Explain how a financial manager may use financial ratios to analyse the financial performance of a business

Q: Determine the number of days of the loan. Loan Date Due Date Number of Days June 24 October 12

A: Given, Loan date is June 24 Due date is October 12.

Q: Closing Closing Closing Market Price for Price for Date Index value AMZN BAC 2 2/1/2017 3 3/1/2017 4...

A: Given, While calculating  the monthly return we use the formula : Closing Price of Current month  Cl...

Q: Through credits cards lines with a certain credit limit Through a guaranteed credit line that has a ...

A: Banks provide  short term credit to the business for maintaining the liquidity and enough working ca...

Q: 1. Financial Forecasting vs. Financial Modelling. Explain the difference.

A: In finance we often use financial forecasting as well as financial modelling. Though both financial ...

Q: On January 1,2020, Cookie Company leased an equipment from Sydney Company for 8 years with annual le...

A: The lease is recorded at the present value of the minimum lease payment. Interest expense is calcula...

Q: Two mutually exclusive investment opportunities require an initial investment of $6 million. Investm...

A: Given,  Two projects with initial investment of $6 million each. Investment A gives $1.5 million in ...

Q: (Related to Checkpoint 5.4) (Present-value comparison) You are offered $80,000 today or $340,000 in ...

A: We will have to use the concept of time value of money. As per the concept of time value of money th...

Q: Suppose that you earn $39,600 per year. What is your monthly salary? 3300 Assume that you deposit 10...

A: Monthly salary = $39600 / 12 = $3300 Monthly deposit (D) = 10% of $3300 = $330 r = 4.3% per annum = ...

Q: What is the cost of new common stock if the required rate of return is 9%, the constant dividend gro...

A: The cost of issuing new securities is known as floatation cost. It includes legal expenses, registra...

Q: A machine costs $400,000 with salvage value of 20,000. Life of it is six years. In the first year, 4...

A: Solution:- The fall in value of asset due to its wear and tear cost is called depreciation. Deprecia...

Q: Bon Chance, Inc., has an odd dividend policy. The company has just paid a dividend of $5.85 per shar...

A: Current dividend = $5.85 Future dividends Year Last dividend Dividend for  the period   A B=A+1...

Q: The Payback Method in capital budgeting ignores:  a The expected future cash flows of the firm.  b ...

A: In capital budgeting, the payback period is the period of time required for the return on an investm...

Q: A growing business moved to a new building to service a bigger client pool. The building acquired th...

A: Cost of Building is ₱3,000,000 Interest Rate is 12% Time Period is 5 years Compounding Period is Mon...

Q: What is the required rate of return on the new portfolio?

A: Required return is the minimum return an investor will demand on the principal amount invested. It i...

Q: Bulldogs Inc. expected to sell in October 2021 1,000 units of Dell laptops with a purchase cost per ...

A: sales volume variance:                                    It is the variance which defines as the di...

Q: On January 1, 2018, Kline Inc. borrowed P9,000 from Harvard Co., and on January 1, 2020, it borrowed...

A: First, we will calculate the amount of the first payment after taking it as a base we can calculate ...

Q: Convert the following cash flows to a uniform payment series, where n=3 starting at year 3 and i=3%....

A: The value of same amount of money will be different at various point of time. This is because, the v...

Q: Grady-White Boats, Inc. is considering a project that will require additional inventory of $1,131,00...

A: Solution:- Working capital refers to the difference between the entity's current assets and current ...

Q: Consider the following data for bonds A and B: _price annual cash flows t = 0 t = 1 t = 2 t = 3 A $9...

A:

Q: 1. What nominal rate compounded semiannually is equivalent to 8% compounded Quarterly?

A: Effective annual rate (EAR) refers to a real interest rate which an investor is expect from his inve...

Q: Assume that you have just won the lottery. Lotto officials offered you the choice of two alternative...

A: Solution:- Every rational individual will select that option, the present value of which is higher. ...

Q: 3. The Corporation's net operating income last year was P103,000; its interest expense was P17,000; ...

A: Times-Interest Earned Ratio refers to the ratio which measures the ability of the company in meeting...

Q: A proposed relaxation of credit standards of Bulldogs Inc. will increase the balance of accounts rec...

A: Solution:- Average collection period means the average days to recover money from debtors. We know, ...

Q: How many futures contracts should be added to the portolio to meet the target beta? Round to 0 decim...

A: The relative volatility of an individual stock portfolio, as assessed by a selected stocks betas of ...

Q: The Garraty Company has two bond issues outstanding. Both bonds pay $100 annual interest plus $1,000...

A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first ...

Q: Safeco Inc. has no​ debt, and maintains a policy of holding ​$12 million in excess cash​ reserves, ...

A: Debt is the amount of money borrowed by one party (party can be an individual or a company or an ins...

Q: Finsbury Co has a cash generating unit (CGU) that suffers a large drop in income due to reduced dema...

A: Answer-   Step 1 - Calculation of Total impairment Loss - Carrying Cost of Assets                   ...

Q: What is the amount of compensating balance would be required for a nominal interest rate of 12% to e...

A: Borrowings are the loan which is taken by the individual to meet its financial requirements. The mor...

Q: Bulldogs Inc. uses Additional Funds Needed as a plug item. If the company had forecast its additiona...

A: Because you have asked multiple questions, we will solve the first question as per Barlteby Policy. ...

Q: 4. What is the total present value of equity as of the beginning of 2021 using the implied value to ...

A: Book value of equity of a company means the company's common equity. It is the net amount of total a...

Q: Assume you graduate from college with $26,000 in student loans. If your interest rate is fixed at 5....

A: Loan amount (X) = $26000 r = 5% per annum = 5%/12 = 0.4167% per month n = 10 years = 120 months Let ...

Q: present worth of the following cash flows based on an interest rate of 7.23% per year, compounded an...

A: Present value of cash is the discounted value of cash flow today considering the interest and period...

Q: Calculate the price of a 180-day Treasury bill purchased at a 5% discount rate if the T-bill has a f...

A: Time period is 180 days Discount rate is 5% Face value or FV is E5,000 To Find: Price of T- bill

Q: You want to be able to withdraw $35,000 from your account each year for 20 years after you retire. Y...

A: Amount to withdraw (W) = $35000 for m = 20 years Let the annual deposit = D Number of deposits (n) =...

Q: You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two ...

A: We need to calculate present value of both options by using present value of ordinary annuity formul...

Q: Barry has applied for a loan in the amount of $10,500. A bank figures that Barry will repay the loan...

A: Loan amount = $10500 Probability of repayment = 0.93 Probability of default = 0.07 Let the interest ...

Q: You are constructing a simple portfolio using two stocks A and B. Both have the same expected return...

A:

Q: Explain the concept of DRIP term in finance.

A: The term DRIP is an abbreviation for "dividend reinvestment plan," but it also describes how the pla...

Q: culate the required rate of return for Campbell Corp. common stock. The stock has a beta of 1.3, and...

A: The minimum profit (return) that an investor must seek or obtain in exchange for taking on the risk ...

Q: We are considering the effects of starting early or late to save for retirement. Assume that each ac...

A: Future Value  $            9,50,000.00 Interest Rate 6% Time for Graduation 33 Time to Retirem...

Q: Bulldogs Inc. offered a one-year loan to a customer client. The instrument is a discounted note with...

A: Discount rate = 15%

Q: Bingo Inc. sells on term 3/20, net 40. Total sale for the year are P1,200,000 on which 40% is cash s...

A: Total sales = P1,200,000 Cash sales = 40%   

Q: You borrow $5000 now and agree to pay this whole amount back in three payments Poyment 1. SX in 2 mo...

A: Discounting of money is the process of determining the present value of future cash flows. The inter...

Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery w...

A: Given: Cost of machine = $80 Million Working capital = $20 Million Tax rate = 30%

Q: It is assumed that the Cost of equity and rate of return are both constant under Walter’s Model of D...

A: Solution:- Walter’s Model of Dividend is a relevant dividend model, which implies that the dividend ...

Q: Wade Ellis buys a car for $16,278.13. He puts 10% down and obtains a simple interest amortized loan ...

A: Given, The loan amount is $16,278.13 Down payment is 10%Rate of interest is 11.5%.

Q: A father wants to set aside money for his 5-year old son's future college education. Money can be de...

A: Present Value  The present value is the value of cash flow stream or the fixed lump sum amount at ti...

Q: Biarritz Corp. is growing quickly. Dividends are expected to grow at a rate of 31 percent for the ne...

A: Current dividend = $1.75 Required return = 12% Future dividends Year Last dividend Growth rate Di...

Q: What do entrepreneurs do that distinguishes them from any other person involved in the business?

A: A business is an enterprise entity or an organisation which is present to carry out a variety of act...

Q: > Question 4 1 pts Which of the following statements about the money markets are true? O Pension fun...

A: Money market is referred as the market, which trades in the short term or very short term debt inves...