Financial literacy

31. With _____ coupon rate, a bond’s price sensitivity tends to increase, ceteri

31. With _____ coupon rate, a bond’s price sensitivity tends to increase, ceteris paribus. With _____ maturity, a bond’s price sensitivity tends to increase, ceteris paribus. lowe…

31. You have computed the expected return on a security based on multiple econom

31. You have computed the expected return on a security based on multiple economic states that have unequal probabilities of occurrence. Which one of the following statements is c…

31. You win the lottery. You can get a lump sum of $25,000,000 or receive $2,000

31. You win the lottery. You can get a lump sum of $25,000,000 or receive $2,000,000 a year (at the end of each year) for 20 years. You expect to receive interest at 5% (ignore ta…

31. the appropriate price of a bond is simply the sum of the cash flows to be re

31. the appropriate price of a bond is simply the sum of the cash flows to be received TRUE or False 34. which of the following will typically require homeowners to ultimately req…

31.With _____ coupon rate, a bond’s price sensitivity tends to increase, ceteris

31.With _____ coupon rate, a bond’s price sensitivity tends to increase, ceteris paribus. With _____ maturity, a bond’s price sensitivity tends to increase, ceteris paribus. lower…

31·(0.5 pt.) Which of the following statements is CORRECT? a. Sunk costs must be

31·(0.5 pt.) Which of the following statements is CORRECT? a. Sunk costs must be considered if the IRR method is used but not if the firm relies on the NPV method. b. A good examp…

32 Nugent, Inc., has a gross profit margin of 30.87 percent on sales of $14,448,

32 Nugent, Inc., has a gross profit margin of 30.87 percent on sales of $14,448,658 and total assets of $8,644,493. The company has a current ratio of 2.78 times, accounts receiva…

32) Enigma has the following financial information: Net Income $70,000 Taxable I

32) Enigma has the following financial information: Net Income $70,000 Taxable Income (EBT) $100,000 Interest Expense $20,000 Depreciation Expense $15,000 Tax Expense $30,000 Incr…

32) What is the price of a $1,000 par value zero coupon interest rates are 7% an

32) What is the price of a $1,000 par value zero coupon interest rates are 7% and it has a maturity of 10 years? bond (compounded semiannually) if a. $258 b. $456 c. $508 d. $503 …

32, Xtrem Inc. borrowed s80,.000 from the bank on l\" November 2017 for three mo

32, Xtrem Inc. borrowed s80,.000 from the bank on l" November 2017 for three months the interest rate was 9%, payable on the first of each month, starting December 1st Corporation…

32,898 Without considering the random variability in growth rates, extend the wo

32,898 Without considering the random variability in growth rates, extend the worksheet in Figures 16.18 to 30 years. Confirm by using the constant annual salary growth rate and t…

32. (TCO 4) Your home insurance policy has a $500 deductible. If a windstorm cau

32. (TCO 4) Your home insurance policy has a $500 deductible. If a windstorm causes $2,500 of damage to your home, what amount of the claim would the insurance company pay? (Point…

32. Consider the Securities Market Line (SML) of the Capital Asset Pricing Model

32. Consider the Securities Market Line (SML) of the Capital Asset Pricing Model, holding all else constant if the firm's beta decreases the required rate of return will? Increase…

32. Firm can make an abandonment option more realistic by A) Investing as little

32. Firm can make an abandonment option more realistic by A) Investing as little as possible in the project initially B) Leasing rather than buying the production facility C) Acqu…

32. How much is the par value for a 5-year maturity bond that has a price of $1,

32. How much is the par value for a 5-year maturity bond that has a price of $1,000 now and an annual coupon rate of 9% if the interest rate is 9%? $700 $1,050 $1,000 $1,100 None …

32. Project Evaluation [LO1] Aria Acoustics, Inc. (AAI), projects unit sales for

32. Project Evaluation [LO1] Aria Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows: Production of the implants will require $1,…

32. Robotic Atlanta Inc. just paid a dividend of $4.00 per share (that is, D0 =

32. Robotic Atlanta Inc. just paid a dividend of $4.00 per share (that is, D0 = 4.00). The dividends of Robotic Atlanta are expected to grow at a rate of 20 percent next year (tha…

32. The structure of a money market hedge is similar to a forward hedge. is dete

32. The structure of a money market hedge is similar to a forward hedge. is determined by the differential interest rates, while the for atesa The difference is the cost of the mo…

32. Which one of the following is the best example of unsystematic risk? A. Infl

32. Which one of the following is the best example of unsystematic risk? A. Inflation exceeding market expectations B. A warehouse fire C. Decrease in corporate tax rates D. Decre…

32.Angelo\'s Bakery has 105 employees. 90 of the employees are nonexcludable and

32.Angelo's Bakery has 105 employees. 90 of the employees are nonexcludable and 15 of those are highly compensated (75 are nonhighly compensated). The company's qualified profit s…

320 78 361 $ 841 2009 2010 2009 2010 1,580 1,560 490 740 3,280 3,770 $ 6,020 $ 6

320 78 361 $ 841    2009 2010 2009 2010 1,580 1,560 490 740 3,280 3,770 $ 6,020 $ 6,405 $ 6,020 $ 6,405    Windswept, Inc. has 330 million shares of stock outstanding. Its price-e…

33 , $127.71127.71 Feb. 77 Charge: Art supplies $23.73 Feb. 12 Payment $90.00 Fe

33 , $127.71127.71 Feb. 77 Charge: Art supplies $23.73 Feb. 12 Payment $90.00 Feb. 22 Charge: Flowers deliver $74.28 Feb. 28 Charge: Music CD $12.88 a) Find Carol Ann's average da…

33. .ananmary. an annuity due. C. an installment plan cash payments lasting fore

33. .ananmary. an annuity due. C. an installment plan cash payments lasting forever is termed lasting forever is equal D. a perpetuity a growing perpetuity. 34. Janis just won a s…

33. Cranberry Manufacturing Company is considering an asset replacement project

33. Cranberry Manufacturing Company is considering an asset replacement project of replacing a control device. This old control device has been fully depreciated but can be sold f…

33. Determine the cost of capital, using the data box. a. What is the cost of de

33. Determine the cost of capital, using the data box. a. What is the cost of debt? b. What is the firm's cost of preferred stock? c. What is the estimated cost of retained earnin…

33. Given the tax brackets below, compute the tax bill on a single proprietor wi

33. Given the tax brackets below, compute the tax bill on a single proprietor with a $78,000 taxable income, assuming no exemptions, exclusions, or deductions. Show your work Tabl…

33. If the returns on Stock A are as follows: Year 1 return = 9 %, Year 2 return

33. If the returns on Stock A are as follows: Year 1 return = 9 %, Year 2 return = 31 %, Year 3 return = 6 %, Year 4 return = 25 %, and Year 5 return = 35 %, what is the average r…

33. Stakeholders include which of the folowing rops b, Lenders Suppliers All of

33. Stakeholders include which of the folowing rops b, Lenders Suppliers All of the above · d. 34. All of the following are commonly used takeover tactics, except b. Bear hug d Pr…

33. Suppose the yield on short-term government securities (perceived to be risk-

33. Suppose the yield on short-term government securities (perceived to be risk-free) is about 6%. Suppose also that the expected return required by the market for a portfolio wit…

33. Suppose we obtain the following data in dollar terms: Standard deviation of

33. Suppose we obtain the following data in dollar terms: Standard deviation of monthly return 4.43% 5.55% Stock market Average return 1.26% per month 1.23% per month United State…

33. What is the annual coupon payment for a bond (par value of $1,000) with 7 ye

33. What is the annual coupon payment for a bond (par value of $1,000) with 7 years until maturity, a price of $1,000, and a discount rate of 6%?$80 $70 $60 $50 None of the above …

33. When investors speak of \"bubbles\" they are referring to situations where A

33. When investors speak of "bubbles" they are referring to situations where A B. C. D. Frantic investors have caused the stock price to rise to unsustainable levels The process o…

33. You have gathered this information on JJ Enterprises: 36. Your coin collecti

33. You have gathered this information on JJ Enterprises: 36. Your coin collection contains 56 1952 silver dollars. If your grandparents purchased them for their face value when t…

33. You purchase one IBM March 120 put option contract for a premium o share. Th

33. You purchase one IBM March 120 put option contract for a premium o share. The maximum profit that you could gain from this strategy is $120 A) B) $1,000 C) S11,000 D) $12,000 …

33. \"Short-swing profits\" is a term used to describe a. b. c. d. Amounts recov

33. "Short-swing profits" is a term used to describe a. b. c. d. Amounts recoverable from a company insider Profits on an insider's "short sale" of securities Insider trading prof…

33: The price which maximizes revenues is the price that should be selected. A)

33: The price which maximizes revenues is the price that should be selected. A) True B) False 34: A manufacturing company produces and sells 20,000 units of a single product. Tota…

34 Brennan\'s Boats is considering a project which will require additional inven

34 Brennan's Boats is considering a project which will require additional inventory of $128,000 and will also increase accounts payable by $47,000 as suppliers are willing to fina…

34 XYZ expects its EBIT to remain at the same level for ever and all its earning

34 XYZ expects its EBIT to remain at the same level for ever and all its earning will be paid out as dividends; currently it has no debt, has 1000 shares, its dividend is $1.50, a…

34) The Franklin Company issued a 6% bordthree years ago at par value. The man t

34) The Franklin Company issued a 6% bordthree years ago at par value. The man tntre comparable bonds today is 5%. The Franklin and the bond sells at a Company bond currently pays…

34. A committee created for a specific short-term purpose is called a(n) _____.

34. A committee created for a specific short-term purpose is called a(n) _____. a. task force b. standing committee c. ad hoc committee d. informal group e. organic structure 35. …

34. Balance Sheet. Examine the values for depreciation in 2014 and net fixed ass

34. Balance Sheet. Examine the values for depreciation in 2014 and net fixed assets in 2013 and 2014. What was Fincorp's gross investment in plant and equipment during 2014? 35. B…

34. Calculate the intrinsic value and time value of a put option for which the s

34. Calculate the intrinsic value and time value of a put option for which the share price is $19, the strike price is $17.50 and the option price is $0.20. A. $0, $0.20 B. $0, $1…

34. Irwin Industries is currently considering a project that will produce cash i

34. Irwin Industries is currently considering a project that will produce cash inflows of $87,000 a year for two years followed by $76,000 a year for three more years. The cost of…

34. LG U+ stock has return if the economy is in a recession? an expected return

34. LG U+ stock has return if the economy is in a recession? an expected return of 11.5 percent. Given the information below, what is the expected State of Economy Probability of …

34. Problem 10.05 PROJECT SELECTION Midwest water works estimates that its WACC

34. Problem 10.05 PROJECT SELECTION Midwest water works estimates that its WACC is Assume that each of these projects is just as risky as the firm's existing assets and that the f…

34. Problem 5.22 (T.oan Amortization) eBook Jan sold her house on December 31 an

34. Problem 5.22 (T.oan Amortization) eBook Jan sold her house on December 31 and took a $30,000 mortgage as part of the payment. The 10-year mortgage has a 7% r om nal inte est a…

34. Senate Inc. is considering two alternative methods for producing playing car

34. Senate Inc. is considering two alternative methods for producing playing cards. Method 1 involves using a machine with a fixed cost (mainly depreciation) of $12,000 and variab…

34. Time value of money (hint-see chapter 4) You may use a financial calculator

34. Time value of money (hint-see chapter 4) You may use a financial calculator or spreadsheet to compute your answers. Suppose you are told that your uncle is going to sell his c…

34. What is the slope of the SML? a, 6% b.7% c.42% d. Cannot be determined with

34. What is the slope of the SML? a, 6% b.7% c.42% d. Cannot be determined with the info provided what is the beta of the portfolio that has 60% of its value in X and the rest in …

34. Which of the following is an accurate description of each kind of bond? Seri

34. Which of the following is an accurate description of each kind of bond? Serial Bond. this type of bond require large amounts to be accumulated in a a. b. Callable Bond. This k…