Financial literacy

You are in charge of writing a blog where you have to explain the difference bet

You are in charge of writing a blog where you have to explain the difference between electing the board of directors for a company, assuming that shareholders have the right to vo…

You are in risk manager in a major investment bank. The bank\'s current portfoli

You are in risk manager in a major investment bank. The bank's current portfolio consists of US stocks (50%), bonds (20%), and derivatives (30%). The expected returns and standard…

You are in the market for a mortgage loan. You are contemplating a 15 or 30 year

You are in the market for a mortgage loan. You are contemplating a 15 or 30 year mortgage. The loan officer states, "Thousands of dollars can be saved by switching to a 15-year mo…

You are in the market for a new refrigerator for your company’s lounge. You have

You are in the market for a new refrigerator for your company’s lounge. You have narrowed the search down to 2 models. The energy efficient model sells for $700 and will save you …

You are in the pizza business and want to buy a new pizza making machine. The ma

You are in the pizza business and want to buy a new pizza making machine. The machine costs $14093today. At the end of each year you own the machine it will give you returns of $3…

You are in the pizza business and want to buy a new pizza making machine. The ma

You are in the pizza business and want to buy a new pizza making machine. The machine costs $14093 today. At the end of each year you own the machine it will give you returns of $…

You are in the process of purchasing a new automobile that will cost you $25,000

You are in the process of purchasing a new automobile that will cost you $25,000. The dealership is offering you either a $1,000 rebate (applied toward the purchase price) or 3.9%…

You are in the role of a chief operating officer. A board of directors has reque

You are in the role of a chief operating officer. A board of directors has requested that you prepare a summary of the issues involved in a $50 million expansion. Because of local…

You are interested in a foreclosed property that a local bank is willing to sell

You are interested in a foreclosed property that a local bank is willing to sell for $150,000. You intend to hold the property for one year and then sell it, at which time you exp…

You are interested in a foreclosed property that a local bank is willing to sell

You are interested in a foreclosed property that a local bank is willing to sell for $150,000. You intend to hold the property for one year and then sell it, at which time you exp…

You are interested in a foreclosed property that a local bank is willing to sell

You are interested in a foreclosed property that a local bank is willing to sell for $150,000. You intend to hold the property for one year and then sell it. You expect to pay sel…

You are interested in a new Ford Taurus. After visiting your Ford dealer, doing

You are interested in a new Ford Taurus. After visiting your Ford dealer, doing your research on the best leases available, you have three options. (i) Purchase the car for cash a…

You are interested in a new Ford Taurus. After visiting your Ford dealer, doing

You are interested in a new Ford Taurus. After visiting your Ford dealer, doing your research on the best leases available, you have three options. a. Purchase the car for cash an…

You are interested in a new Ford Taurus. After visiting your Ford dealer, doing

You are interested in a new Ford Taurus. After visiting your Ford dealer, doing your research on the best leases available, you have three options. (i) Purchase the car for cash a…

You are interested in acquiring a luxury car. The dealer has offered you the fol

You are interested in acquiring a luxury car. The dealer has offered you the following alternatives. Purchase Alternative: Purchase for $55,000 inclusive sales tax, title fees, et…

You are interested in an investment project that costs $40,000 initially. The in

You are interested in an investment project that costs $40,000 initially. The investment has a 5-year horizon and promises future end-of-year cash inflows of $12,000, $12,500, $11…

You are interested in buying a stock that has a price of $72. You have projected

You are interested in buying a stock that has a price of $72. You have projected that next year there is: a 10% probability the stock will equal $1, a 20% probability the stock wi…

You are interested in buying a stock that has a price of $72. You have projected

You are interested in buying a stock that has a price of $72. You have projected that next year there is: a 10% probability the stock will equal $1, a 20% probability the stock wi…

You are interested in investing in a private company. Based on earnings multiple

You are interested in investing in a private company. Based on earnings multiples of similar publicly traded firms, you estimate the value of the private company's stock to be per…

You are interested in investing in the stock of ABC company. The stock is expect

You are interested in investing in the stock of ABC company. The stock is expected to pay a yearly dividend of $1.60 per share next year, with dividends increasing 3% per year aft…

You are interested in purchasing a shoe machine XYZ, especially designed for men

You are interested in purchasing a shoe machine XYZ, especially designed for men's fashion shoes. The machine costs $10,000. You expect to recover $6,000 a year in operating cash …

You are interested in purchasing enough number of shares in ABC manufacturing so

You are interested in purchasing enough number of shares in ABC manufacturing so that you can be guaranteed a seat on the board of directors when the next annual shareholder’s mee…

You are interested in purchasing enough number of shares in Microsoft so that yo

You are interested in purchasing enough number of shares in Microsoft so that you can be guaranteed a seat on the board of directors when the next annual shareholder’s meeting is …

You are interested in purchasing enough number of shares in Pepsi so that you ca

You are interested in purchasing enough number of shares in Pepsi so that you can be guaranteed a seat in the Board of Directors when the next annual shareholder’s meeting is held…

You are interested in purchasing enough number of shares in SMITH Chemical Inc.

You are interested in purchasing enough number of shares in SMITH Chemical Inc. so that you can be guaranteed a seat on the board of directors when the next annual shareholder’s m…

You are interested in purchasing the common stock of Azue Berhad. The firm recen

You are interested in purchasing the common stock of Azue Berhad. The firm recently paid a dividend of RM3 per share. It expects its earnings, and hence its dividends, to grow at …

You are interested in purchasing the common stock of azure Corporation. The firm

You are interested in purchasing the common stock of azure Corporation. The firm recently paid a dividend of $3 per share. It expects its earning - and its dividends to grow at a …

You are interested in the value of Gemini Corporation and its cost of capital. S

You are interested in the value of Gemini Corporation and its cost of capital. Suppose you believe that the assumptions of Miller-Modigliani's Proposition 1 (without taxes) are va…

You are introduced to convertible preferred stock in our final week. Let’s prete

You are introduced to convertible preferred stock in our final week.      Let’s pretend we have the following information regarding a company that we are evaluating:     Net incom…

You are investigating two options for refrigeration and air conditioner in your

You are investigating two options for refrigeration and air conditioner in your company's office building. The pertinent forecast cost are Summarized in the table below, Perform a…

You are investing $6,500 immediately in a stock that you will keep for 10 years.

You are investing $6,500 immediately in a stock that you will keep for 10 years. At the end of 10 years, the stock will be worth $14,433 with a probability of 0.56 and worth $17,3…

You are investing $X immediately in a stock that you will keep for 12 years. At

You are investing $X immediately in a stock that you will keep for 12 years. At the end of 12 years, the stock will be worth $13,947 with a probability of 0.43 and worth $17,350 w…

You are investing AU10771 today in bank account which offers a fixed interest ra

You are investing AU10771 today in bank account which offers a fixed interest rate of 1.06%/quarter. You plan to withdraw AU10,000 from the bank account exactly at the end of five…

You are invited to advice a Group Sales Manager (GSM) who is currently supervisi

You are invited to advice a Group Sales Manager (GSM) who is currently supervising a group of insurance adjusters who are highly experienced confidence in their abilities, particu…

You are involved in a car accident. You and the driver of the other car incur ph

You are involved in a car accident. You and the driver of the other car incur physical injuries. The other driver’s car is scrapped, while yours and a vacant car parked on the str…

You are logged in as Articles associated with this question : U.S. Stocks Jump a

You are logged in as Articles associated with this question : U.S. Stocks Jump as Fears of Trade War Ebb Question: The Dow Jones Industrial Average surged nearly 300 points Monday…

You are long 10 gold futures contracts, established at an initial settle price o

You are long 10 gold futures contracts, established at an initial settle price of $1,500 per ounce, where each contract represents 100 ounces. Over the subsequent four trading day…

You are long 10 gold futures contracts, established at an initial settle price o

You are long 10 gold futures contracts, established at an initial settle price of $1,500 per ounce, where each contract represents 100 troy ounces. Your initial margin to establis…

You are long 10 gold futures contracts, established at an initial settle price o

You are long 10 gold futures contracts, established at an initial settle price of $1,500 per ounce, where each contract represents 100 troy ounces. Your initial margin to establis…

You are long 10 gold futures contracts, established at an initial settle price o

You are long 10 gold futures contracts, established at an initial settle price of $1,570 per ounce, where each contract represents 100 ounces. Over the subsequent four trading day…

You are long 14 gold futures contracts, established at an initial settle price o

You are long 14 gold futures contracts, established at an initial settle price of $1,494 per ounce, where each contract represents 100 troy ounces. Your initial margin to establis…

You are long 8 gold futures contracts, established at an initial settle price of

You are long 8 gold futures contracts, established at an initial settle price of $1,240 per ounce, where each contract represents 100 troy ounces. Your initial margin to establish…

You are long a portfolio with value 1,000 and a beta of 0.7. You want to hedge a

You are long a portfolio with value 1,000 and a beta of 0.7. You want to hedge against price fluctuations using futures written on the index. The index value is equal to S0 = 1 an…

You are looking at a new car and dont know whether to buyconvectional or hybrid.

You are looking at a new car and dont know whether to buyconvectional or hybrid. The fact are as follows                                                 Conventional              …

You are looking at a new car and dont know whether to buyconvectional or hybrid.

You are looking at a new car and dont know whether to buyconvectional or hybrid. The fact are as follows                                                 Conventional              …

You are looking at a one-year loan of $10,000 The interest rate is quoted as 9 p

You are looking at a one-year loan of $10,000 The interest rate is quoted as 9 percent plus three points A point on a loan is simply 1 percent (one percentage point) of the loan a…

You are looking at a one-year loan of $10,000. The interest rate is quoted as 8

You are looking at a one-year loan of $10,000. The interest rate is quoted as 8 percent plus 5 points. A point on a loan is simply 1 percent (one percentage point) of the loan amo…

You are looking at a one-year loan of $12,000. The interest rate is quoted as 8.

You are looking at a one-year loan of $12,000. The interest rate is quoted as 8.4 percent plus two points. A point on a loan is simply 1 percent (one percentage point) of the loan…

You are looking at a one-year loan of $12,000. The interest rate is quoted as 9.

You are looking at a one-year loan of $12,000. The interest rate is quoted as 9.4 percent plus two points. A point on a loan is simply 1 percent (one percentage point) of the loan…

You are looking at a one-year loan of $16,500. The interest rate is quoted as 8.

You are looking at a one-year loan of $16,500. The interest rate is quoted as 8.7 percent plus two points. A point on a loan is 1 percent (one percentage point) of the loan amount…