Bill Sharpe, owner of Sharper Knives Inc, is closing his business at the end of the current fiscal year. His sole asset, the knife-sharpening machine, is three years old. A depreciation table for the asset is shown below. Bill has agreed to sell the machine at the end of the year for $100,000. What is […]
Date: September 19th, 2020
The Hope Education Credit may only be taken for the first two years of post secondary education Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Operating cash flow (OCF) is calculated by adding back depreciation to the net operating profit after taxes. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Initech has 7 million shares of common stock outstanding and 50,000 bonds outstanding. The bonds pay semi-annual coupons at an annual rate of 9.05%, have 6 years to maturity and a face value of $1,000 each. The common stock currently sells for $30 a share and has a beta of 1. The bonds sell for […]
Date: September 19th, 2020
Ulrich is in a 28% tax bracket and has a credit of $100. Ulrich will save $100 in taxes because of the credit. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Dakota Layne is opening up “Layne’s Women’s Fashions” on April 1. Dakota’s sales forecast for the Spring/Summer of Year 1 is shown in the top row of the table. She is going to purchase her merchandise 2 months in advance and her cost of goods sold is 70% of sales. Assume that Dakota has a […]
Date: September 19th, 2020
An outlay for installation costs is not considered part of the depreciable basis of the asset to be purchased. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
A simple interest calculation assumes you reinvest all interest earned in the investment. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
FHA insurance is paid for with an additional interest charge on the mortgage balance. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
The Auto Group has 1,200 bonds outstanding that are selling for $980 each. The company also has 7,500 shares of preferred stock at a market price of $40 each. The common stock is priced at $32 a share and there are 32,000 shares outstanding. What is the weight of the preferred stock as it relates […]
Date: September 19th, 2020
