Using the FASB Codification as a source, search on the time value of money then identify one of the topics that discusses the use of time value of money. Assume your manager says that the time value of money concept is a waste of time for the topic you selected and to just book the entry. What would you do in this situation?  Be sure to note the code […]

Given the following information on Ke-Ma-Gen Ltd., what is its WACC? Debt: ·        Number of bonds = 10,000 ·        Par value = $1,000 ·        Coupon rate = 9% (semi-annual coupons) ·        Time to maturity = 10 years ·        Market value = 98% of par Common equity: ·        Number of shares outstanding = 1,000,000 ·        Par value = $1 ·        Price per share = $3.50 ·        Dividends per share = $0.70 Preferred equity: ·        Number of […]

abc is a large Australian multinational company with subsidiaries in eight different countries.The company provided an initial cash infusion to establish each subsidiary.However, each subsidiary has had to finance its own growth since then. The parent and subsidiaries of abc typically use Citigroup (with branches in numerous countries)when possible to facilitate any flow of funds necessary. a Explain the various ways in which Citigroup could […]

Which of the following statements is true? Select one: a. The social auditing process is voluntary, whereas financial audits are mandatory for publicly traded corporations. b. Law for publicly traded companies requires both financial audits and social audits. c. The social auditing and the financial auditing processes are both voluntary processes that can provide great benefit to the company. d. The financial auditing process and the social auditing process […]

.    List five types of market information that could be useful to a person who i investigating micro business opportunities. 2.    Give three examples of primary sources which could be used to identify possible market needs. 3.Give examples of secondary sources which could be used to identify possible market needs.

Calculation of individual costs and WACC: Dillon Labs has asked its financial manager to measure the cost of each specific type of capital as well as the weighted average cost of capital (WACC). The WACC is to be measured by using the following weights: 40% long-term debt, 10% preferred stock, and 50% common stock equity (retained earnings, new common stock, or both). The firm’s tax […]

Equipment purchased on January 3,2018 for $80,000 was depreciated using the straight-line method based upon a 5-year life and $7,500 residual value. The equipment was sold on December 31,2020 for $40,000. What is the gain on the sale of the equipment? urchased on January 3, 2018, for $80,000 was depreciated using the straight-line a. $3,500 b. $14,500 c. $36,500 d. $43,500 7. The bank erroneously […]

Please help me learn how to do in excel if possible. Laurel, Inc., and Hardy Corp. both have 6 percent coupon bonds outstanding, with semiannual interest payments, and both are priced at par value. The Laurel, Inc., bond has five years to maturity, whereas the Hardy Corp. bond has 18 years to maturity. If interest rates suddenly rise by 2 percent, what is the percentage […]

Reena Industries has $138,000 of debt outstanding that is selling at par and has a coupon rate of 7 percent. If the tax rate is 34 percent, what is the present value of the tax shield? A)$28,412 B)$51,010 C)$46,920 D)$3,284 E)$9,660Show more 

2. Triangular Arbitrage Doug Bernard specializes in cross-rate arbitrage. He notices the following quotes: Swiss franc/dollar = SFr1.5971/$ Australian dollar/U.S. dollar = A$1.8215/$ Australian dollar/Swiss franc = A$1.1440/SFr Ignoring transaction costs, does Doug Bernard have an arbitrage opportunity based on these quotes? If there is an arbitrage opportunity, what steps would he take to make an arbitrage profit, and how would he profit if he […]