Financial literacy

7) Which of the following is correct? (a) A change in the inherent risk of an in

7) Which of the following is correct? (a) A change in the inherent risk of an investment will cause a movement along the Security Market Line. (b) A change in investors' attitudes…

7) Yadwiga Novakoma is working in Montreal for HSBC Bank. She expects the Canadi

7) Yadwiga Novakoma is working in Montreal for HSBC Bank. She expects the Canadian dollar to do well as compared to the USD because the Canadian commodity markets will pick up due…

7) You have $20,000 that you invested in an open-end load fund that charged you

7) You have $20,000 that you invested in an open-end load fund that charged you a front-end load of 7.2%. Over a one-year period, the fund's rate of return was 30%. Calculate the …

7) You have decided to open up a savings account. Your bank has offered you thre

7) You have decided to open up a savings account. Your bank has offered you three interest options: A) 10.55% annually, B) 10.40% quarterly and C) 10.30% weekly. Which do you pref…

7) a. Sallie Mae is a quasi-governmental agency that packages individual student

7) a. Sallie Mae is a quasi-governmental agency that packages individual student loans into pools of loans and sells shares of these to investors as “Sallie Mae bonds”. i. What is…

7)A Treasury bond that matures in 10 years has a yield of 3%. A 10-year corporat

7)A Treasury bond that matures in 10 years has a yield of 3%. A 10-year corporate bond has a yield of 10%. Assume that the liquidity premium on the corporate bond is 0.6%. What is…

7)Suppose that TipsNToes, Inc.\'s capital structure features 40 percent equity,

7)Suppose that TipsNToes, Inc.'s capital structure features 40 percent equity, 60 percent debt, and that its before-tax cost of debt is 9 percent, while its cost of equity is 15 p…

7,172.77 5,389.01 6520.70 8,965.96 Which of the following statements about annui

7,172.77 5,389.01 6520.70 8,965.96 Which of the following statements about annuities are true? Check all that apply. Ordinary annuities make fixed payments at the beginning of eac…

7- What is the forecast value of sales for 2018? 8- What is Company Y s forecast

7- What is the forecast value of sales for 2018? 8- What is Company Y s forecast closing book value for 2018? 9-   What is Company Y s forecast for property, plant and equipment f…

7- Which of the following statements is CORRECT a. Proprietorships b. In any par

7- Which of the following statements is CORRECT a. Proprietorships b. In any partnership, every partner has the same rights are subject to more regulations than corporations every…

7-10. (Bond valuation) You own a bond that pays $70 in annual interest, with a $

7-10. (Bond valuation) You own a bond that pays $70 in annual interest, with a $1,000 par value. It matures in 15 years. Your required rate of return is 7 percent. a. Calculate th…

7-12 YIELD TO CALL It is now January 1, 2011, and you are considering the purcha

7-12 YIELD TO CALL It is now January 1, 2011, and you are considering the purchase of an outstanding bond that was issued on January 1,2009. It has a 9.5% annual coupon and had a …

7-15 Return on Common Stock You buy a share of The Ludwig Corporation stock for

7-15 Return on Common Stock You buy a share of The Ludwig Corporation stock for $21.20. You expect it to pay dividends of $1.11, $1.13, and $1.1504 in Years 1, 2, and 3, respectiv…

7-16 Corporate Divisions: Effect on Shareholders. Address the following concerni

7-16 Corporate Divisions: Effect on Shareholders. Address the following concerning cor porate divisions: a. If all of the conditions of § 355 are satisfied, how is the distributio…

7-16. Cary Corporation’s forecasted 2016 financial statements follow, along with

7-16. Cary Corporation’s forecasted 2016 financial statements follow, along with industry average ratios. A - Calculate Cary’s 2016 forecasted ratios, compare them with the indust…

7-19 Bond Evaluation Cliffard Clark is a recent retiree who is interested in inv

7-19 Bond Evaluation Cliffard Clark is a recent retiree who is interested in investing some of his savings in corporate bonds. His financial planner has suggested the following bo…

7-2: Liquidity Ratios 7-3: Asset Management Ratios 7-4: Debt Management Ratios 7

7-2: Liquidity Ratios 7-3: Asset Management Ratios 7-4: Debt Management Ratios 7-5: Profitability Ratios Problem 7-11 Balance Sheet Analysis Complete the balance sheet and sales i…

7-2: Liquidity Ratios 7-3: Asset Management Ratios 7-4: Debt Management Ratios 7

7-2: Liquidity Ratios 7-3: Asset Management Ratios 7-4: Debt Management Ratios 7-5: Profitability Ratios Problem 7-11 Balance Sheet Analysis Complete the balance sheet and sales i…

7-37. An industrial coal-fired boiler for process steam is equipped with a 10-ye

7-37. An industrial coal-fired boiler for process steam is equipped with a 10-year-old electrostatic precipitator (ESP). Changes in coal quality have caused stack emissions to be …

7-4. In 1996, Kodak paid a cash dividend of $1.60 per share. At year-end 1996, K

7-4. In 1996, Kodak paid a cash dividend of $1.60 per share. At year-end 1996, Kodak shares were trading at about $80 per share. Between 1997 and 2001, Kodak paid $1.76, and in 20…

7-48 Part 1 - Spin off: effect on shareholder . in 2003 RIC corp was formed by B

7-48 Part 1 - Spin off: effect on shareholder. in 2003 RIC corp was formed by B,C,D and E. Each contributed $25,000 for 100 shares of the corporation's stock. The corporaion was e…

7-4: Debt Management Ratios Problem 7-10 Times-Interest-Earned Ratio The Morris

7-4: Debt Management Ratios Problem 7-10 Times-Interest-Earned Ratio The Morris Corporation has $400,000 of debt outstanding, and it pays an interest rate of 8% annually. Morns's …

7-5 (Bond Valuation) Crawford Inc. has two bond issues outstanding, both paying

7-5 (Bond Valuation) Crawford Inc. has two bond issues outstanding, both paying the same annual interest of $85, called Series A and Series B. Series A has a maturity of 12 years,…

7. (10 points). A manufacturing engineer recommended a new jig to speed up drill

7. (10 points). A manufacturing engineer recommended a new jig to speed up drilling for a special part. The initial cost was $3,500. The annual net savings due to the jig were fou…

7. (11 points) You are planning for your retirement and have decided the followi

7. (11 points) You are planning for your retirement and have decided the following: you will retire in 35 years and will make monthly deposits into your retirement account of $400…

7. (5 pts) A company bought production equipment 2 years ago for $45,000. The eq

7. (5 pts) A company bought production equipment 2 years ago for $45,000. The equipment was expected to last for years and the salvage value was estimated to be $6,000 at the end …

7. (9 pts) A semi-annual coupon U.S. Treasury bond was purchased for settlement

7. (9 pts) A semi-annual coupon U.S. Treasury bond was purchased for settlement on November 12, 2017. The last coupon was paid on October 15, 2017. Using the ACT/ACT day count con…

7. (A bond foward) A certain I0-year bond is curently selling for $920 A friend

7. (A bond foward) A certain I0-year bond is curently selling for $920 A friend of youis owns a foiward contract on this boncd thal has a delivery datc in ycarand a delivciy pricc…

7. (Annuity interest rate) Your folks just called and would like some advice fro

7. (Annuity interest rate) Your folks just called and would like some advice from you. An insurance agent just called them and offered them the opportunity to purchase an annuity …

7. (Related to Checkpoint 9.2 and Checkpoint 9.3) (Bond valuation) Fingen\'s 12-

7. (Related to Checkpoint 9.2 and Checkpoint 9.3) (Bond valuation) Fingen's 12-year. $1,000 par value bonds pay 8 percent interest annually. The market price of the bonds is $900 …

7. (TCO 1) Match the following terms with the examples as appropriate: (Points :

7. (TCO 1) Match the following terms with the examples as appropriate: (Points : 4) Answer Potential Matches: : Managerial compensation 1 : McDonald's work to redesign packaging i…

7. (TCO 5, 6 and 7) Which one of the following is a correct statement regarding

7. (TCO 5, 6 and 7) Which one of the following is a correct statement regarding a firm's weighted average cost of capital (WACC)? (Points : 4) the WACC can be used as the required…

7. (TCO 6) A mutual fund in which the portfolio is weighted exactly like the Sta

7. (TCO 6) A mutual fund in which the portfolio is weighted exactly like the Standard and Poor's 500 Index or any other market measure is called (Points : 4) a stock fund. a balan…

7. (TCO 7) If the market rate of return is 10% and the beta on a particular stoc

7. (TCO 7) If the market rate of return is 10% and the beta on a particular stock is 1.25, the return on the stock will be: (Points : 3) greater than 10%. greater or less than 10%…

7. (TCO 7) If the market rate of return is 10% and the beta on a particular stoc

7. (TCO 7) If the market rate of return is 10% and the beta on a particular stock is .78, the return on the stock will be: (Points : 3) greater than 10%. greater or less than 10%,…

7. (TCO 9) The basic purpose of the coinsurance provision is: (Points : 3) to re

7. (TCO 9) The basic purpose of the coinsurance provision is: (Points : 3) to reduce total losses by requiring the insured to bear a part of every loss. to require the insured to …

7. (TCO D) a 10-year bond pays an annual coupon, its YTM is 8% and it currently

7. (TCO D) a 10-year bond pays an annual coupon, its YTM is 8% and it currently trades at a premium. Which of the following statements is correct? A)the bonds current yield is les…

7. (TCO E) Other things being equal, firms from a particular home country will e

7. (TCO E) Other things being equal, firms from a particular home country will engage in more international acquisitions if they expect foreign currencies to _____ against their h…

7. A $1,000 par bond with five years to maturity is currently priced at $892. An

7. A $1,000 par bond with five years to maturity is currently priced at $892. Annual interest payments are $90. What is the yield to maturity? 8. A bank buys bonds with a par valu…

7. A P/E ratio of 12 means a. Earnings per share is 12 times higher than price o

7. A P/E ratio of 12 means a. Earnings per share is 12 times higher than price of the stock per share b. The stock is undervalued c. Investors are willing to pay $12 for every one…

7. A business owned by a single individual is said to be a a. sole proprietorshi

7. A business owned by a single individual is said to be a a. sole proprietorship c. corporation. b. partnership. d. union. 8. One of the major disadvantages to corporations is a.…

7. A code of ethics adopted by a company will most likely include all of the fol

7. A code of ethics adopted by a company will most likely include all of the following EXCEPT a. honesty. c. security. b. destruction of the environments. d. adherence to the law.…

7. A company is looking to reduce their general and overhead expenses by $5,000

7. A company is looking to reduce their general and overhead expenses by $5,000 for each year for the next 5 years. Their current annual general and overhead expenses are $50,000 …

7. A company just reported earnings per share of $10.00 paid a dividend of $6.00

7. A company just reported earnings per share of $10.00 paid a dividend of $6.00 a share. Based on the company's risk, shareholders require a return of 9% on its stock. You believ…

7. A company wants to raise $500 million in a new stock issue. Its investment ba

7. A company wants to raise $500 million in a new stock issue. Its investment banker indicates that the sale of new stock will require 8 percent underpricing and a 7 percent sprea…

7. A convertible bond has the following features: Face Value: $1,000 Maturity: 2

7. A convertible bond has the following features: Face Value: $1,000 Maturity: 20 years Annual coupon: $80 Conversion Price: $100 Market Price of the Convertible Bond: $800 a. The…

7. A credit analyst is looking at three ditterent companies-an auto company, a d

7. A credit analyst is looking at three ditterent companies-an auto company, a drug company and a mining company. The auto and mining companies are cyclical. The drug company is n…

7. A four month (120 day) call option on a certain stock has an exercise (strike

7. A four month (120 day) call option on a certain stock has an exercise (strike) price of $62 and is currently selling for $10. If the corresponding put option for this same stoc…

7. A principle of transaction balancing is that for every _________there must be

7. A principle of transaction balancing is that for every _________there must be a_________. 8. Determine the ending cash figure for this teller’s work day: Beginning cash $11,000…

7. A protective covenant: A. protects the borrower from unscrupulous practices b

7. A protective covenant: A. protects the borrower from unscrupulous practices by the lender B. is designed to protect the bond dealer from potential legal liability related to th…