Financial literacy

1.) You have just bought (on margin) 100 shares of IBM Corp. common stock for $1

1.) You have just bought (on margin) 100 shares of IBM Corp. common stock for $108 per share. One year fromnow you expect to sell the stock for $140. The interest charge will be 9…

1.) You have the following information: Put: X=$40, Premium=$4 Call: X=$50, Prem

1.) You have the following information: Put: X=$40, Premium=$4 Call: X=$50, Premium=$6 You bought the stock at $45 Scenarios: S=20, S=45, S=90 Given above information, please calc…

1.) You purchase a bond with an invoice price of $1,319. The bond has a coupon r

1.) You purchase a bond with an invoice price of $1,319. The bond has a coupon rate of 6.25 percent, a face value of $1,000, and there are two months to the next semiannual coupon…

1.) You will require $740 in 6 years. If you earn 4% interest on your funds, how

1.) You will require $740 in 6 years. If you earn 4% interest on your funds, how much will you need to invest today in order to reach your savings goal? (Do not round intermediate…

1.) Your employees have estimated the net present value of project X to be $1.2

1.) Your employees have estimated the net present value of project X to be $1.2 million. Their report says that they have not accounted for risk, but that with such a large NPV, t…

1.) a man owns two bonds that are identical in every way except one has 3 years

1.)  a man owns two bonds that are identical in every way except one has 3 years left to maturity and one has 10 years left to maturity. if there is a change in market interest ra…

1.)A stock price is currently $100. Over each of the next two six month periods

1.)A stock price is currently $100. Over each of the next two six month periods it is expected to go up by 10% or down by 10%. The risk free interest rate is 8% per annum with con…

1.)Because of a clerical error, the paperwork for a loan Simon took out at Prote

1.)Because of a clerical error, the paperwork for a loan Simon took out at Protection National Bank failed to list the amount he borrowed.   It did, however, specify that the term…

1.)Birch Co. received a $2, 600 , 5.0 %, 45 -day note from Orange Co. dated Sept

1.)Birch Co. received a $2, 600 , 5.0 %, 45 -day note from Orange Co. dated September 6. On September 25 Birch discounted the note at Faithful Bank, which charged a discount rate …

1.)Consider Kornel kitchens. Kornel is considering a project to upgrade their co

1.)Consider Kornel kitchens. Kornel is considering a project to upgrade their computing infrastructure. the cost of the equipment is $350,000. They will also need to pay $15,000 t…

1.)Daniel\'s Corp. sells $100,000 of bonds to private investors. The bonds are d

1.)Daniel's Corp. sells $100,000 of bonds to private investors. The bonds are due in five years, have an 6% coupon rate, and interest is paid semiannually. The bonds were sold to …

1.)Find the amount of simple interest I would pay on a loan of $6,953.22 for 673

                    1.)Find the amount of simple interest I would pay on a loan of $6,953.22 for 673 days at 6 5/8% simple interest.                                      2.)John h…

1.)Matching contributions are yours: A.)immediately B.)when they become vested C

1.)Matching contributions are yours: A.)immediately B.)when they become vested C.)when they become indexed D.)when they become indemnified 2.)Here is historical data: damages     …

1.)The following price quotations are for exchange-listed options on Primo Corpo

1.)The following price quotations are for exchange-listed options on Primo Corporation common stock. With transaction costs ignored, how much would a buyer have to pay for one cal…

1.)You are scheduled to receive $15,500 in three years. When you receive it, you

1.)You are scheduled to receive $15,500 in three years. When you receive it, you will invest it for seven more years at 7.2 percent per year. How much will you have in ten years? …

1.- A stock is expected to pay a dividend of $1 at the end of the year. The requ

1.- A stock is expected to pay a dividend of $1 at the end of the year. The required rate of return is 11%, and the expected growth rate is 5%. What is the current stock price? 2.…

1.- Create a table that includes the name of the stocks in your stocktrak portfo

1.- Create a table that includes the name of the stocks in your stocktrak portfolio and beta for each one. (Beta is available on the Morningstar or Net Advantage stock reports). 2…

1.- Suppose that a two-factor model, where the factors are the market return (Fa

1.- Suppose that a two-factor model, where the factors are the market return (Factor 1) and the growth rate of industrial production (Factor 2), correctly describes the return gen…

1.. An income tax is progressive if 1. as income increases, taxes increase 2. as

1.. An income tax is progressive if 1. as income increases, taxes increase 2. as income increases, the tax rate increases 3. as income decreases, taxes decrease 4. as income decre…

1.. In general the independent auditor can give 4 types of opinion on a companie

1.. In general the independent auditor can give 4 types of opinion on a companies financial statements. Those 4 types are: A.. Unqualified, Qualified, Adverse, Disclaimer. B.. Unq…

1.00 points 15 Calculating Rates of Return Lo3) A coin that was featured in a fa

1.00 points 15 Calculating Rates of Return Lo3) A coin that was featured in a famous novel sold at auction in 2014 for $3, 450 500 The coin had a face value of $1 when it was issu…

1.00 points 7. You\'re trying to save to buy a new $193,000 Ferrari. You have $4

1.00 points 7. You're trying to save to buy a new $193,000 Ferrari. You have $43,000 today that can be invested at your bank. The bank pays 5.1 percent annual interest on its acco…

1.0OMG Inc. has 4 million shares of common stock outstanding, 3 million shares o

1.0OMG Inc. has 4 million shares of common stock outstanding, 3 million shares of preferred stock outstanding, and 5,000 bonds. If the common shares are selling for $19 per share,…

1.0OMG Inc. has 4 million shares of common stock outstanding, 3 million shares o

1.0OMG Inc. has 4 million shares of common stock outstanding, 3 million shares of preferred stock outstanding, and 5,000 bonds. If the common shares are selling for $19 per share,…

1.1. After extensive prototype development and test marketing, TechElectro plc b

1.1. After extensive prototype development and test marketing, TechElectro plc believes it can penetrate the smart watch market. The firm is considering two alternative products. …

1.1. The West North Province provincial government was accused of financial mism

1.1. The West North Province provincial government was accused of financial mismanagement in the affairs of the province. Lionel Molefe, the premier, decided that an investigation…

1.1.2. Working capital 1.1.3. Debenture 1.1.4. Irrelevant costs 1.1.5. Bank over

1.1.2. Working capital 1.1.3. Debenture 1.1.4. Irrelevant costs 1.1.5. Bank overdraft sales volume for a specfied future perod C Does not affect the dedsion at hand and is e the d…

1.2 Suppose Hewlett Packard (HP) stock iscurrently trading on the NYSE with a bi

1.2 Suppose Hewlett Packard (HP) stock iscurrently trading on the NYSE with a bid price of $28.00 and an askprice of $28.10. At the same time, a NASDAQ dealer posts abid price for…

1.2) John’s Camera is currently selling cameras at a price of $100. The cameras

1.2) John’s Camera is currently selling cameras at a price of $100. The cameras have a variable cost of $75 per camera and John’s Camera has a total fixed cost of $100,000. John’s…

1.3 European put Assume that the value of the stock price is So >0.1 Assume that

1.3 European put Assume that the value of the stock price is So >0.1 Assume that the value of the strike price is K> 0.ler-to) A European put trades today (time to) at a mar…

1.3 year(s) ago, Vivian invested 67,464 dollars. She has earned and will earn co

1.3 year(s) ago, Vivian invested 67,464 dollars. She has earned and will earn compound interest of 11.18 percent per year. In 2 year(s) from today, Sang can make an investment and…

1.4 Explain briefly how each of the following transactions would affect a compan

1.4 Explain briefly how each of the following transactions would affect a company’s balance sheet. Remember, assets must equal liabilities plus owners’ equity before and after the…

1.4 You are a summer intern at the office of a localcorporation. To text your ba

1.4 You are a summer intern at the office of a localcorporation. To text your basic knowledge of financialstatements, your manager gives the following list of accounts andasks you…

1.42 points Refer to Figure 15.1, which lists the prices of various Facebook opt

1.42 points Refer to Figure 15.1, which lists the prices of various Facebook options. Use the data in the figure to calculate the payoff and the profit/loss for investments in eac…

1.5 pts D Question 6 Use the following information to answer the question number

1.5 pts D Question 6 Use the following information to answer the question number 6 &7. Pepsi shares trade on the New York Stock Exchange under the ticker symbol PEP. Pepsi was…

1.8 Your father gave you a gift of $20,000 forgood behavior and you wanted to in

1.8 Your father gave you a gift of $20,000 forgood behavior and you wanted to invest in the stock market. How much will your investment grow in fiveyears, assuming that you earned…

1.8. Picardy Corporation stock pays its annual dividend on every October 15. Its

1.8. Picardy Corporation stock pays its annual dividend on every October 15. Its expected future dividends are shown in the following table. Year 2013 2014 2015 2016 2017 Dividend…

1.A $100 petty cash fund has cash of $15 and receipts of $80. The journal entry

1.A $100 petty cash fund has cash of $15 and receipts of $80. The journal entry to replenish the account would include a credit to Cash Over and Short for $5. Cash for $85. Cash f…

1.A 30-year, $1,000 par value bond has a 9.5% annual payment coupon. The bond cu

1.A 30-year, $1,000 par value bond has a 9.5% annual payment coupon. The bond currently sells for $875. If the yield to maturity remains at its current rate, what will the price b…

1.A T-bill quote sheet has 60 day T-bill quotes with a 5.98 bid and a 5.86 ask.

1.A T-bill quote sheet has 60 day T-bill quotes with a 5.98 bid and a 5.86 ask. If the bill has a $13,300 face value an investor could buy this bill for A)$13,170.10 B)$13,235.96 …

1.A T-bill quote sheet has 60 day T-bill quotes with a 5.98 bid and a 5.86 ask.

1.A T-bill quote sheet has 60 day T-bill quotes with a 5.98 bid and a 5.86 ask. If the bill has a $13,300 face value an investor could buy this bill for A)$13,170.10 B)$13,235.96 …

1.A call option on Australian dollars has a strike (exercise) price of $.56. The

1.A call option on Australian dollars has a strike (exercise) price of $.56. The present exchange rate is $.54. This call option can be referred to as: A. in the money. B.at a dis…

1.A call option on Bedrock Boulders stock has a market price of $8. The stock se

1.A call option on Bedrock Boulders stock has a market price of $8. The stock sells for $28 a share, and the option has an exercise price of $25 a share. a. What is the exercise v…

1.A company has a share price of $24.50 and 118 million shares outstanding. Its

1.A company has a share price of $24.50 and 118 million shares outstanding. Its book equity is $688 million, its book debt-equity ratio is 3.2, and it has cash of $800 million. Ho…

1.A corporate bond that you own at the beginning of the year is worth $935. Duri

1.A corporate bond that you own at the beginning of the year is worth $935. During the year, it pays $57 in interest payments and ends the year valued at $925.    What was your do…

1.A firm has unlevered beta of 1.1, and now its debt to equity ratio is 0.4. Wha

1.A firm has unlevered beta of 1.1, and now its debt to equity ratio is 0.4. What is the levered beta assuming the tax rate is 40%? 2.Using WACC to discount free cash flows, one g…

1.A firm is considering the following mutually exclusive projects: Project A Pro

1.A firm is considering the following mutually exclusive projects: Project A                    Project B Year                 Cash Flow                  Cash Flow   0            …

1.A law firm uses activity-based pricing. The company%u2019s activity pools are

1.A law firm uses activity-based pricing. The company%u2019s activity pools are as follows: Cost Pool Annual Estimated Cost Cost Driver Annual Driver Quantity Consultation 196,000…

1.A loan of $80,000 will be repaid in 10 half-yearly installments. If the annual

1.A loan of $80,000 will be repaid in 10 half-yearly installments. If the annual interest rate is 10%, what is the amount of each required half-yearly payment? 2.Mary Chong, capit…

1.A medical lab wants to upgrade its MRI machine. Their financial department ass

1.A medical lab wants to upgrade its MRI machine. Their financial department assessed that the lab will add about $250,000 to their annual revenues. The cost of operating and main…