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

See similar textbooks

Similar questions

Why would an analyst prepare a common-sized balance sheet? a. To better understand growth rates b. To better understand profit margins c. To better understand leverage and liquidity issues d. Because he is getting paid by the hour
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.
Please try to give type solution fast i will rate for sure
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
TRUE OR FALSE 1. A company buys marketable securities when the cash outflows exceed the cash inflows. 2. There is no cost in holding large amounts of cash for business operations. 3. Marketable securities are long-term investments in money market securities.
a)- Do manager of a firm care more about their EPS than retained earnings? Explain why, just start your explanation with because.... b) Do vendors of a firm care more about cash flow than EPS? Explain why, just start your explanation with because.... c) Do investors care more about EPS than stock price? Explain why d) Do banks (or creditors who loaned money to a firm) care more about the firm's working capital or the firm's dividends? Which one and why? e. Which of the following will raise a firm's stock price: stock repurchases or a new stock issue? Briefly explain why? Start your explanation with because...
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
About market efficiency, which of the following statements is right:a. In a highly efficient stock market, it is almost impossible for an investor to make profit from the stock market.b. In a highly efficient stock market, some smart investors can definitely beat the market even without the inside information. c. An investor can make profit by buying the stock of free Inc. since it just reported that the half-year profit doubled with respect to that during the same period in the last year. d. The stock prices of big companies are closer to their intrinsic values than those of small companies since more people follow those big companies, whereas few people follow those small companies.
A bank that seeks to increase its risk-adjusted capital ratio has a number of options at its disposal including: Issue new equity, such as through a rights issue to existing shareholders, an equity offering on the open market, or by placing a bloc of shares with an outside investor. Increase retained earnings by reducing the share of its profit it pays out in dividends. Reduce its risk-weighted assets by replacing riskier loans with safer ones or with government securities. Chose 1 option from below:Only I is correct. Only II is correct. I and II are correct. Only III is correct. I, II and III are correct. Thanks!

SEE MORE QUESTIONS

Recommended textbooks for you

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Intermediate Financial Management (MindTap Course…

Finance

ISBN:

9781337395083

Author:

Eugene F. Brigham, Phillip R. Daves

Publisher:

Cengage Learning

Financial Reporting, Financial Statement Analysis…

Finance

ISBN:

9781285190907

Author:

James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:

Cengage Learning

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Intermediate Financial Management (MindTap Course…

Finance

ISBN:

9781337395083

Author:

Eugene F. Brigham, Phillip R. Daves

Publisher:

Cengage Learning

Financial Reporting, Financial Statement Analysis…

Finance

ISBN:

9781285190907

Author:

James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:

Cengage Learning

Corporate Fin Focused Approach

Finance

ISBN:

9781285660516

Author:

EHRHARDT

Publisher:

Cengage

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

Auditing: A Risk Based-Approach (MindTap Course L…

Accounting

ISBN:

9781337619455

Author:

Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS