Financial literacy

1. A project requires an initial investment in equipment of $90,000 and then req

1. A project requires an initial investment in equipment of $90,000 and then requires an investment in working capital of $10,000 at the beginning (t = 0).   The project is expect…

1. A project requires an investment of $1,000,000. Although sales will begin in

1. A project requires an investment of $1,000,000. Although sales will begin in the first year, operations will not achieve full scale until Year 2. After that, growth is expected…

1. A project will increase sales by $60,000 and cash expenses by $41,000. The pr

1. A project will increase sales by $60,000 and cash expenses by $41,000. The project will cost $40,000 and be depreciated using straight-line depreciation to a zero book value ov…

1. A proposed chemical plant has the following projected revenues and operating

1. A proposed chemical plant has the following projected revenues and operating expenses in millions of dollars: Year Annual Revenue Annual operating 7.0 10.0 15.0 20.0 22.5 24.0 …

1. A proxy fight is an attempt by a group to gain control of a firm by convincin

1. A proxy fight is an attempt by a group to gain control of a firm by convincing its stockholders to give the group the authority to vote their shares in order to elect a new man…

1. A publisher sells books to Barnes & Noble at $40 each. The marginal productio

1. A publisher sells books to Barnes & Noble at $40 each. The marginal production cost for the publisher is $20 per book. Barnes & Noble prices the book to its customers a…

1. A purchase of new equipment on a note payable under the direct method would b

1. A purchase of new equipment on a note payable under the direct method would be reported: a. As a separate disclosure as a non-cash transaction b. in the investing section of th…

1. A put option has strike price $75 and 3 months to expiration. The underlying

1. A put option has strike price $75 and 3 months to expiration. The underlying stock price is currently $71. The option premium is $10. "What is the time value of the put option?…

1. A put option on a stock has a strike price of $57 per share and a premium of

1. A put option on a stock has a strike price of $57 per share and a premium of $2.00 per share. The stock is currently selling for $58 per share. At a market price of $58 per sha…

1. A put option on a stock is a contract to a. Purchase the stock at the premium

1.  A put option on a stock is a contract to a. Purchase the stock at the premium price b. Sell the stock at the strike price c. Purchase the stock at the strike price d. Sell the…

1. A query can contain ____ of the fields in the table. A) one B) some C) all D)

1. A query can contain ____ of the fields in the table. A) one B) some C) all D) all of the above 2. To rename a field, edit the field name in the ____ and press the Tab key. A) d…

1. A recently graduated CE begins working when she turns 26 at an annual salary

1.A recently graduated CE begins working when she turns 26 at an annual salary of $60,000. She is promised raises of $2,500 per year every year. She palns to set aside 10% of her …

1. A reduction in accounts payable uses cash, reducing the firm\'s net balance 2

1. A reduction in accounts payable uses cash, reducing the firm's net balance 2. At each point in time all securities of the same risk are priced to offer the same expected rate o…

1. A riskless zero-coupon (no intermediate/periodic coupon payments) bond that w

1. A riskless zero-coupon (no intermediate/periodic coupon payments) bond that will pay $1,000 in 10 years is selling today for $350. What implied rate of return does the bond off…

1. A share of common stock will pay a dividend of $2.50 next year. If the stock

1. A share of common stock will pay a dividend of $2.50 next year. If the stock price is currently $25 and the constant growth rate is 6%, then what is the rate of return (Rs)? a.…

1. A share of stock sells for $38 today. The beta of the stock is 1, and the exp

1. A share of stock sells for $38 today. The beta of the stock is 1, and the expected return on the market is 17 percent. The stock is expected to pay a dividend of $1.10 in one y…

1. A simple linear regression equation relates Vand S as follows a. The dependen

1. A simple linear regression equation relates Vand S as follows a. The dependent variable is and the explanatory variable is b. The intercept parameter is c. Vis equal to a when …

1. A simple mortgage pool consist of the following two mortages; a $90,000 mortg

1. A simple mortgage pool consist of the following two mortages; a $90,000 mortgage at 6% for 15 years and a $110,000 mortgage at 5% for 30 years. The WAC is ___%, and the WAM is …

1. A start-up was founded 10 years ago. It has been profitable for the last 5 ye

1. A start-up was founded 10 years ago. It has been profitable for the last 5 years, but it has needed all of its earnings to support growth and thus has never paid a dividend. Ma…

1. A startup Internet company has generated the following cash balance for the f

1. A startup Internet company has generated the following cash balance for the first six years of its IS projects: $250,000, -$180,000, $225,000, $340,000, $410,000, and $425,000.…

1. A statement identifying the engineering economics method used in determining

1. A statement identifying the engineering economics method used in determining the answer 2. Cash Flow Diagrams for each component of the question/answer 3. The formula(s) used f…

1. A stock had the following year-end prices Year Price Deidend and dividends 1.

1. A stock had the following year-end prices Year Price Deidend and dividends 1.65 What is the arithmetic average rate of return over the five year period? A 10.25 percent B. 656 …

1. A stock has a Beta of 1.5, the risk free rate is 3%, and the expected market

1.   A stock has a Beta of 1.5, the risk free rate is 3%, and the expected market return is 8%. What is the expected return on the stock? a.   10.5% b.   11.0% c.   15.0% d.   16.…

1. A stock has an expectd return of 11.8 percent, its beta is .93, and the risk-

1. A stock has an expectd return of 11.8 percent, its beta is .93, and the risk-free rate is 5.9 percent. what must the expected return on the market be? Market expected return __…

1. A stock has an expected return of 10.4 percent, the risk-free rate is 3 perce

1. A stock has an expected return of 10.4 percent, the risk-free rate is 3 percent, and the market risk premium is 5 percent. What must the beta of this stock be? (Round your answ…

1. A stock has an expected return of 14.3 percent, the risk-free rate is 5.55 pe

1. A stock has an expected return of 14.3 percent, the risk-free rate is 5.55 percent, and the market risk premium is 7 percent. 2, You own a portfolio that is 17 percent invested…

1. A stock has just paid a dividend and has declared an annual dividend of $2.00

1. A stock has just paid a dividend and has declared an annual dividend of $2.00 to be paid one year from today. The dividend is expected to grow at a 5% annual rate. The return o…

1. A stock is expectedto pay a year-end dividend of $2.00,i.e., D 1 = $2.00.The

1.        A stock is expectedto pay a year-enddividend of $2.00,i.e., D1 = $2.00.The dividend is expected to decline at a rate of 5% ayear forever (g = -5%). If the company is in …

1. A stock is selling for $50 in the market. The company’s beta is 1.2, the mark

1. A stock is selling for $50 in the market. The company’s beta is 1.2, the market risk premium (rM - rF) is 5%, and the risk-free rate is 3%. The next dividend expected to pay is…

1. A stock is selling for $59.07 per share. A put option on the stock has a $58.

1. A stock is selling for $59.07 per share. A put option on the stock has a $58.50 strike price and a $0.78 premium. The put is: a. Out of the money because the option's strike pr…

1. A stock with a beta of 1.5 has a required return of 14%. If the expected (req

1. A stock with a beta of 1.5 has a required return of 14%. If the expected (required) return on the market is 11%, then what is the risk free rate? 2. A stock currently pays no d…

1. A stock’s beta value in statistical term is: a. its measure of diversifiable

1. A stock’s beta value in statistical term is: a. its measure of diversifiable risk. b. The vitality of the asset in relation to the market. c. Its measure of acceptable risk in …

1. A student’s NASDAQ portfolio from a previous class contained the following in

1. A student’s NASDAQ portfolio from a previous class contained the following investment characteristics. What is the expected return on this portfolio? 2. A pension fund manager …

1. A style portfolio manager offers two things: A. investment skill and market t

1. A style portfolio manager offers two things: A. investment skill and market timing B.the specific style combined with a low beta C. a high beta and investment timing D. investm…

1. A takeover tender offer lets a company attempt to acquire a target firm again

1. A takeover tender offer lets a company attempt to acquire a target firm against its will. (Points : 4)        True        False Question 2.2. Existing management of a firm is a…

1. A tax-advantaged medical savings account often used to offset high-deductible

1. A tax-advantaged medical savings account often used to offset high-deductible health plans is called a __________. workers' compensation plan 2. Insurance designed to help repl…

1. A testing lab owns a hydraulic load frame which was purchased for $35,000 ear

1. A testing lab owns a hydraulic load frame which was purchased for $35,000 early in the lab's fiscal year 4 years ago. The internal bookkeeper uses a sum of the year's digits de…

1. A type of loan that’s paid off by making regular principal reductions, usuall

1. A type of loan that’s paid off by making regular principal reductions, usually according to a specified schedule, is called a(n) A. annuity due. C. amortizing loan. B. debentur…

1. A vendor prepares 100.00 hotdogs every day and sells at $20.00 /piece. For ea

1. A vendor prepares 100.00 hotdogs every day and sells at $20.00 /piece. For each hot dog, he spends $11.00 in the raw material. Additionally he spends $0.85 for packing each hot…

1. A week ago a trader bought one December gold futures contract (size = 100 oun

1. A week ago a trader bought one December gold futures contract (size = 100 ounces) at $1,200/oz. The gold futures contracts are traded on the New York Mercantile Exchange. The i…

1. A widening of default risk premiums is considered a positive sign for future

1. A widening of default risk premiums is considered a positive sign for future economic prospects. True/False 2. A convertible US$ bond could not have a yield greater than a US g…

1. A year ago _ when the risk free rate was 4% and the expected return on the ma

1. A year ago _ when the risk free rate was 4% and the expected return on the market was 12%-you were looking at the following three stocks. Using CAPM, what was the expected retu…

1. A(n) ________ of a nation\'s currency will cause imports to ________ and expo

1. A(n) ________ of a nation's currency will cause imports to ________ and exports to ________, all other things held constant. A) depreciation; increase; decrease B) appreciation…

1. A(n) bond is a long-term contract under which a borrower agrees to make payme

1. A(n) bond is a long-term contract under which a borrower agrees to make payments of interest and principal, on specific dates, to the holder of bond. There are four main types …

1. A(n)___ auction goods are sell to the highest bidder, and in a_____ auction ,

1. A(n)___ auction goods are sell to the highest bidder, and in a_____ auction ,vendors bid prices down untill the buyer accept a bid . A.Dutch. cost B. B2C. BWB C. unregulated. s…

1. A. Present Value Calculations (Show/Explain your work as best as you can, at

1. A. Present Value Calculations (Show/Explain your work as best as you can, at least show your inputs and state what you use for calculations) A.) Dr. Ima N. Pain has a patient t…

1. ABC Corporation negotiated a forward contract to sell C$100,000 in one year a

1. ABC Corporation negotiated a forward contract to sell C$100,000 in one year at a forward rate of C$1=$0.80. On the delivery date, the spot rate was C$1=$0.83. How much is the r…

1. ABC Hospital decides to acquire 50 new beds, which cost $10,000 each. What is

1. ABC Hospital decides to acquire 50 new beds, which cost $10,000 each. What is the most efficient financing approach for the hospital to take? a. Bill Medicare for $500,000 by i…

1. ABC production requirements for the first year (2012) the expanded facility w

1. ABC production requirements for the first year (2012) the expanded facility would be operating would be 25,000 units more than the present facility can presently produce. (25,0…

1. AGENCY PROBLEMS Who owns a corporation? Describe the process whereby the owne

1. AGENCY PROBLEMS Who owns a corporation? Describe the process whereby the owners control the firm’s management. Describe the main reason why an agency relationship exists in the…