Financial literacy

1) A ratio analysis for the last fiscal year using at least two ratios from each

1)   A ratio analysis for the last fiscal year using at least two ratios from each of the following categories:                a.       Liquidity                b.      Financial …

1) A recommended technique to rnsure the accuracy of a translation a company\'s

1) A recommended technique to rnsure the accuracy of a translation a company's documents into other languages. Select one: A. common translation B. forward translation C. back tra…

1) A stock had returns of 15 percent, 16 percent, and 5 percent for the past 3 y

1) A stock had returns of 15 percent, 16 percent, and 5 percent for the past 3 years. Based on these returns, what is the probability that this stock will earn at least 18.08 perc…

1) A stock has a beta of .65, the expected return on the market is 15 percent, a

1) A stock has a beta of .65, the expected return on the market is 15 percent, and the risk-free rate is 3.40 percent. What must the expected return on this stock be? (Do not roun…

1) A stock has a beta of 1.30, the expected return on the market is 10 percent,

1) A stock has a beta of 1.30, the expected return on the market is 10 percent, and the risk-free rate is 4.6 percent. What must the expected return on this stock be? (Do not roun…

1) A stock is currently selling for $43. In one period, the stock will move up b

1) A stock is currently selling for $43. In one period, the stock will move up by a factor of 1.26 or down by a factor of 0.59. A call option with a strike price of $53 is availab…

1) A stock is expected to have a dividend next year of $2 per share. Then, divid

1)A stock is expected to have a dividend next year of $2 per share. Then, dividends are expected to grow at a rate of 10% per year for another 2 years. Then growth will slow down …

1) A stock is expected to pay a dividend of $2.20 per share in 1 months and in 4

1) A stock is expected to pay a dividend of $2.20 per share in 1 months and in 4 months. The current stock price is $51, and the risk-free interest rate is 6% per annum with conti…

1) A stock sells for $20. The next dividend will be $3 per share. If the return

1) A stock sells for $20. The next dividend will be $3 per share. If the return on equity ROE is a constant 12% and the company reinvests 50% of earnings in the firm, what must be…

1) A stock you are evaluating just paid an annual dividend of $3.00. Dividends h

1) A stock you are evaluating just paid an annual dividend of $3.00. Dividends have grown at a constant rate of 1.3 percent over the last 15 years and you expect this to continue.…

1) A stock\'s returns have the following distribution: a. Calculate the stock\'s

1) A stock's returns have the following distribution: a. Calculate the stock's expected return. Round your answer to two decimal places. _______% b. Calculate the stock's standard…

1) A stock’s beta value in statistical term is: a.its measure of diversifiable r

1) A stock’s beta value in statistical term is: a.its measure of diversifiable risk. b. The vitality of the asset in relation to the market. c.measure of acceptable risk in relati…

1) A taxable corporate issue yields 6.3 percent. For an investor in a 35 percent

1) A taxable corporate issue yields 6.3 percent. For an investor in a 35 percent tax bracket, what is the equivalent aftertax yield? (Round your answer to 2 decimal places. Omit t…

1) A ten-year bond, with par value equals $1000, pays 7% annually. If similar bo

1) A ten-year bond, with par value equals $1000, pays 7% annually. If similar bonds are currently yielding 6% annually. what is the market value of the bond? Use semi-annual analy…

1) A tender offer: D)has shares that are typically sold at a discount to the acq

1) A tender offer: D)has shares that are typically sold at a discount to the acquiring firm    2) The hedging approach: D) is useful only for analyzing working capital 3) The "syn…

1) A transportation company (Transvan) operates a fleet of 1000 vans with a flee

1) A transportation company (Transvan) operates a fleet of 1000 vans with a fleet average fuel economy (FAFE) of 20 miles per gallon (mpg). On the average, each of these vans trav…

1) ADP Corporation is reviewing its capital budget for the upcoming year and is

1) ADP Corporation is reviewing its capital budget for the upcoming year and is forecasting it would require $26,250,000 to fund all of its profitable (positive NPV) projects for …

1) According to a recent regression result, you find that GM stock has a market

1) According to a recent regression result, you find that GM stock has a market beta of 1.6, size beta of 0.3 and value beta of 0.75. Use Fama-French 3 factor model to find the ex…

1) According to the put-call parity, the following condition must be met for the

1) According to the put-call parity, the following condition must be met for the call price to be equal to the put price, when all the option factors are the same: A) Both call an…

1) Advanced Manufacturing is evaluating thhe prosposed acquisition of a new mili

1) Advanced Manufacturing is evaluating thhe prosposed acquisition of a new miling machine. The machine's base price is $155,000, and it would cost another $12,800 to modifiy if f…

1) Adventure Outfitter Corp. can sell common stock for $27 per share and its inv

1) Adventure Outfitter Corp. can sell common stock for $27 per share and its investors require a 17% return. However, the administrative or flotation costs associated with selling…

1) Agents Healthcare is negotiating a lease on a new MRI that would cost $156,00

1) Agents Healthcare is negotiating a lease on a new MRI that would cost $156,000 if purchased. The equipment falls into MACRS 3 year property class, and it would be used for 4 ye…

1) Allison just received the semiannual payment of 535 on a bond she owns. Which

1) Allison just received the semiannual payment of 535 on a bond she owns. Which tem) refers to this paryment A) Call premium B) Face valuc C) Discount Dl Cospon E) Yield 2) Bert …

1) An asset used in a four-year project falls in the five-year MACRS class for t

1) An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $6,190,000 and will be sold for $1,390,000 at the…

1) An exporter has just received a banker\'s acceptance created by an internatio

1) An exporter has just received a banker's acceptance created by an international transaction. If the banker's acceptance has a face value of $250,000 and the bank charges a comm…

1) An individual has $55,000 invested in a stock with a beta of 0.7 and another

1) An individual has $55,000 invested in a stock with a beta of 0.7 and another $40,000 invested in a stock with a beta of 1.6. If these are the only two investments in her portfo…

1) An investment has the following 6 cash flows, where the first cash flow occur

1) An investment has the following 6 cash flows, where the first cash flow occurs at time period 0. -10,000; -6,000; 8,000; 8,000; +2,000; -2,500. Is this Simple or Nonsimple?____…

1) An investment project provides cash inflows of $675 per year for eight years.

1) An investment project provides cash inflows of $675 per year for eight years. What is the project payback period if the initial cost is $1,850? What if the initial cost is $3,6…

1) An investor buys 100 shares of a $40 stock that pays an annual cash dividend

1) An investor buys 100 shares of a $40 stock that pays an annual cash dividend of $2 a share ( a 5% dividend yield) and signs up for the dividend reinvestment plan a) If neither …

1) An investor takes a long position of 10 gold futures contract. The contract s

1) An investor takes a long position of 10 gold futures contract. The contract size is 100 ounces. The gold futures price is $1,500 per ounce and the initial margin is $60 per oun…

1) Analysts predict that your company\'s earnings will grow at 40% per year for

1) Analysts predict that your company's earnings will grow at 40% per year for the next five years. After that, earnings growth is expected to slow to 2% per year and continue at …

1) Antiques R Us is a mature manufacturing firm. The company just paid a dividen

1) Antiques R Us is a mature manufacturing firm. The company just paid a dividend of $11.90, but management expects to reduce the payout by 5 percent per year indefinitely. If you…

1) Antivirus Inc. expects its sales next year to be $3,300,000. Inventory and ac

1) Antivirus Inc. expects its sales next year to be $3,300,000. Inventory and accounts receivable will increase by $560,000 to accommodate this sales level. The company has a stea…

1) Apocalyptica Corp. pays a constant $8.50 dividend on its stock. The company w

1) Apocalyptica Corp. pays a constant $8.50 dividend on its stock. The company will maintain this dividend for the next 11 years and will then cease paying dividends forever. If t…

1) Apocalyptica Corp. pays a constant $8.50 dividend on its stock. The company w

1) Apocalyptica Corp. pays a constant $8.50 dividend on its stock. The company will maintain this dividend for the next 11 years and will then cease paying dividends forever. If t…

1) As the quantity of products produced and sold increases and the total capital

1) As the quantity of products produced and sold increases and the total capital investment remains the same, the fixed cost per unit of output: increases increases to a certian l…

1) Aspen company produces widgets. August budgeted production costs are below: W

1)            Aspen company produces widgets. August budgeted production costs are below:             Widgets to be produced                 100,000             Direct material (v…

1) Asset W has an expected return of 17.3 percent and a beta of 1.85. If the ris

1) Asset W has an expected return of 17.3 percent and a beta of 1.85. If the risk-free rate is 5.0 percent, what is the market risk premium? (Do not round intermediate calculation…

1) Assume oil forward prices for 1 year, 2 years, and 3 years are 20, 21, and 22

1) Assume oil forward prices for 1 year, 2 years, and 3 years are 20, 21, and 22. The 1-year effective annual interest rate is 6%, the two year rate is 6.5%, and the 3-year rate i…

1) Assume that MM(Modigliani and Miller)\'s perfect capital markets conditions a

1) Assume that MM(Modigliani and Miller)'s perfect capital markets conditions are met and that you can borrow and lend at the same 5% rate as “W”. You have $5000 of your own money…

1) Assume that today, the annualized five-year interest rate is 18 percent. A th

1) Assume that today, the annualized five-year interest rate is 18 percent. A three-year security has an annualized interest rate of 17 percent. What is the two-year forward rate …

1) Assume that you are an investment analyst preparing an analysis of an investm

1) Assume that you are an investment analyst preparing an analysis of an investment opportunity for a client. Your client is considering the acquisition of an apartment complex fr…

1) Assume the Ghana Stocl market is expected to generate a return of 18%. Compan

1) Assume the Ghana Stocl market is expected to generate a return of 18%. Company XYZ is listed on the GSE and its returns are consistently 20% more volatile than the market. Idf …

1) Assume the spot price of pork bellies is 74.50 cents per pound and the 2-year

1) Assume the spot price of pork bellies is 74.50 cents per pound and the 2-year forward price is 77.30 cents. Annualized 1-year and 2- year YTMs are 5.0% and 5.2%, respectively. …

1) Assume the total cost of a college education will be $300,000 when your child

1) Assume the total cost of a college education will be $300,000 when your child enters college in 18 years. You presently have $71,000 to invest. What annual rate of interest mus…

1) Assume we make a valuation of the same bond 5 years from now. Required rate o

1) Assume we make a valuation of the same bond 5 years from now. Required rate of return did not change. Find the present value of all future payments, including par value, that w…

1) Assuming that the expectations theory is the correct one of the term structur

1) Assuming that the expectations theory is the correct one of the term structure, calculate the interest rates (%) in the term structure for maturities one to six years: (a) 4%, …

1) At Home Corporation is considering a new project that will generate an increm

1) At Home Corporation is considering a new project that will generate an incremental gross revenue of $2,000,000 and will incur an incremental cost of $500,000 per year for four …

1) Atlantis Fisheries issues zero coupon bonds on the market at a price of $499

1) Atlantis Fisheries issues zero coupon bonds on the market at a price of $499 per bond. Each bond has a face value of $1,000 payable at maturity in 12 years. What is the yield t…

1) BA Corp is issuing a 10-year bond with a coupon rate of 8.13 percent. The int

1) BA Corp is issuing a 10-year bond with a coupon rate of 8.13 percent. The interest rate for similar bonds is currently 4.35 percent. Assuming annual payments, what is the value…