Equipment trust certificates are in essence-form of leasing

Assignment Help Financial Management
Reference no: EM13829039

1. Equipment trust certificates are, in essence, a form of leasing.

True

False

2. Positive net present value projects provide returns in excess of what financial markets require.

True

False

3. A project is acceptable if the required rate of return exceeds the internal rate of return.

True

False

Reference no: EM13829039

Questions Cloud

Role of the securities and exchange commission : Short Selling under what conditions might investors consider short selling a specific stock? SEC Structure and Role Briefly describe the structure and role of the Securities and Exchange Commission (SEC).
Describe the general characteristics of a futures contract : Futures Contracts describe the general characteristics of a futures contract. How does a clearinghouse facilitate the trading of financial futures contracts? Futures Pricing how does the price of a financial futures contract change as the market pric..
Calculation of probability of increase in stock price : Calculation of Probability of Increase in Stock Price of a company
Capital rationing lead to non-optimal investment decisions : A prospectus for a bond issue will normally list both the price to the public and the proceeds to the company. Capital rationing may lead to non-optimal investment decisions.
Equipment trust certificates are in essence-form of leasing : A project is acceptable if the required rate of return exceeds the internal rate of return. Positive net present value projects provide returns in excess of what financial markets require. Equipment trust certificates are, in essence, a form of leasi..
The projected incremental net cash flows : When replacing an asset with a new one, the projected incremental net cash flows should consider all of the following differences except differences in ________.
Evaluate their various price sensitivities : A $20 Million 8-year bond pays 6.25% coupon with a 6% yield. Use the model to construct a 70% synthetic floater and 30% inverse-floater. The required synthetic has a 4% basis + 2% spread. Summarize your results including prices, price durations and c..
Expected net increase in annual depreciation charges : The Completely Natural Gardening Center is considering installing a new overhead sprinkling system. The expected net increase in annual operating cash flows is $40,000 and the expected net increase in annual depreciation charges is $8,000. If Complet..
Whether the equations defines y as a linear function : Determine whether the equations defines y as a linear function ? In a poll conducted among 180 active investors, it was found that 100 use discount brokers 122 use full- service brokers and 54 use both discount and full time services brokers. How man..

Reviews

Write a Review

 

Financial Management Questions & Answers

  Ratios required gearing- gearing and liquidity

Prepare financial ratios for Rolls Royce plc and Costainplc for 2010 &2011 which will enable the financial position and performance of the companies in 2011 to be measured. Ratios required Gearing: Gearing and Liquidity: Current, Acid Test

  Determine the bonds face value

Draw a clear completely labeled cash flow diagram of the entire bond transcation using dollar accounts where they are are known and $X to represent the bond's face value.

  Evaluating two different machines

You are evaluating two different machines. Machine A costs $25,000, has a five-year life, and has an annual OCF (after tax) of -$6,000 per year. Machine B costs $30,000, has a seven-year life, and has an annual OCF (after tax) of -$5,500 per year. If..

  What is the initial margin requirement in october 2004

What is the initial margin requirement in October 2004 and is the company subject to anymargin calls and what is the impact of the strategy you propose on the price the company pays for copper?

  The maintenance costs for a certain machine

The maintenance costs for a certain machine are $1,600.00 per year for the first 6 years and $2,400.00 per year for the next 7 years. At a interest rate of 6% per year, the present worth of the maintenance is closest to? Show work using factors in th..

  What is the projected net present value of project

Antonio's is analyzing a project with an initial cost of $44,000 and cash inflows of $26,000 a year for 2 years. This project is an extension of the firm's current operations and thus is equally as risky as the current firm. The firm uses only debt a..

  What was the return of the stock market that day

Stock Index Performance On November 27, 2007, The Dow Jones Industrial Average closed at 13,038.44, which was up 255.04 that day. What was the return (in percent) of the stock market that day?

  How does investing promote financial growth?

how does investing promote financial growth?

  Repay the loan in two equal monthly instalments

Chatterton Company has obtained a $75,000 short-term loan from the bank with the understanding that Chatterton will repay the loan in two equal monthly instalments of $38,250 each. The first instalment is due after 30 days, and the second after 60 da..

  Should the investment be undertaken

The Horizon Company will invest $60,000 in a temporary project that will generate the following cash inflows for the next three years. The firm will also be required to spend $10,000 to close down the project at the end of the three years. If the cos..

  Explain participating budgeting and slow budgeting

Explain participating budgeting and slow budgeting.

  What is the weighted average cost of capital-tax bracket

A company plans a $14 million expansion. The expansion is to be financed by selling $6 million in new debt and $8 million in new common stock. The before-tax required rate of return on debt is 8% and the required rate of return is 16%. If the company..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd