all
future expected dividends at time zero III. The terminal, or horizon, date is the date when the
growth rate becomes nonconstant. This occurs at time zero. IV. The terminal, or horizon, date is
the date when the growth rate becomes constant. This occurs at the beginning of Year 2. V. The
terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at the
end of Year 2. Select- b. What is the firm\'s horizon, or continuing, value? Round your answer to
two decimal places c. What is the firm\'s intrinsic value today, Po? Round your answer to two
decimal places.
Solution
Answer a.
The terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at
the end of Year 2.
Answer b.
D0 = $1.00
Growth rate for next 2 years is 14%, followed by an constant growth rate (g) of 4%
D1 = $1.00 * 1.14 = $1.14
D2 = $1.14 * 1.14 = $1.2996
D3 = $1.2996 * 1.04 = $1.3516
Required return, r = 16%
Horizon Value of Firm = D3 / (r - g)
Horizon Value of Firm = $1.3516 / (0.16 - 0.04)
Horizon Value of Firm = $11.26
Answer c.
Intrinsic Value of Firm = $1.14/1.16 + $1.2996/1.16^2 + $11.26/1.16^2
Intrinsic Value of Firm = $10.32.
Financial Analysis and Decision MakingMake sure all work is legi.docx
Financial Analysis and Decision Making
Make sure all work is legible and all work is shown for problems 16 – 27.
FOR MULTIPLE CHOICE, HIGHLIGHT OR BOLD YOUR RESPONSE
1. Moshen Corporation just announced that its net income was lower than last year. Nevertheless, analysts estimate that the company’s net cash flow increased. What factors could explain this inconsistency?
a. The company’s depreciation expense increased.
b. The company’s interest expense declined.
c. The company had an increase in its non-cash revenues.
d. Answers a and b are correct.
e. Answers b and c are correct.
2.
Rivers Edge Inc. has annual sales of $737,000. Earnings before interest and taxes is equal to 21 percent of sales. For the period, the firm paid $7,900 in interest. What is the profit margin if the tax rate is 35 percent?
a. 12.46 percent
b. 12.95 percent
c. 13.33 percent
d. 15.29 percent
e. 16.11 percent
3.
Of the following activities, which will increase cash?
a. increasing inventory
b. repurchasing shares of stock
c. increasing accounts payable
d. buying new equipment
e. increasing prepaid taxes
4. All else held constant, which will increase the present value of an annuity?
I. Increase in the number of payments
II. Increase in the interest rate
III. Decrease in the interest rate.
IV. Decrease in the payment amount
a. I and II only
b. I and III only
c. II and IV only
d. I, II, and IV only
e. I, III, and IV only
5.
An investment will pay $3,500 five years from now. If the going interest rate on the 5-year security is 4.25%, how much is it worth today?
a.
$1,928.78
b.$2,030.30
c.
$2,131.81
d.$2,238.40
e.
$2,842.42
6.
Standard deviation measures _____ risk while beta measures _____ risk.
a. systematic; unsystematic
b. unsystematic; systematic
c. total; unsystematic
d. total; systematic
e. asset-specific; market
7.
Forever Memories Corp. just paid an annual dividend of $2.80. The company has increased its dividend by 2.5 percent a year for the past ten years and expects to continue doing so. What will a share of this stock be worth six years from now if the required return is 16 percent?
a. $23.60
b. $24.65
c. $25.08
d. $25.50
e. $26.90
8. Main distinguishing differences between debt and equity capital consist of all of the following EXCEPT:
a. Debtholders have no voice in management so long as the issuer does not
violate stated contractual obligations.
b. Claims on income and assets are as follows: bondholders, preferred
shareholders, common shareholders.
c. Debt has a stated maturity, while equity does not.
d. In terms of tax treatment, common equity is entitled to a tax deduction.
e. Common stockholders have voting rights.
9. The payback period is the length of time it takes an investment to generate sufficient cash flows to enable the project to:
a. produce a positive annual cash flow.
b. produce a positive cash flow from assets.
c. offset its fixed e ...
!#$&$()#+,(!1. Question Which of the following isar.docx
!"#$%&$'()*#+,(
!
1. Question : Which of the following is/are true?
I. Asset management ratio indicates how effectively a firm
generates profits on sales, assets and stockholder’s equity.
II. Liquidity ratios indicate the firm’s capacity to meet its
short-term financial obligations, but not its long-term
financial obligations.
III. Profitability ratios indicate how efficiently a firm is using
its assets to generate sales.
IV. Financial leverage ratios indicate the firm’s capacity to
meet its financial obligations, both short-term and long-term.
Student Answer:
II and IV
I and II
I, II, and IV
I and III
Question 2. Question : Which of the following is/are true?
I. When a loan is amortized over a five year term, the amount
of interest paid is decreased each year.
II. The effective annual rate of interest will always be equal
to or less than the nominal annual rate of interest.
III. An annuity due is the annuity in which the payments or
receipts occur at the beginning of each period.
IV. If the present value of a given sum is equal to its future
value, then the discount rate must be zero.
Student Answer:
IV only
III & IV
II, III & IV
I, III & IV
Question 3. Question : If a firm’s current ratio is 3.0,
Student Answer:
it is possible for its quick ratio to be larger than 3.0.
its current liabilities exceed its current assets.
it is possible for its quick ratio to be smaller than 3.0.
its current liabilities equal its current assets.
Ch 3
Ch 5
Ch 3
Question 4. Question : Which of the following is/are true?
I. The shareholder wealth maximization goal states that
management should seek to maximize the present value of
the expected future returns to the owners of the firm.
II. The primary reason for the agency problem between the
stockholders and managers is because of the separation of
ownership and management.
III. Protective covenants in a company's bond indentures are
used in agency relationships involving stockholders and
creditors.
IV. The fact that no investor can expect to earn excess
returns based on an investment strategy using only historical
stock price or return information is an example of
semistrong-form market efficiency.
Student Answer:
I and IV
I, II and IV
I, II and III
All of the above
Question 5. Question : If you’re a financial manager of a MNC (U.S. based) and you
anticipate that your company will need to pay C$2 million 6
months later. If you would like to make use of either forward
or futures or options contracts to fix your exchange rate
today, what is your strategy?
Student Answer:
BUY forward/futures contracts for C$2 million or BUY
call options for C$2 million.
SELL forward/futures contracts for C$2 million or BUY
call options for C$2 million.
BUY forward/futures contracts for C$2 million or ...
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Fin 370 final exam
This document contains 30 multiple choice questions from a finance exam covering topics such as corporate finance, time value of money, capital budgeting, cost of capital, capital structure, and international finance. The questions test understanding of key concepts like the goal of the firm, primary vs secondary markets, agency theory, financial ratios, time value of money calculations, net present value, internal rate of return, weighted average cost of capital, and foreign exchange rates.
Fin 370 final exam
This document contains 30 multiple choice questions from a finance exam covering topics such as corporate finance, time value of money, capital budgeting, cost of capital, capital structure, and international finance. The questions test understanding of key concepts like the goal of the firm, primary vs secondary markets, agency theory, financial ratios, present value, internal rate of return, weighted average cost of capital, capital budgeting techniques, and foreign exchange.
Fin 370 final exam
This document provides the answers to 30 multiple choice questions from a FIN 370 Final Exam. It covers topics such as corporate goals, primary and secondary markets, agency theory, financial principles, accounting ratios, time value of money, capital budgeting techniques, cost of capital, capital structure, and international finance. The answers are labeled A, B, C, or D for each question.
58284. FINANCIAL MANAGEMENT_ND-2022_Question.pdf
58284. FINANCIAL MANAGEMENT_ND-2022_Question.pdf
Professional Level November December session 2022 ICAB Question paper
Ch 3 Problem Solving Quiz
This document contains 7 problems related to financial statements, cash flows, and taxes. Problem 1 involves calculating earnings per share and retained earnings for Philagem, Inc. Problem 2 shows the effect of net income on Conrad Air, Inc.'s balance sheet under different dividend payment and investment scenarios. Problem 3 requires preparing a statement of retained earnings for Cooper Industries, Inc. Problem 4 involves constructing an income statement to achieve a target net income given changes to sales and expenses. Problems 5-7 present multiple choice and free cash flow questions.
Modern Advanced Accounting in Canada 6th Edition Hilton Test Bank
Full download : https://goo.gl/yCNDc7
Modern Advanced Accounting in Canada 6th Edition Hilton Test Bank
FIN534 Week 2 Scenario Script Financial Statements and Reports, F.docx
FIN534 Week 2 Scenario Script: Financial Statements and Reports, Financial Analysis, Corporate ratios and benchmarking
Slide #
Scene/Interaction
Narration
Slide 1
Scene 1
· Linda in her office
· Don enters with
· Linda’s Phone Rings
· End of scene
FIN534_2_1_Linda-1: Hello, I hope you are ready to get started today because Don gave us our first analysis project. He would like us to review some of TFC’s financial reports.
FIN534_2_1_Don-1: Hello everyone. I just came from the accounting department where I was able to get TFC’s balance sheets and income statements for the prior two years. The accounting department also provided an estimate of TFC’s balance sheet and income statement after the acquisition, considering it occurs. I would like for you to review the statements and determine the financial strength of our company. We pride ourselves in having a strong cash base. We are hoping this project will keep our cash account strong.
Let’s go to the conference room so I can show you the reports and review some of the accounts with you.
FIN534_2_1_Linda-2: (Phone rings)Hello. (wait a few seconds). Thank you. I will be right over.
FIN534_2_1_Linda-3: Sorry I cannot join you as an important matter came up at one of our facilities.
FIN534_2_1_Don-2: Not a problem. I have faith in our Strayer intern. So, we will review the forms in the conference room.
Slide 2
Scene 2
· In conference room with spreadsheets up
· Put the three areas of Balance Sheet on a slide
· Show the formula
· Go to next slide
FIN534_2_2_Don-1: So, it looks like this one is all on you. Here is the balance sheet and the income statements. I was able to gather the information from the last two years of TFC’s annual report, which you know also includes the statement of stockholders’ equity and the statement of cash flows.
FIN534_2_2_Don-2: Let’s take a quick look at the Balance Sheet. It shows a snapshot of TFC as of December 31st of the past two years as well as this year which is an estimated number. It is pretty much showing us what the company looks like at those points in time. The amounts can change significantly from one day to the next. For example.if there is a big cash payment, then the cash account will go down overnight! There are three main areas to a Balance Sheet and they include assets, liabilities, and equity. The Balance Sheet also says everything should add up or balance and the formula for this is: assets equal liabilities plus equity.
Slide 3
Scene 3
· Don shows Asset account
· Go to next slide
FIN534_2_3_Don-1: Assets are what TFC owns and the accounts consist of current and long term assets. Current assets are typically considered by TFC to be those accounts that will be turned into cash within one year. The long term assets also known as fixed assets are those that have longer than one year of an expected life on the books.
Now let’s take a look at the other side of the Balance Sheet equation.
Slide 4
Scen ...
Emerging Ethical IssuesXXXXXXSeptember 8, 2014xxxxx.docx
This document contains sample problems related to finance topics like bond valuation, interest rates, annuities, loans, and retirement planning. It includes multiple choice and calculation questions across various sections. Students are asked to calculate values, interest rates, payments and balances given rates of return, time periods, cash flows and other financial variables. Explanations are provided for some answers.
FE 445 C1 Final Team Project
This document provides an investment portfolio for Mr. Donothing constructed by a team to fulfill his short and long-term financial needs. It analyzes the economy, selects industries of Internet information, biotechnology, and automobiles, and chooses individual companies to invest in from these industries. The portfolio aims to achieve a 10.57% annual return through diversifying 48.08% in stocks, 35.9% in mutual funds, 5.86% in commodities, and 5% in bonds. Appendices provide more details on the selected industries and companies.
Fin 515 week 6 problems solutions
This document contains solutions to problems from FIN 515 Week 6. It includes solutions to 5 problems labeled 16-1 through 16-5. It also includes a link to get additional tutorial information. The document provides the questions and multiple choice answers to 6 additional business and finance problems. It gives the questions, possible answers and identifies the correct answers. The problems cover topics like market value, capital budgeting techniques, stock valuation, cash budgeting and additional funds needed.
Question #3FlipCorp.hasthefollowinginformationregardingitsallo.docx
Question #3
FlipCorp.hasthefollowinginformationregardingitsallowanceforuncollectibleaccounts.
BalanceDecember31, 2014 $28,000
Write-offsduring2015 (27,000)
Recoveriesduring2015 7,000
RequiredallowanceatDecember31, 2015 31,000
Prepare t he journal entries for the write-offs and recoveries for 2015, and for the provision for
Uncollectible accounts expense at December 31,2015. Do not provide any journal explanations. If no entry is necessary, write "no
entry." (please be sure to fill the date, account name and debit/credit)
General Journal:
Write-offs:
Date Account Debit Credit
Question#2
On January 1, 2014, Floppy enters into an agreement with State Finance Corporation to sell a group of receivables without
recourse. The total face value of the receivables is $150,000. State Finance Corp. will charge 15%interest on the weighted-average
time to maturity of the receivables of 95 days plus a 2%fee. Do
not provide any journal explanations. If no entry is necessary, write "no entry."
Date Account Debit Credit
Question #3
Floopy uses the periodic inventory method for inventories. Prepare the journal entries for each of the following transactions. Do not
provide any journal explanations. If no entry is necessary, write "no entry." Floopy uses the net method for recording inventory
transactions.
>> On January 5, year 2, purchased $17,000 of garden tillers on account fromFlip, terms 2/10, n/30, FOB destination.
Freight charges were $200.
>> On January 10, year 2, returned garden tillers worth $2,000 to Flip due to defects.
>> On January 24, year 2, paid for tillers purchased fromFlip.
>> On January 28, year 2, purchased $30,000 of lawn mowers fromFlam, terms 3/10, n/30, FOB shipping point. The
freight charges were $820.
>> On February 6, year 2, paid for the lawn mowers purchased on January 28, year 2, fromFlam.
AllowanceforUncollectibleAccountsandProvisionforUncollectibleAccounts
Date Account Debit Credit
Question#4
On January 2, 2014, Floppy Co. issued 6% bonds with a face value of $440,000 when the market interest rate was 8% for $380,208.
The bonds are due in ten years, and interest is payable every June 30 and December 31. Floppy does not elect the fair value option
for reporting its financial liabilities. Do not provide any journal explanations. If no entry is necessary, write "no entry." Round all
numbers to the nearest dollar.
Required:
a. Prepare the journal entries for the bond issue on January 2, 2014.
b. Prepare the journal entry for the interest payment on June 30, 2014.
c. Prepare any required end of 2014 adjusting entry.
General Journal:
Date Account Debit Credit
Question#5
January 1, 2014, Frick Co. issued 3,000 of its 9%, $1,000 face value bonds at 101 1/2. In connection with the sale of these bonds,
Frick paid the following expenses:
Promotion costs $ 20,000
Engraving and pri ...
Which of the following approaches is recommended to help users view a.pdf
Which of the following approaches is recommended to help users view a new system as easy to
use?
Multiple Choice
Make sure all user requests are addressed as enhancements to the system in its maintenance
phase.
Show the look and feel of the new system (i.e., sample computer screens, reports, etc.) well
before the new system is developed in order to help users feel comfortable with it.
Provide extensive training just after the system goes into production throughout the organization.
Develop a detailed specification of the features the new system will have..
What is the purpose of the assembler program- Group of answer choices.pdf
What is the purpose of the assembler program?
Group of answer choices
to turn assembly language instructions that are written as mnemonics into the machine language
version of the instructions written as bits
to take a high level language program and turn it into an assembly lanague program
to execute the machine language version of a program on a computer architecture
to execute the assembly language version of a program on a computer architecture.
Using putty in Terminal- please write a code Create a country sub.pdf
Using putty in Terminal: please write a code
Create a country sub folder in the appropriate continent folder. Be sure to check that the country
does not exist.
Create two city subfolders in the country subfolder. Be sure to check the city folders do not
already exist in the selected country folder.
Create a folder in one of the cities you created with your name on it.
Using your command line navigation skills, find the continent/country/city folders that hold files
corresponding to 5 other people (not you). Any 5 names will do
Extra credit: Using the vim editor, create a file with your biographical information (icebreaker
discussion forum introduction) and name it using your name. Save that file in any city subfolders
you like (as long as none of your teammates are located there)..
West MI Corporation owns 4-000-000 shares of stock in East MI Corporat.pdf
West MI Corporation owns 4,000,000 shares of stock in East MI Corporation. On December 31,
2022, West MI distributed these shares of stock as a dividend to its stockholders. This
distribution is an example of a
Select one:
a.
property dividend.
b.
stock dividend.
c.
liquidating dividend.
d.
cash dividend..
Using your own words- explain the difference between internal and exte.pdf
Using your own words, explain the difference between internal and external communications for
an organization.
Also, explain in more depth some components of internal communications for organizations,
including these:
Downward communications
Upward communications
Lateral communications
Diagonal communications
Be sure to provide your answers in your own words and using your own explanations. Provide
examples in your explanations..
Unida Systems has 32 million shares outstanding trading for $ 10 per s.pdf
Unida Systems has 32 million shares outstanding trading for $ 10 per share. In addition, Unida
has $ 109 million in outstanding debt. Suppose Unida's equity cost of capital is 14 % , its debt
cost of capital is 8 % , and the corporate tax rate is 35 % . a. What is Unida's unlevered cost of
capital? b. What is Unida's after-tax debt cost of capital? c. What is Unida's weighted average
cost of capital?.
More Related Content
Similar to 5- Problem 9-04 (Nonconstant Growth Valuation) Holt Enterprises recent.pdf
Enterbrises recently paid a dividend- Do- of 54-00- It expects to have.pdf
Enterbrises recently paid a dividend, Do, of 54.00. It expects to have nonconstant growth of 12%
for 2 years followed by a constant rate of 8% thereafter. The fermis required return is 11% . a.
How far away is the horizon date? 1. The terminal, or horizon, date is the date when the groweh
rete becomes nonconstant. This occurs at time zero. 11. The terminal, or horizon, date is the date
nhen the growth rate becomes constant. This occurs at the beginning of Year 2 . Iit. The terininal,
or harizen, date is the date ahen the growth rate becomes constant, This occurs at the end of Year
2 . TV. The terminal, or horizoo, date is infinity since common atocks do not have a maturity
date. V. The terminal, or horion, date is Year o vince the value of a common stock is the present
value of al future expected dividends at time sero. b. What is the firm's horison, or continuing,
value? Do not round intermediote caloulseions. Round your answer to the nearent cent? c. What
is the firm's intrinsic vaive today. P 6 > Do not round intermedite cakulations. Round your
mosmer to the nearest cent..
Problem 9-4 Nonconstant growth valuation Hart Enterprises recently pa.pdf
Problem 9-4 Nonconstant growth valuation Hart Enterprises recently paid a dividend, DO of
$1.00. It expects to have nonconstant growth of 14% for 2 years followed by a constant rate of
4% thereafter. The m s required return is 16% a. How far away is the horizon date? I. The
terminal, or horizon, date is infinity since common stocks do not have a maturity date. II. The
terminal, or horizon, date is Year 0 since the value of a common stock is the present value of all
future expected dividends at time zero III. The terminal, or horizon, date is the date when the
growth rate becomes nonconstant. This occurs at time zero. IV. The terminal, or horizon, date is
the date when the growth rate becomes constant. This occurs at the beginning of Year 2. V. The
terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at the
end of Year 2. Select- b. What is the firm\'s horizon, or continuing, value? Round your answer to
two decimal places c. What is the firm\'s intrinsic value today, Po? Round your answer to two
decimal places.
Solution
Answer a.
The terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at
the end of Year 2.
Answer b.
D0 = $1.00
Growth rate for next 2 years is 14%, followed by an constant growth rate (g) of 4%
D1 = $1.00 * 1.14 = $1.14
D2 = $1.14 * 1.14 = $1.2996
D3 = $1.2996 * 1.04 = $1.3516
Required return, r = 16%
Horizon Value of Firm = D3 / (r - g)
Horizon Value of Firm = $1.3516 / (0.16 - 0.04)
Horizon Value of Firm = $11.26
Answer c.
Intrinsic Value of Firm = $1.14/1.16 + $1.2996/1.16^2 + $11.26/1.16^2
Intrinsic Value of Firm = $10.32.
Financial Analysis and Decision MakingMake sure all work is legi.docx
Financial Analysis and Decision Making
Make sure all work is legible and all work is shown for problems 16 – 27.
FOR MULTIPLE CHOICE, HIGHLIGHT OR BOLD YOUR RESPONSE
1. Moshen Corporation just announced that its net income was lower than last year. Nevertheless, analysts estimate that the company’s net cash flow increased. What factors could explain this inconsistency?
a. The company’s depreciation expense increased.
b. The company’s interest expense declined.
c. The company had an increase in its non-cash revenues.
d. Answers a and b are correct.
e. Answers b and c are correct.
2.
Rivers Edge Inc. has annual sales of $737,000. Earnings before interest and taxes is equal to 21 percent of sales. For the period, the firm paid $7,900 in interest. What is the profit margin if the tax rate is 35 percent?
a. 12.46 percent
b. 12.95 percent
c. 13.33 percent
d. 15.29 percent
e. 16.11 percent
3.
Of the following activities, which will increase cash?
a. increasing inventory
b. repurchasing shares of stock
c. increasing accounts payable
d. buying new equipment
e. increasing prepaid taxes
4. All else held constant, which will increase the present value of an annuity?
I. Increase in the number of payments
II. Increase in the interest rate
III. Decrease in the interest rate.
IV. Decrease in the payment amount
a. I and II only
b. I and III only
c. II and IV only
d. I, II, and IV only
e. I, III, and IV only
5.
An investment will pay $3,500 five years from now. If the going interest rate on the 5-year security is 4.25%, how much is it worth today?
a.
$1,928.78
b.$2,030.30
c.
$2,131.81
d.$2,238.40
e.
$2,842.42
6.
Standard deviation measures _____ risk while beta measures _____ risk.
a. systematic; unsystematic
b. unsystematic; systematic
c. total; unsystematic
d. total; systematic
e. asset-specific; market
7.
Forever Memories Corp. just paid an annual dividend of $2.80. The company has increased its dividend by 2.5 percent a year for the past ten years and expects to continue doing so. What will a share of this stock be worth six years from now if the required return is 16 percent?
a. $23.60
b. $24.65
c. $25.08
d. $25.50
e. $26.90
8. Main distinguishing differences between debt and equity capital consist of all of the following EXCEPT:
a. Debtholders have no voice in management so long as the issuer does not
violate stated contractual obligations.
b. Claims on income and assets are as follows: bondholders, preferred
shareholders, common shareholders.
c. Debt has a stated maturity, while equity does not.
d. In terms of tax treatment, common equity is entitled to a tax deduction.
e. Common stockholders have voting rights.
9. The payback period is the length of time it takes an investment to generate sufficient cash flows to enable the project to:
a. produce a positive annual cash flow.
b. produce a positive cash flow from assets.
c. offset its fixed e ...
!#$&$()#+,(!1. Question Which of the following isar.docx
!"#$%&$'()*#+,(
!
1. Question : Which of the following is/are true?
I. Asset management ratio indicates how effectively a firm
generates profits on sales, assets and stockholder’s equity.
II. Liquidity ratios indicate the firm’s capacity to meet its
short-term financial obligations, but not its long-term
financial obligations.
III. Profitability ratios indicate how efficiently a firm is using
its assets to generate sales.
IV. Financial leverage ratios indicate the firm’s capacity to
meet its financial obligations, both short-term and long-term.
Student Answer:
II and IV
I and II
I, II, and IV
I and III
Question 2. Question : Which of the following is/are true?
I. When a loan is amortized over a five year term, the amount
of interest paid is decreased each year.
II. The effective annual rate of interest will always be equal
to or less than the nominal annual rate of interest.
III. An annuity due is the annuity in which the payments or
receipts occur at the beginning of each period.
IV. If the present value of a given sum is equal to its future
value, then the discount rate must be zero.
Student Answer:
IV only
III & IV
II, III & IV
I, III & IV
Question 3. Question : If a firm’s current ratio is 3.0,
Student Answer:
it is possible for its quick ratio to be larger than 3.0.
its current liabilities exceed its current assets.
it is possible for its quick ratio to be smaller than 3.0.
its current liabilities equal its current assets.
Ch 3
Ch 5
Ch 3
Question 4. Question : Which of the following is/are true?
I. The shareholder wealth maximization goal states that
management should seek to maximize the present value of
the expected future returns to the owners of the firm.
II. The primary reason for the agency problem between the
stockholders and managers is because of the separation of
ownership and management.
III. Protective covenants in a company's bond indentures are
used in agency relationships involving stockholders and
creditors.
IV. The fact that no investor can expect to earn excess
returns based on an investment strategy using only historical
stock price or return information is an example of
semistrong-form market efficiency.
Student Answer:
I and IV
I, II and IV
I, II and III
All of the above
Question 5. Question : If you’re a financial manager of a MNC (U.S. based) and you
anticipate that your company will need to pay C$2 million 6
months later. If you would like to make use of either forward
or futures or options contracts to fix your exchange rate
today, what is your strategy?
Student Answer:
BUY forward/futures contracts for C$2 million or BUY
call options for C$2 million.
SELL forward/futures contracts for C$2 million or BUY
call options for C$2 million.
BUY forward/futures contracts for C$2 million or ...
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Fin 370 final exam
This document contains 30 multiple choice questions from a finance exam covering topics such as corporate finance, time value of money, capital budgeting, cost of capital, capital structure, and international finance. The questions test understanding of key concepts like the goal of the firm, primary vs secondary markets, agency theory, financial ratios, time value of money calculations, net present value, internal rate of return, weighted average cost of capital, and foreign exchange rates.
Fin 370 final exam
This document contains 30 multiple choice questions from a finance exam covering topics such as corporate finance, time value of money, capital budgeting, cost of capital, capital structure, and international finance. The questions test understanding of key concepts like the goal of the firm, primary vs secondary markets, agency theory, financial ratios, present value, internal rate of return, weighted average cost of capital, capital budgeting techniques, and foreign exchange.
Fin 370 final exam
This document provides the answers to 30 multiple choice questions from a FIN 370 Final Exam. It covers topics such as corporate goals, primary and secondary markets, agency theory, financial principles, accounting ratios, time value of money, capital budgeting techniques, cost of capital, capital structure, and international finance. The answers are labeled A, B, C, or D for each question.
58284. FINANCIAL MANAGEMENT_ND-2022_Question.pdf
58284. FINANCIAL MANAGEMENT_ND-2022_Question.pdf
Professional Level November December session 2022 ICAB Question paper
Ch 3 Problem Solving Quiz
This document contains 7 problems related to financial statements, cash flows, and taxes. Problem 1 involves calculating earnings per share and retained earnings for Philagem, Inc. Problem 2 shows the effect of net income on Conrad Air, Inc.'s balance sheet under different dividend payment and investment scenarios. Problem 3 requires preparing a statement of retained earnings for Cooper Industries, Inc. Problem 4 involves constructing an income statement to achieve a target net income given changes to sales and expenses. Problems 5-7 present multiple choice and free cash flow questions.
Modern Advanced Accounting in Canada 6th Edition Hilton Test Bank
Full download : https://goo.gl/yCNDc7
Modern Advanced Accounting in Canada 6th Edition Hilton Test Bank
FIN534 Week 2 Scenario Script Financial Statements and Reports, F.docx
FIN534 Week 2 Scenario Script: Financial Statements and Reports, Financial Analysis, Corporate ratios and benchmarking
Slide #
Scene/Interaction
Narration
Slide 1
Scene 1
· Linda in her office
· Don enters with
· Linda’s Phone Rings
· End of scene
FIN534_2_1_Linda-1: Hello, I hope you are ready to get started today because Don gave us our first analysis project. He would like us to review some of TFC’s financial reports.
FIN534_2_1_Don-1: Hello everyone. I just came from the accounting department where I was able to get TFC’s balance sheets and income statements for the prior two years. The accounting department also provided an estimate of TFC’s balance sheet and income statement after the acquisition, considering it occurs. I would like for you to review the statements and determine the financial strength of our company. We pride ourselves in having a strong cash base. We are hoping this project will keep our cash account strong.
Let’s go to the conference room so I can show you the reports and review some of the accounts with you.
FIN534_2_1_Linda-2: (Phone rings)Hello. (wait a few seconds). Thank you. I will be right over.
FIN534_2_1_Linda-3: Sorry I cannot join you as an important matter came up at one of our facilities.
FIN534_2_1_Don-2: Not a problem. I have faith in our Strayer intern. So, we will review the forms in the conference room.
Slide 2
Scene 2
· In conference room with spreadsheets up
· Put the three areas of Balance Sheet on a slide
· Show the formula
· Go to next slide
FIN534_2_2_Don-1: So, it looks like this one is all on you. Here is the balance sheet and the income statements. I was able to gather the information from the last two years of TFC’s annual report, which you know also includes the statement of stockholders’ equity and the statement of cash flows.
FIN534_2_2_Don-2: Let’s take a quick look at the Balance Sheet. It shows a snapshot of TFC as of December 31st of the past two years as well as this year which is an estimated number. It is pretty much showing us what the company looks like at those points in time. The amounts can change significantly from one day to the next. For example.if there is a big cash payment, then the cash account will go down overnight! There are three main areas to a Balance Sheet and they include assets, liabilities, and equity. The Balance Sheet also says everything should add up or balance and the formula for this is: assets equal liabilities plus equity.
Slide 3
Scene 3
· Don shows Asset account
· Go to next slide
FIN534_2_3_Don-1: Assets are what TFC owns and the accounts consist of current and long term assets. Current assets are typically considered by TFC to be those accounts that will be turned into cash within one year. The long term assets also known as fixed assets are those that have longer than one year of an expected life on the books.
Now let’s take a look at the other side of the Balance Sheet equation.
Slide 4
Scen ...
Emerging Ethical IssuesXXXXXXSeptember 8, 2014xxxxx.docx
This document contains sample problems related to finance topics like bond valuation, interest rates, annuities, loans, and retirement planning. It includes multiple choice and calculation questions across various sections. Students are asked to calculate values, interest rates, payments and balances given rates of return, time periods, cash flows and other financial variables. Explanations are provided for some answers.
FE 445 C1 Final Team Project
This document provides an investment portfolio for Mr. Donothing constructed by a team to fulfill his short and long-term financial needs. It analyzes the economy, selects industries of Internet information, biotechnology, and automobiles, and chooses individual companies to invest in from these industries. The portfolio aims to achieve a 10.57% annual return through diversifying 48.08% in stocks, 35.9% in mutual funds, 5.86% in commodities, and 5% in bonds. Appendices provide more details on the selected industries and companies.
Fin 515 week 6 problems solutions
This document contains solutions to problems from FIN 515 Week 6. It includes solutions to 5 problems labeled 16-1 through 16-5. It also includes a link to get additional tutorial information. The document provides the questions and multiple choice answers to 6 additional business and finance problems. It gives the questions, possible answers and identifies the correct answers. The problems cover topics like market value, capital budgeting techniques, stock valuation, cash budgeting and additional funds needed.
Question #3FlipCorp.hasthefollowinginformationregardingitsallo.docx
Question #3
FlipCorp.hasthefollowinginformationregardingitsallowanceforuncollectibleaccounts.
BalanceDecember31, 2014 $28,000
Write-offsduring2015 (27,000)
Recoveriesduring2015 7,000
RequiredallowanceatDecember31, 2015 31,000
Prepare t he journal entries for the write-offs and recoveries for 2015, and for the provision for
Uncollectible accounts expense at December 31,2015. Do not provide any journal explanations. If no entry is necessary, write "no
entry." (please be sure to fill the date, account name and debit/credit)
General Journal:
Write-offs:
Date Account Debit Credit
Question#2
On January 1, 2014, Floppy enters into an agreement with State Finance Corporation to sell a group of receivables without
recourse. The total face value of the receivables is $150,000. State Finance Corp. will charge 15%interest on the weighted-average
time to maturity of the receivables of 95 days plus a 2%fee. Do
not provide any journal explanations. If no entry is necessary, write "no entry."
Date Account Debit Credit
Question #3
Floopy uses the periodic inventory method for inventories. Prepare the journal entries for each of the following transactions. Do not
provide any journal explanations. If no entry is necessary, write "no entry." Floopy uses the net method for recording inventory
transactions.
>> On January 5, year 2, purchased $17,000 of garden tillers on account fromFlip, terms 2/10, n/30, FOB destination.
Freight charges were $200.
>> On January 10, year 2, returned garden tillers worth $2,000 to Flip due to defects.
>> On January 24, year 2, paid for tillers purchased fromFlip.
>> On January 28, year 2, purchased $30,000 of lawn mowers fromFlam, terms 3/10, n/30, FOB shipping point. The
freight charges were $820.
>> On February 6, year 2, paid for the lawn mowers purchased on January 28, year 2, fromFlam.
AllowanceforUncollectibleAccountsandProvisionforUncollectibleAccounts
Date Account Debit Credit
Question#4
On January 2, 2014, Floppy Co. issued 6% bonds with a face value of $440,000 when the market interest rate was 8% for $380,208.
The bonds are due in ten years, and interest is payable every June 30 and December 31. Floppy does not elect the fair value option
for reporting its financial liabilities. Do not provide any journal explanations. If no entry is necessary, write "no entry." Round all
numbers to the nearest dollar.
Required:
a. Prepare the journal entries for the bond issue on January 2, 2014.
b. Prepare the journal entry for the interest payment on June 30, 2014.
c. Prepare any required end of 2014 adjusting entry.
General Journal:
Date Account Debit Credit
Question#5
January 1, 2014, Frick Co. issued 3,000 of its 9%, $1,000 face value bonds at 101 1/2. In connection with the sale of these bonds,
Frick paid the following expenses:
Promotion costs $ 20,000
Engraving and pri ...
Similar to 5- Problem 9-04 (Nonconstant Growth Valuation) Holt Enterprises recent.pdf (16)
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