What is the net advantage to leasing

Assignment Help Accounting Basics
Reference no: EM133173001

Questions -

Q1. You speculate in the market by selling 8 gold futures contracts when the futures price ls $556 60 per ounce. The price on the contract maturity date is $557.20. What is your total profit (loss) if the contract size is 100 ounces?

Q2. RAY Corporation currently has 500, 000 shares outstanding that sell for $25 each. What will the share price be after:

1. RAY has a 2 for 1 stock split?

2. Ray has a 15% stock dividend?

3. Ray has a 2 for 5 reverse stock split?

Q3. Your company is considering the purchase of a fleet of cars for $195,000. It can borrow at 8.5%. The cars will be used for four years. At the end of four years they will be worthless. You call a leasing agent and find that the cars can be leased for $55,000 per year paid at the beginning of the year. The corporate tax rate is 34% and the cars belong in 30% class. What is the net advantage to leasing?

Reference no: EM133173001

Questions Cloud

What is purpose of setting account set in account receivable : What is the purpose of setting up account sets in Accounts Receivable? What General Ledger accounts are defined in an account set
Calculate arham net pay for the year : Question - Arham is paid $2,100 per week. Arham pays income tax at a rate of 24%. Calculate Arham's net pay for the year 2022
Determine the pharoah direct labor rate variance : Assembly line workers at Pharoah Manufacuring worked a total of 13700 direct labor hours to produce 37800 units. Determine Pharoah direct labor rate variance
Upgrading various infrastructure systems : An indicator of a country's economic development is the viability and reliability of the country's infrastructure. Infrastructure represents capital goods that
What is the net advantage to leasing : Your company is considering the purchase of a fleet of cars for $195,000. It can borrow at 8.5%. What is the net advantage to leasing
What is a revenue statement budget : What is a revenue statement budget - How does a cash flow budget aid business planning - What level of involvement should colleagues have in the budget planning
How much do you need to put in a trust today : You are interested in buying a house for your parents. If your discount rate is 8%, how much do you need to put in trust today to pay for all future maintenance
Foundational concept-digital twin reflection questions : Considering a product your organization supports, what would be a good candidate for a digital twin?
Record all depreciation applicable for each period : The company uses the Straight Line Method. Record ALL depreciation applicable for each period of each company's depreciable assets

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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