Financial literacy

1. value: 10.00 points Problem 6-9 A pension fund manager is considering three m

1. value: 10.00 points Problem 6-9 A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fun…

1. value: 10.00 points You place an order for 360 units of inventory at a unit p

1. value: 10.00 points You place an order for 360 units of inventory at a unit price of $115. The supplier offers terms of 2/10, net 60.     How long do you have to pay before the…

1. value: 16.66 points Kolby Corp. is comparing two different capital structures

1. value: 16.66 points Kolby Corp. is comparing two different capital structures. Plan I would result in 12,000 shares of stock and $100,000 in debt. Plan II would result in 8,700…

1. value: 2.50 points Problem 5-55 Teaser Rate Mortgage (LG9) A mortgage broker

1. value: 2.50 points Problem 5-55 Teaser Rate Mortgage (LG9) A mortgage broker is offering a $186,900 30-year mortgage with a teaser rate. In the first two years of the mortgage,…

1. what is the effective yield on a 35-year fixed rate mortgage if 12 points are

1. what is the effective yield on a 35-year fixed rate mortgage if 12 points are charged and the nominal interest rate is 5.75 assuming monthly compounding? 2. What will be the mo…

1. what is you thoughts on this discussion post in one paragraph. Please post be

1. what is you thoughts on this discussion post in one paragraph. Please post below    Working capital refers to the difference arising to current liabilities and current assets w…

1. what is you thoughts on this discussion post in one paragraph. Please post be

1. what is you thoughts on this discussion post in one paragraph. Please post below Three elements of working capital would be inventory, accounts receivable, and accounts payable…

1. which of the following is ture of a zero coupon bond? A. the bond makes no co

1. which of the following is ture of a zero coupon bond? A. the bond makes no coupon payment B. the bond sells at a premium prior to maturity C. the bond has a zero par value D. t…

1. which of the statements below is false? A.common stock usually carries the ri

1. which of the statements below is false? A.common stock usually carries the right to participate in the management of the firm throught the right to vote for the members of the …

1. write a paragraph about how you will avoid procrastination. consider these id

1. write a paragraph about how you will avoid procrastination. consider these ideas when thinking about procrastination: fear of failure, fear of success, perfectionism, need for …

1. you purchased an annual interest coupon bond one year ago with six years rema

1. you purchased an annual interest coupon bond one year ago with six years remaining to maturity at the time of purchase. The coupon interest rate is 10.00% and par value is $100…

1. “A” is in the 28% marginal income tax bracket. He acquired 400 shares of XYZ

1. “A” is in the 28% marginal income tax bracket. He acquired 400 shares of XYZ Inc. Common stock two years ago for $60,000, but the stock’s current market value is $45,000. “A” p…

1.(Learning Objective 3: Design and use a bank reconciliation) The Cash account

1.(Learning Objective 3: Design and use a bank reconciliation) The Cash account of Vincente Corp. reported a balance of $3,640 at August 31. Included were outstanding checks total…

1.(a) Discuss the basic motivations for a counterparty to enter into a currency

1.(a) Discuss the basic motivations for a counterparty to enter into a currency swap. (20 pts) 2.Assume Alpha desires floating-rate debt and Beta desires fixed-rate debt. Assume t…

1.(a) Suppose the spot exchange rate between the Swedish Krona (SKr) and the Bri

1.(a) Suppose the spot exchange rate between the Swedish Krona (SKr) and the British pound (GBP) is the one under Key Currency Cross Rates in the quotes from the Wall Street Journ…

1.(beta of a portfolio) ABC transport has a beta of 1.3 while central gas and po

1.(beta of a portfolio) ABC transport has a beta of 1.3 while central gas and power (CGP) has a beta of .70. what is the beta of a portfolio of these two securities if the amount …

1.) (Inflation and interest rates) You (Inflation and interest rates) You\'re co

1.) (Inflation and interest rates) You (Inflation and interest rates) You're considering an investment that you expect will produce an 8 percent return next year, and you expect t…

1.) (Working with an Income statement) At the end of its third year of operation

1.) (Working with an Income statement) At the end of its third year of operations, the August Manufacturing Co. had $4,500,000 in revenues; $3,375,000 in cost of goods sold; $450,…

1.) A business paid a dividend last year of $2.6, and its stock is currently tra

1.) A business paid a dividend last year of $2.6, and its stock is currently trading at $51 a share. If investors require a rate of return of 12.8, what is the implied growth rate…

1.) A company expects to earn $23 million in income this coming year. Its target

1.) A company expects to earn $23 million in income this coming year. Its target capital structure is 30% debt, 15% preferred stock, and 55% common equity financing. The company n…

1.) A company has target weights of debt, preferred and common equity of 20%, 10

1.) A company has target weights of debt, preferred and common equity of 20%, 10% and 70%, respectively. It has liquidation values of debt, preferred and common equity of 30%, 15%…

1.) A critic recently claimed that hedge funds cause market volatility to increa

1.) A critic recently claimed that hedge funds cause market volatility to increase when they publicize (and document) that a public corporation exaggerated its earnings. The criti…

1.) A gas station sells 1200 gallons of gasoline per hour if it charges $ 2.10 p

1.) A gas station sells 1200 gallons of gasoline per hour if it charges $ 2.10 per gallon but only 1000 gallons per hour if it charges $ 2.90 per gallon. Assuming a linear model: …

1.) A highly risk-averse investor is considering adding one additional stock to

1.) A highly risk-averse investor is considering adding one additional stock to a 3-stock portfolio, to form a 4-stock portfolio. The three stocks currently held all have b = 1.0,…

1.) A highly risk-averse investor is considering adding one additional stock to

1.) A highly risk-averse investor is considering adding one additional stock to a 3-stock portfolio, to form a 4-stock portfolio. The three stocks currently held all have b = 1.0,…

1.) A new bank has a vault cash of $1 million and $5 million in deposits held at

1.) A new bank has a vault cash of $1 million and $5 million in deposits held at its Federal Reserve District Bank. a.) if the required reserve ration is 8 percent, what dollar am…

1.) A stock had returns of 11 percent, 23 percent, and 5 percent for the past 3

1.) A stock had returns of 11 percent, 23 percent, and 5 percent for the past 3 years. Based on these returns, what is the probability that this stock will earn at least 40.51 per…

1.) A sum of $500,000 will be invested by a firm two years from now. If money is

1.) A sum of $500,000 will be invested by a firm two years from now. If money is worth 12%, what will be the worth of this investment 10 years from now? A. $1,553,000 B. $1,569,00…

1.) Agency Problems of MNCs a.) Explain the agency problem of MNCs. b.) Why migh

1.) Agency Problems of MNCs a.) Explain the agency problem of MNCs. b.) Why might agency costs be larger for an MNC than for a purely domestic firm? 2.) Comparative Advantage a.) …

1.) An online company sells handmade samurai katana swords. The website costs $1

1.) An online company sells handmade samurai katana swords. The website costs $190 a month to maintain. Each katana costs $265 to make, and they sell each katana for $760. b.) Usi…

1.) Archimedes Levers is financed by a mixture of debt and equity. You have the

1.) Archimedes Levers is financed by a mixture of debt and equity. You have the following information about its cost of capital:        Suppose now that Archimedes repurchases deb…

1.) Binomial Model The current price of a stock is $14. In 6 months, the price w

1.) Binomial Model The current price of a stock is $14. In 6 months, the price will be either $20 or $12. The annual risk-free rate is 7%. Find the price of a call option on the s…

1.) Bond Yields and Rates of Return A 10-year, 12% semiannual coupon bond with a

1.) Bond Yields and Rates of Return    A 10-year, 12% semiannual coupon bond with a par value of $1,000 may be called in 4 years at a call price of $1,060. The bond sells for $1,1…

1.) Bowman, Inc., is proposing a rights offering. Presently there are 800,000 sh

1.) Bowman, Inc., is proposing a rights offering. Presently there are 800,000 shares outstanding at $48 each. There will be 160,000 new shares offered at $40 each. a. What is the …

1.) Bowman, Inc., is proposing a rights offering. Presently there are 800,000 sh

1.) Bowman, Inc., is proposing a rights offering. Presently there are 800,000 shares outstanding at $48 each. There will be 160,000 new shares offered at $40 each. a. What is the …

1.) Brady Inc. has a targeted capital structure of 40% debt, 10% preferred stock

1.) Brady Inc. has a targeted capital structure of 40% debt, 10% preferred stock, and 50% common stock. The marginal tax rate is 35%. Use the data below to calculate the company’s…

1.) Capital rationing is described as: Selecting only the one opportunity with a

1.) Capital rationing is described as: Selecting only the one opportunity with an expected return greater than the required return by the largest spread. Being allocated exactly e…

1.) Chance, Inc. is considering a project with an initial cost of $1.03 million.

1.) Chance, Inc. is considering a project with an initial cost of $1.03 million. The project will not produce any cash flows for the first two years. Starting in year 3, the proje…

1.) Compute a valuation for Cedar Fair (FUN) based on the comparable firms. The

1.) Compute a valuation for Cedar Fair (FUN) based on the comparable firms. The two comparible firms I am using are SEAS and SIX. It can be any type of valuation, I just need help…

1.) Compute the market value of a 9% coupon bond with 7 years left to maturity i

1.) Compute the market value of a 9% coupon bond with 7 years left to maturity if the current required rate for this type of bond is 8% 2.) Compute the market value of a zero coup…

1.) Consider the data in the table below for three independent health services o

1.) Consider the data in the table below for three independent health services organizations: Revenues         Total Variable Costs   Fixed Costs     Total Costs                 P…

1.) Corrina was a two-year-old girl when her uncle bought a handgun manufactured

1.) Corrina was a two-year-old girl when her uncle bought a handgun manufactured by Aldo Uberti and Co., an Italian company. The uncle wrapped the gun in a towel and placed it und…

1.) Create a portfolio using the two stocks and information below: (Do not round

1.) Create a portfolio using the two stocks and information below: (Do not round intermediate calculations. Record your answers in decimal form and round your answers to 4 decimal…

1.) Each business day, on average, a company writes checks totaling $12,000 to p

1.) Each business day, on average, a company writes checks totaling $12,000 to pay its suppliers. The usual clearing time for the checks is four days. Meanwhile, the company is re…

1.) Flexibility of the source of financing. ____ tends to require fewer specific

1.) Flexibility of the source of financing. ____ tends to require fewer specific asset restrictions, while _____ tends to require fewer enterprise restrictions. a.Leases; loans b.…

1.) For individuals saving towards retirement, money saved in CD accounts and ot

1.) For individuals saving towards retirement, money saved in CD accounts and other similar personal savings accounts must pay taxes when it is withdrawn during retirement, True o…

1.) For this exercise, use the information provided for Problem 30 of Chapter 11

1.) For this exercise, use the information provided for Problem 30 of Chapter 11 (page 375 of your textbook). Assume that the probability of the state of the economy has changed a…

1.) Gene\'s Art Gallery is notoriously known as a slow-payer. The firm currently

1.) Gene's Art Gallery is notoriously known as a slow-payer. The firm currently needs to borrow $27,500 and only one company will even deal with them. The terms of the loan call f…

1.) Genuine Producs Inc. requires a new machine. Two companies have submitted bi

1.) Genuine Producs Inc. requires a new machine. Two companies have submitted bids, and you have been assigned the task of choosing one machine. Cash flows analysis indicates the …

1.) I am now 45 years old and I want to retire in 15 years when I am 60. When I

1.) I am now 45 years old and I want to retire in 15 years when I am 60. When I retire, I would like to collect $80,000 per year for the estimated 24 years that I will live. I wou…