Financial literacy
81314 questions • Page 225 / 1627
A cash flow series is increasing geometrically at the rate of 9% per year. The i
A cash flow series is increasing geometrically at the rate of 9% per year. The initial payment at EOY 1 is $4,000, with increasing annual payments ending at EOY 20. The interest r…
A casino is considering issuing 500 $1,000 face value bond with a 30-year maturi
A casino is considering issuing 500 $1,000 face value bond with a 30-year maturity and a coupon rate of 7.0000% p.a. paying annual coupons. The casino currently has a Standard &am…
A casino is undergoing a major extension. The expansion will be financed by issu
A casino is undergoing a major extension. The expansion will be financed by issuing new 15-year, $1,000 par, 8% annual Coupon bonds. The market price of the bond is $1,100 each. T…
A cement manufacturer has supplied the following data: Tons of cement produced a
A cement manufacturer has supplied the following data: Tons of cement produced and sold 245,000 Sales revenue $1,078,000 Variable manufacturing expense $424,000 Fixed man…
A certain company has historical records that show that: 20% of its customers pa
A certain company has historical records that show that: 20% of its customers pay in the first month after being invoiced 42% of its customers pay in the second month after being …
A certain engine lathe can be purchased for $150,000 and depreciated over three
A certain engine lathe can be purchased for $150,000 and depreciated over three years to a zero salvage value with the SL method. This machine will produce metal parts that will g…
A certain fluidized-bed combustion vessel has an investment cost of $100,000, a
A certain fluidized-bed combustion vessel has an investment cost of $100,000, a life of 10 years. and negligible market (resale) value Annual costs of materials, maintenance, and …
A certain fluidized-bed combustion vessel has an investment cost of $88,000, a l
A certain fluidized-bed combustion vessel has an investment cost of $88,000, a life of 8 years, and negligible market (resale) value. Annual costs of materials, maintenance, and e…
A certain grocery store has noted the following figures with regard to the numbe
A certain grocery store has noted the following figures with regard to the number of people who arrive at its three checkout stands ready to check out, and the time it takes to ch…
A certain hospital situated in a rural area, experiences constant electricity an
A certain hospital situated in a rural area, experiences constant electricity and water shortages to the extent that the hospital management decided to solve the problem "in house…
A certain retailer\'s credit contract designates the rule of 78 for computing un
A certain retailer's credit contract designates the rule of 78 for computing unearned interest and imposes a "prepayment penalty." In case of any payoff earlier than the due date,…
A certain stock has a price of $110.00 now. Tomorrow, it will be worth eitherexa
A certain stock has a price of $110.00 now. Tomorrow, it will be worth eitherexactly $ 150.00, or exactly $ 50. (Assume r = 0.) 150 110 …
A certificate of deposit represents: A. A promissory note of payment by the issu
A certificate of deposit represents: A. A promissory note of payment by the issuing institution to the investor. B. A time deposit of a state government with the federal governmen…
A charitable organization has issued a bond that gives the holder the option to
A charitable organization has issued a bond that gives the holder the option to cash in the principal as either £10,000 or €20,000. This asset can be viewed as a £10,000 bond plus…
A charter fishing boat operating out of Port Aransas on the Gulf coast has recor
A charter fishing boat operating out of Port Aransas on the Gulf coast has recorded the no-show experience show below over the past 20 excursions. To avoid the opportunity of losi…
A check-cashing store is in the business of making personal loans to walk-up cus
A check-cashing store is in the business of making personal loans to walk-up customers. The store makes only one-week loans at 6.5 percent interest per week. What APR must the …
A chemical company bought a small vessel for $550,000; it is to be depreciated b
A chemical company bought a small vessel for $550,000; it is to be depreciated by MACRS depreciation. When requirements changed suddenly, the chemical company leased the vessel to…
A chemical engineer working for a large chemical products company was asked to m
A chemical engineer working for a large chemical products company was asked to make a recommendation about which of 3 mutually exclusive revenue alternatives should be selected fo…
A chemical engineer working for a large chemical products company was asked to m
A chemical engineer working for a large chemical products company was asked to make a recommendation about which of three mutually exclusive revenue alternatives should be selecte…
A chemical manufacturing company produces three types of industrial solvents, S-
A chemical manufacturing company produces three types of industrial solvents, S-1,S-2, and S-3. The profits per thousand gallons for the three solvents are $300, $500, and $800 re…
A child has cancer. The family physicians recommend chemotherapy treatment as th
A child has cancer. The family physicians recommend chemotherapy treatment as the only possible cure. The mother and father refuse the treatment and say they are going to take the…
A child is born this year. On it\'s first birthday [after 1 year], the parents d
A child is born this year. On it's first birthday [after 1 year], the parents decide to deposit an equal annual contribution to the college fund that will earn 8%, compounded annu…
A city has decided to build a softball complex and the city council has already
A city has decided to build a softball complex and the city council has already voted to fund the project at the level of $ 800,000 (initial capital equipment). The city engineer …
A city has decided to build a softball complex and the city council has already
A city has decided to build a softball complex and the city council has already voted to fund the project at the level of $800,000 (initial capital equipment). The city engineer h…
A city has finance a local proars. Aject with a $600000 bond issue with a coupon
A city has finance a local proars. Aject with a $600000 bond issue with a coupon rate of 6% compounded semi-annually. The bonds are redeemable in 13 years. At the same time, a sin…
A city water and waste-water department has a four-year-old sludge pump that was
A city water and waste-water department has a four-year-old sludge pump that was initially purchased for $50,000. This pump can be kept in service for an additional four years, or…
A city\'s recreation and parks department needs to expand an existing public spo
A city's recreation and parks department needs to expand an existing public sports complex. The city engineer determines the following life cycle cost estimates: Initial costructi…
A cleaning and repair firm that wants to generate business during low demand per
A cleaning and repair firm that wants to generate business during low demand periods would do best to offer which of the following? Edu…
A client (Janet and John Smith) of yours would like you to help them prepare an
A client (Janet and John Smith) of yours would like you to help them prepare an investment policy statement for a retirement portfolio, which would be managed by a portfolio manag…
A client has come to you inquiring about establishing a contingency fund for eme
A client has come to you inquiring about establishing a contingency fund for emergency purposes. She tells you that safety of principal is very important but so, too, is the possi…
A client is on vacation and goes out bicycling. During the excursion, his wallet
A client is on vacation and goes out bicycling. During the excursion, his wallet falls out of his pants. He realizes the loss shortly after when stopping for an afternoon glass of…
A client of Mr. Richards wants to purchase a large commercial building. The buil
A client of Mr. Richards wants to purchase a large commercial building. The building cost $20 million and he will make a down payment of 15% and finance the rest with a local bank…
A client, Marta Gomez has come to you. On the basis of an analysis of past retur
A client, Marta Gomez has come to you. On the basis of an analysis of past returns and inflationary expectations, she feels that the expected return on stocks is 12%. The risk-fre…
A clinic at unniversity is run as a profit center. The dean of student services
A clinic at unniversity is run as a profit center. The dean of student services was reviewing the expenses on last month's financial report for the clinic, which also treated non-…
A clinic has obtained the following estimates for its costs of debt and equity a
A clinic has obtained the following estimates for its costs of debt and equity at various capital structures: % Debt After-tax Cost of Debt Cos…
A clinic’s management team has estimated the NPV for a proposed project at $15,0
A clinic’s management team has estimated the NPV for a proposed project at $15,000. All else held constant, which of the following would increase the project’s estimated NPV? An i…
A closed-end fund has total assets of $315 million and liabilities of $160,000.
A closed-end fund has total assets of $315 million and liabilities of $160,000. Currently, 16 million shares are outstanding. What is the NAV of the fund? If the shares currently …
A closed-end fund has total assets of $390 million and liabilities of $210,000.
A closed-end fund has total assets of $390 million and liabilities of $210,000. Currently, 21 million shares are outstanding. What is the NAV of the fund? If the shares currently …
A closed-end fund has total assets of $495 million and liabilities of $280,000.
A closed-end fund has total assets of $495 million and liabilities of $280,000. Currently, 28 million shares are outstanding. What is the NAV of the fund? If the shares currently …
A closed-end fund starts the year with a net asset value of $14. By year-end, NA
A closed-end fund starts the year with a net asset value of $14. By year-end, NAV equals $14.30. At the beginning of the year, the fund is selling at a 4% premium to NAV. By the e…
A closed-end fund starts the year with a net asset value of $22.00. By year-end,
A closed-end fund starts the year with a net asset value of $22.00. By year-end, NAV equals $22.20. At the beginning of the year, the fund was selling at a 1.5% premium to NAV. By…
A clothing chain is considering two different locations for a new retail outlet.
A clothing chain is considering two different locations for a new retail outlet. They have identified the four factors listed in the following table as the basis for evaluation, a…
A clothing manufacturer anticipates that the market for a certain popular T-shir
A clothing manufacturer anticipates that the market for a certain popular T-shirt will continue to be strong for a few years. The manufacturer, accordingly, is considering the pur…
A coffee machine may be defective because it dispenses the wrong amount of coffe
A coffee machine may be defective because it dispenses the wrong amount of coffee (C) and / or it dispenses the wrong amount of sugar (S). The probabilities of these defects are: …
A coin sold at auction in 2017 for $3,450,000. The coin had a face value of $10
A coin sold at auction in 2017 for $3,450,000. The coin had a face value of $10 when it was issued in 1789 and had previously been sold for $395,000 in 1973. At what annual rate d…
A coin sold at auction in 2017 for $4,120,500. The coin had a face value of $20
A coin sold at auction in 2017 for $4,120,500. The coin had a face value of $20 when it was issued in 1786 and had previously been sold for $395,000 in 1968. At what annual rat…
A coin that was featured in a famous novel sold at auction in 2014 for $4,687,00
A coin that was featured in a famous novel sold at auction in 2014 for $4,687,000. The coin had a face value of $1 when it was issued in 1787 and had previously been sold for $290…
A coin that was featured in a famous novel sold at auction in 2014 for $6.788.00
A coin that was featured in a famous novel sold at auction in 2014 for $6.788.000. The coin had a face value of $5 when it was issued in 1790 and had previously been sold for $280…
A coin that was featured in a novel sold at auction in 2014 for $2, 591, 000. Th
A coin that was featured in a novel sold at auction in 2014 for $2, 591, 000. The coin had a face value of $5 when it was issued in 1785 and had previously been sold for $165, 000…
A collar is established by buying a share of stock for $50, buying a six-month p
A collar is established by buying a share of stock for $50, buying a six-month put option with exercise price $45, and writing a six-month call option with exercise price $55. Bas…
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