Financial literacy

Assume that there is a very simple progressive income tax in the country. The ma

Assume that there is a very simple progressive income tax in the country. The marginal tax rate is 10% for income over $5000 to $10,000. It is 20% for income over $10,000 to $25,0…

Assume that there were 15 million shares outstanding at the end of the year, the

Assume that there were 15 million shares outstanding at the end of the year, the year-end closing stock price was $65 per share, and the after-tax cost of capital was 8%. Calculat…

Assume that to cool off the economy and decrease expectations for inflation, the

Assume that to cool off the economy and decrease expectations for inflation, the Federal Reserve tightened the money supply, causing an increase in the risk-free rate, rRF. Invest…

Assume that to cool off the economy and decrease expectations for inflation, the

Assume that to cool off the economy and decrease expectations for inflation, the Federal Reserve tightened the money supply, causing an increase in the risk-free rate, rRF. Invest…

Assume that today is August 1, 2012. Natasha Kingery is 30 years old and has a B

Assume that today is August 1, 2012. Natasha Kingery is 30 years old and has a Bachelor of Science degree in computer science. She is currently employed as a Tier 2 field service …

Assume that today is August 1, 2012. Natasha is 30 years old and has a Bachelor

Assume that today is August 1, 2012. Natasha is 30 years old and has a Bachelor of Science degree in computer science. She is currently employed as a Tier 2 field service represen…

Assume that today is August 5, 2015. Natasha Kingery is 30 years old and has a B

Assume that today is August 5, 2015. Natasha Kingery is 30 years old and has a Bachelor of Science degree in computer science. She is currently employed as a Tier 2 field service …

Assume that today is Dec 31,2012. Managers at Nabor have decided to make their o

Assume that today is Dec 31,2012. Managers at Nabor have decided to make their own estimate of the firms current stock value, The firms CFO has gathered data for performing the va…

Assume that today is December 31, 2008, and that the following information appli

Assume that today is December 31, 2008, and that the following information applies to Vermail airlines: -After-tax operation income [EBIT(1-T) for 2009 is expected to be $500 mill…

Assume that today is December 31, 2008, and the following information applies to

Assume that today is December 31, 2008, and the following information applies to Vermeil Airlines: · After-tax operating income [EBIT(1 - T), also called NOPAT] for 2009 is expect…

Assume that today is December 31, 2008, and the following information applies to

Assume that today is December 31, 2008, and the following information applies to Vermeil Airlines: After-tax operating income [EBIT(1 - T)] for 2009 is expected to be $500 million…

Assume that today is December 31, 2008, and the following information applies to

Assume that today is December 31, 2008, and the following information applies to Vermeil Airlines: After-tax operating income [EBIT(1 - T)] for 2009 is expected to be $500 million…

Assume that today is December 31, 2008, and the following information applies to

Assume that today is December 31, 2008, and the following information applies to Vermeil Airlines: After-tax operating income [EBIT(1 - T)] for 2009 is expected to be $500 million…

Assume that today is December 31, 2012 and you have an opportunity to buy the st

Assume that today is December 31, 2012 and you have an opportunity to buy the stock of CoolTech, Inc., an IPO being offered for $4.73 per share. Although you are very much interes…

Assume that today is December 31, 2012, and that the following information appli

Assume that today is December 31, 2012, and that the following information applies to Vermeil Airlines: ? After-tax operating income [EBIT(1 - T)] for 2013 is expected to be $700 …

Assume that today is December 31, 2012, and that the following information appli

Assume that today is December 31, 2012, and that the following information applies to Vermeil Airlines: ? After-tax operating income [EBIT(1 - T)] for 2013 is expected to be $550 …

Assume that today is December 31, 2012, and that the following information appli

Assume that today is December 31, 2012, and that the following information applies to Vermeil Airlines: After-tax operating income [EBIT(1 - T)] for 2013 is expected to be $700 mi…

Assume that today is December 31, 2014, and that the following information appli

Assume that today is December 31, 2014, and that the following information applies to Vermeil Airlines: After-tax operating income [EBIT(1 - T)] for 2015 is expected to be $600 mi…

Assume that today is December 31, 2015. Mike Mulligan Excavation Inc. has one Ca

Assume that today is December 31, 2015. Mike Mulligan Excavation Inc. has one Caterpillar 345DL Hydraulic Excavator. It was purchased in 2014 for$ 300,000. The excavator is classi…

Assume that today is December 31, 2015. Mike Mulligan Excavation Inc. has one Ca

Assume that today is December 31, 2015. Mike Mulligan Excavation Inc. has one Caterpillar 345DL Hydraulic Excavator. It was purchased at the beginning of 2014 for $ 294,000. The e…

Assume that today is December 31, 2015. Mike Mulligan Excavation Inc. has one Ca

Assume that today is December 31, 2015. Mike Mulligan Excavation Inc. has one Caterpillar 345DL Hydraulic Excavator. It was purchased in 2014 for $300,000. The excavator is classi…

Assume that today is December 31, 2016, and that the following information appli

Assume that today is December 31, 2016, and that the following information applies to Abner Airlines: - After-tax operating income [EBIT(1 - T)] for 2017 is expected to be $400 mi…

Assume that today is January 1, 2013. Ross textiles wishes to measure its cost o

Assume that today is January 1, 2013. Ross textiles wishes to measure its cost of common stock equity. The firm's stock is currently selling for $57.37. The firm expects to pay $3…

Assume that today is January 1, 2015 and that at t = 1 the company will pay the

Assume that today is January 1, 2015 and that at t = 1 the company will pay the dividend 2.2. (That is, assume that this forecasted 2015 dividend is D1, and that this is the first…

Assume that today is one month before your 25th birthday and that you have decid

Assume that today is one month before your 25th birthday and that you have decided that you wish to retire at age 65. You have determined that if you make a deposit today in an in…

Assume that today is one month before your 25th birthday and that you have decid

Assume that today is one month before your 25th birthday and that you have decided that you wish to retire at age 65. You have determined that if you make a deposit today in an in…

Assume that today is one month before your 25th birthday and that you have decid

Assume that today is one month before your 25th birthday and that you have decided that you wish to retire at age 65. You have determined that if you make a deposit today in an in…

Assume that total liabilities of a depository institution are $50,000 million. A

Assume that total liabilities of a depository institution are $50,000 million. All of these liabilities are transaction deposits. It has $40,000 million in loans and securities.  …

Assume that two firms, U and L, are identical in all respects except for one: Fi

Assume that two firms, U and L, are identical in all respects except for one: Firm U is debt-free, whereas Firm L has a capital structure that is 50% debt and 50% equity by market…

Assume that two securities constitute the market portfolio. Those securities hav

Assume that two securities constitute the market portfolio. Those securities have the following expected returns, standard deviations, and proportions: Security  Expected Return  …

Assume that upon receiving your recommendations to accept a project, the CEO of

Assume that upon receiving your recommendations to accept a project, the CEO of your employer says the project is riskier than you've assumed in your analysis and directs you to m…

Assume that upon the death of her of husband, Susan can receive a $1,000,000 dea

Assume that upon the death of her of husband, Susan can receive a $1,000,000 death benefit from his life insurance policy or she can receive a payment of $5,750 at the beginning o…

Assume that you (Firm A) use the Free Cash Flow to Equity model. You are a negot

Assume that you (Firm A) use the Free Cash Flow to Equity model. You are a negotiated merger. The synergy shareholders is $6,000. Firm A's market value of equity is $15,000 ($25 p…

Assume that you adopt a custom software package. Using present value tables, eva

Assume that you adopt a custom software package. Using present value tables, evaluate the cost vs. benefit of a system under the following scenario: The probable cost of the best …

Assume that you and your brother plan to open a business that will make and sell

Assume that you and your brother plan to open a business that will make and sell a newly designed type of sandal. Two robotic machines are available to make the sandals, Machine A…

Assume that you and your brother plan to open a business that will make and sell

Assume that you and your brother plan to open a business that will make and sell a newly designed type of sandal. Two robotic machines are available to make the sandals, Machine A…

Assume that you and your brother plan to open a business that will make and sell

Assume that you and your brother plan to open a business that will make and sell a newly designed type of sandal. Two robotic machines are available to make the sandals, Machine A…

Assume that you and your sister plan to open a business that will make and sell

Assume that you and your sister plan to open a business that will make and sell a newly designed type of flip-flops. By automating the process, you can be profitable making the pr…

Assume that you are 10 years into a 30 year home loan at 5%. You owe $200,000 le

Assume that you are 10 years into a 30 year home loan at 5%. You owe $200,000 left on your home at this time. You can refinance your loan at 4% for 20 years; however the TOTAL clo…

Assume that you are 10 years into a 30 year home loan at 5%. You owe $200,000 le

Assume that you are 10 years into a 30 year home loan at 5%. You owe $200,000 left on your home at this time. You can refinance your loan at 4% for 20 years; however the TOTAL clo…

Assume that you are 10 years into a 30 year home loan at 5%. You owe $200,000 le

Assume that you are 10 years into a 30 year home loan at 5%. You owe $200,000 left on your home at this time. You can refinance your loan at 4% for 20 years; however the TOTAL clo…

Assume that you are 23 years old and that you place $3,000 year-end deposits eac

Assume that  you are 23 years old and that you place $3,000 year-end deposits each year into a stock index fund that earns an average of 9%  per year for the next 17 years.Assume …

Assume that you are 23 years old and that you place $3,000 year-end deposits eac

Assume that you are 23 years old and that you place $3,000 year-end deposits each year into a stock index fund that earns an average of 9.5% per year for the next 17 years. 1. How…

Assume that you are 30 years old today and expect to retire when you reach age 6

Assume that you are 30 years old today and expect to retire when you reach age 65. If you were to retire today, you would like a fixed (pretax) income of $60,000 per year (in addi…

Assume that you are 30 years old today and expect to retire when you reach age 6

Assume that you are 30 years old today and expect to retire when you reach age 65. If you were to retire today, you would like a fixed (pretax) income of $60,000 per year (in addi…

Assume that you are 30 years old today and expect to retire when you reach age 6

Assume that you are 30 years old today and expect to retire when you reach age 65. If you were to retire today, you would like a fixed (pretax) income of $60,000 per year (in addi…

Assume that you are Best Buys, the electronics retailer, and that you would like

Assume that you are Best Buys, the electronics retailer, and that you would like to enter the hardware component of the market. You have been approached by investment bankers for …

Assume that you are CEO of a firm that is currently worth 200 million dollars an

Assume that you are CEO of a firm that is currently worth 200 million dollars and has no debt in its capital structure. There are 10 million shareholders, thus, each share is wort…

Assume that you are a US manufacturer and frequently undertake export and import

Assume that you are a US manufacturer and frequently undertake export and import transactions with a particular country (Japan). What is the best way to hedge? Should you use futu…

Assume that you are a consultant to Tintle Inc., and you have been provided with

Assume that you are a consultant to Tintle Inc., and you have been provided with the following data: D1 = $0.81; P0 = $23.43; g = 4.00% (constant). What is the cost of common equi…