Questions from General Finance


Q: Below is some income statement information on company ABD. Prepare an

Below is some income statement information on company ABD. Prepare an income statement for each of the three years. Show your computations.

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Q: The following chart plots the net present value (NPV) of

The following chart plots the net present value (NPV) of projects A and B at different discount rates. The projects have similar risk and are mutually exclusive. a. What is the significance of the poi...

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Q: From the following data, reconstruct the balance sheet at the end

From the following data, reconstruct the balance sheet at the end of the year.

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Q: Indicate the effect of the following transactions on the working capital requirement

Indicate the effect of the following transactions on the working capital requirement: a. More customers pay with cash instead of credit b. More of raw material is paid for with cash c. More discounts...

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Q: Prepare the managerial balance sheet of the following US company balance sheet

Prepare the managerial balance sheet of the following US company balance sheet (the company applies US GAAP):

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Q: Explain why each of the following statements is generally incorrect:

Explain why each of the following statements is generally incorrect: a. “Price-earnings ratios should increase when the yield on government securities rises.” b. “A company’s discounted cash-flow valu...

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Q: a. What would be the compounded value of one dollar in

a. What would be the compounded value of one dollar in three years if the annual interest rate is 3 percent in Year 1 and is expected to rise to 5 percent in Year 2 and 6 percent in Year 3? b. What co...

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Q: Indicate the effect of the following transactions on working capital requirement (

Indicate the effect of the following transactions on working capital requirement (WCR), net operating cash flow (CFOPE) , cash flow from investing activities (CFINV) , cash flow from financing activit...

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Q: Indicate the effects of the following transactions on net long-term

Indicate the effects of the following transactions on net long-term financing (NLF), working capital requirement (WCR), net short-term financing (NSF), and net profit. Use  to indic...

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Q: Mars Electronics is a distributor for the Global Electric Company (GEC

Mars Electronics is a distributor for the Global Electric Company (GEC), a large manufacturer of electrical and electronics products for consumer and institutional markets. Below are the semi-annual f...

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