QUESTION Is a professional accountant a businessperson pursuing profit or a fiduciarythat is to act in the public interest? e of their funds, whether they are used efficiently or not. Accounting thus has to be more ethical so that the shareholders get the true and actual reporting of all the business activities. Thus accountants are […]
QUESTION 1. Now calculate the annualized variance and standard deviation for a portfolio that each month has equal holdings in the two stocks. Is the result more or less than the average of the standard deviations of the two stocks? Why 2. Download the Standard & Poors index for the same period (its symbol is […]
QUESTION Problem 5. Common stock valueFriedman Steel Company will pay a dividend of $1.50 per share in the next 12 months (D1). The required rate of return (Ke) is 10 percent and the constant growth rate is 5 percent.1.Compute P0.(For parts b, c, and d in this problem all variables remain the same except the […]
QUESTION 1. Your company can lease a truck for $10,000 a year (paid at the end of the year) for six years, or it can buy the truck today for $50,000. At the end of the six years the truck will be worthless. If the interest rate is 6%, what is the present value of […]
QUESTION Gypsy Joes operates a chain of coffee shops. The company pays rent of $10,000 per year for each shop. Supplies (napkins, bags and condiments) are purchased as needed. The managers of each shop are paid a salary of $2,500 per month and all other employees are paid on an hourly basis. The costs of […]
QUESTION As treasurer of the Universal Bed Corporation, Aristotle Procrustes is worried about his bad debt ratio, which is currently running at 6%. He believes that imposing a more stringent credit policy might reduce sales by 5% and reduce the bad debt ratio to 4%. If the cost of goods sold is 80% of the […]
QUESTION Describe the general relationship between net income and net cash flows from operating activitys for the firm, teh crosby firm. Intro to Finance chapter 2 week 1 q.28 In a cash flow statement cash flows from operating, investing and financing activities are shown in detail. Cash from operating activities is derived from various figures […]
QUESTION How much interest would you earn if you deposited $300 at 6 percent for 27 months? How much interest would you pay to borrow $670 for eight months at 12 percent? What is the future value of $800 at 8 percent after six years? How much would you have in savings if you kept […]
QUESTION 1. Determining the Inflation Rate. In 2000, selected automobiles had an average cost of $16,000. The average cost of those same automobiles is now $28,000. What was the rate of increase for these automobiles between the two time periods? 2. Computing Future Living Expenses. A family spends $36,000 a year for living expenses. If […]
QUESTION REORDER POINT Pawnee Manufacturing produces casings for stereo sets: large and small. In order to produce the different casings, equipment must be set up. Each setup configuration corresponds to a particular type of casing. The setup cost per production runfor either casingis $6,000. The cost of carrying small casings in inventory is $2 per […]
