Financial literacy

3. Gem Systems has recently issued preferred stock. The stock has a 12% annual d

3. Gem Systems has recently issued preferred stock. The stock has a 12% annual dividend based on a par value of $100 per share. The stock is currently selling for $97.50 per share…

3. Genetech, a U.S. firm, plans to invest a new project in either the United Sta

3. Genetech, a U.S. firm, plans to invest a new project in either the United States or U.K. Once completed, it will continue 35% of the firm's total funds invested in itself. The …

3. George purchased a stock for $45 one year ago. The stock is now worth $65. Du

3. George purchased a stock for $45 one year ago. The stock is now worth $65. During the year, the stock paid a dividend of $2.50. What is the total return to George from owning t…

3. Georgia Power is contemplating replacing an oil powered generator with a sola

3. Georgia Power is contemplating replacing an oil powered generator with a solar power generator. The old generator was puchased 22 years ago and is being depreciated over its 25…

3. Gleason Research regularly takes real options into account when evaluating it

3. Gleason Research regularly takes real options into account when evaluating its proposed projects. Specifically, it considers the option to abandon a project whenever it turns o…

3. Great Lakes Clinic has been asked to provide exclusive healthcare services fo

3. Great Lakes Clinic has been asked to provide exclusive healthcare services for the World Exposition. Although flattered by the request, the clinic's managers want to conduct a …

3. Hedging using futures Suppose a farmer is expecting that her crop of oranges

3. Hedging using futures Suppose a farmer is expecting that her crop of oranges will be ready for harvest and sale as 150,000 pounds of orange juice in 3 months time. Suppose each…

3. Hot Pockets Corporation is considering going public. Managers want to estimat

3. Hot Pockets Corporation is considering going public. Managers want to estimate common stock value. The standard deviation of returns for this firm is 20%. The firm's beta is 0.…

3. Hot Pookets Comporation is considering going public. Managers want to estimat

3. Hot Pookets Comporation is considering going public. Managers want to estimate common stock value. The standard deviation of returns for this firm is 20%. The firm's beta is 0.…

3. How much cash has the LIFO conformity rule saved Ford so far? Assume a tax ra

3. How much cash has the LIFO conformity rule saved Ford so far? Assume a tax rate of 40%. 4. How much cash has the LIFO conformity rule saved Ford during the past year? Assume a …

3. How often do bondholders holding coupon-paying corporate bonds get interest p

3. How often do bondholders holding coupon-paying corporate bonds get interest payments over the life of the bond? a. Once per year b. Twice per year c. Four times per year d. Mon…

3. How would you assess Carter Company’s present fixed asset utilization, invent

3. How would you assess Carter Company’s present fixed asset utilization, inventory turnover and collections? How have they changed since 2006? What are the implications? 4. What …

3. Howell Petroleum is considering a new project that complements its existing b

3. Howell Petroleum is considering a new project that complements its existing business. The machine required for the project costs S3.8 million. The marketing department predicts…

3. Identify each of the following items as either part of taxable income or an e

3. Identify each of the following items as either part of taxable income or an exclusion, adjustment, or an allowable itemized deduction from taxable income for Brian Collins and …

3. If Congress were to dramatically increase the corporate tax rate, what effect

3. If Congress were to dramatically increase the corporate tax rate, what effect would this likely have on XYZ's target capital structure? Can you please tell me if my calculation…

3. If it was determined that the movement of exchange rates was not related to p

3. If it was determined that the movement of exchange rates was not related to previous exchange rate values, this implies that a ____ is not valuable for speculating on expected …

3. If the Potemkin Corporation has an EBITDA of $1.5 million, depreciation of $2

3. If the Potemkin Corporation has an EBITDA of $1.5 million, depreciation of $240,000, interest paid of $350,000, and dividends received of $200,000, what is their tax liability …

3. If the required real annual rate of interest on one year Treasury Bills is 5%

3. If the required real annual rate of interest on one year Treasury Bills is 5% and the expected domestic inflation rate is 8%, based upon the exact relationship between real and…

3. If you open an individual retirement account (IRA) at a commercial bank and d

3.        If you open an individual retirement account (IRA) at a commercial bank and deposit $1,000 in the account per year, how much will be in the account after 20 years if the…

3. In addition to forecasting demand of larger customers and aggregate demand, h

3. In addition to forecasting demand of larger customers and aggregate demand, how might the accuracy of the forecast be improved? Case Study Merriwell Bag Company Merriwell Bag C…

3. In five years, what is the future value of $4,000 if the interest rate is 10%

3. In five years, what is the future value of $4,000 if the interest rate is 10% and money is compounded montly ? What is the future value if the money is compounded semiannually …

3. In order to find the Minimum Variance Portfolio (MVP), which constraints do y

3. In order to find the Minimum Variance Portfolio (MVP), which constraints do you include in the Markowitz’s portfolio variance minimization process? Assume no short sale is allo…

3. In the US -there are 200 cardiac arrests per year on the 5,000 passenger airc

3. In the US -there are 200 cardiac arrests per year on the 5,000 passenger aircrafts in service instaling an automated external defibrillator (AED) on a single plane and training…

3. Income statement The income statement, also known as the profit and loss (P&L

3. Income statement The income statement, also known as the profit and loss (P&L) statement, provides a snapshot of the financial performance of a company during a specified p…

3. Inter will have year-end earning (Ei) of 85 per share and pay out $2 as divid

3. Inter will have year-end earning (Ei) of 85 per share and pay out $2 as dividend. The growth rate of Intel g = 12% and the discount rate k 12.5%, AMD has the same earnings and …

3. It has been argued that you can analyze the impact on the stock price of any

3. It has been argued that you can analyze the impact on the stock price of any capital structure or payout decision by looking at two factors. a. What are these two factors and h…

3. It has been argued that you can analyze the impact on the stock price of any

3. It has been argued that you can analyze the impact on the stock price of any capital structure or payout decision by looking at two factors. a. What are these two factors and h…

3. It has been argued that you can analyze the impact on the stock price of any

3. It has been argued that you can analyze the impact on the stock price of any capital structure or payout decision by looking at two factors. a. What are these two factors and h…

3. It is January and Tennessee Sunshine is considering issuing $5 million in bon

3. It is January and Tennessee Sunshine is considering issuing $5 million in bonds in June to raise capital for an expansion. Currently, TS can issue 20-year bonds with a 4% coupo…

3. Its investment bankers have told Donner Corporation that it can issue a 25-ye

3. Its investment bankers have told Donner Corporation that it can issue a 25-year, 8.1% annual payment bond at par. They also stated that the company can sell an issue of annual …

3. JET FAB bought a CNC laser-cutting machine at a cost of S400,000 to meet the

3. JET FAB bought a CNC laser-cutting machine at a cost of S400,000 to meet the specific needs of customer that had given a 4-year contract with the possibility of extending the c…

3. Jack and Carter formed Sheriff Inc., a C-Corporation. Jack transfers land (FM

3. Jack and Carter formed Sheriff Inc., a C-Corporation. Jack transfers land (FMV $450,000 and adjusted basis of $50,000) for 50% of the stock in the corporation. Carter transfers…

3. Jarett & Sons\'s common stock currently trades at $33.00 a share. It is expec

3. Jarett & Sons's common stock currently trades at $33.00 a share. It is expected to pay an annual dividend of $2.00 a share at the end of the year (D1 = $2.00), and the cons…

3. Jasper Metals is considering installing a new molding machine which is expect

3. Jasper Metals is considering installing a new molding machine which is expected to produce operating cash flows of $73,000 a year for 7 years. At the beginning of the project, …

3. Jenna Mines Limited (JML) is considering an expansion of its underground gold

3. Jenna Mines Limited (JML) is considering an expansion of its underground gold mine and has asked its investment bank to calculate its weighted average cost of capital (WACC) th…

3. Jerry\'s portfolio is invested equally in 5 stocks (Each stock has a weight o

3. Jerry's portfolio is invested equally in 5 stocks (Each stock has a weight of .20) and has a required return of 9.4%. The risk free rate is 5% and the market risk premium is 4 …

3. Joe’s Grocery Store, a calendar year taxpayer, had ending inventory of $160,0

3. Joe’s Grocery Store, a calendar year taxpayer, had ending inventory of $160,000 on December 31st of the tax year. During the year, the store purchased additional inventory of $…

3. John picks four portfolios that were constructed by investing different weigh

3. John picks four portfolios that were constructed by investing different weights in two st The expected return and STD of these portfolios are given below. Deviation 8% 9% 10% 1…

3. Let St+1 = St + .1(1 St/10000)St describe the dynamics of a fish stock; the i

3. Let St+1 = St + .1(1 St/10000)St describe the dynamics of a fish stock; the intrinsic growth rate of this stock is 0.1 and the carrying capacity in tons in 10,000. (a) Graph th…

3. Lex Corp, has coming year. In addition, net capital exp by $2,000 million. Th

3. Lex Corp, has coming year. In addition, net capital exp by $2,000 million. The FCF is expected to expected net operating profit after taxes, ERIT(-T, ot S23900 millin in the he…

3. Listed below are two solutions for a service issue. Workout the present costs

3. Listed below are two solutions for a service issue. Workout the present costs for option 1 for a 6 year period of time. Usea 10% per year interest rate.                        …

3. MM PROPOSITION, FIRM’S VALUE AND STOCK PRICES Let’s consider a firm who is in

3. MM PROPOSITION, FIRM’S VALUE AND STOCK PRICES Let’s consider a firm who is initially an all-equity firm of n0 shares of outstanding stocks at a price p0, hence the firm’s value…

3. Malcolm must choose between two bonds: Bond X pays $85 annual interest and ha

3. Malcolm must choose between two bonds: Bond X pays $85 annual interest and has a market value of $825. It has 10 years to maturity. Bond Z pays $85 annual interest and has a ma…

3. Margo Corporation is a major producer of lawn care products. Its stock curren

3. Margo Corporation is a major producer of lawn care products. Its stock currently sells for $80 per share; there are 10.5 million shares outstanding. Margo also has 400,000 bond…

3. Maria inherits a portfolio of the following investments. It is currently 2016

3. Maria inherits a portfolio of the following investments. It is currently 2016, and she expects to retire in 2056. Maria's MARR is 10%. Calculate the (future) worth of each inve…

3. Mark Harrywitz proposes to invest in two shares, X and Y. He expects a return

3. Mark Harrywitz proposes to invest in two shares, X and Y. He expects a return of 12 percent from X and 8 percent from Y. The standard deviation of returns is 8 percent for X an…

3. Mark, a minor, operates a one-man automobile repair shop. Rose, having heard

3. Mark, a minor, operates a one-man automobile repair shop. Rose, having heard of Mark's good work on other cars, takes her car to Mark's shop for a thorough engine overhaul. Mar…

3. Maturity Rate 3.0 3.6 4.2 3.9 3.4 One-Year Rate One-Year Inflation 2 4 5 Whic

3. Maturity Rate 3.0 3.6 4.2 3.9 3.4 One-Year Rate One-Year Inflation 2 4 5 Which money market instruments are typically quoted on a discount basis? What is the bond equivalent yi…

3. Measuring standalone risk using realized data Returns earned over a given tim

3. Measuring standalone risk using realized data Returns earned over a given time period are called realized returns. Historical data on realized returns is often used to estimate…

3. Metallica Bearings, Inc., is a young start-up company. No dividends will be p

3. Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next eight years, because the firm needs to plow back its earnings to fue…