Answer please? Suppose Finance Inc., pays an annual dividend of $8.50 and the investors required a rate ofreturn of 4%. What is the value of Finance Inc's preferred shares?O a. $81.73O b. $0.34○ c. $0.0005O d. $100O e. $212.50Under the MACRS system, an asset with a depreciable life of 5 years will be fully depreciatedin:○ a. 6 years due to the use of double declining methodO b. 5.5 years due to the use of written down value methodO c. No option is correct○ d. 3.5 years due to the half-year conventionO e. 5 years A communication network of dealers who are trading shares for themselves and their clientsis known as;a. organised marketO b. cyber market○ c. an over-the-counter market○ d. telephonic marketO e. All options are correctWhen a company uses more cash in a year than it sources for itself;O a. it is always an indication that the cash balance in the balance sheet will reduce in thecoming year.O b. it is always an indication of eroding shareholder wealth○ c. it is always an indication of it becoming less profitableO d. it is always an indication that the company has paid off a liabilityO e. it is always an indication that the company has acquired an asset

1:A communication network of dealers who are trading shares for themselves and their clients is…

Answered: Suppose Finance Inc., pays an annual…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 3MCQ

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An arrangement with a broker to borrow stocks from them and then sell it in the market, with the hope that they earn a profit by buying the stock back again after it has fallen in price is called Select one: a. smart money. Ob. short sales. Oc. behavioral finance. Od. random walk.
27. One reason for using a sales and lease-back arrangement is to create an infusion of cash into the company. Group of answer choices True False 32. Securities sold by companies in an IPO are shares in companies that were already public but are looking to raise more money in an additional offering. Group of answer choices True False 33 A company wants to gather daily balance reporting from its international subsidiaries bank accounts. Which of the following systems would allow the company's bank to gather the balance positions from the local banks? Group of answer choices FSLIC SWIFT CHIPS FHA FCIC
The term short selling is the O Selling of a security that was purchased by borrowing money from a broker O Selling of a security that is not owned by the seller. O Selling of all the shares -you own in a company in anticipation that the price will decline dramatically O Betting that a stock will increase by a certain amount within a given period of time.
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If ABC Bank’s ALCO targets the market value of shareholders’ equity in its interest rate risk management, is the bank positioned to gain or lose if interest rates fall?b. If interest rates rise by 1% for all assets and liabilities, what is the approximate expected change in the bank’s economic value of equity?c. Provide a specific transaction that the bank could implement in order to immunize its interest rate risk exposure.
Finance Political stability is a major factor of which one of the following? business risk inflation risk country risk exchange rate risk 2. Regarding short selling: which one of the following statements is incorrect? Dividends on any stock sold short must be covered by the short seller. There is no time limit on a short sale. Short sales are permitted only on falling prices or a downtick. Short sellers must put up margin as if they had gone long.
Interest rate risk is of concern to a firm's financial officer, because (Select the best choice below.) A. it is more difficult to issue securities when interest rates are low. B. changes in interest rates affect the expected return of financial instruments. C. federal government taxation increases as interest rates rise, reducing the cash available to the firm. D. inflationary periods may reduce the real earnings of the firm. E. B and D
The Financial Sector-End of Chapter Problem a. You are contemplating buying stock in JP Morgan Chase (JPM). What pieces of information would you use to assess the company's fundamental value? Information needed to assess fundamental value stock prices of other bank stocks P/E ratios Answer Bank Information not needed to assess fundamental value sum of discounted future profits for JPM total number of shares outstanding for JPM A 27
Drag the tiles to the table. Each tile can be used more than once. Determine the most likely action that an investor will take for each scenario. 10,000 Price per Share ($) 5,000 buy 1997 hold sell Select the correct answer. ● A. ● B. Scenario An investor is waiting until it is clearer whether a stock will do well after a purchase. An investor thinks that a particular stock is not performing and worries the price of the shares may drop in the future. An investor doesn't own a particular stock but is considering adding it to her portfolio depending on how well it does in the near future. An investor who tracks market trends notices that a bull market is starting. Based on this stock price model, what is the best prediction of what the price will do next? 1998 1999 Time (years) start increasing keep decreasing C. hold value D. no way to predict 2000 Drag each tile to the correct box. Reset 2001 Next Action
◄ Search Select the correct answer. 2:51 ● A. $1,647 B B. $1,619 ● C. C. $1,000 Pete sold 150 shares of stock A at $10.98 per share through his broker. His broker charges $28 per trade. How much money did Pete receive from the sale after the broker took his fee? D. $1,070 D. Drag the tiles to the table. Each tile can be used more than once. 10,000 Determine the most likely action that an investor will take for each scenario. 5.000 buy 1997 1998 ● A. hold ● B. An investor is waiting until it is clearer whether a stock will do well after a purchase. An investor thinks that a particular stock is not performing and worries the price of the shares may drop in the future. An investor doesn't own a particular stock but is considering adding it to her portfolio depending on how well it does in the near future A. start increasing An investor who tracks market trends notices that a bull market is starting. 1999 Time (years) Select the correct answer. Based on this stock price model, what is the…
Which of the following situations will most likely motivate managers to infl ate earnings inthe current period?A . Possibility of bond covenant violationB . Earnings in excess of analysts’ forecastsC . Earnings that are greater than the previous year
If you were an investor considering purchasing the stock of a company and you were concerned about the company's ability to produce income or operating success for a given period of time, which of the following trends would worry you most? O a decreasing inventory turnover ratio an increasing return on common stockholders' equity ratio O a decreasing return on assets ratio an increasing current ratio

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