Financial literacy

1. Explain how trade balance, interest rates, and exchange rates are related, an

1. Explain how trade balance, interest rates, and exchange rates are related, and cite an example of how a rise or fall in one changes the others. 2. Does a deficit in China or th…

1. Explain the difference between independent, mutually exclusive, and contingen

1. Explain the difference between independent, mutually exclusive, and contingent investment projects. Imagine that you work for Ford, the car manufacturer. Give examples of each …

1. Explain the difference between the expected real interest rate and the realiz

1. Explain the difference between the expected real interest rate and the realized real interest rate. Which is more relevant to decision making? Why? Which is more relevant for d…

1. Explain the differences and similarities between net present value (NPV) and

1. Explain the differences and similarities between net present value (NPV) and the profitability index (PI). 2. You are analyzing a project and have prepared the following data: …

1. Explain the promoters\' liability to third parties before a corporation is fo

1.  Explain the promoters' liability to third parties before a corporation is formed. 2.  Mention the matters that must be included in the articles of incorporation according to t…

1. Explain the three steps of financial analysis at the organizational level. 2.

1. Explain the three steps of financial analysis at the organizational level. 2. What is the purpose of creating a balance sheet? List the three general classifications of the bal…

1. Explain why Peter Drucker is considered the father of modern management 2. Br

1. Explain why Peter Drucker is considered the father of modern management 2. Briefly outline who ploneered the methods of Sclentitic Management? 3. Describe the impact on workers…

1. Explain why each of the independent statements below is false . A good explan

1. Explain why each of the independent statements below is false. A good explanation should be between two and four sentences for each part. • A mutual fund manager is concerned t…

1. Explain why profit maximization is not the best goal for a company. What is a

1. Explain why profit maximization is not the best goal for a company. What is an appropriate goal and why? 2. Give an example of a conflict of an interest in a business setting (…

1. Explain why the present value of a cash flow stream, and the asset associated

1. Explain why the present value of a cash flow stream, and the asset associated therewith; fluctuate in value with the level of interest rates in the capital markets. 2. List and…

1. External Funds Needed The Phillies Company has forecast a 15.00 percent sales

1.                     External Funds Needed       The Phillies Company has forecast a 15.00 percent sales growth for the next year. The current financial statements are shown her…

1. Factor income from international portfolio management is a component of finan

1. Factor income from international portfolio management is a component of financial account in the balance of payments True False 2. The forward rate is the exchange rate used fo…

1. Factors that affect the AFN equation Aa Aa Several factors affect a firm\'s n

1. Factors that affect the AFN equation Aa Aa Several factors affect a firm's need for external funds. Evaluate the effect of each following factor and place a check next to each …

1. Factors that affect the AFN equation Several factors affect a firm\'s need fo

1. Factors that affect the AFN equation Several factors affect a firm's need for external funds. Evaluate the effect of each following factor and place a check next to each factor…

1. Factors that should be considered in taking a stock option position include:

1. Factors that should be considered in taking a stock option position include: A:   The dividend paid on the underlying stock B:   The volatility of the underlying stock C: The t…

1. Falcon Toot Industries is planning its operations for next year, and Robbie S

1. Falcon Toot Industries is planning its operations for next year, and Robbie Starksdale, the CEO, wants you to forecast the firm's External funds needed (EFN). Data for use in y…

1. Fama Corp.’s current stock price is $36, and its last dividend (D0) was $2.40

1. Fama Corp.’s current stock price is $36, and its last dividend (D0) was $2.40. The required rate of return for Fama Corp. is 12%. If dividends are expected to grow at a constan…

1. FarCry Industries, a maker of telecommunications equipment, has 6 million sha

1. FarCry Industries, a maker of telecommunications equipment, has 6 million shares of common stock outstanding, 4 million shares of preferred stock outstanding, and 45,000 bonds.…

1. Farfetched, Inc. thinks it can save $12,000 per year, after tax, over a four-

1. Farfetched, Inc. thinks it can save $12,000 per year, after tax, over a four-year period if it starts using direct email instead of direct snail mail. A consultant that they’ve…

1. Farou invests $2,000 at 8% interest. About how long will it take for Farou to

1. Farou invests $2,000 at 8% interest. About how long will it take for Farou to double his investment (e.g., to have $4,000)? A. 4 years B. 5 years C. 9 years 2. What is the futu…

1. FedEx Corp. stock ended the previous year at $103.39 per share. It paid a $0.

1. FedEx Corp. stock ended the previous year at $103.39 per share. It paid a $0.35 per share dividend last year. It ended last year at $106.69 If you owned 200 shares of FedEx, wh…

1. Filbeck Company buys on terms of 2/15, net 30 days. It does not take discount

1. Filbeck Company buys on terms of 2/15, net 30 days. It does not take discounts, and it typically pays 30 days after the invoice date. Net purchases amount to $500,000 per year.…

1. Financial Forecasting Please refer to the financial statements below to answe

1. Financial Forecasting Please refer to the financial statements below to answer the following questions: a. What was the increase in retained earnings of Dylan’s during 2016? b.…

1. Financial Forecasting Please refer to the financial statements below to answe

1. Financial Forecasting Please refer to the financial statements below to answer the following questions: a. What was the increase in retained earnings of Dylan’s during 2016? b.…

1. Financial advisor activities considered to be part of step 4 (develop and pre

1. Financial advisor activities considered to be part of step 4 (develop and present a plan) in the financial planning process include all the following EXCEPT        A. obtaining…

1. Financial economics is the study of ________. allocation of resources over ti

1. Financial economics is the study of ________. allocation of resources over time with risk income distributions poverty scarcity of natural resources 2. What you must forego to …

1. Find Smith\'s days sales outstanding (DSO). Round to the nearest whole day. 4

1. Find Smith's days sales outstanding (DSO). Round to the nearest whole day. 47 78 122 73 2. Calculate Smith's DPO. Round to the nearest whole day 3. How long does Smith wait fro…

1. Find XYZ\'s NWC. 2. How long, on average, does it take for XYZ to sell invent

1. Find XYZ's NWC.   2. How long, on average, does it take for XYZ to sell inventory items after acquiring them? Round intermediate steps to four decimals and your final answer to…

1. Find the effective annual rate (EAR) in each of the following cases: Stated R

1. Find the effective annual rate (EAR) in each of the following cases: Stated Rate (APR) Number of Times Compounded        Effective Rate (EAR)           12%                     …

1. Find the future value of today\'s $500 in 5 years under each of the following

1. Find the future value of today's $500 in 5 years under each of the following conditions 5% nominal rate, annual compounding 8% nominal rate, annual compounding 10% nominal rate…

1. Find the future value one year from now of a $7,000 investment at a 3% annual

1. Find the future value one year from now of a $7,000 investment at a 3% annual compound interest rate. Also calculate the future value if the investment is made for 2 years. 2. …

1. Find the interest rate (or rates of return) for each of the following situati

1. Find the interest rate (or rates of return) for each of the following situations. Round your answers to two decimal places. a) You borrow $65,000 and promise to pay back $180,5…

1. Find the monthly payment that will yield the future valueof $105,000 using an

1. Find the monthly payment that will yield the future valueof $105,000 using an ordinary annuity at 9.5% interest for34 years. (Round the answer to thenearest cent.) 2. Susan and…

1. Find the price of the following bonds issued on November 30, 2017 on thet day

1. Find the price of the following bonds issued on November 30, 2017 on thet day that they are issued. Please show your work. [Hint: State what F, r, C, n, m, and j are.] (a) 7.5%…

1. Find the simple interest on the loan. $1100 at 6% for 10 years. $ 2. Find the

1. Find the simple interest on the loan. $1100 at 6% for 10 years. $ 2. Find the total amount due for the simple interest loan. $1900 at 7% for 10 years. $ 3. Find the interest ra…

1. Firm A has $10,000 in assets entirely financed with equity. Firm B also has $

1. Firm A has $10,000 in assets entirely financed with equity. Firm B also has $10,000 in assets, but these assets are financed by $5,000 in debt (with a 10 percent rate of intere…

1. Firm A has $10,000 in assets entirely financed with equity. Firm B also has $

1. Firm A has $10,000 in assets entirely financed with equity. Firm B also has $10,000 in assets, but these assets are financed by $5,000 in debt (with a 10 percent rate of intere…

1. Firm A has Total Assets of $ 5,000,000. The firm\'s Total Liabilities equals

1. Firm A has Total Assets of $ 5,000,000. The firm's Total Liabilities equals $ 2,000,000. The Cost of Debt is 7% and all remaining financing costs 14%. The firm's After-Tax Rate…

1. Firm-specific risk: can be effectively eliminated through portfolio diversifi

1. Firm-specific risk: can be effectively eliminated through portfolio diversification. is compensated for by the risk premium. is measured by beta. cannot be avoided if you wish …

1. Firms U and L each have the same amount of assets, EBIT, investor-supplied ca

1. Firms U and L each have the same amount of assets, EBIT, investor-supplied capital. Firm U is unleveraged, i.e., it is 100% equity financed. The market risk (beta) of firm U is…

1. Five thousand dollars is deposited in an account that pays 6 percent interest

1. Five thousand dollars is deposited in an account that pays 6 percent interest per year. Two years from today, another $5.000 is deposited. Five years from today. $10.000 is wit…

1. Five thousand dollars is deposited in an account that pays 6 percent interest

1. Five thousand dollars is deposited in an account that pays 6 percent interest per year. Two years from today, another $5.000 is deposited. Five years from today. $10.000 is wit…

1. Five thousand dollars is deposited in an account that pays 6 percent interest

1. Five thousand dollars is deposited in an account that pays 6 percent interest per year. Two years from today, another $5.000 is deposited. Five years from today. $10.000 is wit…

1. Five year ago, you invested in a 5% semi-annual coupon bond with a face value

1. Five year ago, you invested in a 5% semi-annual coupon bond with a face value $1,000 for $910. Today, at the date of maturity, the bond issuer announces that default occurs wit…

1. Five years ago, Caymans Crafters, Inc. issued new 25 year convertible bonds w

1. Five years ago, Caymans Crafters, Inc. issued new 25 year convertible bonds with a 4% coupon rate, compounded semi-annually. The bond has a par value of 10,000. The markets req…

1. Float and Weighted Average Delay Your neighbor goes to the post office once a

1. Float and Weighted Average Delay Your neighbor goes to the post office once a month and picks up checks, one for 17,000 and one for 6000. The larger check takes four days to cl…

1. Followers of the random walk hypothesis believe that Select one: a. security

1. Followers of the random walk hypothesis believe that Select one: a. security analysis is the best tool to utilize when investing in the stock market. b. the price movements of …

1. For 40 Extra Credit Points. Many mutual funds are part of a family of funds u

1. For 40 Extra Credit Points. Many mutual funds are part of a family of funds under the umbrella of a fund sponsor. Select three of these fund sponsors and answer the following q…

1. For a bond selling for $696, with a par value of $1000 and a coupon rate of 5

1. For a bond selling for $696, with a par value of $1000 and a coupon rate of 5.57 percent, the current yield is? Round the answer to two decimal places. 2. General Mills has a $…

1. For all questions in this section. Option quotations on a stock are shown bel

1. For all questions in this section. Option quotations on a stock are shown below. The current stock price, S, is $104 per share. The August 90 CALL option is: 2. Calculate the i…