QUESTION A Treasury bond is quoted at a price of 101:14 with a current yield of 7.236 percent. What is the coupon rate?a. 7.20 percentb. 7.28 percentc. 7.30 percentd. 7.34 percente. 7.39 percent D is the right answer Current Yield = [Annual Coupon / Current BondPrice] 7.236% = [Annual Coupon / Current BondPrice] Current Bond […]
QUESTION Data on Shick Inc. for 2008 are shown below, along with the days sales outstanding of the firms against which it benchmarks. The firms new CFO believes that the company could reduce its receivables enough to reduce its DSO to the benchmarks average. If this were done, by how much would rec¦ The formula […]
QUESTION important aspects and rules of book keeping? The Basic Rules By convention all accounting records are kept in ledgers (a term derived from the time when accounts were written up into large books called ledgers) that consist of pages of analysis columns used for recording details of individual business transactions that occur over a […]
QUESTION The potential separation of ownership from management gives the corporation severaladvantages over proprietorships and partnerships. Explain 1) Because ownership in a corporation is represented by shares of stock, ownership can be readily transferred to new owners. Because the corporation exists independently of those who own its shares, there is no limit to the transferability […]
QUESTION Describe the relationships among accounts payable, inventories, accounts receivable, and the cash account by tracing the impact on these accounts of a product manufactured and sold by a company. Start with the purchase of raw materials, and conclude with the collection for the sale of the product The introduction to management accounting begins with […]
QUESTION Plat Tools Corporation (PTC) has a target capital structure of 40% debt and 60% equity. The marginal tax rate is 40%. The cost of debt is 8%, The company?s shares trade at 20 per share. Next year?s expected dividend is 2.00 per share and its long-term dividend growth rate is 5%. If new e¦ […]
QUESTION I am 30 years old and I want to retire at 65 with 2 million dollars. The interest rate on my savings account is 5%.How much do I need to set aside each year to make sure I have 2 million dollars by age 65. According to the given problem,Future value = $2,000,000NUmber of […]
QUESTION Assume that today is December 31, 2008, and that the following information applies to Vermail airlines:-After-tax operation income [EBIT(1-T) for 2009 is expected to be $500 million.-The depreciation expense for 2009 is expected to be $100 million.-The capital expenditures for 2009 are expected to b¦ Net cash flow during 2009 = EBIT(1-T) cap. […]
QUESTION week 68. Kamins Corporation has two bond issues outstanding, each witha par value of $1,000. Information about each follows. Supposemarket interest rates rise 1 percentage point across the yield curve.What will be the change in price for each of the bonds? Does this tellus anything about the relatio¦ a) Calculating the Present value of […]
QUESTION Question 14Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows.AnswerSA projects regular IRR is found by compounding the cash inflows at t Question 14: A projects regular IRR is found by compounding the cash inflows at the […]
