Financial literacy

1) Consider the following two mutually exclusive projects: What is the payback p

1) Consider the following two mutually exclusive projects:          What is the payback period for each project? (Round your answers to 2 decimal places. (e.g., 32.16))          W…

1) Consider the following two mutually exclusive projects: What is the payback p

1) Consider the following two mutually exclusive projects:          What is the payback period for each project? (Round your answers to 2 decimal places. (e.g., 32.16))          W…

1) Consider two bonds with identical face value of $100 that pay semiannual coup

1) Consider two bonds with identical face value of $100 that pay semiannual coupons. You have the following information: Bond Coupon Rate Maturity YTM A 6.0% 5 years 5.5% B 7.0% 1…

1) Considering the risk around the cost point estimate, what type of contract wi

1) Considering the risk around the cost point estimate, what type of contract will generally be used for the contracted effort?    Fixed Price Contract with small variance expecte…

1) Crackle and Pop Telephone Company is considering an upgrade to their current

1) Crackle and Pop Telephone Company is considering an upgrade to their current call-waiting equipment. Their existing hardware was purchased 3 years ago for $150,000, has been de…

1) Crisps has received an order for 11500 bags of potato chips from BigBag. Cris

1) Crisps has received an order for 11500 bags of potato chips from BigBag. Crisps views BigBag to be a one-time customer. Crisps sells its large bags of potato chips for $1.95 ea…

1) Currency Call Option Premiums. List the factors that affect currency call opt

1) Currency Call Option Premiums. List the factors that affect currency call option premiums and briefly explain the relationship that exists for each. Do you think an at-the-mone…

1) Currently, yields to maturity on 1 year and 2 year us treasury securites are

1) Currently, yields to maturity on 1 year and 2 year us treasury securites are .602% and .852%. You can assume that for simplification purposes there are no coupon payments on th…

1) DW Co. stock has an annual return mean and standard deviation of 12 percent a

1) DW Co. stock has an annual return mean and standard deviation of 12 percent and 33 percent, respectively. What is the smallest expected loss in the coming year with a probabili…

1) DW Co. stock has an annual return mean and standard deviation of 12 percent a

1) DW Co. stock has an annual return mean and standard deviation of 12 percent and 33 percent, respectively. What is the smallest expected loss in the coming year with a probabili…

1) David purchased a $100,000 participating whole life policy. The annual premiu

1) David purchased a $100,000 participating whole life policy. The annual premium is $2,280. Projected dividends for the first 20 years are $15,624. The cash value after 20 years …

1) David purchased a $100,000 participating whole life policy. The annual premiu

1) David purchased a $100,000 participating whole life policy. The annual premium is $2,280. Projected dividends for the first 20 years are $15,624. The cash value after 20 years …

1) Define what is meant by the risk-return tradeoff? a. The lower the level of r

1) Define what is meant by the risk-return tradeoff? a. The lower the level of risk an investor takes the higher his returns will be b. If an investor has a portfolio with a Beta …

1) Define working capital requirement as: Receivables [(Sales/365)* average coll

1) Define working capital requirement as: Receivables [(Sales/365)* average collection period] + Inventories [One month material costs] - Payables [(Material costs/365)*average pa…

1) Describe the T-bill auction process. 2) What is the discount yield, bond equi

1) Describe the T-bill auction process. 2) What is the discount yield, bond equivalent yield, and effective annual return on a $1 million Treasury bill that currently sells at 97 …

1) Describe the functions performed by the Federal Reserve Banks. 2) The FOMC ha

1) Describe the functions performed by the Federal Reserve Banks. 2) The FOMC has instructed the FRBNY Trading Desk to purchase $750 million in U.S. Treasury securities. The Feder…

1) Determine the payback period for a proposed investment costing $50,000 as fol

1) Determine the payback period for a proposed investment costing $50,000 as follows. Year Cash flow 0 -$50,000 investment 1 $10,000 2 $12,000 3 $15,000 4 $18,000 5 $20,000 a)year…

1) Different discounted cash flow evaluation methods may provide conflicting ran

1) Different discounted cash flow evaluation methods may provide conflicting rankings of investment projects when: a. the size of investment outlays differ b. the projects have un…

1) Easy Appliances Inc. is considering a new inventory system that will cost $10

1)  Easy Appliances Inc. is considering a new inventory system that will cost $100,000.  The system is expected to generate positive cash flows over the next four years in the amo…

1) Eileen’s team was reorganized to be cross-functional, and each member is now

1) Eileen’s team was reorganized to be cross-functional, and each member is now expected to collaborate on every step of the process for updating her company’s website, including …

1) Even though most corporate bonds in the United States make coupon payments se

1) Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issu…

1) Explain what the World Bank and the IMF are and the goals of both. 2) What ar

1) Explain what the World Bank and the IMF are and the goals of both. 2) What are a fixed exchange rate and a floating exchange rate? 3) If the U.S. Federal Reserve Bank increases…

1) Explain why the NPV of a relatively long-term project, defined as one for whi

1) Explain why the NPV of a relatively long-term project, defined as one for which a high percentage of its cash flows are expected in the distant future, is more sensitive to cha…

1) Facility has an aging cooling system which currently runs 80% of the time the

1) Facility has an aging cooling system which currently runs 80% of the time the plant is open .The cost of operating the cooling system is expected to increase 8% per yer since t…

1) Falling interest rates a. are a long term financial risk for firms. b. increa

1) Falling interest rates a. are a long term financial risk for firms. b. increases the WACC. c. increase the value of already issued bonds. d. are a short term operational risk f…

1) Far Side Corporation is expected to pay the following dividends over the next

1) Far Side Corporation is expected to pay the following dividends over the next four years: $14, $10, $8, and $4. Afterward, the company pledges to maintain a constant 5 percent …

1) Financial management deals with the maintenance and creation of economic valu

1) Financial management deals with the maintenance and creation of economic value or wealth. Answer: True 2) Each financial decision made by a corporate manager can be evaluated b…

1) Firm A has a Degree of Operating Leverage (DOL) of 2.0. Firm B has a DOL of 3

1) Firm A has a Degree of Operating Leverage (DOL) of 2.0. Firm B has a DOL of 3.0. In comparing Firm A to Firm B, you would expect that Firm A would have ______ fixed costs relat…

1) First National Bank charges 14.5 percent compounded monthly on its business l

1) First National Bank charges 14.5 percent compounded monthly on its business loans. First United Bank charges 14.8 percent compounded semiannually. Calculate the EAR for First N…

1) Fletcher Publishing\'s stock currently trades at $45.50 per share. At the end

1) Fletcher Publishing's stock currently trades at $45.50 per share. At the end of the year, Fletcher is expected to pay an annual dividend of $4.40 per share (D1 = $4.40), and th…

1) Fletcher\'s Publishing\'s stock currently trades at $45.50 per share. At the

1) Fletcher's Publishing's stock currently trades at $45.50 per share. At the end of the year, Fletcher is expected to pay an annual dividend of $4.25 per share (D1 = $4.25), and …

1) Flood insurance can be purchased through any licensed property or casualty in

1) Flood insurance can be purchased through any licensed property or casualty insurance agent or from some direct writing insurers. Some insurers actually issue the flood insuranc…

1) Fooling Company has a 11.4 percent callable bond outstanding on the market wi

1) Fooling Company has a 11.4 percent callable bond outstanding on the market with 25 years to maturity, call protection for the next 10 years, and a call premium of $25. What is …

1) For the following company, what is the correct weight of the company\'s commo

1) For the following company, what is the correct weight of the company's common stock? Preferred stock $350 million, Bonds $400 million, Common $685 million. Question 1 options: …

1) For venture ZA, the beginning cash amounts for the months of October and Nove

1) For venture ZA, the beginning cash amounts for the months of October and November are $25,000 and $30,000 respectively. The total sales are $200,000 and $300,000 for the months…

1) Frank had income of $105,000 during 2016 and is single, given the following m

1) Frank had income of $105,000 during 2016 and is single, given the following marginal tax rates, how much federal tax will she owe (these are not the actual rates)? Below $10,00…

1) Friendly’s Quick Loans, Inc., offers you $6.00 today but you must repay $7.85

1) Friendly’s Quick Loans, Inc., offers you $6.00 today but you must repay $7.85 when you get your paycheck in one week (or else). Requirement 1: What is the effective annual retu…

1) Garage, Inc., has identified the following two mutually exclusive projects: W

1) Garage, Inc., has identified the following two mutually exclusive projects:        What is the IRR for each of these projects? (Do not round intermediate calculations and round…

1) Gina owns an office building in which she conducts her accounting practice. S

1) Gina owns an office building in which she conducts her accounting practice. She is considering selling the building to a trust and leasing it back. This sale/leaseback would ha…

1) Give an example of a capital budgeting decision and a financing decision. 2)

1) Give an example of a capital budgeting decision and a financing decision. 2) What is the appropriate decision criterion for financial managers to use when selecting a capital p…

1) Given an expected market return of 12.0%, a beta of 0.75 for Benson Industrie

1) Given an expected market return of 12.0%, a beta of 0.75 for Benson Industries, and a risk-free rate of 4.0%, what is the expected return for Benson Industries?      1) ______&…

1) Given that short-term interest rates typically fluctuate less than long-term

1) Given that short-term interest rates typically fluctuate less than long-term rates, interest rate risk is least for... a. treasury bills b. common stock c. long-term government…

1) Given the following data, what is the value of the ending inventory as determ

1) Given the following data, what is the value of the ending inventory as determined by the FIFO method? Sales 280 Units Beginning Inventory 260 Units at $5 per unit Purchases 108…

1) Given the following information, leverage will add how much value to the unle

1) Given the following information, leverage will add how much value to the unlevered firm per dollar of debt? Corporate tax rate: 34% Personal tax rate on income from bonds: 20% …

1) Given the following information: Guaranteed Contract Premium Guaranteed Death

1)     Given the following information: Guaranteed Contract Premium Guaranteed Death Benefit Projected Dividend Projected Cash Value Term Premium Life_Premium Minus Term_Premium a…

1) Given the information below for HooYah! Corporation, compute the expected sha

1) Given the information below for HooYah! Corporation, compute the expected share price at the end of 2011 using price ratio analysis. (Round your answer to 2 decimal places. Omi…

1) Given the information below for HooYah! Corporation, compute the expected sha

1) Given the information below for HooYah! Corporation, compute the expected share price at the end of 2011 using price ratio analysis. (Round your answer to 2 decimal places. Omi…

1) Given the information below for HooYah! Corporation, compute the expected sha

1) Given the information below for HooYah! Corporation, compute the expected share price at the end of 2011 using price ratio analysis. (Round your answer to 2 decimal places. Omi…

1) Given the numbers: 1, 3, 5, 7, 8 what are the average and the median? a. Aver

1) Given the numbers: 1, 3, 5, 7, 8 what are the average and the median?     a. Average = 4.8; Median = 5.0     b. Average = 5.0; Median = 5.0     c. Average = 4.8; Median = 4.8  …

1) Go to http://finance.yahoo.com and get a quote for one company of your choice

1) Go to http://finance.yahoo.com and get a quote for one company of your choice. On the left column, scroll down and select Income Statement. Write down the annual sales and cost…