Financial literacy

1. March 12, 1933 Fireside Chat on Banking delivered by President Franklin D. Ro

1. March 12, 1933 Fireside Chat on Banking delivered by President Franklin D. Roosevelt: “The Fireside Chat on Banking”.The president blames speculators for creating the banking p…

1. Marco Chip, Inc just issued zero-coupon bonds with a par value of $1000. The

1. Marco Chip, Inc just issued zero-coupon bonds with a par value of $1000. The bond has a maturity of 14 years and a yield to maturity 0f 6.96%, compound semi-annually. What is t…

1. Maria settles her auto accident lawsuit against Don, but discovers six months

1. Maria settles her auto accident lawsuit against Don, but discovers six months after the settlement that her back problems have returned. Maria can rescind the settlement agreem…

1. Marine Booksellers plans to borrow $2 million for one year at a stated intere

1. Marine Booksellers plans to borrow $2 million for one year at a stated interest rate of 8.00%. The company can either pay quarterly installments to retire the loan or accept a …

1. Marisol was granted 100 NQSOs on January 12 th , five years ago. At the time

1.      Marisol was granted 100 NQSOs on January 12th, five years ago. At the time of the option grant, the value of the underlying stock was $100 and the exercise price was equal…

1. Mark has a choice of investments; Mark can invest in City of Nowhere Bonds wh

1. Mark has a choice of investments; Mark can invest in City of Nowhere Bonds which pay 6% interest or in Big Bad Corporation bonds that pay 9% interest. Mark has a marginal tax r…

1. Marking to market is a process that A. ensures that the buyers and sellers re

1. Marking to market is a process that A. ensures that the buyers and sellers receive what the contract promises. B. always requires the sellers of contracts to transfer funds to …

1. Marks? & Spencer? (M&S) leads the way to sustainability. All of the following

1. Marks? & Spencer? (M&S) leads the way to sustainability. All of the following are examples of activities conducted by the firm EXCEPT? ________________. A. M&S recy…

1. Marquez Corp. utilized $2,000,000 in total assets last year to generate $5,00

1. Marquez Corp. utilized $2,000,000 in total assets last year to generate $5,000,000 in sales. Marquez's net profit margin was 4% and its debt ratio was 40%. what was the return …

1. Married clients have just been approved for a 20-year, $150,000 mortgage. The

1. Married clients have just been approved for a 20-year, $150,000 mortgage. They have been given a choice of two loans. One loan has an annual percentage rate (APR) of 8% and doe…

1. Marsha wants to have $1 million in her 401(K) in 30 years. She wants to inves

1. Marsha wants to have $1 million in her 401(K) in 30 years. She wants to invest $5,000 a year into the 401(K).  About how much more than $5,000 a year will she need to invest ea…

1. Martin Corp. stock has a bid price of $38.10 and an ask price of $38.35. Assu

1. Martin Corp. stock has a bid price of $38.10 and an ask price of $38.35. Assume there is a $19 brokerage commission per trade. What is your round-trip transaction cost if you b…

1. Marty, an accountant for G & O Transport Incorporated, begins issuing company

1. Marty, an accountant for G & O Transport Incorporated, begins issuing company checks payable to nonexistent persons drawn on G & O's account at First National Bank. Mar…

1. Mary Thanes, a college student is contemplating the following options for her

1. Mary Thanes, a college student is contemplating the following options for her 3-month summer break: (1) Take a summer course which will cost $700 and work half-time making $1,0…

1. Mary decides to set aside a small part of her wealth for investment in a port

1. Mary decides to set aside a small part of her wealth for investment in a portfolio that has greater risk than her previous investments because she anticipates that the overall …

1. Mary has an investment worth 55,500 dollars. The investment will make regular

1. Mary has an investment worth 55,500 dollars. The investment will make regular, fixed quarterly payments of 1,100 dollars to Bob forever with the first regular payment expected …

1. Maryland Computers has an outstanding bond issue with a par value of $1,000 ,

1. Maryland Computers has an outstanding bond issue with a par value of $1,000, with an annual 12% coupon rate. However, note that interest payments on this bond are paid semi-ann…

1. Maslyn Corp. has an EBIT of $980,000 per year that is expected to continue in

1. Maslyn Corp. has an EBIT of $980,000 per year that is expected to continue in perpetuity. The unlevered cost of equity for the company is 14 percent, and the corporate tax rate…

1. Maximum Over time premium per hour?? 2. Additional contribution margin per ho

1. Maximum Over time premium per hour?? 2. Additional contribution margin per hour?? 3. Should Portsmouth hire the nearby upholstering company?? (yes/no) Portsmouth Company makes …

1. McCoy paid a one-time special dividend of $3.40 on October 18, 2010. Suppose

1. McCoy paid a one-time special dividend of $3.40 on October 18, 2010. Suppose you bought McCoy stock for $48 on July 18, 2010, ans sold it immediately after the dividend was pai…

1. Michael wants to finally buy a brand new car. A nice Corvette costs $55,000…

1. Michael wants to finally buy a brand new car. A nice Corvette costs $55,000… A convertible BMW costs $35,000… A long-lasting Japanese Honda costs $20,000… Michael decided that …

1. Michelak\'s Maritime Indudtries has relatively stable earnings and pays an an

1. Michelak's Maritime Indudtries has relatively stable earnings and pays an annual dividend of $2.50 per share. This devidend has remained constant over the past few years and it…

1. Microtech Corporation is expanding rapidly and currently needs to retain all

1. Microtech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Microtech to begin pay…

1. Midwest Lumber had a profit margin of 5.1%, a total assets turnover of 1.6, a

1. Midwest Lumber had a profit margin of 5.1%, a total assets turnover of 1.6, an interest burden and tax burden of 1, and an equity multiplier of 1.8. What was the firm's ROE? A.…

1. Mike’s Veneer Shop owns a vacuum press that requires annual maintenance. Mike

1. Mike’s Veneer Shop owns a vacuum press that requires annual maintenance. Mike has a contract to cover the maintenance expenses for the next five years. The contract calls for a…

1. Modigliani and Miller\'s Proposition I states that: (0.5) A. the market value

1. Modigliani and Miller's Proposition I states that: (0.5) A. the market value of any firm is independent of its capital structure B. the market value of a firm's debt is indepen…

1. Montgomery Burns needs $26 million to expand his business. He decides to sell

1. Montgomery Burns needs $26 million to expand his business. He decides to sell 15-year zero-coupon bonds with a $1,000 face value to finance the expansion. The bonds will be pri…

1. Mortgage Payments What are the monthly payments for a 30-year traditional mor

1. Mortgage Payments What are the monthly payments for a 30-year traditional mortgage? Hint use PVA formula. (Show your work and formulas) What are the monthly payments for a 20-y…

1. Motorcycles, ATVs, and other motorized vehicles should be covered by what pol

1. Motorcycles, ATVs, and other motorized vehicles should be covered by what policy? homeowners, automobile, recreational vihicle, sngle-user 2.Liability insurance states that: a.…

1. Moving money in and out of the market based on your market expectations is ca

1. Moving money in and out of the market based on your market expectations is called _____ and tends to lead to returns that are _____ than the overall market return, assuming tha…

1. Mr. C died in the current year. Based on the following facts, compute Mr. C\'

1. Mr. C died in the current year. Based on the following facts, compute Mr. C's gross estate.In 1993, C gave cash of $50,000 to his friend. No gift tax was paid on the gift. C he…

1. Mr. Flint is the president of Martell Company. If he gets a deferred annuity

1. Mr. Flint is the president of Martell Company. If he gets a deferred annuity of $4500 per year for 10 years, with the first payment received at the end of the third year (and t…

1. Mr. Smith has an annual gross income of $60,000 and pays $400 per month on pa

1. Mr. Smith has an annual gross income of $60,000 and pays $400 per month on payments towards an auto loan.  He would like a buy a house, but unsure how large of loan he could qu…

1. Mr. Sparky puts away $250 from each monthly paycheck into an account that ret

1. Mr. Sparky puts away $250 from each monthly paycheck into an account that returns 7.89% annual interest compounded monthly for his retirement. a. How much will Mr. Sparky have …

1. Mrs. Beach wants to invest a lump sum of money today to have $100,000 when sh

1. Mrs. Beach wants to invest a lump sum of money today to have $100,000 when she retires at 65 (she is 40 today). a. How much of a deposit would she have to make if the interest …

1. Ms. Cobain, a 25-year old professional, plans to retire 35 years from today a

1. Ms. Cobain, a 25-year old professional, plans to retire 35 years from today and is analyzing her retirement options with an advisor. She is certain that $60,000 per year can co…

1. Municipal bonds are best suited for investors in the low income tax bracket S

1. Municipal bonds are best suited for investors in the low income tax bracket Select one: True False 2.The current Euro-zone crisis is not going to affect the U.S. economy True F…

1. Municipal bonds are best suited for investors in the low income tax bracket S

1. Municipal bonds are best suited for investors in the low income tax bracket Select one: True False 2.The current Euro-zone crisis is not going to affect the U.S. economy True F…

1. My friend Roger has a home mortgage for $88,500 with an interest rate of 5.12

1. My friend Roger has a home mortgage for $88,500 with an interest rate of 5.125% annual compounded monthly and a period of 15 years. He made his first monthly payment in May of …

1. NPV = 1728828.94 - 1500000 = $ 228828.94. 2. If there is recession then the c

1. NPV = 1728828.94 - 1500000 = $ 228828.94. 2. If there is recession then the cash inflow would be 55% of (a) i.e. 1728828.94 * 55% = $950855.92. Hence the NPV woul be negative w…

1. Name the 5 management functions discussed in class. POSDC : Planning, Organiz

1. Name the 5 management functions discussed in class.    POSDC : Planning, Organizing, Staffing, Directing, and Controlling 2.    Explain why healthcare organizations hold cash a…

1. Nancy purchased a stock last year and sold it today for $5 a share more than

1. Nancy purchased a stock last year and sold it today for $5 a share more than her purchase price. She received a total of $1.50 in dividends per share. Which one of the followin…

1. Neal\'s Nails has Total Assets of $150,000, Net Income of $16,500, and divide

1. Neal's Nails has Total Assets of $150,000, Net Income of $16,500, and dividends of $4,950. What is the firm’s Internal Growth rate? Can the firm grow at 8 percent without raisi…

1. Nestor borrows $10,000 from the shady loan shark, Mr. Wildcat. Mr. Wildcat te

1. Nestor borrows $10,000 from the shady loan shark, Mr. Wildcat. Mr. Wildcat tells him he must repay the loan in 1 month and pay an additional $1000 in interest. If Mr. Wildcat i…

1. Net Present Value is considered a better method than Internal Rate of Return

1. Net Present Value is considered a better method than Internal Rate of Return for all of the following reasons except __________. a) IRR may misrank mutually exclusive projects …

1. Net working capital is defined as: the depreciated book value of a firm\'s fi

1. Net working capital is defined as: the depreciated book value of a firm's fixed assets. the value of a firm's current assets. available cash minus current liabilities. total as…

1. Neustal, Inc. has decided to use the certainty equivalent method in determini

1.              Neustal, Inc. has decided to use the certainty equivalent method in determining whether a new investment should be made. The expected cash flows associated with th…

1. New York Waste (NYW) is considering refunding a $50,000,000, annual payment,

1. New York Waste (NYW) is considering refunding a $50,000,000, annual payment, 14 percent coupon, 30-year bond issue that was issued five years ago. It has been amortizing $3 mil…

1. New York Water (NYW) is considering whether to refund a $50 million, 14 perce

1.       New York Water (NYW) is considering whether to refund a $50 million, 14 percent coupon, 30-year bond issue that was sold 5 years ago. It is amortizing $3 million of flota…

1. Nick\'s Enchiladas Incorporated has preferred stock outstanding that pays a d

1. Nick's Enchiladas Incorporated has preferred stock outstanding that pays a dividend of $5 at the end of each year. The preferred sells for $55 a share. What is the stock's requ…