Financial literacy

1-You buy a six-year, 8 percent savings certificate for $1,000. If interest is c

1-You buy a six-year, 8 percent savings certificate for $1,000. If interest is compounded annually, what will its value be at maturity? A)$1,467.43 B)$1,586.87 C)$1,601.03 D)$1,69…

1-a company takes out, say a 100,000 life insurance policy on one of its lower-l

1-a company takes out, say a 100,000 life insurance policy on one of its lower-level employees. thae employee may or may not have to agree to the policy, depending on the state. i…

1-a) Investment X has a beta of 1.0. The risk free rate is 2% and current market

1-a) Investment X has a beta of 1.0. The risk free rate is 2% and current market return is 8%. When should I purchase this investment...when the expected returnis? 8.1% 7% 6% 2% 1…

1-share\'s current value 2-asha is 3-less/more The formula for the valuation of

1-share's current value 2-asha is 3-less/more The formula for the valuation of a share of preferred stock is P_0 = D_p/k_p. In this equation, the variable P_0 represents the Asha …

1-the Rodriguez Company is considering an average-risk investment in a mineral w

1-the Rodriguez Company is considering an average-risk investment in a mineral water spring project that has a cost of $160,000. The project will produce 750 cases of mineral wate…

1-which of the following statements is correct? A. A Time line is not meaningful

1-which of the following statements is correct? A. A Time line is not meaningful unless all cash flows occur annually. B. Time lines are useful for visualizing complex problems pr…

1-year bond priced yield 6.5 %, W hof hese two Assume annua compounding in oth a

1-year bond priced yield 6.5 %, W hof hese two Assume annua compounding in oth as s. Two bonds have par values o $1,000 One is a 5%, 13-year bond priced yield 8.0%. The other sa n…

1. ( bone rate, desired rate of retune and effective interest rate) A- given tha

1. ( bone rate, desired rate of retune and effective interest rate) A- given thatcthe MARR = i = 6% per year what is th effective interest rate if the 6% per year is compounded qu…

1. (0.75 pts.) A $100,000 face value T-bill matures in 75 days and has a Bond Eq

1. (0.75 pts.) A $100,000 face value T-bill matures in 75 days and has a Bond Equivalent Yield (BEY) of 5.57%. What is the current value (price) of the bond? 2. (1 pts) Suppose th…

1. (0.75 pts.) A $100,000 face value T-bill matures in 75 days and has a Bond Eq

1. (0.75 pts.) A $100,000 face value T-bill matures in 75 days and has a Bond Equivalent Yield (BEY) of 5.57%. What is the current value (price) of the bond? 2. (1 pts) Suppose th…

1. (0.75 pts.) A S100,000 face value T-bill matures in 75 days and has a Bond Eq

1. (0.75 pts.) A S100,000 face value T-bill matures in 75 days and has a Bond Equivalent Yield (BEY) of 5.57%. What is the current value (price) of the bond? 2. (1 pts) Suppose th…

1. (10 pts) In 2012 Whole Foods had sales of S74 billion and a net income of $17

1. (10 pts) In 2012 Whole Foods had sales of S74 billion and a net income of $17 billion, and its year- end total assets were S121.31 billion. The firm's total- debt-to-total-asse…

1. (10 pts) Microsoft currently has 21 long-term bond issues outstanding with va

1. (10 pts) Microsoft currently has 21 long-term bond issues outstanding with various times-to-maturity and coupon rates. One of these bonds matures on June 1, 2039, approximately…

1. (2.5 Points) Assume the Hong Kong dollar (HK$) value is tied to the U.S. doll

1. (2.5 Points) Assume the Hong Kong dollar (HK$) value is tied to the U.S. dollar and will remain tied to the U.S. dollar. Assume that interest rate parity exists. Today, a euro …

1. (2.5 Points) You are given the following information: U.S. France Japan Nomin

1. (2.5 Points) You are given the following information: U.S. France Japan Nominal one year interest rate 5% 6% 7% Spot rate ----- $1.16 $0.008 Interest rate parity exists between…

1. (20 points) A Yellow Pages directory company must decide whether it should co

1. (20 points) A Yellow Pages directory company must decide whether it should compose the ads for its clients inhouse or pay a production company to compose them. To develop the a…

1. (20 points) Assume you are are planning to purchase your first home for $250,

1. (20 points) Assume you are are planning to purchase your first home for $250,000. You have a down payment of $50,000 and have found a loan with a 4.25% interest rate for a fixe…

1. (25 points total) Suppose you are a monopolist able to produce your chosen ou

1. (25 points total) Suppose you are a monopolist able to produce your chosen output at a constant average (and thus marginal) cost of ATC = MC = $5. You face a market demand curv…

1. (2pts) Based on the following information calculate the expected return and s

1. (2pts) Based on the following information calculate the expected return and standard deviation for the two stocks. State of Economy       Probability of State occurring Stock Y…

1. (4 Points) Stock X has an expected return of 8% and the standard deviation of

1. (4 Points) Stock X has an expected return of 8% and the standard deviation of the expected return is 9%. Stock Z has an expected return of 10% and the standard deviation of the…

1. (40 points) Frank\'s Fruitcakes is looking to purchase a web server system fo

1. (40 points) Frank's Fruitcakes is looking to purchase a web server system for e-business. Alternative 1 is to purchase an off-brand system, with equipment costing $50,000. Trai…

1. (A) Both Starcents and Jpod have the same return standard deviation of 20 per

1. (A) Both Starcents and Jpod have the same return standard deviation of 20 percent, and Starcents and Jpod returns have a correlation of 1. You invest half your funds in Starcen…

1. (BOND VALUATION) A bond had a coupon rate of 8.5%, maturity of 15.5 years, a

1.         (BOND VALUATION) A bond had a coupon rate of 8.5%, maturity of 15.5 years, a face value of $1,000, and makes semi-annual payments. If the price is $1,034, what is the y…

1. (Capial make line) Assume at ihe expecred ate of reurn on the market poIlolio

1. (Capial make line) Assume at ihe expecred ate of reurn on the market poIlolio is 23% und the rate of return on T-bills (the risk-free lae) is 7% The standard deviajon ol lle ma…

1. (Capital Budgeting) 4 points Show all work and formulas used. Consider Projec

1. (Capital Budgeting) 4 points Show all work and formulas used. Consider Projects A and B, with net cash flows as follows: ---- Net Cash Flows ----                               …

1. (Compound Interest) To what amount will the following investment accumulate?

1. (Compound Interest) To what amount will the following investment accumulate? $5,000 invested for 10 years at 10 percent compounded annually. 2. (Present Value) What is the pres…

1. (EBIT-EPS analysis) Abe Forrester and three of his friends from college have

1.       (EBIT-EPS analysis) Abe Forrester and three of his friends from college have interested a group of venture capitalist in backing their business idea. The proposed operati…

1. (Effective annual rate) Compute the cost of the following trade credit terms

1. (Effective annual rate) Compute the cost of the following trade credit terms using the compounding formula, or effective annual rate. Note: assume a 30 day month and 360 day ye…

1. (Example 5-1) Randall Wallace is a vice president at a large communications f

1. (Example 5-1) Randall Wallace is a vice president at a large communications firm. His compensation includes a salary of $500,000, a bonus of $100,000 and a stock option package…

1. (Excel) Use the IRR function in Excel to calculate the YTM on the following t

1. (Excel) Use the IRR function in Excel to calculate the YTM on the following two bonds. a. 10 year 7% Annual Coupon bond with a price of 103.75 b. 15 year 5% Annual Coupon bond …

1. (Expected Rate of Return and Risk) B. J. Orange Enterprises is evaluating a s

1. (Expected Rate of Return and Risk) B. J. Orange Enterprises is evaluating a security. One-year Treasury bills are currently paying 1.9 percent (with little risk – 1 percent). C…

1. (Future value) To what amount will the following investments accumulate? $5,0

1. (Future value) To what amount will the following investments accumulate? $5,000 invested for 10 years at 10 percent compounded annually $8,000 invested for 7 years at 8 percent…

1. (Interest Rate for multiple periods)You have an opportunity to invest $1000 t

1. (Interest Rate for multiple periods)You have an opportunity to invest $1000 today to acquire an asset which will generate $300 in income two years from today and which can be s…

1. (Provide Explanation) Project Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Cash

1. (Provide Explanation) Project Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow A -14000 6000 6000 6000 6000 6000 B -15000 7…

1. (Related to Checkpoint 4.2 on page 86) (Capital structure analysis) The liabi

1. (Related to Checkpoint 4.2 on page 86) (Capital structure analysis) The liabilities and owners’ equity for Campbell Industries is found below: Accounts payable $ 453,000 Notes …

1. (TCO 1) All of the following are primary functions that define marketing EXCE

1. (TCO 1) All of the following are primary functions that define marketing EXCEPT: (Points : 5) Price Product Quality Promotion Distribution 2. (TCO 1) ________ is the percentage…

1. (TCO 1) All of the following are primary functions that define marketing EXCE

1. (TCO 1) All of the following are primary functions that define marketing EXCEPT: (Points : 5) Price Product Quality Promotion Distribution 2. (TCO 1) ________ is the percentage…

1. (TCO 1) An investment in common stock carries a higher return than a bank cer

1. (TCO 1) An investment in common stock carries a higher return than a bank certificate of deposit. The difference in returns is called (Points : 4) the risk-free rate. the real …

1. (TCO 1) An investment in common stock carries a higher return than a bank cer

1. (TCO 1) An investment in common stock carries a higher return than a bank certificate of deposit. The difference in returns is called (Points : 4) the risk-free rate. the real …

1. (TCO 1) The goal of financial management is to increase the: (Points : 3) fut

1. (TCO 1) The goal of financial management is to increase the: (Points : 3) future value of the firm's total equity. book value of equity dividends paid per share current market …

1. (TCO 1) Which of the following statements is not true regarding the goal of f

1. (TCO 1) Which of the following statements is not true regarding the goal of financial management? (Points : 3) The goal of maximizing the value per share of existing stock is r…

1. (TCO 1) Which of the following statements is true regarding the goal of finan

1. (TCO 1) Which of the following statements is true regarding the goal of financial management? (Points : 3)       A US company considering international operations will have a d…

1. (TCO 1) Which of the these activities is a capital budgeting task? (Points :

1. (TCO 1) Which of the these activities is a capital budgeting task? (Points : 4) determining the amount of cash needed on a daily basis to operate a firm . identifying assets th…

1. (TCO 1) Which one of the following actions best matches the primary goal of f

1. (TCO 1) Which one of the following actions best matches the primary goal of financial management? (Points : 3)       increasing the net working capital while lowering the long-…

1. (TCO 1) Which one of the following is not a benefit of budgeting? (Points : 5

1. (TCO 1) Which one of the following is not a benefit of budgeting? (Points : 5) It facilitates the coordination of activities. It provides definite objectives for evaluating per…

1. (TCO 2) Select any actions that decrease the cash account. Select all that ap

1. (TCO 2) Select any actions that decrease the cash account. Select all that apply: (Points : 3) Goods are sold on credit An interest payment on a notes payable is made The elect…

1. (TCO 2) Select any actions that do not affect the cash account. Select all th

1. (TCO 2) Select any actions that do not affect the cash account. Select all that apply: (Points : 3) Goods are sold on credit An interest payment on a notes payable is made Raw …

1. (TCO 2) Who would be considered stakeholders? What characteristics would they

1. (TCO 2) Who would be considered stakeholders? What characteristics would they have? 2.(TCO 4) What are the characteristics of a risk owner? 3. (TCO 7) What is a minor review? W…

1. (TCO 3) Given an interest rate of zero percent, the future value of a lump su

1. (TCO 3) Given an interest rate of zero percent, the future value of a lump sum invested today will always: (Points : 3) remain constant, regardless of the investment time perio…

1. (TCO 3) Which one of the following will increase the future value of a lump s

1. (TCO 3) Which one of the following will increase the future value of a lump sum invested today? (Points : 3)       decreasing the amount of the lump sum       increasing the ra…