Financial literacy

21. A black real body in candle charting means that a. the close is higher than

21. A black real body in candle charting means that a. the close is higher than the open b. the close is lower than the open c. the open is higher than the low d. the current sess…

21. A bond with a ten percent coupon rate bond pays interest semi-annually. Par

21.   A bond with a ten percent coupon rate bond pays interest semi-annually. Par value is $1,000. The bond has three years to maturity. The investors' required rate of return is …

21. A call has 4 months left before expiration and a put (on the same stock) has

21. A call has 4 months left before expiration and a put (on the same stock) has 3 months left before the that company unexpectedly announces it will pay its first-ever dividend 2…

21. A company is considering a 5-year project to expand production with the purc

21. A company is considering a 5-year project to expand production with the purchase of a new automated machine using the latest technology. The new machine would cost $200,000 FO…

21. A company that brings together a broad range of businesses is considered: (2

21. A company that brings together a broad range of businesses is considered: (2 points) a. Horizontally integrated b. A conglomerate c. An oligopoly d. Vertically integrated 22. …

21. A company that brings together a broad range of businesses is considered: (2

21. A company that brings together a broad range of businesses is considered: (2 points) a. Horizontally integrated b. A conglomerate c. An oligopoly d. Vertically integrated 22. …

21. A firm can earn the cost of capital on any cash-inflows by: A) Selling stock

21. A firm can earn the cost of capital on any cash-inflows by: A) Selling stock and bonds B) Buying back the firm's bonds and stock C) Increasing fixed or variable costs D) Reduc…

21. A firm has a tax burden of .6, a leverage ratio of 1.3, an interest burden o

21. A firm has a tax burden of .6, a leverage ratio of 1.3, an interest burden of .8, a ROE of 18%, and a return on sales of 10%. What is the firm's asset turnover? 22. A firm has…

21. A store is consiering the installation ofa processing and refrigeration syst

21. A store is consiering the installation ofa processing and refrigeration system which costs $445,000. System will save 90,000 every year in pre tax operating costs. Intial work…

21. Assume the following information for Pexi Co., a U.S.-based MNC that is cons

21. Assume the following information for Pexi Co., a U.S.-based MNC that is considering obtaining funding for a project in Germany: U.S. risk-free rate = 4% German risk-free rate …

21. Bellow are the 2007 and 2008 year-end balance sheets for Tran Enterprises. T

21. Bellow are the 2007 and 2008 year-end balance sheets for Tran Enterprises. The firm has never paid a dividend on its common stock, and it issues $2,400,000 of 10-year, non-cal…

21. Consider the g $1,00o Bond par value z ears to laturityield to Maturity 7.50

21. Consider the g $1,00o Bond par value z ears to laturityield to Maturity 7.50% 7.99% 8.49% 10). 70% According to the expectations hypothesis, the expected one-year from now sho…

21. Estimate the market value of the shopping center described below using the d

21. Estimate the market value of the shopping center described below using the direct capitalization approach to valuation. Property type: Drug store-anchored shopping center Aski…

21. IPO Dilemma Denton Company plans to engage in an IPO and will issue 4 millio

21. IPO Dilemma Denton Company plans to engage in an IPO and will issue 4 million shares of stock. It is hoping to sell the shares for an offer price of $14. It hires a securities…

21. If a firm only has Deferred Tax Assets then a decrease in tax rates will: A)

21. If a firm only has Deferred Tax Assets then a decrease in tax rates will: A) increase total assets B) increase shareholders' equity C) increase tax expense associated with DTA…

21. If the value of the combined firm is greater than the sum value of the indiv

21. If the value of the combined firm is greater than the sum value of the individual firms, then we call this ____________. a)         Hubris b)         Synergy c)         Exprop…

21. If you borrow money on a single payment loan and discover you cannot pay it

21. If you borrow money on a single payment loan and discover you cannot pay it back when it is due you should a. let the payment become past due. b. consolidate the loan. c. conv…

21. Kelso Electric is debating between a leveraged and an unleveraged capital st

21. Kelso Electric is debating between a leveraged and an unleveraged capital structure. The all equity capital structure would consist of 900,000 shares of stock. The debt and eq…

21. Long-term financial goals often depend on borrowing funds. The type of loan

21. Long-term financial goals often depend on borrowing funds. The type of loan that does not fulfill the long-term goal achievement is ____ loans. a. consumer b. installment c. a…

21. Long-term financial goals often depend on borrowing funds. The type of loan

21. Long-term financial goals often depend on borrowing funds. The type of loan that does not fulfill the long-term goal achievement is ____ loans. a. consumer b. installment c. a…

21. Long-term financial goals often depend on borrowing funds. The type of loan

21. Long-term financial goals often depend on borrowing funds. The type of loan that does not fulfill the long-term goal achievement is ____ loans. a. consumer b. installment c. a…

21. Long-term financial goals often depend on borrowing funds. The type of loan

21. Long-term financial goals often depend on borrowing funds. The type of loan that does not fulfill the long-term goal achievement is ____ loans. a. consumer b. installment c. a…

21. Long-term financial goals often depend on borrowing funds. The type of loan

21. Long-term financial goals often depend on borrowing funds. The type of loan that does not fulfill the long-term goal achievement is ____ loans. a. consumer b. installment c. a…

21. Long-term financial goals often depend on borrowing funds. The type of loan

21. Long-term financial goals often depend on borrowing funds. The type of loan that does not fulfill the long-term goal achievement is ____ loans. a. consumer b. installment c. a…

21. Long-term financial goals often depend on borrowing funds. The type of loan

21. Long-term financial goals often depend on borrowing funds. The type of loan that does not fulfill the long-term goal achievement is ____ loans. a. consumer b. installment c. a…

21. Long-term financial goals often depend on borrowing funds. The type of loan

21. Long-term financial goals often depend on borrowing funds. The type of loan that does not fulfill the long-term goal achievement is ____ loans. a. consumer b. installment c. a…

21. Long-term financial goals often depend on borrowing funds. The type of loan

21. Long-term financial goals often depend on borrowing funds. The type of loan that does not fulfill the long-term goal achievement is ____ loans. a. consumer b. installment c. a…

21. Long-term financial goals often depend on borrowing funds. The type of loan

21. Long-term financial goals often depend on borrowing funds. The type of loan that does not fulfill the long-term goal achievement is ____ loans. a. consumer b. installment c. a…

21. Long-term financial goals often depend on borrowing funds. The type of loan

21. Long-term financial goals often depend on borrowing funds. The type of loan that does not fulfill the long-term goal achievement is ____ loans. a. consumer b. installment c. a…

21. Michael and Sandy purchased a home for $100,000 five years ago. If it apprec

21. Michael and Sandy purchased a home for $100,000 five years ago. If it appreciated 6% annually, what is it worth today? a. $100,000 b. $106,000 c. $130,000 d. $133,823 e. $135,…

21. Nova Corp. has a WACC of 10%. It is evaluating the purchase of a new machine

21. Nova Corp. has a WACC of 10%. It is evaluating the purchase of a new machine and must choose between two mutually exclusive projects. The first machine, Machine A, requires an…

21. On January 1, 2015, Sundry Corp. purchased equipment for $55,000. It was exp

21. On January 1, 2015, Sundry Corp. purchased equipment for $55,000. It was expected to last 2015. The s yeirs, after which it will be sold for $3,000. The year-end is December 3…

21. Problem 7.08 YIELD TO CALL Nine years ago the Tempeton Company issued 27-yea

21. Problem 7.08 YIELD TO CALL Nine years ago the Tempeton Company issued 27-year bonds with an 11% annual coupon rate at their $1 Templeton called the bonds. ,000 par value. The …

21. Profitability Ratios LO3 The following financial information about Cloudburs

21. Profitability Ratios LO3 The following financial information about Cloudburst Co. is available: Sales $600,000 Net income 130,000 Average total assets 900,000 Average stockhol…

21. Removalists of Junk Inc. is issuing a new thirteen-year bond at a face value

21. Removalists of Junk Inc. is issuing a new thirteen-year bond at a face value of $1,000 with a coupon rate of 14%. Coupons are semi-annual. The risk- free yield to maturity on …

21. Samuelson Electronics has a required payback period of three years for all o

21. Samuelson Electronics has a required payback period of three years for all of its projects. Currently, the firm is analyzing two independent projects. Project A has an expecte…

21. Stocks A and B each have an expected return of 12%, a beta of 1.2, and a sta

21. Stocks A and B each have an expected return of 12%, a beta of 1.2, and a standard deviation of 25%. The returns on the two stocks have a correlation of +0.6. Portfolio P has 5…

21. The PRIMARY reason given by those companies that impose credit limits is: to

21. The PRIMARY reason given by those companies that impose credit limits is: to control risk exposure because of customer's financial position to improve the supplier's perceived…

21. The Saw Mill has a return on assets of 6.1 percent, a total asset turnover r

21.          The Saw Mill has a return on assets of 6.1 percent, a total asset turnover rate of 1.8, and a debt-equity ratio of 1.6. What is the return on equity? A.            4.…

21. The high \"sales return\" may indicate: a.to. inferior quality in the produc

21. The high "sales return" may indicate: a.to. inferior quality in the product. b. deliveries of the prodi ct out of time c. quantity goods ieci not equal to the ordered. d. All …

21. The prices for the Red Star Corporation for the first quarter of the last gi

21. The prices for the Red Star Corporation for the first quarter of the last given year are below. Find the holding period (percentage return) for February. Round to 2 decimals J…

21. Use the following financial statement information: Item Inventory Accounts R

21. Use the following financial statement information: Item Inventory Accounts Receivable Accounts Payable Credit Sales Cost of goods Sold Beginning $1,500 2,300 1,400 Ending $1.8…

21. What type of system allows a customer\'s bank to periodically transfer funds

21. What type of system allows a customer's bank to periodically transfer funds from its account to a selling firm's bank account for payment of bills? a. Disbursement agreement b…

21. When Marilyn Monroe died, ex-husband Joe DiMaggio vowed to place fresh flowe

21. When Marilyn Monroe died, ex-husband Joe DiMaggio vowed to place fresh flowers on her grave every Sunday as long as he lived. The week after she died in 1962, a bunch of fresh…

21. When a landowner leases unimproved land to a tenant for a term of 50 years,

21. When a landowner leases unimproved land to a tenant for a term of 50 years, and the tenant agrees to erect a building on the land, the lease is usually called A. an improvemen…

21. When a landowner leases unimproved land to a tenant for a term of 50 years,

21. When a landowner leases unimproved land to a tenant for a term of 50 years, and the tenant agrees to erect a building on the land, the lease is usually called A. an improvemen…

21. Which of the following correctly expresses the profit on a hedge? (Points :

21. Which of the following correctly expresses the profit on a hedge? (Points : 1)        the basis when the hedge is closed        the change in the basis        the spot profit …

21. Which of the following statements about prices and profit is true? A) Higher

21. Which of the following statements about prices and profit is true? A) Higher prices always lead to higher profits. B) Higher prices always lead to lower demand and lower profi…

21. Yo u are bullish on Telecom stock. The current market price is $57 per share

21. Yo u are bullish on Telecom stock. The current market price is $57 per share, and you have $8,550 of your own to invest. You borrow an additional $8,550 from your broker at an…

21. ______________ is secured by real estate. A) Debenture B) Subordinated Deben

21. ______________ is secured by real estate. A) Debenture B) Subordinated Debenture C) Income Bond D) Mortgage Bond 22. For a bond selling at discount, the yield to maturity (K4 …