Expense on the company consolidated cash flow

Assignment Help Financial Management
Reference no: EM132007356

1. A company with a Tax Rate (T) of 30% books an expense of $3.6 million dollars to record Depreciation Expense for a piece of Equipment. What is the net effect of this expense on the company’s consolidated cash flow?

a. $3,600,000

b. $1,080,000

c. $2,520,000

d. $1,860,000

e. None of the above

2. Suppose trader Jean is neutral on the market, which trading strategy (or strategies), will you recommend to him? (Choose one and the best answer)

Long a butterfly

Long a put

Long a call

Long a bear spread

Short a butterfly

Reference no: EM132007356

Questions Cloud

What is the present value of the bond : Suppose a bond with a face value of $1000 is discounted to the present at 10%, what is the present value of the bond in 30 years if market rate is 5 %?
Stock to the systematic and firm-specific components : Break down the variance of each stock to the systematic and firm-specific components.
Government hates the annual budgeting cycle : It seems that everyone in corporate and government hates the annual budgeting cycle.
What is the present value of perpetuity : What is the present value of a perpetuity of $5,148 per year given an interest rate of 7.1%, assuming that the first cash flow occurs today?
Expense on the company consolidated cash flow : What is the net effect of this expense on the company’s consolidated cash flow?
Calculate the present value of annuity cash flow : Calculate the present value of annuity cash flow of 1100 with the first cash flow received in one year assuming a discount rate of 9.2 percent.
Gains-losses on call option position and futures position : Calculate Apex’s gains and losses on the call option position and the futures position assuming that the future spot rate will be at.
Bank offers three-year certificates of deposit : Your bank offers 3-year certificates of deposit with a stated rate of interest of 16.15% p.a., compounded quarterly.
What is the net cost of the bear spread : What is the net cost of the bear spread?

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the cost of capital of the company

You have been appointed as a financial consultant by the Directors of auckland holdings they require you to calculate the cost of capital of the company.

  What is the bonds current yield

What is the price of the bond if the market interest rate on similar bonds is 6%? What is the bond's current yield?

  What is expected return on the portfolio

You own a portfolio that has $2,000 invested in Stock A and $3,500 invested in Stock B. The expected returns on these stocks are 14 percent and 9 percent, respectively. What is the expected return on the portfolio?

  Estimate the cost of equity

Caballos, Inc., has a debt to capital ratio of 46%, a beta of 1.9 and a pre-tax cost of debt of 5.3%. Estimate the Cost of Equity.

  Determine fixed and variable components of admitting costs

Use the scattergraph method to determine the fixed and variable components of admitting costs.

  Economic integrations on international financial management

Analyze and discuss the impacts of globalization and economic integrations on international financial management.

  Futures position within its range of expected prices

Shakila Corporation must pay its Japanese supplier ¥125 million in three months. Aziz could buy 10 three-month yen futures contracts (contract size is ¥12.5 million) at a price of $0.007940/¥. The current spot rate is ¥1=$0.007823. Calculate what Sha..

  Equity capital using arithmetic-geometric growth rates

Suppose Powers Ltd. just issued a dividend of $2.51 per share on its common stock. The company paid dividends of $2.01, $2.08, $2.25, and $2.35 per share in the last four years. Required: If the stock currently sells for $70, what is your best estima..

  Under and overvalued stock

A manager believes his firm will earn a 20.30 percent return next year. His firm has a beta of 1.36, the expected return on the market is 15.90 percent, and the risk-free rate is 5.90 percent. Compute the return the firm should earn given its level o..

  The infrastructure spending bill on nominal interest rates

If the Federal Reserve Bank wants to counter the effect of the infrastructure spending bill on nominal interest rates,

  What is the value of call option

Suppose the current price of Ervin stock is $79. What is the value of the call option if the strike price is $75 per share?

  Corporate stockholders

Corporate stockholders: cannot have limited liability cannot easily transfer ownership cannot be subject to taxes on dividends can limit their liability to the amount of their investment

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd