QUESTION (13-4) What are some actions an entrenched management might take that would harm shareholders? The following are some of the actions an entrenched management might take that would harm shareholders: 1 .Managers can resort to earning management practices / income smoothing etc. to improve their job security 2. They can give themselves golden parachutes […]
QUESTION which of the following are characteristics of a limited partnership?a- general partners have unlimited liabilityb- there must be one or more general partnersc- limited parners maynot participate in mgmt of the limited partnershipd- all of the above D-all of the above source, question number 3: http://docs.google.com/viewer?a=v&q=cache:g7LBW0d79hwJ:studentoffortune.com/question/737171/Perfect-Solution-only-for-assistance/1223893-Financing questions w some unsure answers.docx “which of the […]
QUESTION Wells Engineering issued Preferred Stock about two years ago. The present annual dividend is $2.70 and the required return is 9.15%. What is the price of a share of Wells Preferred Stock? Preferred shares are ones where the dividend payment does not grow. This is different from the common stock dividend payment, where it […]
QUESTION Aubrea Company is making adjustment entries for the year ended December 31, 2011. In developing information for the adjusting entries, the accountant learned the following:A. A two year insurance premium of $3,600 was paid on October 1 2011 for coverage beginning on that date.B. At December 31, 2011 1 Two years insurance premium $3,600 […]
QUESTION If a companys beta were to double, would its expected return double? Beta of a firm is used to determine the required rate of return using CAPM model, CAPM model uses the following formula to determine the required rate of return:-Required rate of return = Risk free rate of return Beta*Market risk premiumDoubling the […]
QUESTION Sales $8,000,000Operationg costs $4,400,000EBITDA $3,600,000Depreciation and Amortization $800,000EBIT $2,8000,000Intrest $600,000EBT $2,200,000Taxes (40%) $880,000Net income $1,320,000We would like to increase our net income to $2,500,000.00. Operatings costs are 55% of the sales, Depreciation and gt; Net Income is 60% of EBT = $25,00,000 EBT = $25,00,000/0.60 = $41,66,667 ANSWER: CLICK REQUEST FOR AN EXPERT […]
QUESTION Arrange the following items in proper balance sheet presentation.Accumulated depreciation $200,000Retained earnings 110,000Cash 5,000Bonds payable 142,000Accounts receivable 38,000Plant and equipment-original cost 720,000Accounts payable 35,000Allowance for bad debts 6,000Common stock $1 par, 150,00 Liabilities Assets Current liabilities Current assets Bonds payable 142,000 Cash 5,000 Accounts payable 35,000 Accounts receivable 38,000 Notes payable 83,000 Less: Allowance […]
QUESTION Given the following tax rate schedule, what is the tax liability for a corp with taxable income of $8million?Corp. Tax Taxable Income15% $0 $50000.0025% $50000. $75000.34% $75001. $10million35% over $10million*additional surtax of 5% on income between $100000. and $335000.*additional surtax of The corporate income tax rate is calculated according to the tax rate schedule: […]
QUESTION Explain why under the gold standard a perpetual surplus or a perpetual deficit is impossible. Because under the gold standard gold serves as international reserves. A country running a perpetual deficit would end up shipping all its gold abroad to pay for its deficits and would have no more to finance future ones. Also […]
QUESTION Logan Drilling Corp. Plans to borrow $200,000 for one year. Northern National Bank will lend the money at 10 percent interest and requires a compensating balance of 20 percent. What is the effective rate of interest? According to the given information,Interest amount at 10% = 10% ($200,000) = $20,000The balance is compensated with 20% […]
