2024 ACCT 504 Week 5 DQ 2 Accounting for Liabilities Keller Assignment Help

Week 5 Long Lived Assets and Liabilities and Time Value of Money Accounting 2023

Week 5: Long-Lived Assets and Liabilities, and Time Value of Money Accounting for Liabilities (Graded) In this area, we will discuss different types of liabilities and understand how to account for and report those liabilities. Why are liabilities classified on a balance sheet as current and non-current? Who wants to know? What is the benefit of knowing this information?

2024 Discuss one to two (1-2) benefits of the planning stage for managers. Next, describe your planning process at work or school. Your response should include how you know when you need to develop a plan, how long you take to plan for a project or work relate Assignment Help

Discuss one to two 1 2 benefits of the planning stage for managers Next describe your planning process at work or 2023

Discuss one to two (1-2) benefits of the planning stage for managers. Next, describe your planning process at work or school. Your response should include how you know when you need to develop a plan, how long you take to plan for a project or work related event, and the elements that an effective project or operational plan should comprise.

2024 Post University FIN 201 Final Exam Assignment Help

1 At 11 percent interest how long would it take to quadruple your money 6 55 6 64 2023

1) At 11 percent interest, how long would it take to quadruple your money? 6.55 6.64 13.09 13.28 13.56 2) Which one of the following will decrease if a firm can decrease its operating costs, all else constant? Return on equity Return on assets Profit margin Equity multiplier Price-earnings ratio 3) Chelsea Fashions is expected to pay an annual dividend of $0.80 a share next year. The market price of the stock is $22.40 and the growth rate is 5 percent. What is the firm’s cost of equity? 7.58 percent 7.91 percent 8.24 percent 8.57 percent 9.00 percent 4) According to the Rule of 72, you can do which one of the following? Double your money in five years at 7.2 percent interest Double your money in 7.2 years at 8 percent interest Double your money in 8 years at 9 percent interest Triple your money in 7.2 years at 5 percent interest Triple your money at 10 percent interest in 7.2 years 5) If a firm has a debt-equity ratio of 1.0, then its total debt ratio must be which one of the following? 0.0 0.5 1.0 1.5 2.0 6) Shareholders’ equity: Increases in value anytime total assets increases. Is equal to total assets plus total liabilities. Decreases whenever new shares of stock are issued. Includes long-term debt, preferred stock, and common stock. Represents the residual value of a firm. 7) Which one of the following statements correctly states a relationship? Time and future values are inversely related, all else held constant. Interest rates and time are positively related, all else held constant An increase in the discount rate increases the present value, given positive rates. An increase in time increases the future value given a zero rate of interest. Time and present value are inversely related, all else held constant. 8) A loan where the borrower receives money today and repays a single lump sum on a future date is called a(n) _____ loan amortized continuous balloon pure discount interest-only 9) Which one of following is the rate at which a stock’s price is expected to appreciate? current yield total return dividend yield capital gains yield coupon rate 10) What is the net present value of a project that has an initial cash outflow of $34,900 and the following cash inflows? The required return is 15.35 percent. -$3,383.25 -$2,784.62 -$2,481.53 $52,311.08 $66,416.75 11) You are investing $100 today in a savings account at your local bank. Which one of the following terms refers to the value of this investment one year from now? future value present value principal amounts discounted value invested principal 12) A business created as a distinct legal entity and treated as a legal “person” is called a: Corporation. Sole proprietorship. General partnership. Limited partnership. Unlimited liability company. 13) When the present value of the cash inflows exceeds the initial cost of a project, then the project should be: Accepted because the internal rate of return is positive. Accepted because the profitability index is greater than 1. Accepted because the profitability index is negative. Rejected because the internal rate of return is negative. rejected because the net present value is negative 14) An amortized loan: requires the principal amount to be repaid in even increments over the life of the loan May have equal or increasing amounts applied to the principal from each loan payment. Requires that all interest be repaid on a monthly basis while the principal is repaid at the end of the loan term. Requires that all payments be equal in amount and include both principal and interest. Repays both the principal and the interest in one lump sum at the end of the loan term. 15) The difference between the price that a dealer is willing to pay and the price at which he or she will sell is called the: Equilibrium. Premium. Discount. Call price. Spread. 16) Which one of the following methods of project analysis is defined as computing the value of a project based upon the present value of the project’s anticipated cash flows? Constant dividend growth model Discounted cash flow valuation Average accounting return Expected earnings model Internal rate of return 17) Mary just purchased a bond which pays $60 a year in interest. What is this $60 called? Coupon Face value Discount Call premium Yield 18) What are the distributions to shareholders by a corporation called? Retained earnings Net income Dividends Capital payments Diluted profits 19) Which one of the following is defined as a firm’s short-term assets and its short-term liabilities? Working capital Debt Investment capital Net capital Capital structure 20) An ordinary annuity is best defined by which one of the following? Increasing payments paid for a definitive period of time Increasing payments paid forever Equal payments paid at regular intervals over a stated time period Equal payments paid at regular intervals of time on an ongoing basis Unequal payments that occur at set intervals for a limited period of time 21) Which one of the following terms is used to describe a loan that calls for periodic interest payments and a lump sum principal payment? Amortized loan Modified loan Balloon loan Pure discount loan Interest-only loan 22) Which of the following questions are addressed by financial managers? I. How should a product be marketed? II. Should customers be given 30 or 45 days to pay for their credit purchases? III. Should the firm borrow more money? IV. Should the firm acquire new equipment? I and IV only II and III only I, II, and III only II, III, and IV only I, II, III, and IV 23) You want to be on the board of directors of Wisely Foods. Since you are the only shareholder that will vote for you, you will need to own more than half of the outstanding shares of stock if you are to be elected to the board. What is the type of voting called that requires this level of stock ownership to be successfully elected under these conditions? Democratic Cumulative Straight Deferred Proxy 24) Tracy invested $1,000 five years ago and earns 4 percent interest on her investment. By leaving her interest earnings in her account, she increases the amount of interest she earns each year. The way she is handling her interest income is referred to as which one of the following? Simplifying Compounding Aggregation Accumulation Discounting 25) A monthly interest rate expressed as an annual rate would be an example of which one of the following rates? Stated rate Discounted annual rate Effective annual rate Periodic monthly rate Consolidated monthly rate 26) The decision to issue additional shares of stock is an example of which one of the following? Working capital management Net working capital decision Capital budgeting Controller’s duties Capital structure decision 27) The average of a firm’s cost of equity and after-tax cost of debt that is weighted based on the firm’s capital structure is called the: Reward to risk ratio. Weighted capital gains rate. Structured cost of capital. Subjective cost of capital. Weighted average cost of capital. 28) Wayco Industrial Supply has a pre-tax cost of debt of 7.6 percent, a cost of equity of 14.3 percent, and a cost of preferred stock of 8.5 percent. The firm has 220,000 shares of common stock outstanding at a market price of $27 a share. There are 25,000 shares of preferred stock outstanding at a market price of $41 a share. The bond issue has a face value of $550,000 and a market quote of 101.2. The company’s tax rate is 37 percent. What is the firm’s weighted average cost of capital? 10.18 percent 10.84 percent 11.32 percent 12.60 percent 12.81 percent 29) A project has an initial cost of $27,400 and a market value of $32,600. What is the difference between these two values called? Net present value Internal return Payback value Profitability index Discounted payback 30) Which one of the following terms is defined as the management of a firm’s long-term investments? Working capital management Financial allocation Agency cost analysis Capital budgeting Capital structure 31) Which one of the following is computed by dividing next year’s annual dividend by the current stock price? Yield to maturity Total yield Dividend yield Capital gains yield Growth rate 32) Alex invested $10,500 in an account that pays 6 percent simple interest. How much money will he have at the end of four years? $12,650 $12,967 $13,020 $13,256 $13,500 33) The length of time between the sale of inventory and the collection of the payment for that sale is called the: Operating cycle. Inventory period. Accounts receivable period. Accounts payable period. Cash cycle. 34) Your grandmother has promised to give you $5,000 when you graduate from college. She is expecting you to graduate two years from now. What happens to the present value of this gift if you delay your graduation by one year and graduate three years from now? Remains constant Increases Decreases Becomes negative Cannot be determined from the information provided 35) Wind Power Systems has 20-year, semi-annual bonds outstanding with a 5 percent coupon. The face amount of each bond is $1,000. These bonds are currently selling for 114 percent of face value. What is the company’s pre-tax cost of debt? 3.98 percent 4.42 percent 4.71 percent 5.36 percent 5.55 percent 36) Rachel’s has a $50,000 line of credit with Uptown Bank. The line of credit calls for an interest rate of 8 percent and a compensating balance of 4 percent. The compensating balance is based on the total amount borrowed and will be held in an interest-free account. What is the effective annual interest rate if the firm borrows $35,000 for one year? 7.76 percent 8.00 percent 8.17 percent 8.33 percent 8.42 percent 37) The cash flow of a firm which is available for distribution to the firm’s creditors and stockholders is called the: Operating cash flow. Net capital spending. Net working capital. Cash flow from assets. Cash flow to stockholders. 38) Which one of the following is a source of cash? Increase in accounts receivable Decrease in notes payable Decrease in common stock Increase in accounts payable Increase in inventory 39) An agent who maintains an inventory from which he or she buys and sells securities is called a: Broker. Trader. Capitalist. Principal. Dealer. 40) You cannot attend the shareholder’s meeting for Alpha United so you authorize another shareholder to vote on your behalf. What is the granting of this authority called? Altering Cumulative voting Straight voting Indenture agreement Voting by proxy 41) The length of time between the purchase of inventory and the receipt of cash from the sale of that inventory is called the: Operating cycle. Inventory period. Accounts receivable period. Accounts payable period. Cash cycle. 42) Phil can afford $180 a month for 5 years for a car loan. If the interest rate is 8.6 percent, how much can he afford to borrow to purchase a car? $7,750.00 $8,348.03 $8,752.84 $9,266.67 $9,400.00 43) Which one of the following is computed by dividing next year’s annual dividend by the current stock price? Yield to maturity Total yield Dividend yield Capital gains yield Growth rate 44) The decision to issue additional shares of stock is an example of which one of the following? Working capital management Net working capital decision Capital budgeting Controller’s duties Capital structure decision 45) An ordinary annuity is best defined by which one of the following? Increasing payments paid for a definitive period of time Increasing payments paid forever Equal payments paid at regular intervals over a stated time period Equal payments paid at regular intervals of time on an ongoing basis Unequal payments that occur at set intervals for a limited period of time 46) Which one of the following is a capital budgeting decision? Determining how many shares of stock to issue Deciding whether or not to purchase a new machine for the production line Deciding how to refinance a debt issue that is maturing Determining how much inventory to keep on hand Determining how much money should be kept in the checking account 47) Travis invested $9,250 in an account that pays 6 percent simple interest. How much more could he have earned over a 7-year period if the interest had compounded annually? $741.41 $773.58 $802.16 $833.33 $858.09 48) Net working capital is defined as: Total liabilities minus shareholders’ equity. Current liabilities minus shareholders’ equity. Fixed assets minus long-term liabilities. Total assets minus total liabilities. Current assets minus current liabilities. 49) Bert owns a bond that will pay him $75 each year in interest plus a $1,000 principal payment at maturity. What is the $1,000 called? Coupon Face value Discount Yield Dirty price 50) Which one of the following will increase the value of a firm’s net working capital? Using cash to pay a supplier Depreciating an asset Collecting an accounts receivable Purchasing inventory on credit Selling inventory at a profit

2024 Need Help Project Plan Week 1 Assignment Help

A project plan is a document created at the beginning of the project lifecycle that gives stakeholders and 2023

A project plan is a document created at the beginning of the project lifecycle that gives stakeholders and everyone else involved in a project a clear idea of what a project will entail in terms of effort, time, cost, and anticipated results. One of the things that must be identified before the project plan can be created is the methodology, or approach, the project manager plans to use to manage the project. Choosing a methodology is important because a methodology provides the framework—that is, an overall process and suggested documents and deliverables—that will guide project development from beginning to end. Some project methodologies are more appropriate for some types of projects than for others. For this assignment, you will: Choose a project methodology for two different projects based on project requirements, and explain why you chose each methodology for each project. Brainstorm your own project and create a draft simplified project plan for that project. You must indicate in your simplified project plan whether you intend to apply the Agile or waterfall methodology. You may create your simplified project plan using Microsoft® Excel® or, if you choose, another software application such as Microsoft® Project®. To complete this assignment: Read Agile Project Management and the PMBOK® Guide . Answer the Methodology Selection and Rationale questions. Brainstorm a project you would like to explore in this course. You may choose a project from your work experience, from a description of a project in your textbook or in an online reading, or a project that is brand new but that you think would improve a business process at work, at home, or at school. Read the two linked examples of project plans implemented as Microsoft® Excel® spreadsheets, Example Plan A and Example Plan B . You will be using these as guides in creating your own draft project plan. Notice especially the differences between these two examples in terms of length (overall and task length), structure of the work breakdown (iterative vs. non-iterative), and methodology. Research additional project plan examples online. Create a simplified project plan for your own brainstormed project that resembles the two linked examples. Save your simplified project plan as a Microsoft® Excel® spreadsheet document. Submit both your completed Methodology Selection and Rationale questions and your project plan draft (Microsoft® Excel® document).

2024 FINC 5880 Session 5 Mid-term Examination 2014 36123 Assignment Help

Question 1 10 points The exercise price on one of ORNE Corporation s 2023

Question 1. (10 points) The exercise price on one of ORNE Corporation’s call options is $25 and the price of the underlying stock is $29. The option will expire in 35 days and is currently selling at $5.50. a. Calculate the option’s exercise value? What is the significance of this value? b. Why is an investor willing to pay more than the exercise value for the option? c. If the price of the underlying stock changes to $33 per share, will the market value of the option increase, decrease, or remain the same? Why d. If Orne Corporation had issued a put option (instead of the call), would its value increase, decrease, or remain the same if the price of the underlying stock increased? Why? Question 2. (15 points) Pierre Imports is evaluating the proposed acquisition of new equipment at a cost of $90,000. In addition the equipment would require modifications at a cost of $10,000 plus shipping costs of $2,000. The equipment falls into the MACRS 3-year class, and will be sold after 3 years for $35,000. The equipment would require increased inventory of 6,000. The equipment is expected to save the company $35,000 per year in before-tax operating costs. The company’s marginal tax rate is 30 percent and its cost of capital is 11 percent. a. What is the cash outflow at Time 0? Cost of milling machine Modifications to machine Shipping costs MACRS 3 year class Salvage after 3 years Increased inventory Savings per year Tax rate $90,000 $10,000 $2,000 0.3333 $35,000 $6,000 $35,000 30% 0.4445 0.1481 0.0741 b. Calculate the net operating cash flows in years 1, 2, and 3? c. Calculate the non-operating terminal year cash flow. d. Calculate net present value. Should the machine be purchased? Question 3. (15 points) Andrews Corporation plans a $10 million expansion. The firm wants to maintain a 45 percent debt-to-total-assets ratio in its capital structure. It also wants to maintain its past dividend policy of distributing 30 percent of last year’s net income. Last year, net income was $4 million. a. Calculate the amount of external equity needed. b. If the company changed to a residual dividend policy, how much external equity will it need? c. Is the company likely to change to a residual policy? Why or why not? Question 4. (15 points) A U.S. company orders merchandise from a Japanese company at a cost of 100 million yen. The merchandise must be paid for in yen Spot 30-day forward 90-day forward 180-day forward Yen per $1 $ per 1 yen 97.57 0.01025 97.45 0.01026 96.31 0.01038 92.45 0.01082 a. How many U.S. dollars must be raised if payment is due today? b. Is the dollar appreciating or depreciating against the yen? Explain. c. How many U.S. dollars must be raised if payment is due in 90 days? d. Who bears exchange rate risk, the U.S. company or the Japanese company or both? Explain. e. Describe 3 ways in which the company can reduce exchange rate risk. Question 5. (15 points) Kern Corporation entered into an agreement with its investment banker to sell 10 million shares of the company’s stock with Kern netting $225 million from the offering. The expected price to the public was $25 per share. The out-of-pocket expenses incurred by the investment banker were $5 million. a. What profit or loss would the investment banker incur if the issue were sold to the public at an average price of $25 per share? b. What profit or loss would the investment banker realize if the issue were sold to the public at an average price of $20 per share? c. Is the agreement between the company and its investment banker an example of a negotiated or a bestefforts deal? Why? Which is riskier to the company? Why? Question 6. (15 points) Reynolds Corporation plans to purchase equipment at a cost of $3 million. The company’s tax-rate is 30 percent and the equipment’s depreciation would be $600,000 per year for 5 years. If the company leased the asset on a 5-year lease, the payment would be $700,000 at the beginning of each year. If Reynolds borrowed and bought, the bank would charge 11 percent interest on the loan. a. Calculate the cost of purchasing the equipment with debt. Cost of equipment Depreciation per year 5-year lease Lease payment -BGN year Loan Tax rate After-tax rate Purchase Option CF0 CF1 CF2 CF3 CF4 CF5 CF1 CF2 CF3 CF4 CF5 Cost of equipment Depreciation tax saving Total cash flow NPV b. Calculate the cost of leasing the equipment. Lease Option CF0 Lease Payments Tax saving After-tax payments c. Calculate NAL? Should the company buy or lease the equipment? Why? Question 7. (15 points) Marcal Corporation is considering foreign direct investment in Asia. The company estimates that the project would require an initial investment of $18 million. and generate positive cash flows of $3 million a year at the end of each of the next 20 years. The project’s cost of capital is 13%. a. Calculate the project’s NPV. b. The company thinks there is a 50-50 chance that the Asian country will impose restrictions on the company in one year. If the restrictions are imposed, cash flows will be $2,000,000 per year for 20 years. If restrictions are not imposed, cash flows will be $4,000,000 per year for 20 years. Cost of capital remains the same. In either case, the cost will remain at $18,000,000 and cost of capital at 13%. Calculate the value of the real option by waiting one year to decide. c. Apart from real options, discuss 3 qualitative factors that the company should consider when making its decision on accepting the new project.