Financial literacy

1. (TCO 3) You have been approved for a $70,000 loan toward the purchase of a ne

1. (TCO 3) You have been approved for a $70,000 loan toward the purchase of a new home at 10% interest. The mortgage is for 30 years. How much are the approximately annual payment…

1. (TCO 3) You have been approved for a $70,000 loan toward the purchase of a ne

1. (TCO 3) You have been approved for a $70,000 loan toward the purchase of a new home at 10% interest. The mortgage is for 30 years. How much are the approximately annual payment…

1. (TCO 3) You have been approved for a $70,000 loan toward the purchase of a ne

1. (TCO 3) You have been approved for a $70,000 loan toward the purchase of a new home at 12% interest. The mortgage is for 30 years. How much are the approximately annual payment…

1. (TCO 4) Marketing expenses commonly increase in proportion to (Points : 4) nu

1. (TCO 4) Marketing expenses commonly increase in proportion to (Points : 4)        number of customer orders.        number of products.        sales dollars.        both a &amp…

1. (TCO 4) Which of the following is true regarding the evaluation of projects?

1. (TCO 4) Which of the following is true regarding the evaluation of projects? (Points : 4) sunk costs should be included erosion effects should be considered financing costs nee…

1. (TCO 4) Which of the following is true regarding the evaluation of projects?

1. (TCO 4) Which of the following is true regarding the evaluation of projects? (Points : 4) sunk costs should be included erosion effects should not be considered financing costs…

1. (TCO 4) Which of the following is true regarding the evaluation of projects?

1. (TCO 4) Which of the following is true regarding the evaluation of projects? (Points : 4) sunk costs should be included erosion effects should not be considered financing costs…

1. (TCO 4) Which of the following is true regarding the evaluation of projects?

1. (TCO 4) Which of the following is true regarding the evaluation of projects? (Points : 4)       sunk costs should be included       erosion effects should not be considered    …

1. (TCO 4) _____ refer(s) to the outsourcing of one or more specific business pr

1. (TCO 4) _____ refer(s) to the outsourcing of one or more specific business processes, methodologies, or functions to a third-party vendor, together with the IT that supports it…

1. (TCO 7) The efficient frontier: (Points : 3) represents all possible portfoli

1. (TCO 7) The efficient frontier: (Points : 3) represents all possible portfolios for a given level of risk. separates unattainable portfolios from less than optimal portfolios. …

1. (TCO 8) If the financial markets are strong form efficient, then: (Points : 4

1. (TCO 8) If the financial markets are strong form efficient, then: (Points : 4) only the most talented analysts can determine the true value of a security. only company insiders…

1. (TCO 8) Over the period of 1955-2006: (Points : 3) long-term government bonds

1. (TCO 8) Over the period of 1955-2006: (Points : 3) long-term government bonds underperformed large corporate stocks. small-company stocks underperformed large-company stocks. i…

1. (TCO 8) Which one of the following is a correct definition of an Ibbotson and

1. (TCO 8) Which one of the following is a correct definition of an Ibbotson and Sinquefield investment category as used to report historical returns in your textbook? (Points : 3…

1. (TCO 9) Contingent business interruption covers loss sustained by an insured

1. (TCO 9) Contingent business interruption covers loss sustained by an insured firm: (Points : 3) as a result of a boiler explosion. as a result of the operation of building code…

1. (TCO 9) Protection and Indemnity coverage provided under Ocean Marine policy

1. (TCO 9) Protection and Indemnity coverage provided under Ocean Marine policy covers: (Points : 3) damage to the ship or its cargo. damage to the cargo only. essentially the sam…

1. (TCO 9) Protection and Indemnity coverage provided under Ocean Marine policy

1. (TCO 9) Protection and Indemnity coverage provided under Ocean Marine policy covers: (Points : 3) damage to the ship or its cargo. damage to the cargo only. essentially the sam…

1. (TCO A) Which of the following is NOT normally regarded as being a barrier to

1. (TCO A) Which of the following is NOT normally regarded as being a barrier to hostile takeovers? (Points : 5) Abnormally high executive compensation Targeted share repurchases …

1. (TCO B) Estimating Procedures (a) You are the project manager for a new high-

1. (TCO B) Estimating Procedures (a) You are the project manager for a new high-rise office building. You are working on estimating the exterior landscaping for the new developmen…

1. (TCO B) Estimating Procedures (a) You are the project manager for a new high-

1. (TCO B) Estimating Procedures (a) You are the project manager for a new high-rise office building. You are working on estimating the exterior landscaping for the new developmen…

1. (TCO B) The federal income tax is (Points : 4) integrative. regressive. progr

1. (TCO B) The federal income tax is (Points : 4)        integrative.        regressive.        progressive.        flat rate.        None of the above Question 2.2. (TCO B) You w…

1. (TCO B) Which of the following statements concerning the MM extension with gr

1. (TCO B) Which of the following statements concerning the MM extension with growth is NOT CORRECT? (a) The tax shields should be discounted at the cost of debt. (b) The value of…

1. (TCO D) Which of the following statements is NOT CORRECT? (a) When a corporat

1. (TCO D) Which of the following statements is NOT CORRECT? (a) When a corporation's shares are owned by a few individuals who own most of the stock or are part of the firm's man…

1. (TCOs 6 and 7) A(n) _____ fund is a mutual fund in which new shares are issue

1. (TCOs 6 and 7) A(n) _____ fund is a mutual fund in which new shares are issued and redeemed by the investment company at the request of investors. (Points : 1) open-end closed-…

1. (TCOs 6 and 7) The Capitalist Mutual Fund\'s portfolio is valued at $48 milli

1. (TCOs 6 and 7) The Capitalist Mutual Fund's portfolio is valued at $48 million. The fund has liabilities of $4 million, and the investment company sponsoring the fund has issue…

1. (This problem is worth 4 of the 10 points in this assignment). Assume that a

1. (This problem is worth 4 of the 10 points in this assignment). Assume that a U.S. firm has ordered a major piece of machinery from a Japanese firm for ¥3 million, and that the …

1. (True/False): A firm\'s cost of capital will generally increase if the firm l

1. (True/False): A firm's cost of capital will generally increase if the firm lowers its debt-equity ratio. 2. (True/False): The cost of equity will generally increase for risky f…

1. (You may have to choose more than one answers) Howell Petroleum is considerin

1. (You may have to choose more than one answers) Howell Petroleum is considering a new project that complements its existing business. The company already spent $5 million to sen…

1. (a) ABC Co. has 10% coupon bonds (par = $1,000) making annual payments with a

1. (a) ABC Co. has 10% coupon bonds (par = $1,000) making annual payments with a (YTM) of 8.5%. The current yield on these bonds is 9.01%. How many years do these bonds have left …

1. (a) Explain the difference between an offer for sale of ordinary shares at a

1. (a) Explain the difference between an offer for sale of ordinary shares at a fixed price and an offer for sale of ordinary shares by subscription. marks] [2 Another method of i…

1. (a) Given the following regression results, Estimated \'s for Stock A: = .85

1. (a) Given the following regression results,             Estimated 's for Stock A:   = .85               SMB = 1.04      HML = -.39             Estimated 's for Stock B:   = 1.1…

1. (a) Suppose you plan to invest in a financial asset that will pay a $50 every

1. (a) Suppose you plan to invest in a financial asset that will pay a $50 every year for the life of the company. You don’t expect the annual payment to ever grow, and similar fi…

1. (a) Western Insurance Company has assets at fair market value of $100 million

1. (a) Western Insurance Company has assets at fair market value of $100 million. The present value of Western’s liabilities is $85 million. The market value margin is $5 million.…

1. ) You estimate that a passive portfolio, that is, one invested in a risky por

1. ) You estimate that a passive portfolio, that is, one invested in a risky portfolio that mimics the S&P 500 stock index (passive portfolio), yields an expected rate of retu…

1. ) You estimate that a passive portfolio, that is, one invested in a risky por

1. ) You estimate that a passive portfolio, that is, one invested in a risky portfolio that mimics the S&P 500 stock index (passive portfolio), yields an expected rate of retu…

1. )Careers Unlimited issued a bond, with a $1000 par value, 10 years ago that h

1. )Careers Unlimited issued a bond, with a $1000 par value, 10 years ago that has 8 years remaining to maturity and an annual coupon rate of 12 percent. The interest payments are…

1. . Explain compounding and compound interest when dealing with savings. How do

1. . Explain compounding and compound interest when dealing with savings. How do these 2 concepts affect one's saving ability? ( This question does not apply to loans and credit c…

1. 1 A company has determined that the relationship between the sales price for

1. 1 A company has determined that the relationship between the sales price for one of its products and the quantity sold per week is P- 650- 10D per unit, where D is the demand o…

1. 1. (2 points) Stock A has a beta of 1.78 and an expected return of 15%. Stock

1. 1. (2 points) Stock A has a beta of 1.78 and an expected return of 15%. Stock B has a beta of 0.66 and an expected return of 9.8%. You want to combine these two stocks into a p…

1. 1. What is the net present value of a project with the following cash flows a

1. 1. What is the net present value of a project with the following cash flows and a required return of 12 percent?    Year Cash Flow 0 –$35,600 1 12,450 2 22,530 3 2,600 $4,450.4…

1. 1. You invest $1,000 in a certificate of deposit that matures after 10 years

1.       1. You invest $1,000 in a certificate of deposit that matures after 10 years and pays 5 percent interest, which is compounded annually until the certificate matures. a. H…

1. 10.00 points The YTM on a bond is the interest rate you earn on your investme

1. 10.00 points The YTM on a bond is the interest rate you earn on your investment. If interest rates don?t change. If you actually sell the bond before it matures, your realized …

1. 11. (3 points) A Treasury bill has a yield of 2.3%. A Treasury bond that matu

1. 11. (3 points) A Treasury bill has a yield of 2.3%. A Treasury bond that matures in 5 years has a yield of 3.5%. A 5-year BB corporate bond has a yield of 6.8%. Assume that the…

1. 11. (3 points) A Treasury bill has a yield of 2.3%. A Treasury bond that matu

1. 11. (3 points) A Treasury bill has a yield of 2.3%. A Treasury bond that matures in 5 years has a yield of 3.5%. A 5-year BB corporate bond has a yield of 6.8%. Assume that the…

1. 12.50 points Kaelea, Inc, has no debt outstanding and a total market value of

1. 12.50 points Kaelea, Inc, has no debt outstanding and a total market value of $82.000. Eamings before interest and xes, EBIT, are projected to be $8,500 if economic conditions …

1. 18 pts] Bas det ed on a recent market study which cost $50,000, a firm intend

1. 18 pts] Bas det ed on a recent market study which cost $50,000, a firm intends to ector system in order to eliminate cockroaches. The expected sales ar three years ate cockroac…

1. 18 pts] Based on a recent market study three years: eto ewhich cost $50,000,

1. 18 pts] Based on a recent market study three years: eto ewhich cost $50,000, a firm intends to launch a new laser inate cockroaches. The expected sales are the following for th…

1. 2 Due to fierce competition in the shoe industry the sale price of an item ca

1. 2 Due to fierce competition in the shoe industry the sale price of an item cannot be increased. The sale price of this item is $300. If the shoe store owner feels he/she needs …

1. 2 year(s) ago, Priya invested 22,087 dollars. She has earned and will earn co

1. 2 year(s) ago, Priya invested 22,087 dollars. She has earned and will earn compound interest of 7.99 percent per year. In 3 year(s) from today, Vince can make an investment and…

1. 2. Calculate the expected return. ( Do not round intermediate calculations. E

1. 2. Calculate the expected return. (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) 3. Calculate the expect…

1. 2. Describe Business Marketing. What are some things that distinguish the bus

1. 2. Describe Business Marketing. What are some things that distinguish the business marketing process from the consumer marketing process? Also, be specific in your discussion o…