Question 1
I need help in answering the questions below for an investment assignment. Please only accept the assignment if you're for sure able to properly complete it and on time. The project is about Beta and Return - see instructions below: Beta and Return. The objectives of this exercise: 1. To access and download stock and index price data from yahoo.com. 2. To discern the difference between a real-time closing price and an adjusted price. 3. To discover how yahoo.com calculates beta for an individual stock. 4. To replicate the yahoo.com calculation for twenty firms in the S&P 500 index, tabulate the results and report your findings. Learning Outcomes: Students should be able to: 1. Identify individual stocks in the S&P 500 index and discuss the composition of the S&P 500 index. 2. Collect financial data including closing stock prices and adjusted stock prices. 3. Estimate beta from historical data. 4. Tabulate regression results and discuss empirical findings. Guidelines: 1. You will be assigned twenty (20) stocks from the current S&P 500 index (SEE THE STOCKS BELOW). You must use these 20 stocks (or, more precisely, the ticker symbols) to download data from yahoo.com. Go to yahoo.com, then Finance, then type in your ticker symbol. Next choose Historical Prices from the tabs on the left. Tag ?Monthly? then choose the appropriate dates (to be determined below). Click Get Prices, scroll to the bottom of the page and download to spreadsheet (it is actually saved as a ?.csv? file, but it will open okay in Excel). The last month of return data should be June 2013. Be sure to use end-of-month data! Yahoo might print a beginning of month date in the monthly output, but it should be end of month. To check this, look at the daily data and verify that the last day of the month is used in the monthly spreadsheet (it should be if you wait until after the sample period to collect your data). 2. You must determine how exactly yahoo.com calculates historical beta, then replicate their calculations. This requires the use of regression software (or functions in Excel, if you know how to do that). Note, you must calculate returns first. Is the data sorted correctly ? in time order? If not, you must sort your stock prices and market prices so that the oldest prices are first, then calculate returns. Answer the following questions: a. How, exactly, does yahoo.com calculate their beta? How many months of return data do they use? How many months of price data do you need? How do you know that you and Yahoo used the same data period? b. Should you use closing price or adjusted price when calculating returns? Why? c. What is the market proxy? What ticker did you use for your market proxy? 3. After calculating returns for your twenty stocks and the market, you must calculate beta for each of your twenty stocks. Create a Table showing the following: Ticker, Company Name, yahoo beta, calculated beta, intercept and r-square from your regressions. 4. Do your regression results match yahoo.com results? Why or why not? Output: You must submit a brief write-up of your results. Your paper should be detailed enough so that someone else could pick up your paper and replicate your results. So, you will need a brief introduction describing your data sources, how you manipulated the data, how you calculated returns, how you calculated beta, a Table, and a brief summary and discussion of your findings. In total, you must submit: 1. Your write-up as a Word file including the Table described above in Guideline #3 and your answers to the various questions. 2. An Excel spreadsheet (one sheet), properly formatted, containing the ticker symbol, closing price, adjusted price and dates (dates should be the same for each ticker) for each of your twenty stocks and your market proxy. 3. Another Excel spreadsheet, properly formatted, with a detailed example of how, exactly, you calculated the results in your Table (i.e., replicate the detailed findings for one of your stocks). The two Excel worksheets should be in one file with two different labeled worksheet tabs. 341 PCAR PACCAR Inc 342 PETM PETsMART Inc 343 PCG PG&E Corporation 344 PNC PNC Finl Services Group 345 PPG PPG Industries Inc 346 PPL PPL Corp 347 PLL Pall Corp 348 PH Parker-Hannifin Corp 349 PDCO Patterson Cos Inc 350 PAYX Paychex Inc 351 BTU Peabody Energy Corp 352 JCP Penney J.C. Inc 353 PNR Pentair Ltd. 354 PBCT People's United Financial Inc 355 POM Pepco Holdings Inc 356 PEP PepsiCo Inc 357 PKI PerkinElmer Inc 358 PRGO Perrigo Co 359 PFE Pfizer Inc 360 PM Philip Morris International
Question 3
Current Distributions. Lisa has a $25,000 basis in her partnership interest before receiving a current distribution of $4,000 cash and land with a $30,000 FMV and a $14,000 basis to the partnership. Assume that any distribution involving Sec. 751 property is pro rata and that any precontribution gains have been recognized before the distribution. a. Determine Lisa's recognized gain or loss, Lisa's basis in distributed property, and Lisa's ending basis in her partnership interest. b. How does your anser to Part A change if the partnership's basis in the land is $24,000 instead of $14,000? c. How does your answer to Part A change if Lisa receives $28,000 cash instead of $4,000 (along with the land)? d. How does your answer to Part a change if, in addition to the cash and land, Lisa recieves inventory with a $25,000 FMV and a $10,000 basis and recivables with a $3,000 FMV and a zero basis? e. Suppose instead that Lisa recives the distribution in Part A from a C corporation instead of a partnership. The corporation has $100,000 of E&P before the distribution, and Lisa's stock basis before the distribution is 425,000. What are the tax consequences to Lisa and the C corporation?
Question 4
I need help with these questions on a exam study guide. 1. Which of the following are advantages of the payback method of project analysis? I. works well for research and development projects II. liquidity bias III. ease of use IV. arbitrary cutoff point Answers: I and II only I and III only II and III only II and IV only II, III, and IV only 2. A project has a discounted payback period that is equal to the required discounted payback period. Given this, which of the following statements are true? I. The project must also be acceptable under the payback rule. II. The project must have a profitability index that is equal to or greater than 1.0. III. The project must have a zero net present value. IV. The project's internal rate of return must equal the required return. Answers:I only I and II only II and III only I, III, and IV only I, II, III, and IV 3. Which of the following should be included in the analysis of a new product? I. money already spent for research and development of the new product II. reduction in sales for a current product once the new product is introduced III. increase in accounts receivable needed to finance sales of the new product IV. market value of a machine owned by the firm which will be used to produce the new product Answers:I and III only II and IV only I, II, and III only II, III, and IV only I, II, III, and IV Also, I previously submitted an attachment with all 25 questions twice and it was "Denied - Price", can you please tell me what this means?,You can disregard these questions. I figured them out. I do have a couple of others that I have submitted though.
Question 5
1. Poster Inc. owns 35 percent of Elliott Corporation. During the calendar year 2003, Elliott had net earnings of $300,000 and paid dividends of $36,000. Poster mistakenly accounted for the investment in Elliott using the cost method rather than the equity method of accounting. What effect would this have on the investment account and net income, respectively? A. Understate, overstate B. Overstate, understate C. Overstate, overstate D. Understate, understate 2. Marino Corporation purchased the following portfolio of trading securities during 2008 and reported the following balances at December 31, 2008. No sales occurred during 2008. All declines are considered to be temporary. Security Cost Market Value at 12/31/08 X $ 80,000 $ 82,000 Y 140,000 132,000 Z 32,000 28,000 The only transaction in 2009 was the sale of security Z for $34,000 on December 31, 2009. The market values for the other securities at December 31, 2009 were the same as at December 31, 2008. Marino's entry to record the sale of security Z would include A. a credit of $2,000 to Realized Gain on Sale of Trading Securities. B. a debit of $2,000 to Realized Gain on Sale of Trading Securities. C. a $2,000 debit to Market Adjustment-Trading Securities. D. a $4,000 debit to Market Adjustment-Trading Securities. 3. At the beginning of the year, a company had a debit balance in the account Market Adjustment-Trading Securities. During the year the company didn't buy or sell any trading securities, but at the end of the year the related market adjustment account had a credit balance. This change indicates A. a loss on the income statement was recognized. B. a gain on the income statement was recognized. C. the value of the investment account increased. D. the value of the investment account decreased. 4. When an investor uses the cost method to account for investments in common stock, cash dividends received by the investor from the investee should normally be recorded as A. a deduction from the investment account. B. dividend revenue. C. an addition to the investor's share of the investee's profit. D. a deduction from the investor's share of the investee's profit. For each situation listed in questions 5-8, indicate by letter the appropriate financial statement element being discussed. 5. The net assets of an entity A. Investment by owners C. Owners' equity B. Distributions to owners D. Revenues 6. An increase in net assets through the issuance of stock A. Investment by owners C. Owners' equity B. Distributions to owners D. Revenues 7. The payment of a dividend A. Investment by owners C. Owners' equity B. Distributions to owners D. Revenues 8. Items offering future value to an entity A. Investment by owners C. Owners' equity B. Distributions to owners D. Revenues 9. Edwards Company began business in February of 2007. During the year, Edwards purchased the three trading securities listed below. On its December 31, 2007, balance sheet, Edwards appropriately reported a $4,000 credit balance in its Market Adjustment- Trading Securities account. There was no change during 2008 in the composition of Edward's portfolio of trading securities. Pertinent data are as follows: Security Cost Market Value December 31, 2008 A $120,000 $126,000 B 90,000 80,000 C 160,000 157,000 $370,000 $363,000 What amount of loss on these securities should be included in Edward's income statement for the year ended December 31, 2008? A. $0 C. $7,000 B. $3,000 D. $11,000 10. On January 1, 2008, Capitech Corporation acquired Logirun, Inc. as a long-term investment for $250,000 (a 30 percent common stock interest in Logirun). On that date, Logirun had net assets with a book value and current market value of $800,000. During 2008, Logirun reported net income of $90,000 and declared and paid cash dividends of $20,000. What is the maximum amount of income that Capitech should report from this investment for 2008? A. $6,000 C. $26,750 B. $21,000 D. $27,000 For each situation listed in questions 11-12, indicate by letter the appropriate accounting assumption being discussed. 11. When preparing the financial statements for MacNeil & Sons, the accountant included certain personal assets of MacNeil and his sons in preparing the statements. A. Stable monetary units C. Going concern B. Specific economic entity D. Arm's-length transactions 12. The operations of Uintah Savings and Loan are being evaluated by the federal government. During their investigations, government officials have determined that numerous loans made by top management were unwise and have seriously endangered the future of the savings and loan. A. Stable monetary units C. Going concern B. Specific economic entity D. Arm's-length transactions 13. On October 1, Dennis Company purchased $200,000 face value 12 percent bonds for 98 plus accrued interest and brokerage fees and classified them as held-to-maturity securities. Interest is paid semiannually on January 1 and July 1. Brokerage fees for this transaction were $700. At what amount should this acquisition of bonds be recorded? A. $196,000 C. $202,000 B. $196,700 D. $202,700 For each situation listed in questions 14-17, indicate by letter the appropriate qualitative characteristic or accounting concept applied. 14. All payments out of petty cash are debited to miscellaneous expense. A. Materiality C. Economic entity B. Representational faithfulness D. Historical cost 15. Periodic payments of $1,500 per month for services of H. Hay, who is the sole proprietor of the company, are reported as withdrawals. A. Materiality C. Economic entity B. Representational faithfulness D. Historical cost 16. Investments in equity securities are initially recorded at cost. A. Materiality C. Economic entity B. Representational faithfulness D. Historical cost 17. A note describing the company's possible liability in a lawsuit is included with the financial statements even though no formal liability exists at the balance sheet date. A. Materiality C. Economic entity B. Representational faithfulness D. Historical cost 18. In March of 2007, Moon Corp. bought 45,000 shares of McMahon Corp.'s listed stock for $450,000 and classified the shares as available-for-sale securities. The market value of these shares had declined to $300,000 by December 31, 2007. Moon changed the classification of these shares to trading securities in June of 2008 when the market value of this investment in McMahon's stock had risen to $345,000. How much should Moon include as a loss on transfer of securities in its determination of net income for 2008? A. $0 C. $105,000 B. $45,000 D. $150,000 19. Walsh, Inc. began business on January 1, 2007, and at December 31, 2007, Walsh had the following investment portfolios of equity securities: Trading Available-For-Sale Aggregate cost $150,000 $225,000 Aggregate market value 120,000 185,000 None of the declines is judged to be other than temporary. Unrealized losses at December 31, 2007, should be recorded with corresponding charges against Income Stockholders' Equity A. $70,000 $0 B. $40,000 $30,000 C. $30,000 $40,000 D. $0 $70,000 20. Martin Co. purchased the following portfolio of trading securities during 2007 and reported the following balances at December 31, 2007. No sales occurred during 2007. All declines are considered to be temporary. Security Cost Market Value at 12/31/2007 X $ 80,000 $ 82,000 Y 140,000 132,000 Z 32,000 28,000 The carrying value of the portfolio at December 31, 2007, on Martin Co.'s balance sheet would be A. $222,000. C. $242,000. B. $240,000. D. $252,000
