Financial literacy
81314 questions • Page 119 / 1627
16 A sudden rise in inventory balances is likely to warning sign of: A. Understa
16 A sudden rise in inventory balances is likely to warning sign of: A. Understated expenses B. Accelerated revenue recognition C. ineffient working capital management 17 A wa…
16 Investment X offers to pay you $4,800 per year for 9 years, whereas Investmen
16 Investment X offers to pay you $4,800 per year for 9 years, whereas Investment Y offers to pay you $7100 per year for 5 years. If the discount rate is 6 percent, what is the pr…
16 The FOMC has instructed the FRBNY Trading Desk to sell $250 million Treasury
16 The FOMC has instructed the FRBNY Trading Desk to sell $250 million Treasury securities. The Federal Reserve has set the reserve requirement at 4.75% of transaction deposits. A…
16 points) You have started an international business and buy some of your produ
16 points) You have started an international business and buy some of your products from China. The Chinese company requests to be paid in Yuan (CNY). You recently placed an order…
16%/8% = 2.0 Test Your Investment Quotient 1. Portfolio Return (LO3, CFAI) Accor
16%/8% = 2.0 Test Your Investment Quotient 1. Portfolio Return (LO3, CFAI) According to the CAPM, what is the rate of return of a portfolio with a beta of 1? a. Between RM and R b…
16) ABC pharmaceutical corp. is planning on undertaking a new project. the initi
16) ABC pharmaceutical corp. is planning on undertaking a new project. the initial cash outlay is $50,000 with projected cash inflows of $20,000 per year for the projects 4-year l…
16) At the quarterly meeting of Tangshan Mining Corporation, held on September 1
16) At the quarterly meeting of Tangshan Mining Corporation, held on September 10th, the directors declared a $1.00 per share dividend for the firm’s 100,000 shares of common stoc…
16) Louis purchased $5,000 worth of stock three years ago and sold t today for $
16) Louis purchased $5,000 worth of stock three years ago and sold t today for $8.,000 He received no dividends from this investment. Inflation averaged 1% during the three years …
16) Rogue Racing Inc. has $1,000 par value bonds with a coupon rate of 8% per ye
16) Rogue Racing Inc. has $1,000 par value bonds with a coupon rate of 8% per year making semiannual coupon payments. If there are twelve years remaining prior to maturity and the…
16) Which of the following is a requirement for a stock to be listed on the NYSE
16) Which of the following is a requirement for a stock to be listed on the NYSE: a. The company must have been profitable for at least two of the past three years b. The company …
16) Which of the following statements is TRUE? [I] An increase in depreciation e
16) Which of the following statements is TRUE? [I] An increase in depreciation expenses would generally cause a firm's net income to rise [II] An increase in depreciation expenses…
16) Which of the following statements is correct about the early exercise of Ame
16) Which of the following statements is correct about the early exercise of American options? a) It is always optimal to exercise an American call option on a non-dividend-paying…
16) Which of the following statements is false? A) A debenture would usually be
16) Which of the following statements is false? A) A debenture would usually be more risky than a mortgage bond that is issued by the same firm. B) Interest rates and bond prices …
16)As we move along a production possibilities curve and acquire larger and larg
16)As we move along a production possibilities curve and acquire larger and larger amounts of one good (e.g., guns), the sacrifices of the alternative good (e.g., butter) become l…
16- Twice Shy Industries has a debtequity ratio of 1.8. Its WACC is 8.3 percent,
16- Twice Shy Industries has a debtequity ratio of 1.8. Its WACC is 8.3 percent, and its cost of debt is 6.3 percent. The corporate tax rate is 35 percent. What is the company’…
16- Twice Shy Industries has a debtequity ratio of 1.8. Its WACC is 8.3 percent,
16- Twice Shy Industries has a debtequity ratio of 1.8. Its WACC is 8.3 percent, and its cost of debt is 6.3 percent. The corporate tax rate is 35 percent. What is the company’…
16-10 Effective Cost of Trade Credit The D. J. Masson Corporation needs to raise
16-10 Effective Cost of Trade Credit The D. J. Masson Corporation needs to raise $500,000 for 1 year to supply working capital to a new store. Masson buys from its suppliers on te…
16-12. (Interest rate risk) Two years ago your corporate treasurer purchased for
16-12. (Interest rate risk) Two years ago your corporate treasurer purchased for the firm a 20-year bond at its par value of $1,000. The coupon rate on this security is 8 percent.…
16-13 (Ratio analysis) Assuming a 360-day year, calculate what the average inves
16-13 (Ratio analysis) Assuming a 360-day year, calculate what the average investment in inventory would be for a firm, given the following information in each case. a. The firm h…
16-13 (Ratio analysis) Assuming a 360-day year, calculate what the average inves
16-13 (Ratio analysis) Assuming a 360-day year, calculate what the average investment in inventory would be for a firm, given the following information in each case. a. The firm h…
16-2. (Cost of services) As CFO of Portobello Scuba Diving Inc. you are asked to
16-2. (Cost of services) As CFO of Portobello Scuba Diving Inc. you are asked to look into the possibility of adopting a lockbox system to expedite cash receipts from clients. Por…
16-27 A 50-meter tunnel must be constructed for a new city aqueduct. One alterna
16-27 A 50-meter tunnel must be constructed for a new city aqueduct. One alternative is to build a full-capacity tunnel now for $500,000. The other alternative is to build a half-…
16-39 Adapted AICPA Task-Based Simulation In connection with her audit of the fi
16-39 Adapted AICPA Task-Based Simulation In connection with her audit of the financial statement of Flowmeter, Inc., for the year ended December 31, 20X3, Joan Hirsch, CPA, is aw…
16-5. EJH Company has a market capitalization of $2.0 billion and 15 million sha
16-5. EJH Company has a market capitalization of $2.0 billion and 15 million shares outstanding. It plans to distribute $100 million through an open market repurchase. Assuming pe…
16-6 Stan Weakly can sort a bin of 100 letters in 10 minutes. He typically recei
16-6 Stan Weakly can sort a bin of 100 letters in 10 minutes. He typically receives 600 letters an hour. A truck arrives with more bins every 30 minutes. The office uses a safety …
16-9. After a banner year of rising profits and positive stock returns, the mana
16-9. After a banner year of rising profits and positive stock returns, the managers of Raptor Pharmaceuticals Corporation (RPC) have decided to launch a seasoned equity offering …
16. $100 is invested for two years. Which produces the most proceeds? a) 5% simp
16. $100 is invested for two years. Which produces the most proceeds? a) 5% simple interest b) 4.9% compound interest, annual periodicity c) …
16. (20 pts, total) A large, profitable corporation with net income exceed S20 m
16. (20 pts, total) A large, profitable corporation with net income exceed S20 million is considering the purchase of a salvage new special tools for the manufacture of finished p…
16. (3 points) An investor is considering buying stock in KSB Company. KSB is ex
16. (3 points) An investor is considering buying stock in KSB Company. KSB is expected to pay a ycar-end dividend (DI) of SO.88 per share. The stock's Beta is 1.2. The Risk Free R…
16. (Refinancing mortgage, EAIR) Michael Smith was in trouble: He was unem ploye
16. (Refinancing mortgage, EAIR) Michael Smith was in trouble: He was unem ployed and living on his monthly disability pay of $1,200. His credit card debts of $19,000 were threate…
16. (TCO 6) Mr. and Mrs. Jones have never made a taxable gift. They have three c
16. (TCO 6) Mr. and Mrs. Jones have never made a taxable gift. They have three children and 12 grandchildren. Mr. and Mrs. Jones both have wills that leave their entire property t…
16. (TCO 9) If the activity level increases 10%, total variable costs will _____
16. (TCO 9) If the activity level increases 10%, total variable costs will _____. (Points : 5) remain the same increase by more than 10% decrease by less than…
16. A cash balance held in reserve for unforeseen fluctuations in cash flows is
16. A cash balance held in reserve for unforeseen fluctuations in cash flows is called a balance a. transactions b. compensating c. precautionary d. speculative e. lockbox 17. Whi…
16. A company is using the high-low method and has determined the following prod
16. A company is using the high-low method and has determined the following production for the months of January, February, March, and April of 6,000, 5,000, 5,550, and 2,000, res…
16. A company paid $150,000, plus a 7% commission and SS000 in closing costs for
16. A company paid $150,000, plus a 7% commission and SS000 in closing costs fora property. The property included land appraised at $87.500, land improvements appraised at $35,000…
16. A firm\'s capital structure does not affect its free cash flows because FCF
16. A firm's capital structure does not affect its free cash flows because FCF reflects only operating cash flows, which are available to service debt, to pay dividends to stockho…
16. Al\'s Sport Store has sales of $897,400, costs of goods sold of $628,300, in
16. Al's Sport Store has sales of $897,400, costs of goods sold of $628,300, inventory of $208,400, and accounts receivable of $74,100. How many days, on average, does it take the…
16. An analyst gathers the information below about \'Nole, Inc. What is the book
16. An analyst gathers the information below about 'Nole, Inc. What is the book value per share of Meyer's common stock? Please show your calculations (L014-1) Meyer has 1,000 sha…
16. Assume a building, owned by a REIT, increases in value and the REIT that own
16. Assume a building, owned by a REIT, increases in value and the REIT that owns it sells the building for $120 million and then makes a capital gain distribution to its sharehol…
16. Assume that today\'s date is February 15, 2015. Robin Hood Inc. bond is an a
16. Assume that today's date is February 15, 2015. Robin Hood Inc. bond is an annual-coupon bond. Par value of the bond is $1,000. Calculate yield to maturity of the bond. The ans…
16. Below are the 2016 and 2017 year-end balance sheets for Bull Tractor Corp: A
16. Below are the 2016 and 2017 year-end balance sheets for Bull Tractor Corp: Assets Cash Accounts receivable 2017 S 200,000 2016 S 170,000 700,000 864,000 2.000,000 $3,064,000 6…
16. Consideration of risk is essential to the capital budgeting process. Which o
16. Consideration of risk is essential to the capital budgeting process. Which of the following statements is true? a. Recognizing risk is a major step toward bringing theory in l…
16. Derek borrows $300,000 to buy a house. He has a 30-year mortgage with a rate
16. Derek borrows $300,000 to buy a house. He has a 30-year mortgage with a rate of 6.00% APR. The monthly mortgage payment is $_____________. A. 18000.00 B. 1798.65 C. 298.65 D. …
16. During lecture, we discussed how riskier option strategies are likely to hav
16. During lecture, we discussed how riskier option strategies are likely to have higher capital requirements in your brokerage account (e.g. initial margin, maintenance mar…
16. High Point Hotel (HPH) has $165,000 in accounts receivable. To finance a maj
16. High Point Hotel (HPH) has $165,000 in accounts receivable. To finance a major purchase, the company assigns these receivables to Cross Town Bank. Which one of the following s…
16. If a bond have a face amount of $10,000, annual interest payments at a rate
16. If a bond have a face amount of $10,000, annual interest payments at a rate 65% term of 10 years, the present value of the required payments of prinpl ana under the bond is eq…
16. If a company\'s WACC is 10%, which of the following projects will be accepte
16. If a company's WACC is 10%, which of the following projects will be accepted? Select all that apply: IRR = 8% MIRR = 12% NPV = $100,000 MIRR = 9% 14. As interest rates go up, …
16. If the risk free rate is expected to be 2% in 2016 and the expected return o
16. If the risk free rate is expected to be 2% in 2016 and the expected return of the market is expected to be 10%, a) what will the expected return for Yahoo be this year? b) Wha…
16. If we have $150 today and can invest at 4% per year, how many months (monthl
16. If we have $150 today and can invest at 4% per year, how many months (monthly compounding) do we need to invest in order to have $240 in the bank at the end? A. 124.3 B. 113.0…
16. If you look in the financial pages of the newspaper, you will see that inter
16. If you look in the financial pages of the newspaper, you will see that interest rates differ dramatically for different bonds. For each of the following situations, which bond…
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