Financial literacy

1. If you deposit $2,000 into a retirement account earning 6% annually, how much

1. If you deposit $2,000 into a retirement account earning 6% annually, how much total interest have you earned after 10 years, and how much of that represents interest on the ori…

1. If you deposit $2,000 into a retirement account earning 6% annually, how much

1. If you deposit $2,000 into a retirement account earning 6% annually, how much total interest have you earned after 10 years, and how much of that represents interest on the ori…

1. If you have $150 today and would like to have $300 eight years from now, what

1. If you have $150 today and would like to have $300 eight years from now, what annual compounded rateof return do you need to earn? 2. A zero coupon bond has a par value of $10,…

1. If you have $675,000 saved for retirement how many years will it last if you

1. If you have $675,000 saved for retirement how many years will it last if you earn an annual interest rate of 7% and withdraw $46,000 at the beginning of each year? A) 14 B) 48 …

1. If you have to pick between the Russell Small Cap Equity Fund and the Russell

1. If you have to pick between the Russell Small Cap Equity Fund and the Russell Core Equity Fund, which one would you pick? Tell why you would pick a particular fund. The charact…

1. If you put up $27,000 today in exchange for a 7.75 percent, 11-year annuity,

1. If you put up $27,000 today in exchange for a 7.75 percent, 11-year annuity, what will the annual cash flow be? 2. You want to have $63,000 in your savings account 8 years from…

1. If you require an 14.10 percent return on your investment, how much will you

1.    If you require an 14.10 percent return on your investment, how much will you pay for the company's stock today? 2. Suppose you know a company's stock currently sells for $70…

1. If you took in no more payments/collections, your organization could pay bill

1. If you took in no more payments/collections, your organization could pay bills for the next 382 days. This is known as ............. 2. Why is it important to have a good under…

1. If you want to become a millionaire in 30 years... a - stocks and/or mutual f

1. If you want to become a millionaire in 30 years... a - stocks and/or mutual funds could get you there faster. b - a savings account is the best choice. 2. Which of the followin…

1. If you were a manager of a company, which of the three right side components

1. If you were a manager of a company, which of the three right side components of the DuPont Identity would you want to increase and which would you want to decrease, other thing…

1. If you were a manager of a company, which of the three right side components

1. If you were a manager of a company, which of the three right side components of the DuPont Identity would you want to increase and which would you want to decrease, other thing…

1. If your investment return last year was 5% and your marginal tax bracket is 1

1. If your investment return last year was 5% and your marginal tax bracket is 14%, what is your after-tax return? 2. Michael has an investment with the following annual returns t…

1. Ilana Industries Inc. needs a new lathe. It can buy a new high-speed lathe fo

1. Ilana Industries Inc. needs a new lathe. It can buy a new high-speed lathe for $1 million. The lathe will cost $35,000 per year to run, but it will save the firm $125,000 in la…

1. Imagine that you were hired recently as a financial analyst for a relatively

1. Imagine that you were hired recently as a financial analyst for a relatively new, highly leveraged ski manufacturer located in the foothills of Colorado’s Rocky Mountains. Your…

1. Imagine you are considering acquiring a company. You have received their fina

1. Imagine you are considering acquiring a company. You have received their financial statements, and have learned that they have annual cash flows of: Year 1: $10 Million Year 2:…

1. In 1880 an aboriginal tracker was promised the equivalent of 100 Australian d

1. In 1880 an aboriginal tracker was promised the equivalent of 100 Australian dollars for helping to capture a notorious outlaw. In 1993 the granddaughter of the tracker claimed …

1. In 2018, ABC Corporation purchased a new photocopier (asset class 8) with a C

1. In 2018, ABC Corporation purchased a new photocopier (asset class 8) with a CCA rate of 20% for $5,000, as well as a new truck (asset class 10) with a CCA rate of 30% for $40,0…

1. In 2018, Karl\'s Corporation purchased a new photocopier (asset class 8) with

1. In 2018, Karl's Corporation purchased a new photocopier (asset class 8) with a CCA rate of 20% for $5,000, as well as a new truck (asset class 10) with a CCA rate of 30% for $4…

1. In Chapter 8 Figure 8.1 (known as the market line or the risk return trade of

1. In Chapter 8 Figure 8.1 (known as the market line or the risk return trade off line) why should a company reject investment opportunities lying below the market line and accept…

1. In Chiarello United States, the Supreme Court Required Chiarella to disgorge

1. In Chiarello United States, the Supreme Court Required Chiarella to disgorge the profit he obtained by trading on non-public information a. b Ruled that mere possession of non-…

1. In Japan a promise to give property to one party gratuitously cannot be cance

1. In Japan a promise to give property to one party gratuitously cannot be cancelled, regardless of whether or not it is in writing. True False 2. Which of the following is necess…

1. In Japan, 90-day securities have a 4% annualized return and 180-day securitie

1. In Japan, 90-day securities have a 4% annualized return and 180-day securities have a 5% annualized return. In the United States, 90-day securities have a 4% annualized return …

1. In Japan, 90-day securities have a 4% annualized return and 180-day securitie

1. In Japan, 90-day securities have a 4% annualized return and 180-day securities have a 5% annualized return. In the United States, 90-day securities have a 4% annualized return …

1. In a perfectly competitive market, ________. there are barriers that make it

1. In a perfectly competitive market, ________. there are barriers that make it difficult for firms to enter no one seller can influence the price of the product prices are fallin…

1. In a perfectly competitive market, ________. there are barriers that make it

1. In a perfectly competitive market, ________. there are barriers that make it difficult for firms to enter no one seller can influence the price of the product prices are fallin…

1. In aggregate, households are deficit spending units. 2. Only financial instit

1. In aggregate, households are deficit spending units. 2. Only financial institutions are subject to Fed oversight. 3. An initial public offering of equity is a form of direct in…

1. In an agreement to exchange dollars for euros in 3 months at a price of $.090

1. In an agreement to exchange dollars for euros in 3 months at a price of $.090 per euro, the price is the: A) Fixed exchange rate B) Money Exchange Rate C) Forward Exchange Rate…

1. In an efficient market, the change in a company\'s share price is most likely

1. In an efficient market, the change in a company's share price is most likely the result of: A. Insiders' private information. B. The previous day's change in stock price. C. Ne…

1. In computing the present and future value of multiple cash flows: A) each cas

1. In computing the present and future value of multiple cash flows: A) each cash flow is discounted or compounded at the same rate. B) each cash flow is discounted or compounded …

1. In contrast to venture capital, commercial banks are notoriously conservative

1. In contrast to venture capital, commercial banks are notoriously conservative in lending to new business firms.  What makes venture capitalists more eager to finance risky proj…

1. In general, it is not possible for Re, the cost of new equity, to be lower th

1. In general, it is not possible for Re, the cost of new equity, to be lower than Rs, the cost of retained earnings. However, an exception to this rule occurs when the stock pric…

1. In managing cash and marketable securities, what should be the manager\'s pri

1. In managing cash and marketable securities, what should be the manager's primary concern? A. Maximization of profit B. Maximization of liquid assets C. Acceptable return on inv…

1. In most situations where individuals have aquired too much debt, aquiring deb

1. In most situations where individuals have aquired too much debt, aquiring debt consolidation loans usually____ monthly payments and most often____ the the total amount of the i…

1. In order for a business corporation to be sustainable - that is, to be sucess

1. In order for a business corporation to be sustainable - that is, to be sucessful over a long period of time - it must satisfy______. A. all of its? economic, legal,? ethical, a…

1. In order to calculate the net present value (NPV) of a capital investment, we

1. In order to calculate the net present value (NPV) of a capital investment, we must know: a. the net accounting income generated from the investment b. the initial outlay and th…

1. In order to fund her retirement, Michele requires a portfolio with an expecte

1. In order to fund her retirement, Michele requires a portfolio with an expected return of 0.11 per year over the next 30 years. She has decided to invest in Stocks 1, 2, and 3, …

1. In terms of break-even analysis, which of the following is true? a. All else

1. In terms of break-even analysis, which of the following is true?               a. All else equal, a decrease in variable costs will increase the break-even quantity            …

1. In terms of insurance, what is moral hazard and what do insurance companies d

1. In terms of insurance, what is moral hazard and what do insurance companies do to try to offset it? 2. How did the drop in the birth rate cause problems for Social Security, an…

1. In terms of time value of money, when evaluating lease payments and tax savin

1. In terms of time value of money, when evaluating lease payments and tax savings, one should bear in mind that often: A. lease payments occur at the end of the year. B. tax savi…

1. In the Black-Scholes-Merton option pricing formula N ( d 1 ) denotes (circle

1. In the Black-Scholes-Merton option pricing formula N(d1) denotes (circle one) a.         The area under a normal distribution from zero to d1 b.         The area under a normal…

1. In the U.S., which population group is the fastest growing group of Facebook

1. In the U.S., which population group is the fastest growing group of Facebook users? A) Busters B) Seniors C) Boomers D) Gen X E) Gen Y 2. Which of the following newspaper headl…

1. In the buying on margin example, suppose that the initial margin is 60%. What

1. In the buying on margin example, suppose that the initial margin is 60%. What is the investor's equity in the purchase? 2. In return example 1 suppose the margin is 60% instead…

1. In the event that a corporation files for bankruptcy, bond trustees have the

1. In the event that a corporation files for bankruptcy, bond trustees have the power to a. change the interest rate on outstanding bonds. b. sell the corporations secured assets …

1. In the file MajorSalary.xlsx , data have been collected from 111 College of B

1. In the file MajorSalary.xlsx, data have been collected from 111 College of Business graduates on their monthly starting salaries. The graduates include students majoring in man…

1. In the wake of corporate scandals at Enron, Tyco, and WorldCom, some argue th

1. In the wake of corporate scandals at Enron, Tyco, and WorldCom, some argue that managers of large, publicly owned firms sometimes make decisions to maximize their own welfare a…

1. In theory, the firm should maintain financial leverage consistant with a capi

1. In theory, the firm should maintain financial leverage consistant with a capital structure that? A. Maximizes dividends    B. Meets the industry standard C. Maximizes the earni…

1. In this scenario you will calculate the monthly payment and total interest pa

1.      In this scenario you will calculate the monthly payment and total interest paid on a car loan. Suppose that you need $15,000 to buy a used vehicle to get back and forth to…

1. In what order will the following parties be paid in a liqu dation? Je bondhol

1. In what order will the following parties be paid in a liqu dation? Je bondholder. ll. senior preferred shareholder. :lIl. common stock shareholder. :lV. regular preferred share…

1. Income statement. Fill in the missing numbers on the following annual income

1. Income statement. Fill in the missing numbers on the following annual income statements for Barron Pizza, Inc., . Note Use a tax rate of 37.5% Complete the table below: (Round …

1. Indicate the impact of the following on the cash and operating cycles, respec

1. Indicate the impact of the following on the cash and operating cycles, respectively. Use the letter I to indicate an increase, the letter D for a decrease, and the letter N for…