During 2007 and 2008, Browser reported net income of $90,000 and $50,000 and paid dividends of $40,000 and $60,000, respectively. Fire wire reported a balance in its investment account of $230,000 on December 31, 2008. It uses the equity method in accounting for this investment. g. What is the annual amount of amortization of differential over the ten year period? h. In 2007, will Fire Wire report and increase or a decrease in the investment account balance?
How much will she have in December of 2007? (Assume that a deposit is made in 2007. Make sure to count the years carefully.) 8. Mr. Flint retired as president of the Color Tile Company but is currently on a consulting contract for $45,000 per year for the next 10 years.
Add a graph of the resulting exposure to CAD. c. Assume now that GM decides to hedge 100% of its CAD exposure using a three-month forward. Add a graph of the resulting exposure to CAD. 4. d. Assume now that GM decides to hedge 50% of its transactional exposure using three-month call options on CAD with the expiration price of 1.5667. Add a graph of the resulting exposure to CAD.
cost of equity =I used the 20 year at 5.74%+Geometric mean=5.9%x most recent beta .69=9.81% Cost of Debt I used Yield to maturity to find cost of debt From Exhibit 4 PV= 95.60 N=40 (20years x 2) since its paid semiannually Pmt=-3.375 (6.75/2) FV=-100 Comp I = 3.58% (semiannual) 7.16% (annual) After tax cost of debt = 7.16%(1-38%) = 4.44% E = market value of the firm's equity To find Market value of Equity you multiply share price by amount of shares $42.09x273.3= 11503. D = market value of the firm's debt I valued book value of debt at 1,291 Then divide 11503/(11503+1291)=89.9 so the weight for debt is 10.1 percent When I calculated WACC 4.44%x.101+9.81%x.899= 9.27% Cohen made a few mistakes when she calculated her WACC. First, she used historical data in
If Casper decided to take out a loan that charges 20% APR over one year for the amount of £2000 over 12 months he would expect to pay £183 per month for 12 months with interest of £205. (candid money calculator accessed 28/7/11) If Casper makes the decision to use his credit card and he borrowed £2000 over 2 years at 15% APR his total monthly payments would be £96.08 per month, the interest would calculate to £306 this would be a total repayment of £2306 over 2 years. (candid money calculator accessed 28/7/11) Comparing the ‘loan’ to the credit card loan, Casper would pay his debt back quicker but at nearly double the price of the credit card loan, the advantage the credit card loan has, his monthly installments will be half of what the ‘loan’ but at 2 years rather than 1 year. Question 2 In question 2 of this essay I shall attempt to answer questions on expenditure and budgeting, giving a brief example from the study of the personal finance course book DB123 and the transcript of the dvd accessed on the Open University website.
Dawn Tipton ACC-309 Case 19-15 Professor Ed Kaplan Microsoft Corporation- On March 30th 2012 at 7:10pm Microsoft Corporation’s (MSFT) common stock price closed at $32.21 per share. This was a decrease of 0.05 from the previous day’s close of $32.26. While reviewing Microsoft’s past twelve months, I have found that the fifty-two week low was in June 2011 and it closed at $23.65 per share. The stock has some slight fluctuations between June 2011 and mid November 2011. Since November, the stock has shown an increase through mid March 2012 where it reached the fifty-two week high of $32.95 per share.
First cash flow: FV = 3581.70 (already done) Second cash flow: PV = -4000, N = 6, I/YR = 6, solve for FV = 5674.08 Third cash flow: PV = -8000, N=2, I/YR = 6; solve for FV = 8988.80 ANSWER: 3581.70+5674.08+8988.80 = $18,244.58 Question 1c Using the information from Question 1b, what will be the total accumulated value at the end of 10 years, if the interest rate is expected to be 6% for only the first three years, followed by 8% for the next five years, and 10% thereafter? First cash flow: PV = -2000, N=3, I/YR =6, solve for FV = 2382.03 PV = -2382.03, N = 5, I/YR = 8, solve for FV = 3499.98 PV = -3499.98, N = 2, I/YR = 10, solve for FV = 4,234.97 Second cash flow: PV = -4000, N = 4, I/YR = 8, solve for FV = 5441.96 PV = -5441.96, N = 2, I/YR = 10, solve for FV = 6584.77 Third cash flow: PV = -8000, N = 2, I/YR = 10, solve for FV = 9680.00 ANSWER: 4234.97 + 6584.77 + 9680.00 = $20,499.74 Question 1d Using the information from 1b, what equal amounts should be withdrawn in years 5 an 6, if the total accumulated value at the end of ten years is
• debit to Allowance for Doubtful Accounts for $3,300. Multiple Choice Question 182 The financial statements of the Melton Manufacturing Company reports net sales of $300,000 and accounts receivable of $50,000 and $30,000 at the beginning of the year and end of year, respectively. What is the average collection period for accounts receivable in days? • 60.8 • 96.1 • 36.5 • 48.7 Find the final exam answers here ACC 291 Final Exam Answers Multiple Choice Question 119 Stine Company purchased machinery with a list price of $64,000. They were given a 10% discount by the manufacturer.
Income before income taxes was $2,767 million against $2,383 million a year ago. Net income attributable to the company $1,709 million or $3.89 per diluted share against $1,462 million or $3.30 per diluted share a year ago. Costco Wholesale Corporation announced sales results for the five weeks ended September 30, 2012 and seventeen weeks
Q1 -Ocean Carriers uses a 9% discount rate. Should Ms. Linn purchase the $39 million capsize? Assume that Ocean Carriers is subject to 35% taxation To decide whether Ms. Linn should make the purchase, we conducted a Net Present Value analysis to determine the worthiness of the project taking into account the time value of future cash flows. We were given the following information: Three-year time charter starting in 2003 at a rate of $20,000 per day with an annual escalation of $200 per day. Expected inflation rate is 3%.