The bank account of Kendrick Boats has an available balance of $1,215 and a check book balance of $1,422. There are uncollected deposits totaling $740. What is the amount of the disbursement float on this account?

Q: An investment will pay you $96,000 in six years. Assume the appropriate discount rate is 7.5 percent…

A: Compound = Daily = 365 daysFuture Value = fv = $96,000Time = t = 6 * 365 = 2190 daysDiscount rate =…

Q: You find the following financial information about a company: net working capital $978; fixed assets…

A: Total Liabialties is that amount which includes the current liabialties & long term liabialties.…

Q: Greta has risk aversion of A = 3 and a 1-year investment horizon. She is pondering two portfolios,…

A: To calculate Greta's capital allocation, use the Capital Market Line (CML) formula, which depends on…

Q: What is the company’s pretax cost of debt?

A: The before-tax cost of debt is called yield to maturity or YTM. This is the discount rate at which…

Q: Explain four comparative advantages of debt as a source of finance over equity

A: A company raises its funds through two main sources – debt and equity. Raising of funds through debt…

Q: Last year, Sally's Studio added $2,300 to retained earnings from sales of $66,800. The company had…

A: Retained Earning $   2,300.00Dividend  $   1,000.00Tax  34%Interest $      900.00Sales $…

Q: Some particulars for a project are as follows. Initial Capital Cost in year 0 ($Mn) Follow-up…

A: Net present value is the difference between the present value of benefits and the present value of…

Q: Five years ago, you entered into a loan agreement to borrow $100,000.  The loan was to be paid off…

A: We need to use loan amortization formula below to calculate monthly payment.whereP=Loann=number of…

Q: . Use the one-period valuation model P = E/(1 + k) + P1/(1 + k) to price the following stocks…

A: Variables in the question: Earnings (E = $)Required return (k=%)Expected Price Next…

Q: Ortiz Lumber Yard has a current accounts receivable balance of $350,000. Credit sales for the year…

A: Accounts receivable turnover ratio helps to determine how efficient company is in recovering or…

Q: great lakes clinic has been asked to provide exclusive healthcare services for next year's world…

A: The internal rate of return is a capital budgeting tool that is used to find out the rate of return…

Q: A company is considering the purchase of new testing equipment that is expected to produce 8000…

A: The net present value is the difference between the present value of inflows and outflows. A project…

Q: A partially amortizing mortgage is made for $62,000 for a term of 10 years. The borrower and lender…

A: Principal Loan Amount (P) is $62,000Interest Rate (annual) is 7%Term (n) is 10 yearsNumber of…

Q: A stock is traded at $100 and the risk-free interest rate is 10% per annum with continuous…

A: Stock price, current price = $100Interest Rate = 10% per annumWe have to calculate the value of…

Q: Interpreting Horizontal Analysis results Income Statement ($M) Net Sales Cost of Goods Sold Gross…

A: In finance we do horizontal analysis and vertical analysis of financial statements of a company.…

Q: The National Credit Rating Agency downgraded the credit rating of Grand Limited by two levels from…

A: Part a). Credit Rating Agency as a Stakeholder for Grand Limited:In the conventional sense,…

Q: You note the following yield curve in The Wall Street Journal. According to the unbiased…

A: Unbiased expectation theory states that the long-term and short-term interest rates are related. No…

Q: Assume that interest rate parity holds. The Mexican interest rate is 50 percent, and the U.S.…

A: According to the interest rate parity the interest rate of the exchange must change based on the…

Q: You buy stock on margin in your brokerage account when it is trading at $42.76 per share. You have…

A: The amount to be maintained in equity account at the broker to start trading in the stock market is…

Q: You are interested in arranging financing to purchase a new car from Bloomington Cars, Inc. The car…

A: Variables in the question:Sticker price = $42,000Instant rebate = $3,500Loan amount=$42000 -…

Q: ur new 30-year mortgage includes borrowing $425,000 an APR 4.78%. If you paid 20% down when you…

A: Mortgage refers to the agreement between two parties a lender and a borrower. Borrowers are in need…

Q: What will be the future value of $1,000 at the end of ten years, if the annualized interest rate is…

A: A technique of computing interest on a loan or investment that is referred to as continuous…

Q: u are considering adding a new item to your company’s line of products. The machine required to…

A: Net present value can be found as the difference between the present value of cash flow and initial…

Q: Your father is 50 years old and will retire in 10 years. He expects to live for 25 years after he…

A: Variables in the question: Retirement income today ($)50000Years to retirement10Years after…

Q: A company uses five backup servers to secure its data. The probability that a server fails is 0.13.…

A: Number of servers = 5Probability of a server fail = 0.13 The probability that all 5 servers fail is

Q: Suppose you deposit $4,000 in a savings account paying 10% simple interest. How much money will you…

A: Present Value = pv = $4000Interest Rate = r = 10%Time = t = 4 Years

Q: Halliford Corporation expects to have earnings this coming year of $2.93 per share. Halliford plans…

A: When the company receives profits and distributes them among the shareholders. That share of profit…

Q: Problem 1. Corporate bonds issued by Johnson Healthcare currently yield 8 percent. a. If an investor…

A: The After-tax rate of return is the rate of return earned after tax is paid on the earnings.

Q: What is the relative magnitute of Chinese invesments in Africa? OA About 150 firms

A: Chinese firms have been heavily investing in Africa. At a Forum on China-Africa Cooperation in 2000,…

Q: A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a…

A: Here, Expected ReturnStandard DeviationStock Fund20%30%Bond Fund12%15%Risk Free Rate8%Correlation…

Q: A six-year government bond makes annual coupon payments of 5% and offers a yield of 3% annually…

A: The rate of return is the profitability in the percentage of the investment done. This is the ratio…

Q: An analyst evaluating securities has obtained the following information. The real rate of interest…

A: Variables in the question:Real rate of interest=3%  (expected to remain constant for the next 5…

Q: Your have just sold your house for $1,000,000 in cash. Your mortgage was originally a​ 30-year…

A: A mortgage is a loan obtained from a financial institution, typically a bank, to purchase a…

Q: 17 NU YU announced today that it will begin paying annual dividends. The first dividend will be paid…

A: The dividend discount model (DDM), a mathematical technique for predicting the price of a company's…

Q: One year ago, your company purchased a machine used in manufacturing for $95,000. You have learned…

A: NPV determination is useful Because it offers a formal and quantitative method for evaluating the…

Q: A friend of yours bought a new sports car with a $4,000 down payment plus a $32,000 car loan that is…

A: Loan Amortization is a process of scheduling loan payments with interest and principal paid combined…

Q: You have the opportunity to buy a perpetuity that pays $296,498 annually. Your required rate of…

A: The price of the perpetuity at which one should be indifferent between buying or not buying the…

Q: Your banker has analyzed your company account and has suggested that her bank has a cash management…

A: Cash management refers to the process of efficiently managing an organization's cash flow,…

Q: A company has net income of $184,000, a profit margin of 8.5 percent, and an accounts receivable…

A: Profit margin=Net income/SalesHence sales=(184000/0.085)=$2164705.88

Q: In December 2015, General Electric (GE) had a book value of equity of $98.7 billion, 9.1 billion…

A: Market CapitalizationThe total market value of all the shares of a publicly listed firm that are…

Q: ue has $50,000 in her checking account at Small Bank and $150,000 in a savings account at Big Bank.…

A: FDIC is deposit insurance provided by the government in the event that banks may default on the…

Q: The risk-free rate is 5% and the expected return on a non-dividend-paying stock is 12%. Which of the…

A: The idea of risk-neutral valuation is often used to determine the value of a derivative, which…

Q: Carl Voigt, who recently won K10,000 in the lottery, wants to buy a car in five years. Carl…

A: Initial value (I) = K10,000Amount required (F) = K16,105Period (n) = 5 YearsInterest rate = ?We will…

Q: The first issue in strategic pay is internal alignment, which addresses pay relationships inside the…

A: The internal alignment is associated with  human resources of because it is a term which refers to…

Q: A corporation has a continuous compounded bank account with 2.7% annual interest. The board of…

A: Future value can be calculated usingFV = PV* (1 + r / n)ntWhere,PV = Present valueFV = Future valuer…

Q: hoebe realizes that she has charged too much on her credit card and has racked up $4,900 in debt. If…

A: We need to use NPER function in excel to calculate time to pay off the debt. The formula…

Q: Pelamed Pharmaceuticals has EBIT of $336 million in 2006. In addition, Pelamed has interest expenses…

A: EBIT is also known as Earning before Interest & Taxes. It is that amount of profit which does…

Q: Downtown Industries’ common stock had returns of 5.2, 10.3, 9.3, and 9.5 percent, respectively, over…

A: To calculate the standard deviation of a set of returns, follow these steps:Calculate the mean…

Q: You currently have $50.6 in your savings account at an annual rate of 14 percent. How many years…

A: The FV of an investment refers to the consolidated value of the cash flows at a given future date…

Q: money market mutäl fund purchased a $1.9 million face value of Honda Canada Finanace Inc. 60-day…

A: Commercial papers are short term money market instruments and are issued at a discount to the face…