Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
(1) The First National Bank Sells automobile loans to a separate entity known as Auto Finance Partners (AFP). AFP is financed with 89% debt and 11% equity issued to an independent investor. First National Bank’s risk is virtually nonexistent.
Triple A Company wants to build a new manufacturing plant and creates a separate entity known as Property Finance Incorporated (PFI). PFI borrows 90% of the construction cost. In order to entice the construction lender to fund the project, Triple A had to agree to pledge its common stock as additional collateral.
Are AFP and PFI considered variable interest entities?
(2) Assuming a company issues new equity to acquire a target company and the two market value of the target’s assets is greater than the book value, which of the two methods, purchase and pooling, will likely produce the higher balance for total assets?
A proposed cost-saving device has an installed cost of $630,000. The device will be used in a five-year project but is classified as three-year MACRS property for tax purposes. The required initial net working capital investment is $45,000, the margi..
Assume that you are presently 30 years old and that you intend to retire when you turn 65. You would like to make sure that you have enough funds at the point of retirement to last until you are 95. You estimate that it would take $72,000 per year, i..
Which of the following statements is NOT a disadvantage of the regular payback method?
Which one of the following will cause the sustainable growth rate to equal to internal growth rate?
What are the likely consequences if a multi-business firm uses its WACC to evaluate all proposed investment projects?
You’re a financial advisor and one of your clients comes to you for advice. He wants to invest in company XYZ. What would be your first steps in order to help your client? Using the DCF valuation method used in class, what would you recommend to your..
Several costs may be associated with firms that use the market. These include which of the following:
A firm with a normalized pretax income of $40 million, 25% tax rate, and a Total Debt/Total Capital ratio of 30%, decides to undertake a capital expansion financed by new debt. How would your answer change if the debt was unsecured? Specifically, wha..
The spot price of an investment asset that provides no income is $40, and the risk-free rate for all maturities (with continuous compounding) is 9%. What, to the nearest cent, is the 4-year forward price?
Due to increasing value of the Yuan the Chinese electronics manufacturers have been suffering losses. At the same time the cost of a rare-earth mineral used in production of their goods has been increasing steadily due to increasing demand. You have ..
Place yourself in the role of one of the following stakeholders in a company: an investor, a creditor, or a manager. Summarize the information you would look for on each of the four basic financial statements, and explain why that information is pert..
You have taken a short position of 3 contracts in the Dow futures (trade $10 times the index) at a price of 16,300. The initial margin is $6,500 and the maintenance margin is $5,200 for the contract. At the time you entered the position you had equit..
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd