Financial literacy

1. Please provide a brief description of a balance sheet. What information can o

1. Please provide a brief description of a balance sheet. What information can one get from the balance sheet? Please find a recent balance sheet from a public company and comment…

1. Please recall our class discussions on the valuation of bonds. You are an inv

1.     Please recall our class discussions on the valuation of bonds. You are an investor and you expect a US recession. Which of the following would you expect to occur in the bo…

1. Please refer to the financial information for Squamish Equipment above. For n

1. Please refer to the financial information for Squamish Equipment above. For next year, calculate Squamish’s times-burden-covered ratio if Squamish sells 2 million new shares at…

1. Plots A, B, C and D describe different payoffs for put and call options at ex

1. Plots A, B, C and D describe different payoffs for put and call options at expiry. 10 20 10 10 20 30 10 underlying price ) underlying price (S) 10 10 20 30 10 20 underlying pri…

1. Portfolio Returns 10 Points A portfolio manager has made an investment that w

1. Portfolio Returns 10 Points A portfolio manager has made an investment that will generate returns that are subject to the state of the economy during the year. Use the followin…

1. Portfolio Returns A portfolio manager has made an investment that will genera

1. Portfolio Returns A portfolio manager has made an investment that will generate returns that are subject to the state of the economy during the year. Use the following informat…

1. Portfolio beta and weights Rafael is an analyst at a wealth management fim. O

1. Portfolio beta and weights Rafael is an analyst at a wealth management fim. One of his clients holds a $5,000 portfolio that consists of four stocks. The investment allocation …

1. Portfolio decisions consist of: what asset classes to invest in. which asset

1. Portfolio decisions consist of: what asset classes to invest in. which asset to invest in. how much to invest in each asset. All of the above. 2. Which of the following would a…

1. Portman Industries just paid a dividend of $2.16 per share. The company expec

1. Portman Industries just paid a dividend of $2.16 per share. The company expects the coming year to be very profitable, and its dividend is expected to grow by 12% over the next…

1. Portman Industries just paid a dividend of $2.16 per share. The company expec

1. Portman Industries just paid a dividend of $2.16 per share. The company expects the coming year to be very profitable, and its dividend is expected to grow by 12% over the next…

1. Portman Industries just paid a dividend of $2.16 per share. The company expec

1. Portman Industries just paid a dividend of $2.16 per share. The company expects the coming year to be very profitable, and its dividend is expected to grow by 12% over the next…

1. Portman Industries just paid a dividend of $3.60 per share. The company expec

1. Portman Industries just paid a dividend of $3.60 per share. The company expects the coming year to be very profitable, and its dividend is expected to grow by 20.00% over the n…

1. Preferred stock has a dividend of $12 per year. The required return is 6%. Wh

1.                    Preferred stock has a dividend of $12 per year.  The required return is 6%.  What should be the price per share? 2.                    Hurricane Corporation …

1. Prepare a Cash Budget for SKI casts including the surplus or deficit each mon

1. Prepare a Cash Budget for SKI casts including the surplus or deficit each month. Dan Barnes, financial manager of SKI casts, is requesting a line of credit from the company's b…

1. Prepare a common sizing analysis for 2010 2. Prepare a trend analysis for 201

1. Prepare a common sizing analysis for 2010 2. Prepare a trend analysis for 2010 3. Find the profitability ratios, effectivness ratios, liquidity ratios, and solvency ratios. 200…

1. Prepare a pro forma balance sheet, assuming a 10 percent increase in sales, n

             1. Prepare a pro forma balance sheet, assuming a 10 percent increase in sales, no new external debt or equity financing, and a constant payout ratio. (Do not round in…

1. Present Value of a Growing Annuity: You decide to start saving $2,000 per ann

1. Present Value of a Growing Annuity: You decide to start saving $2,000 per annum with the expectation of increasing that amount by 4% per year for the next 20 years (inflation, …

1. Present Value of a Perpetuity What\'s the present value, when interest rates

1.   Present Value of a Perpetuity What's the present value, when interest rates are 6.90 percent, of a $240 payment made every year forever? A.   $3,478.26 B.   $2,400.00 C.   $1…

1. Price Corp. is considering selling to a group of new customers and creating n

1. Price Corp. is considering selling to a group of new customers and creating new annual sales of $50,000. It is estimated that 5% of these new sales will be uncollectible. The c…

1. Price per vist =$85 Variable Cost per vist =? Number of visits =3000 Contribu

1. Price per vist =$85 Variable Cost per vist =? Number of visits =3000 Contribution Margin = $180,000 Fixed costs =? Ne income = $80,000 2.Price per visit = $70 Variable cost per…

1. Pricing ADRs. Today, the stock price of Genevo Company (based in Switzerland)

1. Pricing ADRs. Today, the stock price of Genevo Company (based in Switzerland) is priced at SF80 per share. The spot rate of the Swiss franc (SF) is $.70. During the next year, …

1. Problem 12.01 Problem 12-1 Required investment Truman Industries is consideri

1. Problem 12.01 Problem 12-1 Required investment Truman Industries is considering an expansion. The necessary equipment would be purchased for $17 million, and the expansion woul…

1. Professional gamblers know that the odds are always in favor of the house (ca

1. Professional gamblers know that the odds are always in favor of the house (casinos). The fact that they gamble says they are A. irrational. B. risk-neutral. C. risk-averse. D. …

1. Project K costs $50,000, its expected cash inflows are $14,000 per year for 9

1. Project K costs $50,000, its expected cash inflows are $14,000 per year for 9 years, and its WACC is 12%. What is the project's payback? Round your answer to two decimal places…

1. Project K costs $71,813.09, its expected cash inflows are $14,000 per year fo

1. Project K costs $71,813.09, its expected cash inflows are $14,000 per year for 11 years, and its WACC is 10%. What is the project's IRR? Round your answer to two decimal places…

1. Project Manager Amy Sue’s old college roommate owns a company, Services R Us,

1.     Project Manager Amy Sue’s old college roommate owns a company, Services R Us, which sells the services that Amy Sue needs for her project.   Amy Sue decides to include Serv…

1. Project Manager Mary Ann is not a member of PMI but has applied for PMI certi

1. Project Manager Mary Ann is not a member of PMI but has applied for PMI certification. She has a meeting with Seller A's salesman, and gets into an argument with him. Mary Ann …

1. Project Managers need to have an understanding of Project Procurement Managem

1.     Project Managers need to have an understanding of Project Procurement Management because the ________. A.    Project Manager procures the products, services, or results req…

1. Project P costs $15,000 and is expected to produce benefits (cash flows) of $

1. Project P costs $15,000 and is expected to produce benefits (cash flows) of $4,500 per year for five years. Project Q costs $37,500 and is expected to produce cash flows of $11…

1. Project Procurement Management ________. A. Describes the processes required

1.     Project Procurement Management ________. A.    Describes the processes required to procure products, services, or results from outside the performing organization. B.    In…

1. Project risk versus portfolio risk Consider a firm to be a portfolio of sever

1. Project risk versus portfolio risk Consider a firm to be a portfolio of several projects. The contribution of a project's risk to the firm's risk will be referred to as the bet…

1. Projects of varying risk can be evaluated by: a. identical certainty equivale

1. Projects of varying risk can be evaluated by: a. identical certainty equivalents. b. high-risk projects having high certainty equivalents. c. comparable risk-adjusted net prese…

1. Provide an example of how a company may change its processes to make its manu

1. Provide an example of how a company may change its processes to make its manufacturing more efficient or environmentally sustainable. How will the company benefit? 2. Justify w…

1. Puyau Enterprises recently paid a dividend, D 0 , of $3.00. It expects to hav

1. Puyau Enterprises recently paid a dividend, D0, of $3.00. It expects to have nonconstant growth of 15 percent for 2 years followed by a constant rate of 6 percent thereafter. T…

1. Quantitative Problem: Barton Industries estimates its cost of common equity b

1. Quantitative Problem: Barton Industries estimates its cost of common equity by using three approaches: the CAPM, the bond-yield-plus-risk-premium approach, and the DCF model. B…

1. Quark Industries has 3 potential projects, all with an initial cost of $1,600

1.      Quark Industries has 3 potential projects, all with an initial cost of $1,600,000. The capital budget for the year will allow Quark to only accept one of the three project…

1. Quick ratios between 0.5 and 1 are considered satisfactory, as long as the co

1. Quick ratios between 0.5 and 1 are considered satisfactory, as long as the collection of receivables is not expected to slow. Does the client, Choice Hotels, have enough curren…

1. ROFL Corporation expects to earn 379,000 at the end of the second year and pr

1. ROFL Corporation expects to earn 379,000 at the end of the second year and projects a growth in earnings of 6.15 percent per year. If k is 7.95 percent, what is the present val…

1. Ranger Inc. would like to issue new 20-year bonds. Initially, the plan was to

1.        Ranger Inc. would like to issue new 20-year bonds. Initially, the plan was to make the bonds non- callable. If the bonds were made callable after 5 years at a 5% call pr…

1. Ranger Inc. would like to issue new 20-year bonds. Initially, the plan was to

1.        Ranger Inc. would like to issue new 20-year bonds. Initially, the plan was to make the bonds non- callable. If the bonds were made callable after 5 years at a 5% call pr…

1. Rangoon Corp\'s sales last year were $400,000, and itsyear-end total assets w

1. Rangoon Corp's sales last year were $400,000, and itsyear-end total assets were $300,000.  The averagefirm in the industry has a total assets turnover ratio (TATO) of2.5. The n…

1. Ratio analysis Aa Aa A company reports accounting data in its financial state

1. Ratio analysis Aa Aa A company reports accounting data in its financial statements. This data is used for financial analyses that provide insights into a company's strengths, w…

1. Raven Industries is considering launching a new product. The new manufacturin

1. Raven Industries is considering launching a new product. The new manufacturing equipment will cost $17 million, and production and sales will require an initial $5 million inve…

1. Read carefully the definition of the term product. Now, what is the basic goa

1. Read carefully the definition of the term product. Now, what is the basic goal of purchasing decisions? 2. Provide an example of tangible aspects of a product. 3. Provide an ex…

1. Reasons to manage risk Ae Aa Firms deal with different types of risk in their

1. Reasons to manage risk Ae Aa Firms deal with different types of risk in their day-to-day operations and adopt risk management strategies. It is important to understand why firm…

1. Rebecca bought a corporate bond with the time to maturity of 6 years, yield t

1. Rebecca bought a corporate bond with the time to maturity of 6 years, yield to maturity of 10%, and face value of $1,000. It pays semiannual coupons and the coupon rate of 8%. …

1. Recognition of elements in Financial Statements Required Assess whether each

1. Recognition of elements in Financial Statements Required Assess whether each of the following would be recognised in the financial statements: (a) A gift of cash received by a …

1. Red Cedar Corporation has issued a bond with the following characteristics: P

1. Red Cedar Corporation has issued a bond with the following characteristics: Par: $1,000 Time to maturity: 25 years Coupon rate: 7% Semiannual payments Calculate the price of th…

1. Red Company immediately expenses its development costs while Black Company ca

1. Red Company immediately expenses its development costs while Black Company capitalizes its development costs. All else equal, Red Company will: A) show smoother reported earnin…

1. Red Company purchased an apartment building on November 1, 2015, for $7,000,0

1. Red Company purchased an apartment building on November 1, 2015, for $7,000,000. Determine the cost recovery deduction for 2015. 2. Pink Corporation purchased a business asset …