Managerial Accounting Quiz

What is projected Cash Flow From Operations for the 5 years 1986 through 1990? Are the values higher or lower than those in (a)? Why?

(a) Fama and French argued that value stocks outperformed growth stocks because they were risker. The outperformance is explained by the excess risk that value stocks face as a result of their higher cost of capital and greater business risk.

(Weighted average cost of capital) The target capital structure for QM Industries is 45% common stock, 6% preferred stock, and 49% debt. If the cost of common equity for the firm is 17.9%, the cost of preferred stock is 10.6%, the before-tax cost of debt is 8.9%, and the firm’s tax rate is 35%, what is QM’s weighted average cost of capital?

1. a) Adjusted basis is the original cost of the asset, plus improvements, less depreciation. Thus the asset has seen its basis reduced from what was originally $500 to $300. The mortgage owing further reduces the basis for this asset to $150. If X sends back stock worth $350, then A records a $200k profit on the deal. X will lose $200k on the deal, which is $50k on the asset and then another $200k in assumed debt. The loss that X takes on the deal is 83% attributable to A, an amount of $166. This loss, combined with the $200 profit, means that the net taxable profit for A is $200-166 = $34k.

Assume a consumption function that takes on the following algebraic form: C = $100 + .8Y. Assume that Y = $1000 what is the level of consumption at this income level.

* Maximum Issue This Year: The upper limit on bonds (long term debt) that you can issue this year. Bondholders examine Fixed Assets and your Leverage (Assets/Equity ratio) to determine a funding limit. In general, bondholders are interested in funding plant and equipment. They fund up to 80% of last year’s Fixed Assets. However, as your Leverage increases, they become concerned and typically refuse additional funding as Leverage exceeds 4.0.

There are some kind of short term sources of finance in the form of debts such as bank overdraft, bank loan, creditors, debt factoring.

b. What are the net operating cash flows in Years 1, 2, and 3? (26220,30300,20100)

The efficient management of any organization is the central driver of the constant achievement of the business and it is influenced by both the internal and external factors of the organization. It is vital that the Top Management aims to display successful leadership & management in organisation concurrently and in view of other duties & responsibilities. The Report aims to enhance the understanding regarding leadership & Managerial skills. This report will discuss the practices and management principles, will perform the review regarding potential as prospective manager, display managerial skills in the business & services context,

• Examples of financial assets: U.S. Treasury bonds, Foreign bond,.Home mortgage loan,Common stock. Financial assets are referred to as debt instruments in the case of: U.S. Treasury bonds, Corporate bonds, Municipal bonds. Financial assets represent a residual claim in the case of Common stock. The process of valuing financial assets include: Estimating the cash flows, Determining the appropriate discount rate, Discounting the expected cash flows. the following risks are associated with realizing the expected cash flows: Default risk, Purchasing power risk, Foreign-exchange risk. The principal economic functions of financial assets include: The transfer of funds from those with surplus funds to those who need funds, The transfer of funds

These are big established conglomerates which are well known worldwide on their excellent operational performance such as efficiencies in management and Human Resource. Their outstanding financial structures and investments stabilities and investment performance are also big attractions to the investors which they believe could bring maximum returns on

علم الإقتصاد: فرع من العلوم الإجتماعية الذي يبحث في كيفية استخدام الموارد المحدودة في إشباع حاجات إنسانية غير محدودة.

Mr. Mohd Jamil Jelani is a Senior lecturer in banking and finance. He holds a Bachelor of

Finance has a close relationship to a number of other business disciplines. It is important that we understand why a finance major needs these other skills and abilities.  Let's take them one at a time:

Examination Paper of Banking & Financial Services Management IIBM Institute of Business Management Examination Paper Principles & Practices of Banking Section A: Objective Type & Short Questions (30 Marks)    This section consists of Multiple Choice & Short Note type questions. Answer all the questions. Part One carries 1 mark each & Part Two carries 4 marks each. MM.100