Financial literacy

1) You are the president and chief executive officer of a family owned manufactu

1) You are the president and chief executive officer of a family owned manufacturing firm with assets of $45 million. The company articles of incorporation and state law place no …

1) You are the president and chief executive officer of a family owned manufactu

1) You are the president and chief executive officer of a family owned manufacturing firm with assets of $45 million. The company articles of incorporation and state law place no …

1) You bought call options on a stock and the strike price of the option is $17.

1) You bought call options on a stock and the strike price of the option is $17. The option has 1 week until expieration and the stock is currently priced at $22 per share. You pa…

1) You have $1,000 to invest for five years. How much additional interest will y

1) You have $1,000 to invest for five years. How much additional interest will you earn if the investment provides a 5% annual return, when compared to a 4.5% annual return? 2) Su…

1) You have $100,000 to invest 2The current ask quote for Australian dollars (A$

1) You have $100,000 to invest 2The current ask quote for Australian dollars (A$) in the spot market is So.71 3) The current bid quote for Australian dollars (A$) in the spot mark…

1) You have a long-term goal of paying off your school loans in six years. You w

1) You have a long-term goal of paying off your school loans in six years. You will graduate with a loan debt of $21900 and an interest rate of 5%. How much will you need to pay e…

1) You have been hired by Drs. Dewey, Cheetham and Howe to help with NPV analysi

1)      You have been hired by Drs. Dewey, Cheetham and Howe to help with NPV analysis for a replacement project. These three New Haven radiologists need to replace their existing…

1) You have decided to put a $100 a week into a savings account that offers 2.6%

1) You have decided to put a $100 a week into a savings account that offers 2.6% compounded weekly. How much would you have in your account after 6 years? Answer: ________________…

1) You have decided to put a $100 a week into a savings account that offers 2.6%

1) You have decided to put a $100 a week into a savings account that offers 2.6% compounded weekly. How much would you have in your account after 6 years? Answer: ________________…

1) You have decided to put a $100 a week into a savings account that offers 2.6%

1) You have decided to put a $100 a week into a savings account that offers 2.6% compounded weekly. How much would you have in your account after 6 years? Answer: ________________…

1) You have found three investment choices for a one-year deposit: 10% APR compo

1) You have found three investment choices for a one-year deposit: 10% APR compounded monthly, 11% APR compounded annually, and 9% APR compounded daily. Comput the EAR for each in…

1) You invest $20,000 today, at a rate of 10% compound quarterly. What will the

1)    You invest $20,000 today, at a rate of 10% compound quarterly. What will the investment be worth at the end of year twenty? 2)    You are offered an annuity that will pay yo…

1) You invest $20,000 today, at a rate of 10% compound quarterly. What will the

1)    You invest $20,000 today, at a rate of 10% compound quarterly. What will the investment be worth at the end of year twenty? 2)    You are offered an annuity that will pay yo…

1) You own a stock portfolio invested 15 percent in Stock Q, 33 percent in Stock

1) You own a stock portfolio invested 15 percent in Stock Q, 33 percent in Stock R, 40 percent in Stock S, and 12 percent in Stock T. The betas for these four stocks are 1.4, .5, …

1) You own an annuity plan that gives you the freedom to change the amount of co

1) You own an annuity plan that gives you the freedom to change the amount of contributions, stop contributions, and resume them at will. This plan is called: single premium defer…

1) You purchased 580 shares of stock at a price of $59.37 per share. Over the la

1) You purchased 580 shares of stock at a price of $59.37 per share. Over the last year, you have received total dividend income of $680. What is the dividend yield? 1.2 percent a…

1) You purchased a machine for $500,000 (installed), and you depreciated it usin

1) You purchased a machine for $500,000 (installed), and you depreciated it using a 5 year MACRS. This machine generates $200,000 in annual revenue. In year 4, you sold the machin…

1) You purchased a machine for $500,000 (installed), and you depreciated it usin

1) You purchased a machine for $500,000 (installed), and you depreciated it using a 5 year MACRS. This machine generates $200,000 in annual revenue. In year 4, you sold the machin…

1) You shorted 160 shares of T for $97. You closed this position when T was trad

1) You shorted 160 shares of T for $97. You closed this position when T was trading for $94. What is the profit (in $) of this transaction? Ignore the effects of margin. 2)You bou…

1) Your brother-in-law bought a piece of property 15 years ago for $29,000. He j

1) Your brother-in-law bought a piece of property 15 years ago for $29,000. He just sold it for $50,000, and spent the week-end bragging about his real-estate acumen. As a reality…

1) Your company currently sells oversized golf clubs. The Board of Directors wan

1)     Your company currently sells oversized golf clubs. The Board of Directors wants you to look at replacing them with a line of super-sized clubs. Briefly explain whether the …

1) Your company is considering a new project that will require $945,000 of new e

1) Your company is considering a new project that will require $945,000 of new equipment at the start of the project. The equipment will have a depreciable life of 10 years and wi…

1) Your company is considering two mutually exclusive projects whose costs and n

1) Your company is considering two mutually exclusive projects whose costs and net cash flows are shown below. The projects are equally risky, their cost of capital is 12% and int…

1) Your company\'s stock sells for $150 per share, its last dividend was $3.00 p

1) Your company's stock sells for $150 per share, its last dividend was $3.00 per share, and its growth rate is 4%. What is the stock's required rate of return? (2)What is the sto…

1) Your factory has been offered a contract to produce a part for a new printer.

1) Your factory has been offered a contract to produce a part for a new printer. The contract would last for 3 years and your cash flow from the contract would be $4.88 million pe…

1) Your firm has been providing long term care insurance (covering nursing home

1) Your firm has been providing long term care insurance (covering nursing home care) for your workers. It costs the firm $2200 per year per employee to provide this benefit. Supp…

1) Your firm has total sales of $1,700. Operating Costs are $745, excluding depr

1) Your firm has total sales of $1,700. Operating Costs are $745, excluding depreciation and taxes, and operating related depreciation is $155. The tax rate is 20%. What is the op…

1) Your firm needs a computerized machine tool lathe which costs $59,000 and req

1) Your firm needs a computerized machine tool lathe which costs $59,000 and requires $12,900 in maintenance for each year of its 3-year life. After three years, this machine will…

1) Your parents have an investment portfolio of $400,000, and they wish to take

1) Your parents have an investment portfolio of $400,000, and they wish to take out cash flows of $50,000 per year as an ordinary annuity. How long will their portfolio last if th…

1) Your sister-in-law, a newly minted graduate just landed her first job with a

1)    Your sister-in-law, a newly minted graduate just landed her first job with a large research firm. Her first assignment was to come up with an estimate of the change in share…

1) Your team would like to estimate the weighted average cost of capital for a n

1) Your team would like to estimate the weighted average cost of capital for a new airline business, to be headed by Mr. Moneypockets. Based on its industry asset beta, your team …

1) You’re trying to determine whether to expand your business by building a new

1) You’re trying to determine whether to expand your business by building a new manufacturing plant. The plant has an installation cost of $11.0 million, which will be depreciated…

1) _____ annuity is a special type of single premium immediate annuity issued by

1) _____ annuity is a special type of single premium immediate annuity issued by a life insurer and its terms are negotiated by the plaintiff, the defendant, and their attorneys. …

1) _____ involved markets where companies issue financial sercuirites to expand

1) _____ involved markets where companies issue financial sercuirites to expand or build their operations 2) if the acceptance of proposal x INCREASE the cash flow of proposal Y t…

1) _______________ arise out of the financing of foreign trade. a. Federal agenc

1) _______________ arise out of the financing of foreign trade. a. Federal agency securities. b. Bankers' acceptances. c. U.S. Treasury bills. d. Commercial paper. e. None of the …

1) a) Are hybrids and gasoline complements or substitutes? b) Are sport-utility

1) a) Are hybrids and gasoline complements or substitutes? b) Are sport-utility vehicles and gasoline complements or substitutes?       Using the signs of the cross-price elastici…

1) a) Warr Corporation just paid a dividend of $1.50 a share(that is,Do = $1.50)

1) a) Warr Corporation just paid a dividend of $1.50 a share(that is,Do = $1.50). The Dividend is expected to grow 7 percent ayear for the next 3 years and then at 5 percent a yea…

1) a) What is the “maturity” of a bank asset or liability? b) How do non-financi

1) a) What is the “maturity” of a bank asset or liability? b) How do non-financial firms tend to structure the maturities of their assets relative to bonds used to fund the asset …

1) a-Consider that you are an individual purchasing euro in the US market. Graph

1) a-Consider that you are an individual purchasing euro in the US market. Graphically explain what would happen if the supply of the foreign currency goes up in the domestic mark…

1) anderson motors inc. has just set the company dividend policy at $0.65 per ye

1) anderson motors inc. has just set the company dividend policy at $0.65 per year. the company plans to be in business forever. (Round to the nearest cent) A)what is the price of…

1) anderson motors inc. has just set the company dividend policy at $0.65 per ye

1) anderson motors inc. has just set the company dividend policy at $0.65 per year. the company plans to be in business forever. (Round to the nearest cent) A)what is the price of…

1) calculate the investments net present value at each of the following discount

1) calculate the investments net present value at each of the following discount rates: 0%, 5%, 10%, 15%, 20%, 25%, 30%, 35% 2) what does the answer to # 1 tell you about the proj…

1) comute the proportion of free throws each player normally makes 2.) compute t

1) comute the proportion of free throws each player normally makes 2.) compute the UCL and LCL using limits: 90%, 95%, 99.73% 3.) Predict the number of free throws a player may ma…

1) firm\'s cost of capital: A) A Is independent of the firm\'s capital structure

1) firm's cost of capital: A) A Is independent of the firm's capital structure. B ) Depends upon how the funds raised are going to be spent. C )Will decrease as the risk level of …

1) historical value or market value 2) gross or net value 3) Shareholders\' equi

1) historical value or market value 2) gross or net value 3) Shareholders' equity or total liabilities 4) statement of cash flows or balance sheet 5) an expected future or a histo…

1) pick a country you wish to focus on 2) compare and contrast any (three) of th

1) pick a country you wish to focus on 2) compare and contrast any (three) of the following topics relating to anything we learned this term. (credit scores, credit cards, cars, m…

1) please compare the coca_cola Company (KO) and PepsiCo,Inc (PEP) and advice wh

1) please compare the coca_cola Company (KO) and PepsiCo,Inc (PEP) and advice whichone you would invest in. You analysis should be a minimum of 2 pages of narrative and data.Pleas…

1) suppose we wish to borrow $40,000,000 for 91 days at LIBOR beginning next Dec

1) suppose we wish to borrow $40,000,000 for 91 days at LIBOR beginning next December, and that the quoted Eurodollar futures price (based on a 360-day year) is 93.47. How much wi…

1) the buyer of a call-option has: a. absence of gain/loss b. absolute unlimited

1) the buyer of a call-option has: a. absence of gain/loss b. absolute unlimited gain c. potential unlimited gain d. loss only e. gain only 2) If the Indian subsidiary of a U.S. f…

1) the payback period of the proposed investment is .... Years ( round two decim

1) the payback period of the proposed investment is .... Years ( round two decimal places) 2) the NPV of the proposed investment is ... Round to nearest cent 3) the IRR of the pro…