Financial literacy

1. Refer to the following figure. Choose the answers which accurately illustrate

1.      Refer to the following figure. Choose the answers which accurately illustrate the decomposition of a commercial bank’s return on equity. Interest Expense Ratio Profit Marg…

1. Refer to the following for Acme National Bank: 1-YEAR RATE-SENSITIVE ASSETS $

1. Refer to the following for Acme National Bank: 1-YEAR RATE-SENSITIVE ASSETS $ 80,000,000 1-YEAR RATE-SENSITIVE LIABILITIES $100,000,000 TOTAL ASSETS $160,000,000 TOTAL LIABILTI…

1. Referring to consumer purchases, an example of a personal opportunity cost is

1. Referring to consumer purchases, an example of a personal opportunity cost is       buying on credit.       selecting a commonly known brand.       the influence of advertising…

1. Regarding the economy, what are the terms expand and contract generally used

1. Regarding the economy, what are the terms expand and contract generally used to describe? a. Changes in monetary and fiscal policy b. Rising and falling levels of budget defici…

1. Regulation of Securities Activities Explain the role of the SEC, the NASD, an

1. Regulation of Securities Activities Explain the role of the SEC, the NASD, and the stock exchanges in regulating the securities industry. 3. Investment Banking Services How do …

1. Required financial statements are: a. Balance Sheet, Profit and Loss Statemen

1. Required financial statements are: a. Balance Sheet, Profit and Loss Statement, Equity Holders Statement, Cash Flows Statement and GAAP principles b. Balance Sheet, Profit and …

1. Resource-Based View (VRIO Analysis) Consider the iPhone Division of AAPL use

1.Resource-Based View (VRIO Analysis) Consider the iPhone Division of AAPL use google facts Complete table on the “Resource-Based View” Internal Analysis (see below). This is Inte…

1. Retail Renovators is considering 2 INDEPENDENT alternative spaces to renovate

1.   Retail Renovators is considering 2 INDEPENDENT alternative spaces to renovate. They can renovate, both, either one, or neither of the spaces. Costs are shown below. Since the…

1. Retrieve the file CFM0510P.XLS. Enter the appropriate financial function comm

1. Retrieve the file CFM0510P.XLS. Enter the appropriate    financial function command in cell B7 that solves the following problem: Susan Robinson is planning for her retirement.…

1. Reversing Rapids Co. purchases an asset for $175,054. This asset qualifies as

1. Reversing Rapids Co. purchases an asset for $175,054. This asset qualifies as a five-year recovery asset under MACRS. The five-year expense percentages for years 1, 2, 3, and 4…

1. Reynolds, Inc. needs to raise $ 5 million by selling common stock. Reynolds s

1. Reynolds, Inc. needs to raise $ 5 million by selling common stock. Reynolds sells 1 million shares of stock at $ 5 each to Goldman Sachs, who then is responsible for selling th…

1. Ribbon Industries reported sales of $3 million and net income of $400,000 for

1. Ribbon Industries reported sales of $3 million and net income of $400,000 for 2010. The retained earnings balance at the end of 2012 is $7 million. Ribbon Industries has a divi…

1. Rights and privileges of common stockholders Aa Aa Larry Nelson holds 1,000 s

1. Rights and privileges of common stockholders Aa Aa Larry Nelson holds 1,000 shares of General Electric (GE) common stock. As a stockholder, he has the right to be involved in t…

1. Rights and privileges of common stockholders Aa Aa Larry Nelson holds 1,000 s

1. Rights and privileges of common stockholders Aa Aa Larry Nelson holds 1,000 shares of General Electric (GE) common stock. As a stockholder, he has the right to be involved in t…

1. Rights and privlleges of common stockholders AaAa Larry Nelson holds 1,000 sh

1. Rights and privlleges of common stockholders AaAa Larry Nelson holds 1,000 shares of General Electric (GE) common stock. As a stockholder, he has the right to be involved in th…

1. Riverhawk Corporation has a bond outstanding with a market price of $1,250.00

1. Riverhawk Corporation has a bond outstanding with a market price of $1,250.00. The bond has 10 years to maturity, pays interest semiannually, and has a yield to maturity of 9%.…

1. Rivington Company is thinking about expanding and wants to calculate their WA

1.       Rivington Company is thinking about expanding and wants to calculate their WACC. Assume their capital structure consists of 45% common stock, 20% preferred stock, and 35%…

1. Rolston Music Company is considering the sale of a new sound board used in re

1. Rolston Music Company is considering the sale of a new sound board used in recording studios. The new board would sell for $26,900, and the company expects to sell 1,540 per ye…

1. Ronen Consulting has just realized an accounting error that has resulted in a

1. Ronen Consulting has just realized an accounting error that has resulted in an unfunded liability of $375,000 due in 25 years, they will need $375,000 in 25 years. Toni Flander…

1. Rooster Co. has identified an investment project with the following cash flow

1. Rooster Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $1,210 2 1,120 3 1,550 4 1,910 Requirement 1: If the discount rate is 9 percent…

1. Rowell Company spent $3 million two years ago to build a plant for a new prod

1. Rowell Company spent $3 million two years ago to build a plant for a new product. It then decided not to go forward with the project, so the building is available for sale or f…

1. Rubberman Corporation, a manufacturer of consumer plastic products, is evalua

1. Rubberman Corporation, a manufacturer of consumer plastic products, is evaluating its capital structure. The balance sheet of the company is as follows (in millions): Assets Li…

1. S&P 500 index has a dividend yield of 3% today. The current index is trading

1. S&P 500 index has a dividend yield of 3% today. The current index is trading at $1800 and the risk-free interest rate is 5% per annum with continuous compounding. An invest…

1. SCI is looking at a new security system with an installed cost of $375,000. T

1. SCI is looking at a new security system with an installed cost of $375,000. The cost will be depreciated straight-line to zero over the project’s five-year life, at the end of …

1. SDA Co. next year will pay a $0.70 dividend. Assuming no growth in dividends

1. SDA Co. next year will pay a $0.70 dividend. Assuming no growth in dividends and shareholders face a discount rate of 12%, what is the price of SDA Co. today? $7.00 $5.83 $8.40…

1. SI Sources and Uses of Funds Explain in general terms how savings institution

1. SI Sources and Uses of Funds Explain in general terms how savings institutions differ from commercial banks with respect to their sources of funds and uses of funds. Discuss ea…

1. Sales Budget and Expected Cash Collections : The marketing department of Jess

1.         Sales Budget and Expected Cash Collections:  The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all …

1. Sales and profits of Growth Inc. are expected to grow at a rate of 25% per ye

1. Sales and profits of Growth Inc. are expected to grow at a rate of 25% per year for the next six years but the company will pay no dividends and reinvest all earnings. After th…

1. Sales have increased by 15% & avg total assets have increased by 12% since th

1. Sales have increased by 15% & avg total assets have increased by 12% since that time. What is the current asset turnover ratio? Last years asset turnover ratio was 1.5 2. W…

1. Sally and Mary are sisters. Sally owns a life insurance policy on Mary and ha

1.      Sally and Mary are sisters. Sally owns a life insurance policy on Mary and has named Mary's only child Tom as the beneficiary. Sally transfers the policy to Tom on January…

1. Sam and Sally (both age 35) plan to retire at age 65. They estimate their ann

1. Sam and Sally (both age 35) plan to retire at age 65. They estimate their annual income need in retirement will be $50,000 in "today's dollars". They expect to receive $30,000 …

1. Sampling units are the: A. target population elements available for selection

1. Sampling units are the: A. target population elements available for selection during the sampling process. B. identifiable groups of elements of interest to the researcher and …

1. Sanford common stock is expected to pay $1.85 in dividends next year, and the

1. Sanford common stock is expected to pay $1.85 in dividends next year, and the market price is projected to be $42.50 per share by year-end. If investors require a rate of retur…

1. Sasha Company allocates the estimated $195,600 of its accounting department c

1. Sasha Company allocates the estimated $195,600 of its accounting department costs to its production and sales departments since the accounting department supports the other two…

1. Sasha owns two investments, A and B, that have a combined total value of 30,4

1. Sasha owns two investments, A and B, that have a combined total value of 30,400 dollars. Investment A is expected to pay 25,300 dollars in 7 year(s) from today and has an expec…

1. Saving towards the purchase of a New car in 5 years. If u put $1000 at the en

1. Saving towards the purchase of a New car in 5 years. If u put $1000 at the end of each of the next 5 years in a savings account paying 6% compounded annually, how much will be …

1. Sawyer Corporation\'s 2017 sales were $12 million. Its 2012 sales were $6 mil

1. Sawyer Corporation's 2017 sales were $12 million. Its 2012 sales were $6 million. At what rate have sales been growing? Round your answer to two decimal places. % Suppose someo…

1. Schalheim Sisters Inc. has always paid out all of its earnings as dividends,

1. Schalheim Sisters Inc. has always paid out all of its earnings as dividends, hence the firm has no retained earnings. This same situation is expected to persist in the future. …

1. Second Bank has the following balance sheet in millions of dollars with the B

1. Second Bank has the following balance sheet in millions of dollars with the Basel risk weights given in parentheses: US Govt T-Bonds (0%) $100m | Deposits $860M Govt Agency FNM…

1. Security A has an expected return of 8%t and a standard deviation of 20%. Sec

1. Security A has an expected return of 8%t and a standard deviation of 20%. Security B has an expected return of 10% and a standard deviation of 50%. a) If you place half of your…

1. Security A, Security B, and Security C have expected returns of 10%, 14%, and

1. Security A, Security B, and Security C have expected returns of 10%, 14%, and 6%, respectively. Assuming a risk-free rate of 4% and a market premium (equal to [E(Rm - Rf)]) of …

1. Security C has an expected return of 6% and a standard deviation of 3% while

1. Security C has an expected return of 6% and a standard deviation of 3% while security D has an expected return of 10% and a standard deviation of 7%. The correlation of returns…

1. Security investors incur varying degrees of risk. Business risk is related to

1. Security investors incur varying degrees of risk. Business risk is related to__ a. price level changes in the economy. b. investor behavior in the market. c. the debt-to-equity…

1. Select one (1) U.S. publicly traded company and review its most recent Annual

1. Select one (1) U.S. publicly traded company and review its most recent Annual Report. (You may use one (1) of the three (3) companies you selected for your Stock Journal assign…

1. Seven years ago, Goodwynn & Wolf Incorporated sold a 20-year bond issue with

1. Seven years ago, Goodwynn & Wolf Incorporated sold a 20-year bond issue with a 14% annual coupon rate and a 9% call premium. Today, G&W called the bonds. The bonds orig…

1. Shareholders/stockholders are the owners of corporations, and they only recei

1. Shareholders/stockholders are the owners of corporations, and they only receive benefits (typically dividends) after everyone else who has a claim on the corporation's assets/i…

1. Short Answer Questions (12 Marks) a) If the stock market is on the strong for

1. Short Answer Questions (12 Marks) a) If the stock market is on the strong form efficient, do we still need portfolio managers? If we do, what can portfolio managers do for inve…

1. Short term bonds have interest rate (price) risk and reinvestment rate risk.

1. Short term bonds have interest rate (price) risk and reinvestment rate risk. A) high; high B) low; high C) high; low D) low; low 2. IF a project's cost of capital increased, wh…

1. Show how the folowing transactions affect te balance sheet of a certain comme

1. Show how the folowing transactions affect te balance sheet of a certain commercial bank a. The bank issued 500,000 shares for $10 par value, for which the stockholders fully pa…

1. Siclan Company Problem The Siclan Company is considering opening a new office

1.         Siclan Company Problem The Siclan Company is considering opening a new office. The company owns the building and would sell it for $74,000 after taxes if it does not op…