Financial literacy

1) Goofy Gas Works has bonds that mature in 10 years The bonds have a 10% coupon

1) Goofy Gas Works has bonds that mature in 10 years The bonds have a 10% coupon rate paid quarterly. They have a before tax cost of debt of 8% and a tax bracket of 35% What is th…

1) Green Thumb Nursery has 6,000 shares of stock outstanding at a market price o

1) Green Thumb Nursery has 6,000 shares of stock outstanding at a market price of $20 a share. The earnings per share are $1.62. The firm has total assets of $315,000 and total li…

1) HNE Enterprises is considering the following project with the following annua

1) HNE Enterprises is considering the following project with the following annual cash flows. Year 0 1 2 3 4 Cash Flow -$10 $9 $2 $3 -$5 a) What is the payback period for this pro…

1) HUD, Co. had a beginning retained earnings of $31,775. For the year, the comp

1) HUD, Co. had a beginning retained earnings of $31,775. For the year, the company had net income of $8,290 and paid dividends of $3,500. The company also issued $5,900 in new st…

1) Harrison Corporation is interested in acquiring Van BurenCorporation. Assume

1) Harrison Corporation is interested in acquiring Van BurenCorporation. Assume that the risk-free rate of interest is 5percent and the market risk premium is 6 percent. Harrison …

1) Heath Food’s bonds have 8 years remaining to maturity. The bonds the face val

1)   Heath Food’s bonds have 8 years remaining to maturity. The bonds the face value $1000 and yield to maturity of 8%. The pay interest annually and have a 9% coupon rate. a) Wha…

1) Hedging With Currency Derivatives. Assume that U.S. firms that have no other

1) Hedging With Currency Derivatives. Assume that U.S. firms that have no other foreign transactions anticipate the forward purchase transaction. What are possible ways to hedge t…

1) Helen received an inheritance of $200,000. She invested the entire amount and

1) Helen received an inheritance of $200,000. She invested the entire amount and expects a yearly return of 10% per annum on her investment and she will receive 150 equal monthly …

1) Hi, this is part 2. Appreciate with your help and answers. Thanks 2) 3) 4) 5)

1) Hi, this is part 2. Appreciate with your help and answers. Thanks 2) 3) 4) 5) Use the following information to answer this question Windswept, Inc. 2010 Income Statement ($ in …

1) Hickman & Reid manufactures hand-sewn silk ties. The Company applies overhead

1) Hickman & Reid manufactures hand-sewn silk ties. The Company applies overhead using direct labor hours as the application base. The direct labor quantity standard for makin…

1) HotFoot Shoes would like to maintain its cash account at a minimum level of $

1) HotFoot Shoes would like to maintain its cash account at a minimum level of $26,000, but expects the standard deviation in net daily cash flows to be $4,100, the effective annu…

1) How do B2B companies use the Internet (3 major ways)? 2. how B2B companies ut

1) How do B2B companies use the Internet (3 major ways)? 2. how B2B companies utilize the internet in their marketing efforts. Provide a marketing example. You can cite social med…

1) How does the primary function of an insurance company compare with that of a

1) How does the primary function of an insurance company compare with that of a depositary institution? 2) What is the adverse selection problem? How does adverse selection affect…

1) How long will it take (pick the closest answer) to double your money (eg grow

1) How long will it take (pick the closest answer) to double your money (eg grow $100 to S200 can invest at a rate of 15% per year? you a) 5 years b) 7 years c) 10 years d) 15 yea…

1) How would I find the APR of a purchase of a car for $35,000 at 2.9% add-on ra

1) How would I find the APR of a purchase of a car for $35,000 at 2.9% add-on rate for 6 years? 2) How would I find the future value for an account with $5,000 invested at a rate …

1) Hurricane Corporation expects to grow its dividend by 5% per year. The curren

1) Hurricane Corporation expects to grow its dividend by 5% per year. The current dividend is $2 per share. The required return is 8%. A.                What is the estimated valu…

1) IBIS Corporation has had dividends grow from $2.50 per share to $6.00 per sha

1) IBIS Corporation has had dividends grow from $2.50 per share to $6.00 per share over the last 10 years (the $6.00 per share dividend was paid yesterday; that is, D0 = $6.00). T…

1) If 10-year T-bonds have a yield of 6.2%, 10-year corporate bonds yield 8.5%,

1) If 10-year T-bonds have a yield of 6.2%, 10-year corporate bonds yield 8.5%, the maturity risk premium on all 10-year bonds is 1.3%, and corporate bonds have a 0.4% liquidity p…

1) If a firm is unlevered and has a cost of equity capital 9%, what would the co

1) If a firm is unlevered and has a cost of equity capital 9%, what would the cost of equity be if the firms became levered at a debt-equity ratio of 5? The expected cost of debt …

1) If an investor can buy-and-hold a tax advantage (i.e., tax exempt) security t

1) If an investor can buy-and-hold a tax advantage (i.e., tax exempt) security that yields 6.25% and faces a marginal tax rate of tax rate of 20%, what rate of return must be earn…

1) If everything else is assumed constant, as the investor\'s required rate of r

1) If everything else is assumed constant, as the investor's required rate of return decreases, the value of a security _____. stays the same increases decreases has no relation t…

1) If market interest rates decline: a) Short-term bonds will decline in value m

1) If market interest rates decline: a) Short-term bonds will decline in value more than long-term bonds. b) Short-term bonds will rise in value more than long-term bonds. c) Long…

1) If market interest rates rise: a) Long-term bonds will rise in value more tha

1) If market interest rates rise: a) Long-term bonds will rise in value more than short-term bonds. b) Long-term bonds will decline in value more than short-term bonds. c) Short-t…

1) If the beta of Microsoft is 1.11, risk-free rate is 3% and the market risk pr

1) If the beta of Microsoft is 1.11, risk-free rate is 3% and the market risk premium is 8%, calculate the expected return for Microsoft. 2)If the standard deviation of returns of…

1) If the beta of Microsoft is 1.11, risk-free rate is 3% and the market risk pr

1) If the beta of Microsoft is 1.11, risk-free rate is 3% and the market risk premium is 8%, calculate the expected return for Microsoft. 2)If the standard deviation of returns of…

1) If the discount rate is 9 percent, what is the present value of these cash fl

1) If the discount rate is 9 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g.…

1) If the vacancy and collection loss percentage increases then the NPV will a.

1) If the vacancy and collection loss percentage increases then the NPV will a. increase b. decrease c. stay the same 2)If the operating expenses decrease then the NPV will a. inc…

1) If you begin saving $2,000/year at 5% for 9 years, what will these funds grow

1) If you begin saving $2,000/year at 5% for 9 years, what will these funds grow to in this time period? $11,970 $19,000 $22,054 $30,500 2) Investing $3,600/year for 30 years at 1…

1) If you have a loan with a 24% interest rate this past year and inflation was

1) If you have a loan with a 24% interest rate this past year and inflation was 14%, what was the real rate of interest you paid on the loan using the approximation formula? 2)Wha…

1) If you invest $3,200 per year for 30 years and earn an annual return of 10%,

1) If you invest $3,200 per year for 30 years and earn an annual return of 10%, how much will you have at the end of 30 years? 2) You have a choice of three investments, all of wh…

1) If you save $165/mo. for the next 42 years at 12.5% how much will you have at

1) If you save $165/mo. for the next 42 years at 12.5% how much will you have at the end of 42 years? 2) If you borrow $105,000 to buy a house at 6.75% what will be the monthly pa…

1) If you wanted to have $10950 saved up by the end of the year, what amount wou

1) If you wanted to have $10950 saved up by the end of the year, what amount would you need to save on a daily basis? Consider 365 days a year a) $30.42 b) $ 60.84 c) $30 d) $60 2…

1) If you were to start saving $5,000/year at age 20 for 15 years (a total savin

1) If you were to start saving $5,000/year at age 20 for 15 years (a total savings on your part of $75,000), and didn't touch it until you retired at age 70 (35 years later), and …

1) If your portfolio is invested 38 percent each in A and B and 24 percent in C,

1) If your portfolio is invested 38 percent each in A and B and 24 percent in C, what is the portfolio’s expected return, the variance, and the standard deviation? (Do not round i…

1) In Finance, which of the following is NOT considered the GOAL of the firm? A.

1) In Finance, which of the following is NOT considered the GOAL of the firm? A. Maximization of earnings per share B. Maximization of stock price C. Maximization of stockholder w…

1) In addition to the tax shield offered by governments around the world, debt h

1) In addition to the tax shield offered by governments around the world, debt has a lower required rate of return than equity - explain why this is so? 2) Given the inherent tax …

1) In general, a capital-abundant country (such as the United States) tends to s

1) In general, a capital-abundant country (such as the United States) tends to specialize in capital-intensive industry and export capital-intensive products, and import labor-int…

1) In general, firms should use their weighted average cost of capital (WACC) to

1) In general, firms should use their weighted average cost of capital (WACC) to evaluate capital budgeting projects because most projects are funded with general corporate funds,…

1) In preparing a statement of cash flows, an item included in determining net c

1) In preparing a statement of cash flows, an item included in determining net cash flow from operating activities is the A. Amortization of a bond premium. B. Proceeds from the s…

1) Including real options in a capital budgeting analysis can raise, but not low

1) Including real options in a capital budgeting analysis can raise, but not lower, a project's expected NPV as found in a traditional analysis. This is true because, by definitio…

1) Indicate whether you agree with the primary post calculation. If you do not a

1) Indicate whether you agree with the primary post calculation. If you do not agree, explain what the corrected numbers would be. 2) Why are taxable income and net income differe…

1) Investment X offers to pay you $5,800 per year for eight years, whereas Inves

1) Investment X offers to pay you $5,800 per year for eight years, whereas Investment Y offers to pay you $7,900 per year for five years.    Calculate the present value for Invest…

1) Investments can be long-term or short-term. If you are investing for the long

1) Investments can be long-term or short-term. If you are investing for the long term, how much do you think general news stories, news about the economy, and company-specific new…

1) Investor LLC has the following abbreviated balance sheet: Cash = $ 7000 Other

1) Investor LLC has the following abbreviated balance sheet: Cash = $7000 Other Assets = $18000 Debt = $0 Equity = $25000 Shares outstanding = 2000. Now suppose that the company p…

1) It is commonly accepted that a perpetuity must continue for at least 50 years

1) It is commonly accepted that a perpetuity must continue for at least 50 years. a) True b) False 2) What is the value of a bond that has a par value of $1,000, a coupon of $80 (…

1) Jackmaster Equipment is an up-scale, higher-priced, specialty road constructi

1) Jackmaster Equipment is an up-scale, higher-priced, specialty road construction equipment maker based in Irvine, California. The management accountant for Jackmaster compiled i…

1) Jen caused a 3 car accident near her home in Akron, Ohio. She has the Ohio mi

1) Jen caused a 3 car accident near her home in Akron, Ohio. She has the Ohio minimum liability coverage with no collision or comprehensive coverage. Jason, the driver of one of t…

1) Jim Brown has come to you for advice. He needs a solid strategy for retiremen

1) Jim Brown has come to you for advice. He needs a solid strategy for retirement income planning. He and his wife Evann, both age 66 plan to retire next month. He has a monthly c…

1) John Jenkins is considering an investment in an energy extraction project wit

1) John Jenkins is considering an investment in an energy extraction project with a producing revenue steam. His initial investment would require purchasing the existing mineral r…

1) Keiper, Inc., is considering a new three-year expansion project that requires

1) Keiper, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2.64 million. The fixed asset falls into the three-year MACR…