QUESTION Chicago contractors got $7,000,000 contract to construct a school building for the City of Chicago. Work on this contract began in 2013 and the financial data pertaining to this contract is available here.Cost incurred till Dec.31, 2013 $1,400,000Billings made to City $2,000,000Amount collected from City $ 1,500,000The estimated future cost to complete this contract […]
QUESTION REA 202 Comprehensive Test Fall 2015 1. You are considering the purchase of an apartment building for $2,250,000. You would close on the purchase in January and you intend to sell the property in December, 5 years later. The land represents 15% of the price. a. What is the depreciation for years 1 and […]
QUESTION 5.4 – Discussion: Propitious Niche24 24 unread replies. 28 28 replies.Identify a Propitious Niche that a specific firm has in business today. Name the firm and its product or service that is the Propitious Niche. Explain why that Propitious Niche exists. Discuss if this Propitious Niche is being challenged by other competitors.Please provide at […]
QUESTION 2..0/msohtmlclip1/01/clip_image002.jpg”> (a) Yield of this bond can be calculated in Excel as =RATE (10,-105,1124,-1000). This is equal to 8.60%. Cost of capital = bond yield *(1-tax rate) = 8.60%*(1-34%) =5.67% (b) m(p)= d(1+g)/ r-g m(p)=27.58 d=1.75 g=7.5% 27.58 = 1.75 (1+7.5%)/(r-7.5%) r= 7.56% Wrong: 14.32 C. Cost of Common equity ? D. Bond selling […]
QUESTION On January 2, 2013, Bentley Co. leases equipment from Harry’s Leasing Company with five equal annual payments of $120,000 each, payable beginning December 31, 2013. Bentley Co. agrees to guarantee the $20,000 residual value of the asset at the end of the lease term. Bentleyâs incremental borrowing rate is 10%; however, the company knows […]
QUESTION Hamilton Landscaping’s dividend growth rate is expected to be 30% in the next year, drop to 15% from Year 1 to Year 2, and drop to a constant 5% for Year 2 and all subsequent years. Hamilton has just paid a dividend of $2.50 and its stock has a required return of 11%. […]
QUESTION Halliford Corporation expects to have earnings this coming year of $3.3690 per share. Halliford plansto retain all of its earnings for the next two years. For the subsequent two years, the firm will retain 46% of its earnings. It will then retain 23% of its earnings from that point onward. Each year, retained earnings […]
QUESTION D.Using the following data on the price of a bond and the corresponding interest rate (assuming a flat term structure) and regression method, estimate convexity and duration of the bond: Price Interest Rate $99 .06 100 .057 101.5 .052 102 .049 105 .044 106.5 .038 108 .033 108.5 .031 110.1 .028 42. What is […]
QUESTION What would be the motives for joint ventures and strategic alliances versus a merger and acquisitionUse specific examples of when one would be more appropriate than the other. ANSWER: REQUEST HELP FROM A TUTOR
QUESTION HW5Q1. Multiple Choice questions:1. Which of the following statements about stock dividends is true? a) Stock dividends are reported on the statement of cash flows.b) Stock dividends are reported on the statement of retained earnings.c) Stock dividends increase total equity.d) Stock dividends decrease total equity.2. Which order best describes the largest number of shares […]
