Financial literacy

34. typically the minimal value the target firm is willing to accept is the: a.

34. typically the minimal value the target firm is willing to accept is the: a. liquidation value b. book value c. earning valuation d. none of the above 35. sales less cost of go…

340 88 412 $ 960 2009 2010 2009 2010 1,660 1,600 530 780 3,360 3,890 $ 6,230 $ 6

340 88 412 $ 960 2009 2010 2009 2010 1,660 1,600 530 780 3,360 3,890 $ 6,230 $ 6,615 $ 6,230 $ 6,615 Windswept, Inc. has 370 million shares of stock outstanding. Its price-earning…

340 FINANCIAL PERFORMANCE &RISK; ANALYSIS Question 4 (12 Marks) Crikey Led requi

340 FINANCIAL PERFORMANCE &RISK; ANALYSIS Question 4 (12 Marks) Crikey Led requires a heavy duty truck for six months from Ist January. Based on the following information, adv…

35 Suppose you want to save for a boat down payment in 3 years from now. You sav

35 Suppose you want to save for a boat down payment in 3 years from now. You save $4,200 per year. At the end of each year, you depos it with your broker who thinks you can earn 5…

35) A General Motors executive is considering how to price the 2013 Chevy Volt e

35) A General Motors executive is considering how to price the 2013 Chevy Volt electric car in order to maximize profits for the company. Manufacturing each Volt involves $9,500 o…

35) In September 2000 the Pullman Group arranged a bond issue for the estate of

35) In September 2000 the Pullman Group arranged a bond issue for the estate of the late Marvin Gaye. The collateral on the bonds (and source of cash flow for interest and princip…

35) The product life cycle: A. Describes the stages a new product idea goes thro

35) The product life cycle: A. Describes the stages a new product idea goes through from beginning to end. B. Shows that sales and profits tend to move together over time. C. Appl…

35) When categorizing investments for the financial account component of the bal

35) When categorizing investments for the financial account component of the balance of payments the ________ is an investment where the investor has no control whereas the ______…

35. (1.0 pt.) Kaiser Co. is selling off some old equipment it no longer needs be

35. (1.0 pt.) Kaiser Co. is selling off some old equipment it no longer needs because its associated project has come to an end. The equipment originally cost $22,500, of which 75…

35. Given a current share price of $20 and an exercise price of $22, which of th

35. Given a current share price of $20 and an exercise price of $22, which of the following statements is true? A. A call option has an intrinsic value of $2 and a put option has …

35. Holding Period Yield. The YTM on a bond is the interest rate you earn on you

35. Holding Period Yield. The YTM on a bond is the interest rate you earn on your investment if interest rates don't change. If you actually sell the bond before it matures, your …

35. Integrative. You are exploring the possibility of starting a project involvi

35. Integrative. You are exploring the possibility of starting a project involving production of an assortment of spicy curried pickles. You had approached a marketing consultant …

35. Pete\'s Warehouse has net working capital of $2,400, total assets of $19,300

   35. Pete's Warehouse has net working capital of $2,400, total assets of $19,300, and net fixed assets of $10,200. What is the value of the current liabilities? A.   -$6,700 B. …

35. Stanvid Company provided the following information: Fair value of the report

35. Stanvid Company provided the following information: Fair value of the reporting unit, including goodwill        1,400,000 Fair value of the net assets, excluding goodwill     …

35. The average returns, standard deviations, and betas for three funds are give

35. The average returns, standard deviations, and betas for three funds are given below along with data for the S&P; 500 Index. The risk-free return during the sample period i…

35. You are evaluating a portfolio of four Invested in each stock and the equity

35. You are evaluating a portfolio of four Invested in each stock and the equity betas stocks. The following table shows the dollar amount Stock Investment Beta $170,000 1.24 2$22…

35. comparative analysis is the technique by which we: a. purchase stocks from a

35. comparative analysis is the technique by which we: a. purchase stocks from a broker b. measure the economic value of a potential asset in relation to the market c. measure the…

36) An investor should purchase a stock when 36) ______ A) the market price is g

36) An investor should purchase a stock when 36) ______ A) the market price is greater than the justified price. B) the capital gains rate is less than the required return and no …

36) For the following firms, find the return on equity using the three component

36) For the following firms, find the return on equity using the three components of the DuPont identity: operating efficiency, as measured by the profit margin (net income/sales)…

36) In general there is consensus that ________ should be free but there is no s

36) In general there is consensus that ________ should be free but there is no such consensus that ________ should be free. 36) ______ A) international trade; international goods …

36) On a bank?s income statement, the amount that is available to keep as retain

36) On a bank?s income statement, the amount that is available to keep as retained earnings or pay to the stockholders in dividends is the bank?s a) Net income b) Net interest mar…

36) The Sisyphean Company\'s common stock is currently trading for $25.00 per sh

36) The Sisyphean Company's common stock is currently trading for $25.00 per share. The stock is expected to pay a $2.50 dividend at the end of the year and the Sisyphean Company'…

36) The _ is the face value of a maturity value of a bond, and the amount that i

36) The _ is the face value of a maturity value of a bond, and the amount that is retumed to the to the bondholder at A) market price B) par value C) retum price D) dead price E) …

36. $10 per share next year, and to grow at 4% per year what is the company\'s c

36. $10 per share next year, and to grow at 4% per year what is the company's cost of equity capital (required rate of returm of equity)? : Sunshine Systems stock sells for Sos pe…

36. A convertible bond has a par value of $1,000, but its current market price i

36. A convertible bond has a par value of $1,000, but its current market price is $95. The current price of the issuing company's stock is a $26, and the conversion ratio is 34 sh…

36. Assume that ADI Company, with long-term capitalization consisting entirely o

36. Assume that ADI Company, with long-term capitalization consisting entirely of S5 million in stock, wants to raise $2 million for the acquisition of special equipment by: (a) s…

36. Assume the following information: U.S. deposit rate for 1 year = 11% U.S. bo

36. Assume the following information: U.S. deposit rate for 1 year = 11% U.S. borrowing rate for 1 year = 12% Swiss deposit rate for 1 year = 8% Swiss borrowing rate for 1 year = …

36. Chingos and Daughters Construction is considering three investment propos- a

36. Chingos and Daughters Construction is considering three investment propos- als: A, B, and C. Proposals A and B are mutually exclusive, and Proposal Cis contingent on proposal …

36. Gator Fabrics Inc. currently has zero debt. It is a zero growth company, and

36. Gator Fabrics Inc. currently has zero debt. It is a zero growth company, and it has the data shown below. Now the company is considering using some debt and moving to the new …

36. If the investors opening position is the sale of a Eutures contract (whteh s

36. If the investors opening position is the sale of a Eutures contract (whteh seans the contractua) obligation to sell some thing in the future) A. shore posicion long long futur…

36. Income versus cash flows. Construct a statement of cash flows for Fincorp fo

36. Income versus cash flows. Construct a statement of cash flows for Fincorp for 2014. Fincorp Inc. 2013 2014 $A,000.00 S4,100.00 1,600.001,700.00 500.00 520.00 300.00 350.00 500…

36. Silver Dollar Mines is contemplating the purchase of equipment to exploit a

36. Silver Dollar Mines is contemplating the purchase of equipment to exploit a mineral deposit on land to which the company has mineral rights. An engineering and cost analysis h…

36. The firm has target capital structure of 60% common stock, 30% debt and 10%

36. The firm has target capital structure of 60% common stock, 30% debt and 10% preferred stock. The firm wishes to issue new 30 years bond with 10% coupon rate. The flotation cos…

36. The numbers on the bottom area of a check which shows the bank identificatio

36. The numbers on the bottom area of a check which shows the bank identification number is also known as a transit routing number check imaging number batch settlement number sca…

36. When financial managers are making investment and financing decisions they b

36. When financial managers are making investment and financing decisions they base their decision on a. changes in sales revenues b. Earnings Before Interest and Taxes (EBIT) c. …

36. Which of the following are relevant in deciding whether to accept or reject

36. Which of the following are relevant in deciding whether to accept or reject a special order? A. The impact the order will have on existing business. B. The price that will be …

36.Sharpe General Stores borrowed $100,000 for 5 years at a 12 percent interest

36.Sharpe General Stores borrowed $100,000 for 5 years at a 12 percent interest rate, compounded monthly, and makes an equal amount of payment at the end of each month. What is th…

360 35 460 $ 880 Major Manuscripts, Inc. 2012 Balance Sheet 4,100 5,630 3,930 $

360   35   460   $ 880      Major Manuscripts, Inc. 2012 Balance Sheet 4,100     5,630     3,930     $ 11,360     $ 11,360         If Major Manuscripts, Inc., decides to maintain …

36: What is is the value of a I-year bond paying $1000 annual coupons bond is S1

36: What is is the value of a I-year bond paying $1000 annual coupons bond is S10 000 and the required rate of return is $1000 annual coupons, where the face A: S10000 B: 59167 C:…

37) Miltmar Corporation will pay a year-end dividend of $5, and dividends therea

37) Miltmar Corporation will pay a year-end dividend of $5, and dividends thereafter are expected to grow at the constant rate of 5% per year. The risk-free rate is 6%, and the ex…

37) PepsiCo uses 30-year Treasury bonds to measure the risk-free rate because: A

37) PepsiCo uses 30-year Treasury bonds to measure the risk-free rate because: A. these bonds are essentially free of business risk. B. they capture the long-term inflation expect…

37) PepsiCo uses 30-year Treasury bonds to measure the risk-free rate because: A

37) PepsiCo uses 30-year Treasury bonds to measure the risk-free rate because: A. these bonds are essentially free of business risk. B. they capture the long-term inflation expect…

37) Presidential candidate Willard “Mitt” Romney wants to order 10,000 red flip

37) Presidential candidate Willard “Mitt” Romney wants to order 10,000 red flip flops to hand out at campaign stops. The left one will read “I’m for it” while the right one will r…

37) Your sister turned 35 today, and she is planning to save $7,000 per year for

37) Your sister turned 35 today, and she is planning to save $7,000 per year for retirement, with the first deposit to be made one year from today. She will invest in a mutual fun…

37. A busi iness created as a distinct legal entity composed of one or more indi

37. A busi iness created as a distinct legal entity composed of one or more individuals or entities is called a: a. corporation. b. sole proprietorship. c. general partnership. d.…

37. Stock P offers an expected return of 20%, a standard deviation of 6%, and a

37. Stock P offers an expected return of 20%, a standard deviation of 6%, and a beta coefficient of 1.3. Stock Q offers an expected return of 16%, a standard deviation of 4%, and …

37. The cumulative effect of the declaration financial statements is to (a) decr

37. The cumulative effect of the declaration financial statements is to (a) decrease both total liabilities and shareholders' equity (b) increase both total expenses and total lia…

37. The first step in retirement planning is to a. determine how large a nest eg

37. The first step in retirement planning is to a. determine how large a nest egg is required. b. consider your longevity. c. define your investment program. d. determine your inc…

37. The stock of Silvanus Wildlife, Inc., has a beta of 0.91. The market risk pr

37. The stock of Silvanus Wildlife, Inc., has a beta of 0.91. The market risk premium is 8.56 percent and the risk-free rate is 4.71 percent. What is the expected return (in perce…

37.—38. Assume that Pet Supplies Galore has the following values on its most rec

            37.—38. Assume that Pet Supplies Galore has the following values on its most recent Balance Sheet: Account Value Cash               $175,200 Accounts Receivable 232,60…