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Po-Hsuan Wang

Po-Hsuan W.

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Questions asked

INSTANT ANSWER

Your portfolio contains 40% of Bond I, 20% of Bond II, 20% of Bond III and 20% of Bond IV. Details of the four bonds are given below: I. 10-year zero coupon government bond, par value $1000, current price = $613.91 II. 10-year zero coupon corporate bond, par value $1000, default premium= 2% III. 5-year 15 % coupon corporate bond, par value $1000, annual coupon payments, default premium = 9% and YTM for similar government bond is 6% IV. 5-year 15% government coupon bond, par value $1000, annual coupon payments, YTM=6%

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INSTANT ANSWER

ABC Mining company paid $5.6 million for a mining property on 1 July 2019 after the geologists of the exploration company estimated that a gold deposit found on the property would produce 42 000 ounces of gold. In each of the years 2019-2020 and 2020-2021, ABC Mining spent $225 000 per annum developing the property. On 30 June 2021, engineers estimate that development and construction activities have resulted in $980 000 worth of restoration costs that ABC Mining is obligated to spend at the end of the mine’s life under commonwealth legislation. The company nominates a discount rate of 8% as relevant for its gold operations. Production started on 1 July 2021 and company geologists estimate that it will take eight years to exhaust the economically recoverable reserves. Activities in the 2021-22 financial period were: Ounces of gold mined 5 400 Ounces of gold sold 4 800 Selling price per ounce $450 Total production cost (including depreciation and amortisation) $720 000 REQUIRED: The financial year for ABC Mining company is from 1 July to 30 June. For the year ended 30 June 2022: a) What is the amortisation expense? b) What is the finance cost related to the restoration costs? c) What is the cost of goods sold? Round to the nearest whole $ amount for your answers. No narration is required. Show your calculations.

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INSTANT ANSWER

Morning Sun Company has a ratio of (total debt/total assets) that is above the industry average, and a ratio of (long term debt/equity) that is below the industry average. These ratios suggest that the firm A. has a relatively low dividend payout ratio B. has relatively high current liabilities C. utilizes assets effectively D. has too much equity in the capital structure

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ANSWERED

Nick Johnson verified

Numerade educator

Other things being equal, a high ________ would be most consistent with a relatively high growth rate of firm earnings and dividends. A. dividend payout ratio B. None of the options C. retention ratio D. variability of earnings E. degree of financial leverage

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ANSWERED

Nick Johnson verified

Numerade educator

What bias is the likely cause of investors being too slow in updating their beliefs in response to evidence? A. Framing B. All the options C. Overconfidence D. Conservatism E. Regret avoidance

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ANSWERED

Nick Johnson verified

Numerade educator

The dollar value of a firm's return in excess of its opportunity costs is called its A. economic value added B. profitability measure C. excess return D. return margin E. prospective capacity

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ANSWERED

Maria Dearborn verified

Numerade educator

The most direct way to stimulate the economy is via Government spending and taxation Firm policy Monetary policy Industry policy

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INSTANT ANSWER

Wisk Metrics Company is expected to pay a dividend of $3.50 in the coming year. Dividends are expected to grow at a rate of 10% per year. The risk-free rate of return is 5% and the expected return on the market portfolio is 13%. The stock is trading in the market today at a price of $90.00. What is the approximate beta of Wisk Metrics's stock? A. 0.8 B. 1.11 C. 1.4 D. 1.0 E. None of the options

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ANSWERED

Akash M verified

Numerade educator

Supply Ltd entered into a non-cancellable five-year lease arrangement with Customer Ltd on 1 July 2022. The leased asset is a machine with an estimated useful life of six years and a salvage value of zero. There are to be five annual lease payments of $90,000, the first being made on 30 June 2023. Customer Ltd determined that this contract contains a lease. There is a bargain purchase option that Customer Ltd will be able and likely to exercise at the end of the lease term for $30,000. The implicit interest rate is 12%. REQUIRED: (1) What is the balance of lease liability the lessee should record on 1 July 2022? Show your calculations. (2) Prepare the journal entries in the books of the lessee (Customer Ltd) from 1 July 2022 to 30 June 2023 (the end of the reporting period).

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AWAITING AN EDUCATOR

The following information relates to questions 2,3 and 4. Pink Ltd acquired a machine for \( \$ 450,000 \) on 1 July 2020 . The machine had a useful life of five years and was depreciated on a straightline basis with no disposal value. Pink Ltd adopted the cost model for accounting for assets in this class. The estimates of the value of the machine at the end of financial periods were shown as below: \begin{tabular}{llll} Date & Net selling price & Value in use & Fair Value \\ \hline 30 June 2021 & \( \$ 328,000 \) & \( \$ 315,000 \) & \( \$ 345,000 \) \\ 30 June 2022 & \( \$ 226,000 \) & \( \$ 228,000 \) & \( \$ 243,000 \) \\ 30 June 2023 & \( \$ 161,000 \) & \( \$ 167,000 \) & \( \$ 178,000 \) \\ \hline \end{tabular} Indicators of impairment and/or indicators of a reversal of impairment losses were identified on 30 June 2021 and 30 June 2023 . Answer the following three questions. Q2: What is the recoverable amount of the machine on 30 June 2021 ? A. 315,000 B. 328,000 C. 345,000 D. 450,000

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