Financial literacy

4. Foreign project valuation Frank F.X. Gong, chief economist for China at J.P.

4. Foreign project valuation Frank F.X. Gong, chief economist for China at J.P. Morgan has forecast that the Yuan will rise to 7.74 Yuan/S by the end of 2005 and to 7.2 Yuan/S by …

4. Four years ago, Warrior Auto Service purchased some new equipment at a cost o

4. Four years ago, Warrior Auto Service purchased some new equipment at a cost of $75,000. The equipment has since been depreciated annually using the SOYD method, assuming a life…

4. Given are stock price, net assets (total stockholders\' equity), share outsta

4. Given are stock price, net assets (total stockholders' equity), share outstanding, and annual revenues for 2014 of the chemical companies. Stock Price: DuPont (74.04), Dow (51.…

4. Given the following probability distributions for Stocks A and B, and the mar

4.         Given the following probability distributions for Stocks A and B, and the market portfolio, M: State    Probability       Return on A    Return on B                Retu…

4. GoPro holds a monopoly in two countries where it sells video cameras, USA and

4. GoPro holds a monopoly in two countries where it sells video cameras, USA and Canada. The demand functions for the two regions are, Q(USA)=105-­P(USA) Q(CANADA)=42.5-­.5P(CANAD…

4. Gulf Aviation generates $800 million in revenue per year, with no material gr

4. Gulf Aviation generates $800 million in revenue per year, with no material growth. The consolidated revenues for DefenseCo are $1.5 billion in year 1, $1.8 billion in year 2 (t…

4. Haroldson Inc. common stock is selling for $22 per share. The last dividend w

4. Haroldson Inc. common stock is selling for $22 per share. The last dividend was $1.20, and dividends are expected to grow at a 6% annual rate. Flotation costs on new stock sale…

4. Hedging strategy to protect against falling prices Price fluctuations in comm

4. Hedging strategy to protect against falling prices Price fluctuations in commodities can have significant consequences for companies, especially if the fluctuation involves a p…

4. Higgins Office Corp. plans to maintain its optimal capital structure of 40 pe

4. Higgins Office Corp. plans to maintain its optimal capital structure of 40 percent debt, 10 percent preferred stock, and 50 percent common equity indefinitely. The required ret…

4. Holly Farms paid $38,600 in dividends and $24,615 in interest over the past y

4. Holly Farms paid $38,600 in dividends and $24,615 in interest over the past year while net working capital increased from $15,506 to $17,411. The company purchased $38,700 in n…

4. Hook Industries is considering a project with a life of 3 years. The initial

4. Hook Industries is considering a project with a life of 3 years. The initial investment is $15,000 with annual cash inflows of $7,000. Assume the Cost of Capital is 9%. Calcula…

4. How many years will the following take? $2,917 to grow to $61,207 if invested

4. How many years will the following take? $2,917 to grow to $61,207 if invested at 3 perecent, compounded annually. Round the answer to two decimal places 5. Cooling Tools, Inc. …

4. IPO trading Based on your understanding of the involvement of investment bank

4. IPO trading Based on your understanding of the involvement of investment banks in an IPO, complete the following sentences. If the investment bank does not guarantee the sale o…

4. Identify and describe the ways in which a US company can participate in inter

4. Identify and describe the ways in which a US company can participate in international commerce. 5. The price of a currency forward contract is determined by the relationship be…

4. If CHAPTER FIVE Rink 5. expected returns and Management returns portfolio 6.

4. If CHAPTER FIVE Rink 5. expected returns and Management returns portfolio 6. an of Stock are the same the standard deviations of the investor do security is be but positive ver…

4. If all investors become more risk averse the Security Market Line will ______

4. If all investors become more risk averse the Security Market Line will _______________ and stock prices will _______________. (Points : 1) shift upward; rise shift downward; fa…

4. If the \"risk free rate\" & the various \"market premiums\" (eg: default/cred

4. If the "risk free rate" & the various "market premiums" (eg: default/credit, liquidity, inflation, market, & maturity) are expected to gradually increase over the next …

4. If you __________, then you may be forced to buy the underlying stock. 5. Low

4. If you __________, then you may be forced to buy the underlying stock. 5. Lower risk free rates results in __________ Put Option prices and ______ Call Option Prices. 6. Which …

4. If you __________, then you may be forced to buy the underlying stock. a) Buy

4. If you __________, then you may be forced to buy the underlying stock. a)         Buy a Call Option b)         Buy a Put Option c)         Sell a Call Option d)         Sell a …

4. If you wanted to purchase the right to sell 2,000 shares of J.C. Penny stock

4. If you wanted to purchase the right to sell 2,000 shares of J.C. Penny stock in August 2008 at a strike price of $45 per share. Suppose J.C. Penny stock sells for $36.50 per sh…

4. Importance of expenses. Over your future investing & retired life, assume you

4. Importance of expenses. Over your future investing & retired life, assume you earn 8% before expenses. You have $10,000 in your Roth IRA. You save an additional $5,500 per …

4. In 2006 Juan and Maria purchased a home for $250,000. They were offered a 30-

4. In 2006 Juan and Maria purchased a home for $250,000. They were offered a 30-year loan by a mortgage broker for no money down, interest only for the first three years at 3%, th…

4. In 2006 Juan and Maria purchased a home for $250,000. They were offered a 30-

4. In 2006 Juan and Maria purchased a home for $250,000. They were offered a 30-year loan by a mortgage broker for no money down, interest only for the first three years at 3%, th…

4. In 2006 Juan and Maria purchased a home for $250,000. They were offered a 30-

4. In 2006 Juan and Maria purchased a home for $250,000. They were offered a 30-year loan by a mortgage broker for no money down, interest only for the first three years at 3%, th…

4. In 2006 Juan and Maria purchased a home for $250,000. They were offered a 30-

4. In 2006 Juan and Maria purchased a home for $250,000. They were offered a 30-year loan by a mortgage broker for no money down, interest only for the first three years at 3%, th…

4. In Chiarella v. United States: The Supreme Court held that Chiarella needs tb

4. In Chiarella v. United States: The Supreme Court held that Chiarella needs tb disgorge the profit obtained by trading a. on non-public information The Supreme Court ruled that …

4. In December, George sales 250 shares of stock at $60 per share less a $500 br

4. In December, George sales 250 shares of stock at $60 per share less a $500 broker’s fee. Just prior to the sale, George held the following blocks of Home Depot stock. Acquisiti…

4. In March 2015, the Value Line Investment Survey reported the following market

4. In March 2015, the Value Line Investment Survey reported the following market betas for W$D, HLA, United Pharma, and Great Reasonable Efficient and Effervescent Drug, Inc:     …

4. In each of the following scenarios, which security should an investor buy? As

4. In each of the following scenarios, which security should an investor buy? Assume that the securities are identical in all ways except as described below. Explain your answer. …

4. In the Wall Street Journal , the British pound (£) is quoted for $1.67. The A

4. In the Wall Street Journal, the British pound (£) is quoted for $1.67. The Australian dollar (A$) is quoted for $0.62. What is the value of the Australian dollar in terms of Br…

4. Income statement Aa The income statement, also known as the profit and loss s

4. Income statement Aa The income statement, also known as the profit and loss statement, helps calculate the firm's net income that is available to shareholders. The income state…

4. Indicate whether each of the following is part ofM1,M2, or neither: (10 point

4. Indicate whether each of the following is part ofM1,M2, or neither: (10 points) a $95 on you campus meal card b. $.55 in the change cup of your car c. $1663 in your savings acc…

4. Inflation impacts which of the following Market Interest Rates _ Earning powe

4. Inflation impacts which of the following Market Interest Rates _ Earning power 9 Purchasing power Consumer Price Index 6 5. (a) Borrowers repay historical loan amounts with dol…

4. Inflation, interest rates, and exchange rates Relative inflation rates affect

4. Inflation, interest rates, and exchange rates Relative inflation rates affect interest rates, exchange rates, the overall economic health of a country, and the operations and p…

4. Internal rate of return (IRR) Aa Aa The internal rate of return (IRR) refers

4. Internal rate of return (IRR) Aa Aa The internal rate of return (IRR) refers to the compound annual rate of return that a project generates based on its up-front cost and subse…

4. Investing Your Uncle\'s Bequest Your favorite uncle passed away unexpectedly

4. Investing Your Uncle's Bequest Your favorite uncle passed away unexpectedly last month. It turned out that, unbeknownst to to you, your favorite uncle was a "Millionaire Next D…

4. Investing ou can earn a 7% return on an investment (ROI) in a taxable account

4. Investing ou can earn a 7% return on an investment (ROI) in a taxable account. Alternatively, you can earn a 5.5% return on an investment (ROI) that is tax-free. If You're in t…

4. Investment timing option Decision tree and the Black-Scholes valuation Aa Aa

4. Investment timing option Decision tree and the Black-Scholes valuation Aa Aa Suppose a technical glitch in the trading systems in the stock markets led to several erroneous tra…

4. James is thinking of starting a restaurant. He has S200,000 to invest in his

4. James is thinking of starting a restaurant. He has S200,000 to invest in his restaurant. He has two choices. Open a small restaurant without any other investors, i.e. he would …

4. Jane Skinner has just graduated from college and would like to purchase her f

4. Jane Skinner has just graduated from college and would like to purchase her first car. She is unfamiliar with the purchasing process but thinks that she could probably afford t…

4. Jane Skinner has just graduated from college and would like to purchase her f

4. Jane Skinner has just graduated from college and would like to purchase her first car. She is unfamiliar with the purchasing process but thinks that she could probably afford t…

4. Jason Bourne is in film making business who specializes in making sequels. He

4. Jason Bourne is in film making business who specializes in making sequels. He buys the rights of successful movies and makes sequels. From his experience he knows that each seq…

4. Jefferson Products, Inc., is considering purchasing a new automatic press bra

4. Jefferson Products, Inc., is considering purchasing a new automatic press brake, which costs $300,000 including installation and shipping. The machine is expected to generate n…

4. Jivanka Industries is considering purchasing a new milling machine from Russi

4. Jivanka Industries is considering purchasing a new milling machine from Russia that costs $100,000. The machine's installation and shipping costs will total $20,000. If accepte…

4. Jivanka Industries is considering purchasing a new milling machine from Russi

4. Jivanka Industries is considering purchasing a new milling machine from Russia that costs $100,000. The machine's installation and shipping costs will total $20,000. If accepte…

4. Kal Tech Engineering is investigating the possibility of acquiring new automa

4. Kal Tech Engineering is investigating the possibility of acquiring new automated packaging equipment at a cost of $12,000. It is expected that the equipment will have a salvage…

4. Kent wants to know which of the profit numbers he should be concerned with. H

4. Kent wants to know which of the profit numbers he should be concerned with. Help Kent by explaining what each type of profit (gross profit, operating profit, and net profit) te…

4. Kinston Industries just announced that it will cut its dividend from $3.00 to

4. Kinston Industries just announced that it will cut its dividend from $3.00 to $2.00 per share and use the extra funds to expand its operations. Kinston's dividends were expecte…

4. Lan Chen Technologies Inc. Income Statement 2010 2009 Sales 878850 837000 Exp

4. Lan Chen Technologies Inc. Income Statement 2010 2009 Sales 878850 837000 Expenses Excl Depreciation & Amortization 731430 696600 EBITDA 147420 140400 Depreciation & Am…

4. Lan Chen Technologies Inc. Income Statement 2010 2009 Sales 878850 837000 Exp

4. Lan Chen Technologies Inc. Income Statement 2010 2009 Sales 878850 837000 Expenses Excl Depreciation & Amortization 731430 696600 EBITDA 147420 140400 Depreciation & Am…