# Search:

Type: Posts; User: ArcSine

1. ## Question: What is the net present value of this situation?

by ArcSine
2
Views
538

### You're on the right track, just need a couple...

You're on the right track, just need a couple more steps. You've applied the discount factors to the asset's pre-tax annual profits, but you should first compute the after-tax cash flow before...

by ArcSine
1
Views
474

### Welcome to the site, Hadel, Are you saying...

Are you saying that you've been provided in the problem's information the various curves in function (algebraic equation) form, or can derive them from the given info?...
3. ## Question: Accounting Theory Question

by ArcSine
5
Views
322

### While smoothy's answer would doubtlessly be...

While smoothy's answer would doubtlessly be accepted as accurate by most current mainstream texts in the Western Hemisphere, it should be pointed out that there exists a school of thought---one...
4. ## Question: Calculate average return and standard deviation

by ArcSine
1
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1,652

### Your avg and stdev calcs for the individual...

Your avg and stdev calcs for the individual securities are fine. You'll need to post your steps in the blended portfolio calcs in order to debug it.
5. ## Question: What happens if imposing excise tax and sales tax

by ArcSine
1
Views
432

### Just to get you aimed right and started towards...

Just to get you aimed right and started towards first base:

If p is the unit price at the register (in dollars, presumably), note that in the post-tax scenario, (p + 0.3) is the effective price...
6. ## Question: Finance question

by ArcSine
3
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1,378

### Kind of late for the party, but FWIW, your...

Kind of late for the party, but FWIW, your probability "ceiling" for a problem like this is given by the ratio
L / (L + P)

where L and P are, respectively, the net loss incurred on an unsold...
7. ## Question: Calculating revenues, expenses, and dividends

by ArcSine
1
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567

### For this purpose, Retained Earnings is similar to...

For this purpose, Retained Earnings is similar to a bank account. While not actually the same, Retained Earnings and bank accounts do have something in common:

The beginning balance (at any given...
8. ## Question: Do you think this business is worth the asking price?

by ArcSine
2
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1,682

### Impossible to say without a lot more data. •...

Impossible to say without a lot more data.

• The built-in contract and the "many customers" parts are certainly positives, but how many dollars they add to the economic value of the biz is a...
9. ## Question: Managerial accounting help ? Help... not do it for me

by ArcSine
1
Views
574

### You can assume that the variable costs for this...

You can assume that the variable costs for this special 40-unit order will be the same as it is for the regular 2009 operations.

From the 2009 data you're given that total variable costs were...
10. ## Question: Preserving the Corporate Veil in my LLC?

by ArcSine
1
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444

### No. However, if you intend for these assets to...

No. However, if you intend for these assets to remain permanently as LLC assets henceforth, you should record them on the books as owner contributions to capital. If you intend to bring them back out...
11. ## Question: December Payroll but Taxes paid in January JEs help!!

by ArcSine
5
Views
953

### From what you've described, they're not on a...

From what you've described, they're not on a purely cash basis, but rather on something of a hybrid. They used an accrual-basis approach to recording their December payroll, by recording not just the...
12. ## Question: December Payroll but Taxes paid in January JEs help!!

by ArcSine
5
Views
953

Yup, my bad... forgot about the employee portion (withholdings) of the taxes.

Then if the company is on a strictly cash basis, it only recorded a salaries / wages expense in Dec for the net pay...
13. ## Question: December Payroll but Taxes paid in January JEs help!!

by ArcSine
5
Views
953

### The appropriate procedure depends on whether the...

The appropriate procedure depends on whether the company is on the cash basis of accounting or on the accrual method.

If the former, the January payments for the Dec payroll taxes would just be...
14. ## Question: Pricing and output for decision making

by ArcSine
1
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488

### Nice copy-n-paste job on the question, right down...

Nice copy-n-paste job on the question, right down to the percentage credits for each part. Hence you're part way there. Now (per the homework-help rules you read earlier, surely) just show your work...
15. ## Question: Business math solver

by ArcSine
1
Views
854

### Start by setting up two equations---using the...

Start by setting up two equations---using the given data---which incorporate the two unknowns.

Let C denote the number of coffee cases, and T the number of tea cases.

16. ## Question: How do you figure out debt ration?

by ArcSine
1
Views
474

### From Sales and Net Profit Margin you can derive...

From Sales and Net Profit Margin you can derive Net Income.

From Net Income and Return on Equity you can derive amount of Equity.

From Equity and Assets you can determine Debt.

From Debt and...
17. ## Question: Accounting questions help

by ArcSine
1
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481

### I'd record the reimbursement as a reduction of...

I'd record the reimbursement as a reduction of your meeting expense rather than as a revenue item. Just a personal bias on my part, from two arguable reasons:

• If the other party reimburses you...
18. ## Question: How do I fix an opening balance (equity) that does not exist, really.

by ArcSine
3
Views
681

### Can you get your hands on either the tax returns...

Can you get your hands on either the tax returns for one or more years immediately preceding 2007, or the checkbook register (and/or bank statement copies) for such time? From these it might be...
19. ## Question: How do I fix an opening balance (equity) that does not exist, really.

by ArcSine
3
Views
681

### It's possible---though by no means certain---that...

It's possible---though by no means certain---that it's OK as it sits. First, remember that cash or bank accounts, and equity accounts, are not mutually exclusive. On the contrary, they frequently go...
20. ## Question: Factors affecting supply curve

by ArcSine
4
Views
1,301

Both your answer and your rationale are correct, as profitability is one of the fundamental drivers of supply.

The second part of the question, though, deserves a little thought. For a firm...
21. ## Question: How should be written the journal entry?

by ArcSine
1
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463

### 1 and 2 are good. In 3, remember that you're...

1 and 2 are good.

In 3, remember that you're selling the asset bought in Event 2. Hence the credit should reflect that particular asset.

Also in 3, I don't see any basis for assuming the asset...
22. ## Question: Food stamp eligibility

by ArcSine
1
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590

### The only way to answer that one with any...

The only way to answer that one with any certainty is to look carefully at the wording, definitions, etc. the specific agency in question uses in their regulations, regarding their method of...
23. ## Question: On my balance sheet, it shows suta/futa as a negative balance?

by ArcSine
1
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548

### Hard to diagnose with any accuracy from a...

Hard to diagnose with any accuracy from a distance, as there are myriad possibilities for it.

But very generally, the fact that you maintain a liabilities account suggests that you're using a...
24. ## Question: Time Value of Money Concept

by ArcSine
3
Views
1,223

### Wrong forum. You want ...

Wrong forum. You want

www.IWantSomebodyElseToDoMyHomeworkSoICanRealizeMyDreamOfBeingABurdenOnSociety.com

They'll fix you right up over there, sport.
25. ## Question: Copier leases - how do I evaluate them?

by ArcSine
1
Views
544

### Very generally, if volume / output is a variable...

Very generally, if volume / output is a variable that affects the final cost (your post suggests it may be) then you first need a reasonable estimate of your usage requirements over the term of the...
26. ## Question: Convertible Bonds Question

by ArcSine
3
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2,221

### Hmmm.. . With (a) and (b) you're safely on...

Hmmm.. . With (a) and (b) you're safely on second.

To stretch it out into a three-bagger, for (c) go back and review the example I gave earlier. In particular, note that the numerator is the...
27. ## Question: Convertible Bonds Question

by ArcSine
3
Views
2,221

### In (a) you're spot on. For (b), where did the...

In (a) you're spot on.

For (b), where did the bond come from? No bond is mentioned in the question. Moving on, the question is really asking, "What is the convertible's value in terms of the...
28. ## Question: Statistics

by ArcSine
10
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1,114

### 'preciated indeed!

'preciated indeed!
29. ## Question: Statistics

by ArcSine
10
Views
1,114

### Multiple Choice: BBRIDBART disregarded AMHD's...

Multiple Choice: BBRIDBART disregarded AMHD's homework assistance rules, and in the process of furnishing answers, got how many right?

(a) 20%
(b) 20%
(c) 20%
(d) 20%
30. ## Question: Please answer a question on my homework. DO NOT give results!

by ArcSine
4
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1,408

### Yvonne, the initial investment of 10K can be...

Yvonne, the initial investment of 10K can be included or excluded as one of the cash flows; the two different approaches only give two versions of the same comparison. It's analogous to the fact that...
31. ## Question: Calculating the WACC

by ArcSine
1
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1,135

### You're correct that the attached schedule doesn't...

You're correct that the attached schedule doesn't give all the data needed for a WACC calc. From the schedule you can determine each component's weight in the firm's capital structure, but to go any...
32. ## Question: What is the price that maximizes profit of a restaurant?

by ArcSine
1
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600

### There is a shortcut to the answer, given by the...

There is a shortcut to the answer, given by the relationships between the functions and their first derivatives. But it's insightful to build up from the ground to see the individual parts in action....
33. ## Question: Accounting question

by ArcSine
11
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1,840

### Ambiguously-worded question. "What was the...

Ambiguously-worded question.

"What was the effect of these sales on Bextra's current ratio?" (emphasis mine).

My snap reaction to the wording is that the author is contemplating solely the...
34. ## Question: Cost of debt

by ArcSine
3
Views
2,769

### Glad to hear it helped out a bit, and thanks....

Glad to hear it helped out a bit, and thanks. Sometimes, it's just a matter of hearing something described a little differently, or accompanied by a different mental picture, to reach that "aha!"...
35. ## Question: Cost of debt

by ArcSine
3
Views
2,769

Your cost of equity is correct; your cost of debt is not.

The cost of Jones' debt is simply the interest rate that corresponds to the 600,000 loan amount being exactly amortized with 10 annual...
36. ## Question: Investments Homework Problem

by ArcSine
3
Views
1,354

### Happy to help, CG. The thing about rounding-off...

Happy to help, CG. The thing about rounding-off issues is that (especially in exponential-growth situations, such as here) a little rounding can grow into significant differences pretty quick.
...
37. ## Question: Investments Homework Problem

by ArcSine
3
Views
1,354

### In any given year, the total spending will be...

In any given year, the total spending will be given by P times C, where P is the total population, and C is the per-capita spending for such year.

But the total population, and the per-capita...
38. ## Question: Personal Finance Questions

by ArcSine
1
Views
679

### That'd be my guess. While a simple...

That'd be my guess.

While a simple amortization schedule could tell you the principle / interest composition of each payment, one would also need to know the payer's marginal tax rate in order to...
39. ## Question: Taxes and s corporation

by ArcSine
1
Views
507

### To what advantage? Deducting pre-incorporation...

To what advantage? Deducting pre-incorporation expenses against post-incorporation income on the S-corp's return can be a little tricky; depends on the timing and nature of the expenditures, and...
40. ## Question: Need help in Common Stock Valuation

by ArcSine
1
Views
763

### Use the given info along with the constant-growth...

Use the given info along with the constant-growth model to determine the discount rate the market is using to derive the \$100 share price.

Then with that discount rate in hand use the...
41. ## Question: The balance between inflation and interest rates

by ArcSine
4
Views
818

### @Mattecheverria, your basic premise is correct...

@Mattecheverria, your basic premise is correct that inflation makes the real cost of borrowing less than the nominal cost. Generally, for some inflation rate i and a nominal borrowing cost r, your...
42. ## Question: I need help with finding Internal rate of return?

by ArcSine
1
Views
667

### What they mean is that at the end of the second...

What they mean is that at the end of the second year, the investment returns not only 150 but also returns back the original investment amount of 2,000. Thus the three cash flows are, in order,...
43. ## Question: Finance question

by ArcSine
1
Views
955

### SBG7, you've done everything technically correct,...

SBG7, you've done everything technically correct, computationally (nice job). However, this one illustrates why the constant growth model requires that k > g, for required rate of return k and...
44. ## Question: bond value formula example

by ArcSine
1
Views
812

### First describe the cash flows remaining on this...

First describe the cash flows remaining on this bond. Tell me what the coupon payments are (their amount, and when they'll be paid), and tell when the maturity amount is to be paid (assume they're...
45. ## Question: Need help with cash budget problem

by ArcSine
2
Views
3,633

### The cash budget for a single month: • Starts...

The cash budget for a single month:
• Starts with the amount of cash as of the first day of the month
• Lists and adds the cash expected to be collected during that month
• Lists and deducts the...
46. ## Question: Finance questions

by ArcSine
3
Views
781

### I. Is correct. For II, dividend yield is...

I. Is correct.

For II, dividend yield is calculated by dividing the actual dividend---not the payout rate---by the share price. The actual dividend is found by multiplying the earnings per share...
47. ## Question: Is the present value always smaller than the future value?

by ArcSine
1
Views
1,311

### Consider the fundamental relationship between the...

Consider the fundamental relationship between the future value FV and the present value PV of some amount, where there are n periods between the two:

FV = PV(1 + r)^n for some interest rate r.
...
48. ## Question: Check my homework on bond evaluation using excel

by ArcSine
1
Views
868

### (5) is correct. On the others, you're using...

(5) is correct.

On the others, you're using the right Excel functions, but in each case you need to express the prices in the exact syntax Excel requires, as I mentioned in my response to your...
49. ## Question: Bond evaluation?

by ArcSine
4
Views
1,549

### You're good on (4) and (6). Regarding (5),...

You're good on (4) and (6).

Regarding (5), Excel wants you to get the syntax exactly right when it comes to expressing the prices in your function. Specifically, prices need to be expressed as...

by ArcSine