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Financial literacy

81314 questions • Page 219 / 1627

A US based multinational corporation(MNC) currently has an investment portfolio
A US based multinational corporation(MNC) currently has an investment portfolio that includes Japanese securities valued at 10,000,000 yen. the company also owes its Japanese supp…
A US company has bought a machine worth 3 million euros from a German manufactur
A US company has bought a machine worth 3 million euros from a German manufacturer with payment due in three months. The treasurer finds that DeutscheUSA (a fictitious name), a la…
A US company holds a volatile portfolio of European stocks which is expected to
A US company holds a volatile portfolio of European stocks which is expected to be sold in one year with a proceed of e10 million. Current spot rate: sos/e $1.1000, Interest rate …
A US company is considering building a UK plant. The Initial capital outlay is G
A US company is considering building a UK plant. The Initial capital outlay is GBP (British Pounds) 20 million on plant and machinery.The plant will produce 60,000 items in year 1…
A US company is considering building a UK plant. The Initial capital outlay is G
A US company is considering building a UK plant. The Initial capital outlay is GBP (British Pounds) 20 million on plant and machinery.The plant will produce 60,000 items in year 1…
A US company is considering building a UK plant. What is the APV? 1. Initial cap
A US company is considering building a UK plant. What is the APV? 1. Initial capital outlay: GBP 20 million on plant and machinery. 2. The plant will produce 60,000 items in year …
A US company is considering building a UK plant. What is the APV? Blow are the i
A US company is considering building a UK plant. What is the APV? Blow are the information provided: 1. Initial capital outlay: GBP 20 million on plant and machinery. 2. The plant…
A US company is considering building a UK plant. What is the APV? Blow are the i
A US company is considering building a UK plant. What is the APV? Blow are the information provided: 1. Initial capital outlay: GBP 20 million on plant and machinery. 2. The plant…
A US company is considering building a UK plant. What is the adjusted present va
A US company is considering building a UK plant. What is the adjusted present value (APV)? Step1. Calculate Present Value of After Tax Cash Flow Step2. Present Value of Depreciati…
A US company plans to sell internationally to Brazil. Selling internationally wi
A US company plans to sell internationally to Brazil. Selling internationally will help the business grow as selling to US companies is dwindling. The US company sold to the Brazi…
A US importer is concerned about the appreciation of EUR against USD due to EUR
A US importer is concerned about the appreciation of EUR against USD due to EUR payables of EUR210,000,000 in three months. To hedge the position, importer decides to use futures …
A US importer, who incurs costs in Euros and bills its customers in USD, is conc
A US importer, who incurs costs in Euros and bills its customers in USD, is concerned about the depreciation of USD against Euro due to EURO payables of 25,000,000 in a month. To …
A US investor wants to buy £s spot, invest in the UK for 3 months and then sell
A US investor wants to buy £s spot, invest in the UK for 3 months and then sell the proceeds in the spot market. The 3 month interest rate in UK is 1.25% (0.0125), today’s spot ra…
A Virginia county is considering whether to pay $50,000 per year to lease a pris
A Virginia county is considering whether to pay $50,000 per year to lease a prisoner transfer facility in a prime location near Washington, D.C. They estimate it will cost $50 per…
A WOMAN HAS A JOB WITH AN ANNUAL SALARY OF $55000.00 PER YEAR. HER SALARY IS EXP
A WOMAN HAS A JOB WITH AN ANNUAL SALARY OF $55000.00 PER YEAR. HER SALARY IS EXPECTED TO INCREASE AT 3% PER YEAR UNTIL RETIREMENT. HER CURRENT AVERAGE TAX RATE IS 26% SHE IS PRESE…
A WOMAN HAS A JOB WITH AN ANNUAL SALARY OF $55000.00 PER YEAR. HER SALARY IS EXP
A WOMAN HAS A JOB WITH AN ANNUAL SALARY OF $55000.00 PER YEAR. HER SALARY IS EXPECTED TO INCREASE AT 3% PER YEAR UNTIL RETIREMENT. HER CURRENT AVERAGE TAX RATE IS 26% SHE IS PRESE…
A We want to retire in 30 years, and we shall need $50,000 income per annum duri
A We want to retire in 30 years, and we shall need $50,000 income per annum during our retirement which will last 20 years. We can save $20,000 annually during the first ten years…
A Yellow Pages Directory company mustdecide whether to compose their own ads or
A Yellow Pages Directory company mustdecide whether to compose their own ads or pay an outside firm todo them.They can buy them outside for $21.00 per ad. If they chooseto do them…
A You purchased an investment which in 5 years doubled. Whatrate of return did y
A You purchased an investment which in 5 years doubled. Whatrate of return did you earn over these five years? B A share of IBM stock is purchased by anindividual investor for $75…
A ________-Weighted Index and a ________-Weighted Index are equivalent to the va
A ________-Weighted Index and a ________-Weighted Index are equivalent to the value of a portfolio of N assets where we simply buy one "share" of each asset. A ________-Weighted I…
A __________ consists of individuals and firms involved in the process of making
          A __________ consists of individuals and firms involved in the process of making a good or service available for use or consumption by consumers or industrial users.    …
A and B are mutually exclusive projects. The required rate of return is 10%. The
A and B are mutually exclusive projects. The required rate of return is 10%. The cutoff period is 2 years. Year Project A Project B 0 -$1,000 -$1,000 1 500 100 2 400 300 3 300 400…
A and B have same distribution of loss as follow: Outcome $20,000 Probability Lo
A and B have same distribution of loss as follow: Outcome $20,000 Probability Loss 0.01 Outcome $0 Probability Loss 0.99 1. Calculate the expected loss and expected standard devia…
A and B have same distribution of loss as follow: Outcome Probability Loss $20,0
A and B have same distribution of loss as follow: Outcome Probability Loss $20,000 0.01 $0 0.99 1. Calculate the expected loss and expected standard deviation for either A or B 2.…
A and B have the following historical returns: Year 2004: -16.80% (stock A\'s Re
A and B have the following historical returns: Year 2004: -16.80% (stock A's Returns) , -12.20% (stock B's return) Year 2005: 36.75 % (stock A's return), 21.70 (stock B's return) …
A and B is 0.35, what are the expected return and standard deviation for a portf
A and B is 0.35, what are the expected return and standard deviation for a portfolio comprised of 30 percent asset A and 70 percent asset B? A 10-year Treasury bond with par value…
A bakery company is considering one capital budgeting project involving the repl
A bakery company is considering one capital budgeting project involving the replacement of a sophisticated brick oven, and another capital budgeting project involving research and…
A bakery company is considering one capital budgeting project involving the repl
A bakery company is considering one capital budgeting project involving the replacement of a sophisticated brick oven, and another capital budgeting project involving research and…
A bakery makes chocolate-covered cherries that are world famous. The seven step
A bakery makes chocolate-covered cherries that are world famous. The seven step process includes: 1) selecting cherries and boiling them in a sugary sauce, 2) pouring a small amou…
A balance sheet shows a total of noncallable $41 million long-term debt with a c
A balance sheet shows a total of noncallable $41 million long-term debt with a coupon rate of 8.10% and a yield to maturity of 8.50%. This debt currently has a market value of $52…
A bank buys 150 shares of a company on 1 January 2012 at a price of $156.30 per
A bank buys 150 shares of a company on 1 January 2012 at a price of $156.30 per share. A dividend of $10 per share is paid on 1 January 2013. Assume that this dividend is not rein…
A bank currently has $700,000 in deposits, of which $60,000 is in cash in the va
A bank currently has $700,000 in deposits, of which $60,000 is in cash in the vault, $120,000 is on deposit with the Fed, $70,000 is held in government securities, and the rest ha…
A bank grants 30 year mortgages for a total amount of 100 million. These mortage
A bank grants 30 year mortgages for a total amount of 100 million.  These mortages require payments of coupons of 10% at the quarterly basis.  Consider now a 30 year Collateralied…
A bank had the following balance sheet during 2017. Also shown are the interest
A bank had the following balance sheet during 2017. Also shown are the interest rates: Assets                            amount ($mm)                  rate, % Business Loans 50   …
A bank has $140 million in assets, $120 million in liabilities and $20 million i
A bank has $140 million in assets, $120 million in liabilities and $20 million in shareholders' equity. The bank’s liabilities are mainly deposits, and these have an estimated dur…
A bank has $200 in checking deposits.Interest and noninterest costs on these acc
A bank has $200 in checking deposits.Interest and noninterest costs on these accounts are 4%.This bank has $400 in savings and time deposits with interest and noninterest costs of…
A bank has $250 million in total reserves, of which $10 million are excess reser
A bank has $250 million in total reserves, of which $10 million are excess reserves. The bank currently has $3.575 billion in loans, $0.965 billion in securities, and $144 million…
A bank has $500 million in checking deposits with interest and noninterest costs
A bank has $500 million in checking deposits with interest and noninterest costs of 6%, $250 million in savings and time deposits with interest and non-interest costs of 14%, and …
A bank has an average balance of transactions accounts, August 10 to 23, of $824
A bank has an average balance of transactions accounts, August 10 to 23, of $824.46 million. The average balance in the cash account is $42.014 million over this period. The bank …
A bank has been asked to provide a three-month forward EUR/USD ‘buy\' quote for
A bank has been asked to provide a three-month forward EUR/USD ‘buy' quote for a corporate client. The following information is available to the FX dealer at the bank: Bid Offer  …
A bank has decided to purchase an ATM (automated teller machine) for $110,000 th
A bank has decided to purchase an ATM (automated teller machine) for $110,000 that has an estimated life of 6 years and can be depreciated to no value during its useful life. Main…
A bank has determined that its marginal cost of raising funds is 4.5 percent and
A bank has determined that its marginal cost of raising funds is 4.5 percent and that its nonfunds costs to the bank are 0.5 percent. It has also determined that its margin to com…
A bank has hired you as a consultant to advise it on its interest rate exposure.
A bank has hired you as a consultant to advise it on its interest rate exposure. The bank has an asset portfolio of $1,000,000 with a duration of five years, and the portfolio is …
A bank has issued a six-month, $1.7 million negotiable CD with a 0.52 percent qu
A bank has issued a six-month, $1.7 million negotiable CD with a 0.52 percent quoted annual interest rate (iCD, sp). a. Calculate the bond equivalent yield and the EAR on the CD. …
A bank has placed 5000 consumer loans in a package to be securitized. These loan
A bank has placed 5000 consumer loans in a package to be securitized. These loans have an annual yield of 15.25 percent. This bank estimates that the securities on these loans are…
A bank has the following assets: Required Reserves of $5 million; Loans of $150
A bank has the following assets: Required Reserves of $5 million; Loans of $150 million; Securities of $50 million. The bank's liabilites are: Deposits of $140 million, Borrowed f…
A bank has the following assets: Required Reserves of $5 million; Loans of $150
A bank has the following assets: Required Reserves of $5 million; Loans of $150 million; Securities of $50 million. The bank's liabilites are: Deposits of $140 million, Borrowed f…
A bank in Heidelberg Germany has €400 million in assets in the 0 percent risk we
A bank in Heidelberg Germany has €400 million in assets in the 0 percent risk weight category, €1000 million in assets in the 20 percent risk weight category, €5000 million in ass…
A bank in Venezuela borrows $5 million in U.S. dollars, promising to repay the l
A bank in Venezuela borrows $5 million in U.S. dollars, promising to repay the loan plus 6% interest at the end of the year. The currency in Venezuela is the “bolivar.” The bank c…
A bank is considering adding security brokerage services to the services it offe
A bank is considering adding security brokerage services to the services it offers. It has estimated that the expected return and standard deviation of its traditional service are…