Financial literacy

1. Assume you have the following situations. Using the TVM concepts (formulas or

1. Assume you have the following situations. Using the TVM concepts (formulas or tables) calculate the correct amount in each situation. a. You have $10,000 to invest, at 5% annua…

1. Assume you have the following situations. Using the time value of money (TVM)

1. Assume you have the following situations. Using the time value of money (TVM) concepts (formulas or tables) calculate the correct amount in each situation. a. You have $10,000 …

1. Assume you just deposited $8,500 into an account that earns interest of 6% pe

1. Assume you just deposited $8,500 into an account that earns interest of 6% per year, compounded annually. How many years will it take for your balance to reach $10,000? 2. I pl…

1. Assume you manage a clothing retailer. You determine that the optimal time to

1.Assume you manage a clothing retailer. You determine that the optimal time to keep inventory on hand is 45 days. This is the amount needed to keep clothing on the shelf of all s…

1. Assume your marketing people have a great plan to boost the unit sales. Unit

1. Assume your marketing people have a great plan to boost the unit sales. Unit sales rise to 500,000, but the plan requires your firm to drop the price to $29,000/unit and …

1. Assuming 0% taxes. Equipment can be leased at $12000 per year (first payment

1. Assuming 0% taxes. Equipment can be leased at $12000 per year (first payment at end of year) for nine years or purchased at a cost of $68000. The company has a weighted average…

1. Assuming the stand-alone valuation in Table 9.10 is accurate, what is the imp

1. Assuming the stand-alone valuation in Table 9.10 is accurate, what is the implied present value of Microsoft's anticipated synergies required for the firm to earn its cost of c…

1. At an interest rate of 4%, what comes closest to the amount of time it takes

1. At an interest rate of 4%, what comes closest to the amount of time it takes for a deposit of $7,500 to reach $15,000? a. 17.67 years b. 10.24 years c. 11.90 years d. 14.21 yea…

1. At expiration, the time value of an option: A. is equal to the intrinsic valu

1. At expiration, the time value of an option: A. is equal to the intrinsic value. B. is greater than the intrinsic value. C. is zero. D. is less than the intrinsic value. 2. If t…

1. At the current time Warren Industries can issue 15-year, $1,000 par-value bon

1. At the current time Warren Industries can issue 15-year, $1,000 par-value bonds paying annual interest at a 12% coupon rate. As a result of current interest rates, the bon…

1. At the end of October, the following adjustment data were assembled, analyze

1. At the end of October, the following adjustment data were assembled, analyze and use these data to complete parts 3 and 4. a. Insurance expired during October is 25…

1. At the end of October, the following adjustment data were assembled, analyze

1. At the end of October, the following adjustment data were assembled, analyze and use these data to complete parts 3 and 4. a. Insurance expired during October is 25…

1. At the end of the year, the Long Life Bulb Company announced that it had prod

1. At the end of the year, the Long Life Bulb Company announced that it had produced a gross profit of $1,000,000. The company has also established that over the course of this ye…

1. At the graduation party, your parents ask you about your plans for the future

1. At the graduation party, your parents ask you about your plans for the future. You proudly tell them that you will earn enough at your new job to save up and purchase your firs…

1. Athena Corp. wants to invest $8,000 in a project with estimated cash flows as

1. Athena Corp. wants to invest $8,000 in a project with estimated cash flows as follows: Yr 1: $1,250 Yr. 2: $1,700 Yr. 3: $2,157 Yr. 4: $2,734 Yr. 5: $3,107. At what cost …

1. Atlantis Fisheries issues zero coupon bonds on the market at a price of $514

1. Atlantis Fisheries issues zero coupon bonds on the market at a price of $514 per bond. Each bond has a face value of $1,000 payable at maturity in 13 years. What is the yield t…

1. Aubie Tech wants to expand their current manufacturing process with a new ful

1. Aubie Tech wants to expand their current manufacturing process with a new fully automated plastic molding machine. The machine costs $100,000 including shipping and installatio…

1. Ayden, Inc., has an issue of preferred stock outstanding that pays a $5.55 di

1. Ayden, Inc., has an issue of preferred stock outstanding that pays a $5.55 dividend every year, in perpetuity. This issue currently sells for $92 per share. % 2. The Germinatin…

1. B plc is a hot air balloon manufacturer whose equity:debt ratio is 5:2. The c

1. B plc is a hot air balloon manufacturer whose equity:debt ratio is 5:2. The company is considering a waterbed-manufacturing project. B plc will finance the project to maintain …

1. BP has come out with a new product. As a result, the firm projects ROE will e

1. BP has come out with a new product. As a result, the firm projects ROE will equal 12%, and that the plowback ratio will equal .70. Its earnings today (time 0) are $1.40 per sha…

1. Balance Sheet accounts for a project are as follows: Cash $ 9,000 AP 13,000 A

1. Balance Sheet accounts for a project are as follows: Cash $ 9,000 AP 13,000 AR 12,000 Accruals …

1. Bank Ajanta has the following balance sheet: Assets Liabilities Reserves $ 60

1. Bank Ajanta has the following balance sheet: Assets Liabilities Reserves $ 60 million Deposits $600 million Loans $…

1. Bank of America’s bid price for Belize dollar is $0.764 while the ask price i

1. Bank of America’s bid price for Belize dollar is $0.764 while the ask price is $0.956. Find the bid/ask percentage spread. 2. Find the bid/ask percentage spread for Bermudi…

1. Bank regulation in the United States Which of the following is an accurate de

1. Bank regulation in the United States Which of the following is an accurate description of bank charter? a. Government permission is needed to establish and operate a depository…

1. Banks establish long-term commitments as a way of managing credit risk. True

1. Banks establish long-term commitments as a way of managing credit risk. True False 2. Which of the following affects both the supply and demand for bonds? A. Liquidity …

1. Bankston Corporation forecasts that if all of its existing financial policies

1. Bankston Corporation forecasts that if all of its existing financial policies are followed, its proposed capital budget would be so large that it would have to issue new common…

1. Bankston Corporation forecasts that if all of its existing financial policies

1. Bankston Corporation forecasts that if all of its existing financial policies are followed, its proposed capital budget would be so large that it would have to issue new common…

1. Barney Finn, CEO of Finnster, Inc., seeks to raise $5 million in a private pl

1. Barney Finn, CEO of Finnster, Inc., seeks to raise $5 million in a private placement of equity in his early stage agro-technology company. Finn conservatively projects net inco…

1. Barts Barometer Business (BBB) is a retail outlet that deals exclusively with