From the given data, calculate the Debt to Total Assets Ratio for the MultiVerse Corp for 2021: Accounts payable Php 74,000 Accounts receivable 75,000 Cash 125,000 Inventory 90,000 Short-term investments 60,000 Short-term notes payable 40,000 Notes payable (due in 2023) 50,000 Total assets Php 469,000 Total liabilities 185,000 Net sales 240,000 Net income 31,500
Q: The cash price of a motorcycle is Php325,000. A fixed amount is to be paid at every end of the month...
A: Cost (PV) =Php 325000 Interest rate = 9% Monthly interest rate (r) = 9%/12 = 0.75% Period = 1.5 Year...
Q: Some time ago a company entered into an FRA where it agreed to receive 5.9% LIBOR on a principal of ...
A: LIBOR rate = 5.9% Principal = $10 million Forward LIBOR rate = 5.1% Six month risk-free rate = 2.5% ...
Q: The equipment in a power station costs 850000 S and has a salvage value of Q5 7000 $ at the end of 3...
A: Depreciation is the reduction in the value of fixed assets due to normal wear and tear, passage of t...
Q: Assume that the real interest rate is 2% per year, the default risk premium is 3%, the liquidity pre...
A: Given: Real interest rate = 2% Default risk premium = 3% Liquidity risk premium = 1%
Q: You own a portfolio that has $1,600 invested in Stock A and $2,700 invested in Stock B. Assume the e...
A: Expected return of portfolio = (weight of stock A × Expected return of A) + (weight of stock B × Exp...
Q: Match the type of bank income (revenue) with the associated source. Revenue received from wealth man...
A: Interest Income: It is the main source of Income for banks and financial institution, interest recei...
Q: If benchmark Sharpe’s Ratio is 1.5, return of the market is 13% and, risk free rate is 4%, standard ...
A:
Q: eBook Harrimon Industries bonds have 4 years left to maturity. Interest is paid annually, and the bo...
A:
Q: # 7 A debt of P10,000 with interest at 6 % payable quarterly will be discharged, interest included, ...
A: A loan refers to the amount of money which is being borrowed by one party say borrower from another...
Q: a. What is the outstanding balance? b. Suppose you cannot make the mortgage payment and you are i...
A: Present Value of Annuity: It represents the present worth of the future annuity payments and is comp...
Q: Six years ago the Templeton Company issued 17-year bonds with a 13% annual coupon rate at their $1,0...
A: Given: Particulars Years 17 Years completed 6 Coupon rate 13% Par value 1000 Call pre...
Q: The ranking of the four alternatives from most valuable to least valuable if the interest rate is
A: Present Worth: It represents the present value of the future sum of money or the present value of a ...
Q: You are interested in buying one corporate bond and your broker has offered two corporate bonds for ...
A: A bond is a monetary instrument issued by the government and companies. It offers a fixed rate of re...
Q: How much must a man 35 years of age deposit in a savings account today in a bank paying 9 1⁄2 % comp...
A: Future value (FV) = P75,000 Interest rate = 9 1/2% = 9.50% Quarterly interest rate (r) = 9.50%/4 = ...
Q: M purchased a small lot in a subdivision, paying ₱200,000 down and promising to pay ₱15,000 every 3 ...
A: Periodic Payment = ₱15,000 every quarter Time Period = 10 Years Interest Rate = 12% compounded quart...
Q: Rank the following funds based on Sharpe Ratio, Treynor Ratio, Jensen’s Alpha, Sortino Ratio, M squa...
A:
Q: You are a manager at Northern Fibre, which is considering expanding its operations in synthetic fibr...
A: To calculate the value of project, it is required to calculate the net present value of Project usin...
Q: You can earn $42 in interest on a $1,000 deposit for eight months. If the EAR is the same regardless...
A:
Q: You have been offered a project paying $300 at the beginning of each year for the next 20 years. Wha...
A: Annual payment (P) = $300 Interest rate (r) = 9% Period (n) = 20 Years
Q: As an incentive to attract savings deposits, most financial institutions today offer daily and even ...
A: The compounded amount is the value of the initial deposit along with compound interest. Compound int...
Q: 7. The primary function of large diversified brokerage firms in the money market is to A. Sell money...
A: A brokerage firm is a business entity that acts as an intermediary to connect buyers or sellers of a...
Q: A company is considering constructing a plant to manufacture a proposed new product. The land costs ...
A: MARR (Minimum Acceptable Rate of Return) is the return which will be considered by the company bef...
Q: Year 1 Year 2 Year 3 Year 4 Year 5 $100,000 $20,000 $330,000 $450,000 $750,000 The CFO of the compan...
A: Calculate the present value of the cash flows of $100,000, $20,000, $330,000, $450,000 & $750,00...
Q: ch of the following defines a hedge fund the most? 1. A collective investment model based on issui...
A: Hedge fund is larger pool of investment that are collected from large number of investors and manage...
Q: Alaska North Slope Crude Oil (ANS) $71.75/Bbl West Texas Intermediate Crude Oil (WTI) $73.06/Bbl ...
A: Worth of ANS is $76. Worth of WTI is $77.
Q: Suppose the interest rate on a 3-year Treasury Note is 2.25%, and 5-year Notes are yielding 4.00%. B...
A: To calculate the 2-year treasury note market rate, it is required to use the following formula: PVF ...
Q: 14.) The Virginia Corporation recently issued 10-year bonds at a price of $1,000. These bonds pay $6...
A: The current price of a projected amount of money or series of payments with a predetermined rate of ...
Q: Problem 13-21 Comprehensive (LO4, 5, 6) Two ambitious business graduates, Boris and Isabelle, are co...
A: Before investing in new projects, feasibility of the project is evaluated by using various methods l...
Q: Consider a project that requires an initial investment of $105,000 and will produce a single cash fl...
A: Initial Investment = 105,000 Cash flow in 4 year = 154,000 N = 4
Q: 5 Year Treasury Notes are currently yielding 6.00%, and you have found the following interest premiu...
A: The real risk-free rate is the rate of return of an investment without any risk. This is the return ...
Q: The value of $60 deposited in a bank for six years at a rate of 10% compounded annually is: O $106.2...
A: Deposit amount (PV) = $60 Interest rate (r) = 10% Period (n) = 6 Years
Q: Stock A has a beta of 0.6 and return as per CAPM 8% and stock B has a beta of 1.2 with a return as p...
A:
Q: 1. Adam and his friend, Akmal, are both talented painters. Last year, they started painting postcard...
A: Breakeven point is the point at which the business will be able to cover both Fixed and Variable Cos...
Q: A loan of Php20,000 is expected to yield a compound amount of Php45,000 at a nominal rate of 9%. Ass...
A: Loan amount (PV) = Php 20,000 Future value (FV) = Php 45000 Interest rate = 9% Semi annual interest...
Q: Why isn't a single WACC applicable to all of a company's businesses?
A: WACC refers to the weighted average cost of capital. It is the sum of weights of different sources o...
Q: Hit or Miss Sports is introducing a new product this year. If its see-at-night soccer balls are a hi...
A: Additional After-Tax Cash Flow = Increase in Production × (Selling Price - Variable Cost) × (1 – tax...
Q: At what rate compounded annually will P50,000 earn F1 O 2.22% O 1.76% O 10.27%
A: The future value of the investment includes the value today plus interest on that also.
Q: 'ou are a manager at Northern Fibre, which is considering expanding its operations in synthetic fibr...
A: Here, Cost of Project is $24 millions Net Income of Project is $4.732 million Depreciation is 2.400 ...
Q: 433,895 ), 2022 3,000.00 3,002.00 2,808.00 2,818.00 2,870.19 290,250 P, 2022 3,080.00 3,132.00 3,032...
A: Prices of stock moves up and down according to the demand in the stock markets. Trends can be determ...
Q: On Feb 1, 2022, the yield (nominal interest rate) on the Canadian government-issued 10-year bond was...
A: Real interest rate has been adjusted to remove the effects of inflation while the nominal interest r...
Q: An annuity-immediate has 3 annual payments of $200, followed by a perpetuity of $300 starting in the...
A: Cash flow at year 0 (CF0) = $200 Cash flow at year 1 (CF1) = $200 Cash flow at year 2 (CF2) = $200 C...
Q: 12
A: The annual equivalent cost is parameter for determining the feasibility analysis of the projects.
Q: The firm's asset turnover measures A) the value of assets held per dollar of shareholder equity. B...
A: Firms assest turnover ratio:-The asset turnover ratio assesses a company's assets' ability to genera...
Q: Total Current Assets 700 610 Plant and Equipment 1,800 1,470 Less: Accumulated Depreciation 500 400 ...
A: Total Assets on the balance sheet is the sum of the current assets and fixed assets adjusted for dep...
Q: Sheaves Corporation economists estimate that a good business environment and a bad business environm...
A: (Note - Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the questi...
Q: what are the differences among common stocks preferred stocks and debt securities
A: A business needs finance to run its business and this can be raised by various means such as Common ...
Q: 16. Scenario Analysis. The common stock of Escapist Films sells for $25 a share and offers the follo...
A: Here, Selling Price of Company Esc Stock is $25 Other Details are as follows: Probability in three ...
Q: For items 1-10, refer to the following: The owner of Dawn Winery decided to lend kegs of wine amount...
A: Loan is a value which is borrowed from third party like banks for a certain period and this amount i...
Q: Which of the following financial measures are used to determine a company's credit rating? a)A com...
A: Company's credit rating - is a rating which determines the credit worthiness of a company i.e., it ...
Q: 1 ) In capital budgeting, risk can be measured from three perspectives. Explain THREE (3) measures...
A: Capital budgeting can be defined as the process of assessing the employment of asset or project in t...
Step by step
Solved in 2 steps
- The comparative balance sheets for Metlock Corporation show the following information. December 312020 2019Cash $33,500 $12,900Accounts receivable 12,400 10,000Inventory 12,100 9,000Available-for-sale debt investments –0– 3,000Buildings –0– 29,800Equipment 44,800 19,900Patents 5,000 6,300 $107,800 $90,900Allowance for doubtful accounts $3,100 $4,500Accumulated depreciation—equipment 2,000 4,500Accumulated depreciation—building –0– 6,000Accounts payable 5,000 3,000Dividends payable –0– 4,900Notes payable, short-term (nontrade) 3,000 4,100Long-term notes payable 31,000 25,000Common stock 43,000 33,000Retained earnings 20,700 5,900 $107,800 $90,900 Additional data related to 2020 are as follows. 1. Equipment that had cost $11,000 and was 40% depreciated at time of disposal was sold for $2,500.2. $10,000 of the long-term note payable was paid by issuing common stock.3. Cash dividends paid were $4,900.4. On January…ABC Co. financial data for 2020 & 2019 are given below: Total Assets Total Liabilities Cash Interest-bearing Debt Net Income Interest Expense Tax Expense Depreciation Expense Debt to Equity Ratio Interest Coverage Ratio 2020 2020 $925,000 667,000 36,000 527,000 169,000 9,500 21,000 44,500 2019 times $915,000 527,000 45,000 371,000 127,000 Calculate the debt to equity ratio and the interest coverage ratio using the select financial data provided above for 2019 & 2020. (Round answers to 2 decimal places, e.g. 15.25.) 5,900 18,600 38,500 2019 timesThe following information relates to Basic Lid. for the year ended 31" December 2021: Net working capital RO. 1.200.000 Fixed assets to proprietor's fund ratio 0.75 Working capital turnover ratio 5 timeg Return on Equity 15% Current liabilities RO. 400.000 Long term Debts 0 You are required to calculate: Proprietor's funds Fixed Assets Current assets Net profit ratio Current ratio
- The balance sheets for Sports Unlimited for 2021 and 2020 are provided below.SPORTS UNLIMITED Balance Sheets For the years ended December 31 2021 2020AssetsCurrent assets:Cash $ 103,500 $ 70,400Accounts receivable 46,800 32,000Inventory 44,550 71,200Prepaid rent 7,200 3,600Long-term assets:Investment in bonds 54,900 0Land 117,450 141,600Equipment 106,200 102,000Less: Accumulated depreciation (30,600) (20,800)Total…In 2021, Bank Muscat reported the following amounts in its Balance sheet and Income Statement. Assets 1032600 OMR Liabilities 805500 OMR Interest Revenue 602300 OMR Interest Expense 404000 OMR Earning assets are 75% of Total Assets. Interest Bearing Liabilities are 80% of Total Liabilities. What is the Spread of Bank Muscat? Select one: Oa. 2.54 % Ob. 15.08 % Oc. 8.17 % Od. 27.62 %Suppose the Crane Ltd's 2020 financial statements contain the following selected data (in millions). Current assets Total assets Current liabilities Total liabilities NT$3,536.0 31,408.0 3,016.0 16,640.0 Compute the following values. Interest expense Income taxes Net income NT$520.0 (a) Debt to assets ratio. (Round to O decimal places, e.g. 62%.) 1,976.0 4,590.0 (b) Times interest earned. (Round to 2 decimal places, e.g. 6.25.) % times
- Your client, PPC Ltd., prepared the following schedule for long-term debt for the audit of financial statements for the year ended December 31, 2020: Description National Bank- Long term loans Mortgage payable Bonds payable TOTAL Interest Due date rate 7.5 % 2025 7.75% 2027 6% 2026 Beginning Additions Payments Ending balance balance 1/1/2020 31/12/2020 900,000 1,000,000 2,000,000 3,100,000 6,000,000 100,000 100,000 1,500,000 500,000 200,000 2,900,000 700,000 5,400,000 Requirements: a) What types of evidence would you use to support above figures? (16marks) b) What procedures would you perform related to the ending balances in the accounts? (4marks)what is the net fixed assets for zooey corporation on 2020 what is the total assets for zooey corpoartions in 2020 what is the long term debt for zooey corpoartion in 2020 help me answer this thank youMC21. Bay Corporation trial balance included the following account balances at December 31, 2021: Accounts payable - P4,500,000; Bonds payable, due December 31, 2022 P7,500,000; Discount on bonds payable - P900,000; Notes Dividends payable on January 31, 2022 - P2,400,000; payable due January 31, 2025 - P6,000,000. How much is included in the current liabilities section of Bay Corporation's December 31, 2021 statement of financial position?
- Just Dew It Corporation reports the following balance sheet information for 2020 and 2021. Assets Current assets Cash Accounts receivable Inventory Total Total assets 2020 Net plant and equipment $240,750 $310,600 a. Current ratio b. Quick ratio c. Cash ratio d. NWC ratio e. Debt-equity ratio e. Equity multiplier f. Total debt ratio f. Long-term debt ratio $8,850 $14,200 15,750 23,000 34,650 52,200 $ 59,250 $89,400 JUST DEW IT CORPORATION 2020 and 2021 Balance Sheets 2021 300,000 400,000 2020 times times times % times times times times Liabilities and Owners' Equity Current liabilities 2021 Accounts payable Notes payable Based on the balance sheets given for Just Dew It: a. Calculate the current ratio for each year. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. Calculate the quick ratio for each year. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. Calculate the cash ratio for…The following data is extracted from ABC Bank financial statements for the financial year ended 31 December 2021, equity $600 million, interest expense $190 million, provision for loan loss (P) $28 million, noninterest income $25 million, noninterest expense $45 million and a tax rate is 33%. Calculate the minimum total interest income required to give a return on equity (ROE) of 14%.Below is the Statement of Financial Position for Rafah Islamic Bank: RAFAH ISLAMIC BANK STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 31 DECEMBER 2020 Assets RM Non current Asset 5,670,000 Long Term Investment 654,000,000 Financing (Net) 1,244,000,000 Corporate Bond Investment 919,094,000 Commercial Securities Investment 389,543,000 Deposits in other financial institutions 487,043,700 Other current assets…