Financial literacy

1. Your company (Apple Inc) is considering using the payback period for capital-

1. Your company (Apple Inc) is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique. 2. Your company (Apple Inc) …

1. Your company has been presented with an opportunity to invest in a project. T

1. Your company has been presented with an opportunity to invest in a project. The facts on the project are presented below: Investment required Salvage value after 10 vears Gross…

1. Your company has been presented with an opportunity to invest in a project. T

1. Your company has been presented with an opportunity to invest in a project. The facts on the project are presented below: $60,000 None Investment required Salvage value after 1…

1. Your company has identified investments for your hospital in long term, fixed

1. Your company has identified investments for your hospital in long term, fixed income bonds. Your manager is expecting you to complete a comprehensive, analytical, response to t…

1. Your daughter has just given birth to your first grandchild. You decide to st

1. Your daughter has just given birth to your first grandchild. You decide to start a college fund for the child. You want the fund to have $300,000 in it when the child turns 18.…

1. Your father invested a lump sum 25 years ago which earned 6.5% interest per y

1. Your father invested a lump sum 25 years ago which earned 6.5% interest per year. Today, he gave you the proceeds of that investment which totaled $60,346. How much did your fa…

1. Your finance text book sold 47,500 copies in its first year. The publishing c

1. Your finance text book sold 47,500 copies in its first year. The publishing company expects the sales to grow at a rate of 15.0   percent for the next three years, and by 14.0 …

1. Your finance text book sold 53,250 copies in its first year. The publishing c

1. Your finance text book sold 53,250 copies in its first year. The publishing company expects the sales to grow at a rate of 20 percent for the next three years, and by 10 percen…

1. Your firm has $45.0 million invested in accounts receivable, which is 90 days

1. Your firm has $45.0 million invested in accounts receivable, which is 90 days of net revenues. If this value could be reduced to 50 days, what annual increase in income would y…

1. Your firm has $45.0 million invested in accounts receivable, which is 90 days

1. Your firm has $45.0 million invested in accounts receivable, which is 90 days of net revenues. If this value could be reduced to 50 days, what annual increase in income would y…

1. Your firm has 10 million shares outstanding, and you are about to issue 5 mil

1. Your firm has 10 million shares outstanding, and you are about to issue 5 million new shares in an IPO. The IPO price has been set at $20 per share, and the underwriting spread…

1. Your firm is considering building a new office complex. Your firm already own

1.     Your firm is considering building a new office complex. Your firm already owns land suitable for the new complex. The current book value of the land is $100,000; however, a…

1. Your firm needs a computerized machine tool lathe which costs $43,000 and req

1. Your firm needs a computerized machine tool lathe which costs $43,000 and requires $11,300 in maintenance for each year of its 3-year life. After three years, this machine will…

1. Your folks just called and would like some advice from you. An insurance agen

1. Your folks just called and would like some advice from you. An insurance agent just called them and offered them the opportunity to purchase an annuity for $18,684.86 that will…

1. Your friend Bernie says that he has an investment opportunity for you that wi

1. Your friend Bernie says that he has an investment opportunity for you that will make you 7% each year with no risk. This is a violation of what? a. Peltzman Effect b. Zero-risk…

1. Your friend is willing to lend you $500 at 7% and your cousin is willing to l

1. Your friend is willing to lend you $500 at 7% and your cousin is willing to lend you $1,500 at 12%. If your tax rate is 40%, what is your WACC? 2. How do we compute capital str…

1. Your home insurance provides for replacement value for personal property loss

1. Your home insurance provides for replacement value for personal property losses. A microwave is stolen. It cost $336 two years ago and has an expected life of six years. A comp…

1. Your investment club has only two stocks in its portfolio; $40,000 is investe

1. Your investment club has only two stocks in its portfolio; $40,000 is invested in a stock with a beta of 0.3, and $30,000 is invested in a stock with a beta of 1.5. What is the…

1. Your investment club has only two stocks in its portfolio; $40,000 is investe

1. Your investment club has only two stocks in its portfolio; $40,000 is invested in a stock with a beta of 0.3, and $30,000 is invested in a stock with a beta of 1.5. What is the…

1. Your investment club has only two stocks in its portfolio; $40,000 is investe

1. Your investment club has only two stocks in its portfolio; $40,000 is invested in a stock with a beta of 0.3, and $30,000 is invested in a stock with a beta of 1.5. What is the…

1. Your investment club has only two stocks in its portfolio; $40,000 is investe

1. Your investment club has only two stocks in its portfolio; $40,000 is invested in a stock with a beta of 0.3, and $30,000 is invested in a stock with a beta of 1.5. What is the…

1. Your investment club has only two stocks in its portfolio; $40,000 is investe

1. Your investment club has only two stocks in its portfolio; $40,000 is invested in a stock with a beta of 0.3, and $30,000 is invested in a stock with a beta of 1.5. What is the…

1. Your investment club has only two stocks in its portfolio; $40,000 is investe

1. Your investment club has only two stocks in its portfolio; $40,000 is invested in a stock with a beta of 0.3, and $30,000 is invested in a stock with a beta of 1.5. What is the…

1. Your investment club has only two stocks in its portfolio; $40,000 is investe

1. Your investment club has only two stocks in its portfolio; $40,000 is invested in a stock with a beta of 0.3, and $30,000 is invested in a stock with a beta of 1.5. What is the…

1. Your investment club has only two stocks in its portfolio; $40,000 is investe

1. Your investment club has only two stocks in its portfolio; $40,000 is invested in a stock with a beta of 0.3, and $30,000 is invested in a stock with a beta of 1.5. What is the…

1. Your investment club has only two stocks in its portfolio; $40,000 is investe

1. Your investment club has only two stocks in its portfolio; $40,000 is invested in a stock with a beta of 0.3, and $30,000 is invested in a stock with a beta of 1.5. What is the…

1. Your investment club has only two stocks in its portfolio; $40,000 is investe

1. Your investment club has only two stocks in its portfolio; $40,000 is invested in a stock with a beta of 0.3, and $30,000 is invested in a stock with a beta of 1.5. What is the…

1. Your investment club has only two stocks in its portfolio; $40,000 is investe

1. Your investment club has only two stocks in its portfolio; $40,000 is invested in a stock with a beta of 0.3, and $30,000 is invested in a stock with a beta of 1.5. What is the…

1. Your job pays you only once a year for all the work you did over the previous

1. Your job pays you only once a year for all the work you did over the previous 12 months. Today, December 31, you just received your salary of $67,000 and you plan to spend all …

1. Your parents will retire in 26 years. They currently have $340,000 saved, and

1. Your parents will retire in 26 years. They currently have $340,000 saved, and they think they will need $2,100,000 at retirement. What annual interest rate must they earn to re…

1. Your parents will retire in 27 years. They currently have $320,000 saved, and

1. Your parents will retire in 27 years. They currently have $320,000 saved, and they think they will need $1,150,000 at retirement. What annual interest rate must they earn to re…

1. Your portfolio allocates equal funds to the DW Co. and Woodpecker, Inc. DW Co

1. Your portfolio allocates equal funds to the DW Co. and Woodpecker, Inc. DW Co. stock has an annual return mean and standard deviation of 12 percent and 30 percent, respectively…

1. Your portfolio consists of two stocks: 90 shares of Stock A that sell for $36

1. Your portfolio consists of two stocks: 90 shares of Stock A that sell for $36 per share and 110 shares of Stock B that sell for $20 per share.       (Click to select)0.38420.37…

1. Your u.s. firm has a £150,000 payable with a 3-month maturity. Which of the f

1. Your u.s. firm has a £150,000 payable with a 3-month maturity. Which of the following will hedge your liability? a. Sell a put option on £150,000 with a strike price in dollars…

1. Zero coupon bonds typically pay interest; a. annually b. semiannually c. quar

1. Zero coupon bonds typically pay interest; a. annually b. semiannually c. quarterly d. none of these         2. Zero coupon bonds usually sell; a. at a premium b. at a discount …

1. Zero-coupon bonds provide no annual interest payments. have highly stable pri

1. Zero-coupon bonds       provide no annual interest payments.       have highly stable prices even with changing interest rates.       provide an investor with tax-free income u…

1. Zigs Industries had the following operating results for 2011: sales = $30,420

1. Zigs Industries had the following operating results for 2011: sales = $30,420; cost of goods sold = $20,060; depreciation expense = $5,500; interest expense = $2,940; dividends…

1. Zoso is a rental car company that is trying to determine whether to add 25 ca

1. Zoso is a rental car company that is trying to determine whether to add 25 cars to its fleet. The company fully depreciates all its rental cars over five years using the straig…

1. [10 points] ABC Corp. is considering expansion of its production capacity by

1. [10 points] ABC Corp. is considering expansion of its production capacity by investing in a project with the following unlevered cash flows (UCF): Year 0: -$20 million Year 1: …

1. [12pts] Consider the following bond (assume: credit risk free, no embedded op

1. [12pts] Consider the following bond (assume: credit risk free, no embedded options, pays interest semiannually): Coupon 9% YTM 8% Term (yrs) 5 Par 100.00 Compute the following …

1. [15 points] ABC Corp. is considering expansion of its production capacity by

1. [15 points] ABC Corp. is considering expansion of its production capacity by investing in a project with the following unlevered cash flows (UCF): Year 0: -$30 million Year 1: …

1. [15 points] ABC Corp. is considering expansion of its production capacity by

1. [15 points] ABC Corp. is considering expansion of its production capacity by investing in a project with the following unlevered cash flows (UCF): Year 0: -$30 million Year 1: …

1. [15 points] ABC Corp. is considering expansion of its production capacity by

1. [15 points] ABC Corp. is considering expansion of its production capacity by investing in a project with the following unlevered cash flows (UCF): Year 0: -$30 million Year 1: …

1. [No Excel] I invested in the Fidelity Low Price Stock Fund in 2017. Suppose t

1. [No Excel] I invested in the Fidelity Low Price Stock Fund in 2017. Suppose the prices of the fund were $45.50, $47.80, $49.60, $52.00, and $56.9 at the beginning of January, A…

1. [ROA and ROE models and Ratio Components] The Salza Technology Corporation su

1.     [ROA and ROE models and Ratio Components] The Salza Technology Corporation successfully increased its “top line” sales from $375,000 in 2012 to $450,000 in 2013. Net income…

1. \"Consider the following cash flows for projects A and B. Assume the firm can

1. "Consider the following cash flows for projects A and B. Assume the firm can only select one of the projects. What is the MARR such that the firm is indifferent between selecti…

1. \"Product\" means: A) all the services needed with a physical good. B) a phys

1. "Product" means: A) all the services needed with a physical good. B) a physical good with all its related services. C) the need-satisfying offering of a firm. D) all of a firm'…

1. \"Product\" means: A) all the services needed with a physical good. B) a phys

1. "Product" means: A) all the services needed with a physical good. B) a physical good with all its related services. C) the need-satisfying offering of a firm. D) all of a firm'…

1. ] The PDC Company was described during the early part of this chapter. Refer

1.     ] The PDC Company was described during the early part of this chapter. Refer to the PDC Companys projected monthly operating schedules in Table 6.2.   PDCs sales are projec…

1. ____ Which of the following statements about leasing is correct? (4’) a. Capi

1.       ____ Which of the following statements about leasing is correct? (4’) a.       Capitalizing a lease means that the firm issues equity capital in proportion to its current…