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NEW QUESTION 42
An accountant is employed in the financial reporting department of a publicly-traded company. The company s compensation plan includes a year-end bonus based on the entity's financial performance and stock option rewards based on individual performance Using iMAs Statement of Ethical Professional Practice, identify the ethical Issues, if any, that may Be presented by this company s compensation plan.

A. The plan could threaten the accountant's integrityB. The pan could threaten the accountant s competenceC. The plan could threaten the accountant s credibilityD. No significant potential threats are presented by the plan

Answer: A

 

NEW QUESTION 43
If a CMA is asked to conduct a financial assessment of a company owned by a close relative, what would be the proper response under the credibility standard of the IMA Statement of Ethical Professional Practice?

A. Provide an assessment that is timely and accurate despite the personal relationshipB. Keep information confidential except when authorized By the relativeC. Advise all parties of a potential conflict of interestD. Communicate the existence of a constraint that might preclude responsible judgment

Answer: C

 

NEW QUESTION 44
A company had an operating cycle of 110 days, a cash cycle of 40 days, and an accounts receivable period of so days. The company s inventory period and accounts payable period are

A. inventory period = 10 days and accounts payable period = 50 daysB. inventory period = 70 flays and accounts payable period = 50 flaysC. inventory period = 50 days ana accounts payable period - 150 flaysD. inventory period = 50 days and accounts payable period = 70 days

Answer: D

 

NEW QUESTION 45
Calculate QDDs financial leverage ratio show your calculations
Essay
Quality Digital Design (QDD) Inc is a public-traded technology company Selected financial data of QDD for the prior year are as follows

QDD's stock was trading at $160 per share at the beginning of the yea: and at $176 per share by the end of the year. The company paid dividends of S5 per share. The company "s stock had a beta of 1 4 The stock market provided a total return of 12% last year, well above the 3% risk free rate of return QDD is considering the issuance of $200 million of bonds to fund the repurchase of $200 million of its stock.
QDD is evaluating the bond, including its term structure, maturity, and whether it should be callable obtaining the lowest coupon interest is an important objective of QDD. The CFO has estimated that sales for the current year would remain the same as last year and the new bond would add S12 million in annual interest payments.

Answer:

Explanation:
See the explanation for the answer.
Explanation

 

NEW QUESTION 46
Sunnyvale Gas Company had a $50 million issue of 30-year mortgage bonds issued at par 10 years ago The coupon rate on the bonds is 15% and Interest is payable semi-annually on March 1 and September 1. The bonds are currently trading at SI 300. The can provision of the issue states that the bonds are callable after the S-year deferral period at 108 plus accrued interest. If Sunnyvale calls the bonds effective June 1 what is the cash payment, ignoring taxes, to the bondholders?

A. $55 875 000B. $51875 000C. $66,875,000D. $57 750 000

Answer: D

 

NEW QUESTION 47
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