Financial literacy

You want to either replace or refurbish the elevator system in an office. Option

You want to either replace or refurbish the elevator system in an office. Option 1 - Referbishing: Refurbishing the elevators will cost $55,000 and extend the life of the elevator…

You want to examine the financial ratios for Dell Computer corportion. Go to www

You want to examine the financial ratios for Dell Computer corportion. Go to www. reuters.com and type into the search window the ticker symbol for the company (DELL). When the fi…

You want to finance a home mortgage of $200,000, and are considering 2 options.

You want to finance a home mortgage of $200,000, and are considering 2 options. The first is a 30-year mortgage with interest at an annual percentage rate of 3.5%. The second opti…

You want to find the price per share for ABC Corporation. They paid a dividend o

You want to find the price per share for ABC Corporation. They paid a dividend of $0.06 last year. You think this will grow at 80% every year for the next 11 years, then will drop…

You want to form a price–weighted technology stock index using Apple, Google, an

You want to form a price–weighted technology stock index using Apple, Google, and Intel. Apple’s adjusted closing price for 2018 is $189.62 and for 2017 is $145.93; Google’s adjus…

You want to form a value–weighted technology stock index using Apple, Google, an

You want to form a value–weighted technology stock index using Apple, Google, and Microsoft. Apple’s adjusted closing price for 2018 is $189.62 and for 2017 is $145.93; Google’s a…

You want to have $1 million in real dollars in an account when you retire in 30

You want to have $1 million in real dollars in an account when you retire in 30 years. The nominal return on your investment is 8 percent and the inflation rate is 4.6 percent.   …

You want to have $1 million in real dollars in an investment account when you re

You want to have $1 million in real dollars in an investment account when you retire in 30 years. The nominal return on your investment is 9 percent and the inflation rate is 4 pe…

You want to have $25,000 in your savings account eight years from now, and you%u

You want to have $25,000 in your savings account eight years from now, and you%u2019re prepared to make equal annual deposits into the account at the end of each year. If the acco…

You want to have $4 million in real dollars in an account when you retire in 40

You want to have $4 million in real dollars in an account when you retire in 40 years. The nominal return on your investment is 12 percent and the inflation rate is 2.5 percent. W…

You want to have $6 million in real dollars in an account when you retire in 40

You want to have $6 million in real dollars in an account when you retire in 40 years. The nominal return on your investment is 9 percent and the inflation rate is 5.4 percent. Wh…

You want to have $76,000 in your savings account 13 years from now, and you’re p

You want to have $76,000 in your savings account 13 years from now, and you’re prepared to make equal annual deposits into the account at the end of each year. If the account pays…

You want to have $90,000 in your savings account 10 years from now, and you\'re

You want to have $90,000 in your savings account 10 years from now, and you're prepared to make equal annual deposits into the account at the end of each year. If the account pays…

You want to invest $20,000 in a portfolio consisting of three stocks - Stock M,

You want to invest $20,000 in a portfolio consisting of three stocks - Stock M, Stock D, and Stock G. The percentage investment is as follows: Stock M 40%, Stock D 35% and Stock G…

You want to invest in a project in Fantasia. The project has an initial cost of

You want to invest in a project in Fantasia. The project has an initial cost of F$700,000 and is expected to produce cash inflows of F$298,000 a year for three years. The project …

You want to invest your savings of $20,000 in government securities for the next

You want to invest your savings of $20,000 in government securities for the next 2 years. Currently, you can invest either in a security that pays interest of 8.0 percent per year…

You want to invest your savings of $20,000 in government securities for the next

You want to invest your savings of $20,000 in government securities for the next 2 years. Currently, you can invest either in a security that pays interest of 8.0 percent per year…

You want to invest your savings of $30,000 in government securities for the next

You want to invest your savings of $30,000 in government securities for the next 2 years. Currently, you can invest either in a security that pays interest of 8.4 percent per year…

You want to invest your savings of $30,000 in government securities in for the n

You want to invest your savings of $30,000 in government securities in for the next two years.Currently,youcan invest either in a security that pays 8.1 percent per year for two y…

You want to lease a set of golf clubs from Pings Ltd. The lease contract is in t

You want to lease a set of golf clubs from Pings Ltd. The lease contract is in the form of 12 equal monthly payments at a 8.90 percent stated annual interest rate, compounded mont…

You want to purchase a $150,000 house with a 10% down payment and the remainder

You want to purchase a $150,000 house with a 10% down payment and the remainder on a one-year, 5% loan. In one year, you sell the house for $162,000 and pay off the loan and its a…

You want to purchase a brand new 2016 BigUmer. Your nearest dealership, Big Moto

You want to purchase a brand new 2016 BigUmer. Your nearest dealership, Big Motors, is selling itfor $25,000. You have enough cash in the bank, currently earning 15% interest (APR…

You want to purchase a new car. The price of the car is $24,035. The dealer is c

You want to purchase a new car. The price of the car is $24,035. The dealer is currently offering a special promotion: You can choose a $1500 rebate up front or 0% financing for t…

You want to purchase some shares of JJ Farms stock but need a 14.5 percent rate

You want to purchase some shares of JJ Farms stock but need a 14.5 percent rate of return to compensate for the perceived risk. What is the maximum you are willing to spend per sh…

You want to retire at age 65, you begin your investment program at 25 with a one

You want to retire at age 65, you begin your investment program at 25 with a one time deposit of $5,000. On this investment you can earn 11% in the Vanguard 2055 retirement fund, …

You want to retire at age 65, you begin your investment program at 25 with a one

You want to retire at age 65, you begin your investment program at 25 with a one time deposit of $5,000 in a traditional IRA. On this investment you can earn 11% in the Vanguard 2…

You want to set up an account that will pay you $A in constant (year-0) dollars

You want to set up an account that will pay you $A in constant (year-0) dollars in each year from the end of year 1 through the end of year 7 (a total of 7 payments). The inflatio…

You want to start saving for your retirement, which you expect 32 years from now

You want to start saving for your retirement, which you expect 32 years from now. To do this, you will invest $1,200 every month until then. You decide to allocate your savings as…

You want to test the speed with which stock market prices adjust to positive ear

You want to test the speed with which stock market prices adjust to positive earnings announcements. Company A makes its earnings announcement on May 20 and company B on June 16. …

You want to travel to Europe to visit relatives when you gradute from college th

You want to travel to Europe to visit relatives when you gradute from college three months from now. the trip is expected to cost a total of $10,000 at that time. your parents hav…

You want to use a building your company owns to develop a new investment opportu

You want to use a building your company owns to develop a new investment opportunity. You have checked with property management in your company, and have consulted a few commercia…

You want to use the binomial tree analysis to value a 6-month call option with a

You want to use the binomial tree analysis to value a 6-month call option with a $65 strike price on Lupin Corporation. The shares are currently trading for $70. The annualized co…

You want to value a firm which is growing fairly fast now (abnormal growth) but

You want to value a firm which is growing fairly fast now (abnormal growth) but will begin reaching maturity and a correspondingly lower earnings growth rate shortly. You’ve decid…

You want to value a firm which is growing fairly fast now (abnormal growth) but

You want to value a firm which is growing fairly fast now (abnormal growth) but will begin reaching maturity and a correspondingly lower earnings growth rate shortly. You’ve decid…

You want to value a firm which is growing fairly fast now (abnormal growth) but

You want to value a firm which is growing fairly fast now (abnormal growth) but will begin reaching maturity and a correspondingly lower earnings growth rate shortly. You’ve decid…

You want your portfolio beta to be 1.112. Currently, your portfolio consists of

You want your portfolio beta to be 1.112. Currently, your portfolio consists of $200 invested in stock A with a beta of 1.7 and $300 in stock B with a beta of .5. You have another…

You were analyzing a stock and came up with the following probability distributi

You were analyzing a stock and came up with the following probability distribution of the stock returns. What is the coefficient of variation on the company's stock? Round your an…

You were hired as a consultant to ABC Company, whose target capital structure is

You were hired as a consultant to ABC Company, whose target capital structure is 40% debt, 15% preferred, and 45% common equity. The before-tax cost of debt is 8.00%, the cost of …

You were hired as a consultant to Giambono Company, whose target capital structu

You were hired as a consultant to Giambono Company, whose target capital structure is 40% debt, 15% preferred, and 45% common equity. The after-tax cost of debt is 6.00%, the cost…

You were hired as a consultant to Giambono Company, whose target capital structu

You were hired as a consultant to Giambono Company, whose target capital structure is 40% debt, 15% preferred, and 45% common equity. The after-tax cost of debt is 6.00%, the cost…

You were hired as a consultant to Giambono Company, whose target capital structu

You were hired as a consultant to Giambono Company, whose target capital structure is 40% debt, 15% preferred, and 45% common equity.  The after-tax cost of debt is 6.00%, the cos…

You were hired as a consultant to Quigley Company, whose target capital structur

You were hired as a consultant to Quigley Company, whose target capital structure is 35% debt, 10% preferred, and 55% common equity. The interest rate on new debt is 6.50%, the yi…

You were hired as a consultant to XYZ Company, whose target capital structure is

You were hired as a consultant to XYZ Company, whose target capital structure is 32% debt, 10% preferred, and 58% common equity. The interest rate on new debt is 8.30%, the yield …

You were hired as a financial consultant to Defense Electronics, Inc (DEI), a la

You were hired as a financial consultant to Defense Electronics, Inc (DEI), a large, publicly traded firm that is the market share leader in radar detection systems (RDSs). The co…

You were hired as aconsultant to Quigley Company, whose target capital structure

You were hired as aconsultant to Quigley Company, whose target capital structure is40% debt, 10% preferred, and 50% common equity. The interest rateon new debt is 6.50%, the yield…

You were hired as the CFO of a new company that was founded by three professors

You were hired as the CFO of a new company that was founded by three professors at your university. The company plans to manufacture and sell a new product, a cell phone that can …

You were hired as the CFO of a new company that was founded by three professors

You were hired as the CFO of a new company that was founded by three professors at your university. The company plans to manufacture and sell a new product, a cell phone that can …

You were hired as the CFO of a new company that was founded by three professors

You were hired as the CFO of a new company that was founded by three professors at your university. The company plans to manufacture and sell a new product, a cell phone that can …

You were hired as the CFO of a new company that was founded by three professors

You were hired as the CFO of a new company that was founded by three professors at your university. The company plans to manufacture and sell a new product, a cell phone that can …

You were recently appointed the CEO of a firm with two divisions. Division 1 pro

You were recently appointed the CEO of a firm with two divisions. Division 1 produces regular telephones. Division 2 produces specialty micro-chips which are used in cell phones. …