Financial literacy

1. Given the returns and probabilities for the three possible states listed here

1. Given the returns and probabilities for the three possible states listed here, calculate the covariance between the returns of Stock A and Stock B. For convenience, assume that…

1. Given the risk report below, comment on the risks determined and give suggest

1. Given the risk report below, comment on the risks determined and give suggestions to the investor based on the results. Market risk Residual risk Portfolio VaR analysis Benefit…

1. Given the risk report below, comment on the risks determined and give suggest

1. Given the risk report below, comment on the risks determined and give suggestions to the investor based on the results. Market risk Residual risk Portfolio VaR analysis Benefit…

1. Given the risk report below, comment on the risks determined and give suggest

1. Given the risk report below, comment on the risks determined and give suggestions to the investor based on the results. Market risk Residual risk Portfolio VaR analysis Benefit…

1. Given the yield curve for US Treasury zero-coupon bonds, which spread is most

1. Given the yield curve for US Treasury zero-coupon bonds, which spread is most helpful in pricing a corporate bond? The: A)Z-spread. B)TED spread. C)LIBOR-OIS spread. 2. An opti…

1. Go to www.nyse.com. Find NYSE MarkeTrac and click on the DJIA ticker tape, wh

1. Go to www.nyse.com. Find NYSE MarkeTrac and click on the DJIA ticker tape, which shows trades for the stocks in the Dow Jones Industrial Averages. Stop the tape at GE. What are…

1. Gomi Waste Disposal is planning to sell its Columbus, Memphis, and Detroit fa

1. Gomi Waste Disposal is planning to sell its Columbus, Memphis, and Detroit facilities. The firm expects to sell each of the three facilities for the same, positive cash flow of…

1. Goodwill Industries purchased a computerfor $11,000,which it will depreciate

1. Goodwill Industries purchased a computerfor $11,000,which it will depreciate straight line over five years to a $1,000 salvage value. The computer will then be sold atthat pric…

1. Great Wall Pizzeria issued 4-year bonds one year ago at a coupon rate of 5.2

1. Great Wall Pizzeria issued 4-year bonds one year ago at a coupon rate of 5.2 percent. If the YTM on these bonds is 7.6 percent, what is the current bond price? (Round your answ…

1. Green Construction Co. has consistently used the percentage-of-completion met

1. Green Construction Co. has consistently used the percentage-of-completion method of recognizing revenue. During 2014, Green entered into a fixed-price contract to construct an …

1. Greenbrier Industrial Products\' bonds have a 7.60 percent coupon and pay int

1. Greenbrier Industrial Products' bonds have a 7.60 percent coupon and pay interest annually.  The face value is $1,000 and the current market price is $1.062.50 per bond.  The b…

1. Greenside Clinic has revenue totaling $3,500,000. The clinic has costs totali

1. Greenside Clinic has revenue totaling $3,500,000. The clinic has costs totaling $3,450,000. Of this amount, 40% is variavle cost and 60% is fixed cost Compute the contribution …

1. Griffins Goat Farm, Inc., has sales of $668,000, costs of $330,000, depreciat

1. Griffins Goat Farm, Inc., has sales of $668,000, costs of $330,000, depreciation expense of $74,000, interest expense of $47,000, a tax rate of 21 percent, and paid out $46,000…

1. Growth Enterprises believes its latest project, which will cost $88,000 to in

1. Growth Enterprises believes its latest project, which will cost $88,000 to install, will generate a perpetual growing stream of cash flows. Cash flow at the end of the first ye…

1. Gunther earned a 62.5 percent return on a stock that he purchased one year ag

1. Gunther earned a 62.5 percent return on a stock that he purchased one year ago. The stock is now worth $12, and he received a dividend of $1 during the year. How much did Gunth…

1. Gupta Corporation is undergoing a restructuring, and its free cash flows are

1. Gupta Corporation is undergoing a restructuring, and its free cash flows are expected to vary considerably during the next few years. However, the FCF is expected to be $45.00 …

1. HBM, Inc. has the following capital structure: Assets $400,000 Debt $140,000

1. HBM, Inc. has the following capital structure: Assets $400,000 Debt $140,000 Preferred stock 20,000 Common stock 240,000 The common stock is currently selling for $15 a share, …

1. Hardee Industries sells on terms of 1/10, net 25. Which of the following is t

1. Hardee Industries sells on terms of 1/10, net 25. Which of the following is true?                 a. The cost of trade credit would decrease if the terms changed to 1/15, net 2…

1. Harold considers investing in an LM Corp. bond and decides not to purchase th

1. Harold considers investing in an LM Corp. bond and decides not to purchase the bond.Which of the following statements is MOST correct? A. The intrinsic value of the bond for th…

1. Harris Company produces a single product. Last year Harris manufactured 17,50

1. Harris Company produces a single product. Last year Harris manufactured 17,500 units and sold 12,700 units. Production costs for the year were as follows: Sales were $774,700 f…

1. Has Ben & Jerry\'s fulfilled each of the three dimensions of its mission stat

1. Has Ben & Jerry's fulfilled each of the three dimensions of its mission statement? 2. What evidence can you provide regarding its financial performance? 3. Why did Ben &amp…

1. Has Ben & Jerry\'s fulfilled each of the three dimensions of its mission stat

1. Has Ben & Jerry's fulfilled each of the three dimensions of its mission statement? 2. What evidence can you provide regarding its financial performance? 3. Why did Ben &amp…

1. Having risen from virtually nothing in the early 1980s, stocks and stock opti

1. Having risen from virtually nothing in the early 1980s, stocks and stock options comprised roughly half of the average CEO compensation in public US firms in 1995. [Source: The…

1. Here are some characteristics of two securities: Security 1 E(R1) = .10 2 1 =

1. Here are some characteristics of two securities: Security 1 E(R1) = .10 2 1 = .0025 Security 2 E(R2) = .16 2 2 = .0064 Answer the following questions: (a) Suppose the investor …

1. Here is the ORIGINAL data of the Sporthotel problem: 1. Projected outflows Fi

1. Here is the ORIGINAL data of the Sporthotel problem: 1. Projected outflows First year (Purchase Right, Land, and Permits) $1,000,000 Second Year (Construct building shell $2,00…

1. Herrera Motor Inc. paid a $3.25 dividend last year. At a constant growth rate

1. Herrera Motor Inc. paid a $3.25 dividend last year. At a constant growth rate of 4 percent, what is the value of the common stock if the investors require a rate of return of 1…

1. Hindsight bias is when people remember investments that outperformed the mark

1. Hindsight bias is when people remember investments that outperformed the market but forget the investments that underperformed the market. (true/false) 2. Daniel Kahnemann has …

1. Hispanics are one of the fastest growing market segments in the United States

1. Hispanics are one of the fastest growing market segments in the United States. Yet it would be a mistake for marketers to generalize that all Hispanics are the same. Discuss ho…

1. Holding Period Return The assets of Potential Corp. grew from 2.3 to 3.3 mill

1. Holding Period Return The assets of Potential Corp. grew from 2.3 to 3.3 million dollars in just nine months. What return was earned over the nine month period? What was the mo…

1. Holtzman Clothiers\' stock currently sells for $19 a share. It just paid a di

1. Holtzman Clothiers' stock currently sells for $19 a share. It just paid a dividend of $2 a share (i.e., D0 = $2). The dividend is expected to grow at a constant rate of 4% a ye…

1. Homosexual behavior is found among animals in nature. true or false 2.The beh

1. Homosexual behavior is found among animals in nature. true or false 2.The behavior that conventionalists denounce as abnormal, unnatural, harmful, or dangerous is A. premarital…

1. Honda is considering increasing production after unexpected strong demand for

1. Honda is considering increasing production after unexpected strong demand for its new motorbike. To evaluate the proposal, the company needs to calculate its cost of capital. Y…

1. Horizon Value of Free Cash Flows Current and projected free cash flows for Ra

1. Horizon Value of Free Cash Flows Current and projected free cash flows for Radell Global Operations are shown below. Growth is expected to be constant after 2017, and the weigh…

1. Horizon Value of Free Cash Flows Current and projected free cash flows for Ra

1. Horizon Value of Free Cash Flows Current and projected free cash flows for Radell Global Operations are shown below. Growth is expected to be constant after 2017, and the weigh…

1. How are Mortensen\'s estimates of Midland\'s cost of capital used? How, if at

1.      How are Mortensen's estimates of Midland's cost of capital used? How, if at all, should these anticipated uses affect the calculations? 2.      Calculate Midland's corpora…

1. How are Net Present Value (NPV) and Internal Rate of Return (IRR) related? Wh

1. How are Net Present Value (NPV) and Internal Rate of Return (IRR) related? Which is the better decision rule to follow for project selection or rejection? Why? 2. There have be…

1. How are project classifications used in the capital budgeting process? 2. wha

1. How are project classifications used in the capital budgeting process? 2. what are three potential flaws with the reqular payback method? Does the discounted payback method cor…

1. How do agents and brokers differ? 2. After hearing the advice that it is usua

1. How do agents and brokers differ? 2. After hearing the advice that it is usually best to buy life insurance from a person who has been in the business at least five years, a li…

1. How do you measure return? 2. How do you derive arithmetic average return? 3.

1. How do you measure return? 2. How do you derive arithmetic average return? 3. How do you find standard deviation of return? 4. What is risk and return trade off? What is risk a…

1. How does a company raise money (capital) for their projects? 1) Common Shares

1. How does a company raise money (capital) for their projects? 1) Common Shares. 2) Preferred Stock. 3) Bounds/Debentures. 2. KOOKIS, Inc., has 3M shares of common stock, $20 per…

1. How does a company raise money (capital) for their projects? 1) Common Shares

1. How does a company raise money (capital) for their projects? 1) Common Shares. 2) Preferred Stock. 3) Bounds/Debentures. 2. KOOKIS, Inc., has 3M shares of common stock, $20 per…

1. How does collateral affect the interest rate on a bond? How does subordinatio

1. How does collateral affect the interest rate on a bond? How does subordination affect the interest rate on a bond too? What else might affect the interest rate on a bond? 2. Wh…

1. How does outsourcing increase accountability? 2. What type of contract has th

1.            How does outsourcing increase accountability? 2.            What type of contract has the least amount of risk for the buyer? 3.            What do the letters RFP s…

1. How does persuasion differ in the communities discussed in chapter 11? For ex

1. How does persuasion differ in the communities discussed in chapter 11?   For example, are politicians and advertisers persuading Americans to something? Does each community gra…

1. How many three digit even numbers can be formed from the digits 1, 2, 3, 4, 5

1. How many three digit even numbers can be formed from the digits 1, 2, 3, 4, 5 if no repetitions are allowed? 2. In how many ways can 3 English, 3 Math, and 4 Spanish books be s…

1. How many years will it take $400 to grow to $1671 if it is invested at 10 per

1. How many years will it take $400 to grow to $1671 if it is invested at 10 percent compounded annually? 2. At what rate would $1000 have to be invested to grow to $4046 in 10 ye…

1. How much interest will be earned in the next year on an investment paying 11%

1. How much interest will be earned in the next year on an investment paying 11% compounded annually if $100 was just credited to the account for interest? 2. Beginning today, a p…

1. How much money do you need to buy 200 shares of Pfizer, Inc. (PFE), which tra

1. How much money do you need to buy 200 shares of Pfizer, Inc. (PFE), which trades at $31.40? (Round your answer to 2 decimal places.) 2 How much money do you receive after selli…

1. How much should be invested now at 5.5% simple interest if $8658 is needed in

1. How much should be invested now at 5.5% simple interest if $8658 is needed in 2 years? 2. Determine the amount due on the compound interest loan. (Round your answers to the nea…

1. How much simple interest ill be aned in 3 years with an initial depostk of $1

1. How much simple interest ill be aned in 3 years with an initial depostk of $100 rate of 5%? 2. Suppose you want to save $3500. and you put $3000 in the bank at 10% simple inter…