Financial literacy
81314 questions • Page 283 / 1627
A young scientist has just started her career with a federal government agency.
A young scientist has just started her career with a federal government agency. She has good job security and expects consistent 5% annual salary increases. Her starting annual sa…
A young stockbroker was rather overwhelmed by a flood of new clients. Assunta, o
A young stockbroker was rather overwhelmed by a flood of new clients. Assunta, one of his clients, had purchased XYZ Corp. stock through the broker at a price of $35 per share. Th…
A zero is priced at $589. It has 8 years to the maturity. What is the yield to m
A zero is priced at $589. It has 8 years to the maturity. What is the yield to maturity of this bond? Round to the nearest hundredth percent. Do not include the percent sign in yo…
A zero-coupon bond matures in 15 years. At a market discount rate of 4.5% per ye
A zero-coupon bond matures in 15 years. At a market discount rate of 4.5% per year and assuming semi-annual compounding, what is the price of the bond? You sold the zero-coupon bo…
A “century” bond has a 6 percent coupon rate and makes semiannual payments ($30
A “century” bond has a 6 percent coupon rate and makes semiannual payments ($30 every six months). The yield to maturity is 4 percent and the maturity date is December 11, 2115. Y…
A&B Enterprises is trying to select the best investment from among four alternat
A&B Enterprises is trying to select the best investment from among four alternatives. Each alternative involves an initial outlay of $100,000. Their cash flows follow: investm…
A&B Enterprises is trying to select the best investment from among four alternat
A&B Enterprises is trying to select the best investment from among four alternatives. Each alternative involves an initial outlay of $100,000. Their cash flows follow: Evaluat…
A(n) eight-year bond has a yield of 9% and a duration of 7.204 years. If the bon
A(n) eight-year bond has a yield of 9% and a duration of 7.204 years. If the bond's yield increases by 50 basis points, what is the percentage change in the bond's price? (Input t…
A(n) seven-year bond has a yield of 8% and a duration of 7.199 years. If the bon
A(n) seven-year bond has a yield of 8% and a duration of 7.199 years. If the bond's yield changes by 25 basis points, what is the percentage change in the bond's price? (Input the…
A) 18% B)1.5% C) none since he paid for the television in full during the grace
A) 18% B)1.5% C) none since he paid for the television in full during the grace period D) none of these answers are correct t:0:58:37 Brianna Matthewson-McGary: Attempt 1 Monty cu…
A) A $1,000 par value bond bearing a 5% coupon rate payable semi-annually will b
A) A $1,000 par value bond bearing a 5% coupon rate payable semi-annually will be redeemed at 108% at the end of 7 years. Find the price to yield an investor 6% convertible semi-a…
A) A bondIs that 18. is equity that represents ownership in a company B) Stock C
A) A bondIs that 18. is equity that represents ownership in a company B) Stock C) An IPO D) An offering 19. What is meant by "flipping" properties? A) To buy, upgrade, and sell pr…
A) A bonds equity that ts ownership in a company B) Stock C) An IPO D) An offeri
A) A bonds equity that ts ownership in a company B) Stock C) An IPO D) An offering 19. What is meant by "flipping" properties? A) To buy, upgrade, and sell property over a short t…
A) A closed end investment company is currently selling $10 and its net asset va
A) A closed end investment company is currently selling $10 and its net asset value is $10.63.you decide to purchase 100 shares. During the year the company distributes $0.75 in d…
A) A closed end investment company is currently selling $10 and its net asset va
A) A closed end investment company is currently selling $10 and its net asset value is $10.63.you decide to purchase 100 shares. During the year the company distributes $0.75 in d…
A) A closed end investment company is currently selling $10 and its net asset va
A) A closed end investment company is currently selling $10 and its net asset value is $10.63.you decide to purchase 100 shares. During the year the company distributes $0.75 in d…
A) A closed end investment company is currently selling $10 and its net asset va
A) A closed end investment company is currently selling $10 and its net asset value is $10.63.you decide to purchase 100 shares. During the year the company distributes $0.75 in d…
A) A closed end investment company is currently selling $10 and its net asset va
A) A closed end investment company is currently selling $10 and its net asset value is $10.63.you decide to purchase 100 shares. During the year the company distributes $0.75 in d…
A) A new operating system for an existing machine is expected to cost $570,000 a
A) A new operating system for an existing machine is expected to cost $570,000 and have a useful life of six years. The system yields an incremental after-tax income of $215,000 e…
A) A semiannual coupon bond that matures in 7 years sells for$1,020. It has a fa
A) A semiannual coupon bond that matures in 7 years sells for$1,020. It has a face value of $1,000 and a yield to maturity of10.5883 percent. What is its current yield? B) You are…
A) A stock is expected to pay a dividend of $2.00 the end of the year (that is,
A) A stock is expected to pay a dividend of $2.00 the end of the year (that is, D1 = $2.00), and it should continue to grow at a constant rate of 10% a year. If its required retur…
A) A stock\'s beta is less relevant as a measure of risk to an investor with a w
A) A stock's beta is less relevant as a measure of risk to an investor with a well-diversified portfolio than to an investor who holds only that one stock. B) Portfolio diversific…
A) A venture pays 40% of its purchases in the current month purchases and the re
A) A venture pays 40% of its purchases in the current month purchases and the remainder 60% in the following month. If the purchases for the month of August are $10M and for the m…
A) A wealthy parent is trying to fund a trust fund for his oldest son. The paren
A) A wealthy parent is trying to fund a trust fund for his oldest son. The parent has set aside $442,400.00 today in an account that pays 6.00% annual interest. His oldest son wil…
A) As of Monday morning, the ledger balance and the available balance for a firm
A) As of Monday morning, the ledger balance and the available balance for a firm was $3,600. During the day, the firm wrote three checks in the amounts of $230, $590, and $870. Th…
A) Assume today is December 31, 2017. Barrington Industries expects that its 201
A) Assume today is December 31, 2017. Barrington Industries expects that its 2018 after-tax operating income [EBIT(1 – T)] will be $440 million and its 2018 depreciation expense w…
A) B) C) D) The_ is a technology-heavy market index Russell 2000 NASDAQ 100 Dow
A) B) C) D) The_ is a technology-heavy market index Russell 2000 NASDAQ 100 Dow Jones Industrial Average (Dow) S&P; 500 Stock Index 24. Leverage is A) the balance of debt acro…
A) Bennifer Jewelers recently issued ten-year bonds that make annual interest pa
A) Bennifer Jewelers recently issued ten-year bonds that make annual interest payments of $50. Suppose you purchased one of these bonds at par value when it was issued, then right…
A) Boehm Incorporated is expected to pay a $1.00 per share dividend at the end o
A) Boehm Incorporated is expected to pay a $1.00 per share dividend at the end of this year (i.e., D1 = $1.00). The dividend is expected to grow at a constant rate of 10% a year. …
A) Capitol Corp. management is expecting a project to generate after-tax income
A) Capitol Corp. management is expecting a project to generate after-tax income of $66,190 in each of the next three years. The average book value of the project’s equipment over …
A) Clap Off Manufacturing uses 2,300 switch assemblies per week and then reorder
A) Clap Off Manufacturing uses 2,300 switch assemblies per week and then reorders another 2,300. Assume the relevant carrying cost per switch assembly is $6.00 and the fixed order…
A) Classify in the appropriate statement: Income Statement (IS) or Balance Sheet
A) Classify in the appropriate statement: Income Statement (IS) or Balance Sheet (BS). B) Indicates the type of account that is active current (AC) current liabilities (PC), spend…
A) Compute the IRR statistic for projec tA and note whether the firm should acce
A) Compute the IRR statistic for projec tA and note whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 12%.…
A) Consider a loan of $225,000 at nominal interest rate of 6.25% for 15 years. H
A) Consider a loan of $225,000 at nominal interest rate of 6.25% for 15 years. How much of the payment during the first year goes towards interest? Assume monthly payments. $13,79…
A) Describe how dollar cost averaging affects your investment portfolio over lon
A) Describe how dollar cost averaging affects your investment portfolio over long periods of time when accumulating assets. Illustrate with an example. B) Describe how dollar cost…
A) Describe how dollar cost averaging affects your investment portfolio over lon
A) Describe how dollar cost averaging affects your investment portfolio over long periods of time when accumulating assets. Illustrate with an example. B) Describe how dollar cost…
A) Diane Carter is interested in buying a five-year zero coupon bond with a face
A) Diane Carter is interested in buying a five-year zero coupon bond with a face value of $1,000. She understands that the market interest rate for similar investments is 7.41 per…
A) Explain why debt is typically the cheapest source of financing for the firm a
A) Explain why debt is typically the cheapest source of financing for the firm and common stock the most expensive (hint – there are two reasons why debt is the cheapest…you s…
A) For ABC venture, the sales forecast for June is $10M. The July sales are fore
A) For ABC venture, the sales forecast for June is $10M. The July sales are forecasted to increase by 10% over June sales. The Cost of goods sold for all months is 60%. The firm h…
A) Given the following data on yield of 10 year Treasury Notes and 10 years TIPs
A) Given the following data on yield of 10 year Treasury Notes and 10 years TIPs (Treasury Inflation Protection Securities), what conclusion do you draw about changes in investors…
A) Hubbard Industries just paid a common dividend, D0, of $2.00. It expects to g
A) Hubbard Industries just paid a common dividend, D0, of $2.00. It expects to grow at a constant rate of 4% per year. If investors require a 9% return on equity, what is the curr…
A) If a project has “normal” cash flows, then its IRR must be positive. B) If a
A) If a project has “normal” cash flows, then its IRR must be positive. B) If a project has “normal” cash flows, then its MIRR must be positive. C) If a project has “normal” cash …
A) If you happen to know for a fact that this company sold fixed assets for $6,0
A) If you happen to know for a fact that this company sold fixed assets for $6,000 over the year, how much in fixed assets must they have purchased? B) If you happen to know for a…
A) Indigo is the largest and most successful specialty goods company based in De
A) Indigo is the largest and most successful specialty goods company based in Detroit, USA. It has not entered the Indian marketplace yet, but is considering establishing both man…
A) Landon Stevens is evaluating the expected performance of two common stocks, F
A) Landon Stevens is evaluating the expected performance of two common stocks, Furhman Labs, Inc., and Garten Testing, Inc. The risk-free rate is 5.1 percent, the expected return …
A) Management of Franklin Mints, a confectioner, is considering purchasing a new
A) Management of Franklin Mints, a confectioner, is considering purchasing a new jelly bean-making machine at a cost of $312,500. They project that the cash flows from this invest…
A) Most sinking funds require the issuer to provide funds to a trustee, who hold
A) Most sinking funds require the issuer to provide funds to a trustee, who holds the money so that it will be available to pay off bondholders when the bonds mature. B) Sinking f…
A) Now, to develop an example that can be presented to PizzaPalace’s management
A) Now, to develop an example that can be presented to PizzaPalace’s management to illustrate the effects of financial leverage, consider two hypothetical firms: Firm U, which use…
A) Preferred stock is normally expected to provide steadier, more reliable incom
A) Preferred stock is normally expected to provide steadier, more reliable income to investors than the same firm’s common stock, and, as a result, the expected after-tax yield on…
A) Project K costs $35,000, its expected cash inflows are $13,000 per year for 1
A) Project K costs $35,000, its expected cash inflows are $13,000 per year for 11 years, and its WACC is 14%. What is the project's NPV? Round your answer to the nearest cent. B) …
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