Financial literacy

1.A new issue of corporate securities sold to the general public must be a, regi

1.A new issue of corporate securities sold to the general public must be a, registered w/ the SEC b,initially sold through brokers c,offered initially to existing stockholders d,b…

1.A petroleum company wants you to evaluate the economics of abandoning a stripp

1.A petroleum company wants you to evaluate the economics of abandoning a stripper oil well versus selling the well to an interested investor. If the well is abandoned, a $25,000 …

1.A portfolio has 85 shares of Stock A that sell for $36 per share and 125 share

1.A portfolio has 85 shares of Stock A that sell for $36 per share and 125 shares of Stock B that sell for $28 per share. You own a portfolio that has $1,750 invested in Stock A a…

1.A portfolio with a 15% standard deviation generated a return of 5% last year w

1.A portfolio with a 15% standard deviation generated a return of 5% last year when risk free T-bills were paying 1%. You are considering adding one more stock to your portfolio, …

1.A project has the following cash flows. Find the payback period. Type in your

1.A project has the following cash flows. Find the payback period. Type in your answer as a number only, and round to the nearest hundredth. For example, if the answer is 10.789 y…

1.A proposed new project has projected sales of $123,000, costs of $57,000, and

1.A proposed new project has projected sales of $123,000, costs of $57,000, and depreciation of $12,600. The tax rate is 35 percent. Calculate operating cash flow using the four d…

1.A situation in which the consumer impulsive orders a product on an informercia

1.A situation in which the consumer impulsive orders a product on an informercial he previously had not known existed is best defined as A.Positioning B.Negative Demand C.Latent D…

1.A unique difficulty in estimating the appropriate discount rate for foreign ca

1.A unique difficulty in estimating the appropriate discount rate for foreign capital budgeting projects is A.High interest rates B.Interest rate parity C.Political risk D.Default…

1.A unique difficulty in estimating the appropriate discount rate for foreign ca

1.A unique difficulty in estimating the appropriate discount rate for foreign capital budgeting projects is A.High interest rates B.Interest rate parity C.Political risk D.Default…

1.A variable rate mortgage means: a.The interest rate is not fixed b.The interes

1.A variable rate mortgage means: a.The interest rate is not fixed b.The interest rate is fixed for five years c.The rate is not subject to change d.Larger monthly payments than a…

1.A. A corporate bond matures on November 20, 2030. Its coupon rate is 6.00% and

1.A. A corporate bond matures on November 20, 2030. Its coupon rate is 6.00% and face value is $100. Its yield is 6.05%. How much is its price on September 30, 2017 B. IBM bond pa…

1.A. Yahoo bond pays coupon interest 2.75% semi-annually on face value $100. Bon

1.A. Yahoo bond pays coupon interest 2.75% semi-annually on face value $100. Bond is sold on November 14, 2017. Bond matures in April 14, 2035. Bond is priced to yield the investo…

1.ABC hotel is a 390 room economy hotel in downtown st. louis. After taking phys

1.ABC hotel is a 390 room economy hotel in downtown st. louis. After taking physical inventory of the laundry chemicals on may 31 the assistant controller found that: 15 cases of …

1.According to animal rights advocates such as Peter Singer, this feature is rel

1.According to animal rights advocates such as Peter Singer, this feature is relevant in attributing moral status to entities other than human beings. A. Sentience B. Consciousnes…

1.According to the international Fisher effect, if Venezuela has a much lower no

1.According to the international Fisher effect, if Venezuela has a much lower nominal rate than other countries, its inflation rate will likely be ____ than other countries, and i…

1.Acme, Inc. is considering buy a new building to rent out to college students.

1.Acme, Inc. is considering buy a new building to rent out to college students. The building will cost $1M today, and Acme is assuming a salvage value of $800,000 at t=10, with st…

1.Ahmed is considering two independent projects with the following cash flows. T

1.Ahmed is considering two independent projects with the following cash flows. The required return for both projects is 12%. Given this information, which one of the following sta…

1.All the following statements concerning comprehensive financial planning are c

1.All the following statements concerning comprehensive financial planning are correct, EXCEPT: A. In its purest form, it is provided only on the basis of commissions earned throu…

1.Aloha Inc. has 5 percent coupon bonds on the market that have 9 years left to

1.Aloha Inc. has 5 percent coupon bonds on the market that have 9 years left to maturity. If the YTM on these bonds is 5.4 percent, what is the current bond price? (Round your ans…

1.Alpha stock is currently trading at $34.50 a share and the 6-month call option

1.Alpha stock is currently trading at $34.50 a share and the 6-month call options are at the money. The stock returns have a standard deviation of 21 percent and the risk-free rat…

1.An HMO has a Point of Service (POS) option for its members, but will pay only

1.An HMO has a Point of Service (POS) option for its members, but will pay only 80 percent of approved charges. If a member goes out of network for a medical procedure with a char…

1.An example of a capital budgeting decision is deciding: A how many shares of s

1.An example of a capital budgeting decision is deciding: A how many shares of stock to issue. B whether or not to purchase a new machine for the production line. C how to refinan…

1.An investor buys a call option on EBAY with a strike price 9.0, and a call pre

1.An investor buys a call option on EBAY with a strike price 9.0, and a call premium of 4. If EBAY expires at 21, what profit did the investor make? Each option covers 100 shares …

1.An investor is contemplating to purchase the common stock of GE at the beginni

1.An investor is contemplating to purchase the common stock of GE at the beginning of the year and hold the stock for two years. The investor expects the year-end dividend to be $…

1.An investor is in the 25% marginal income-tax bracket. What is the taxable equ

1.An investor is in the 25% marginal income-tax bracket. What is the taxable equivalent yield of a municipal bond with a yield to maturity of 2.8% for this investor? A.11.2% B.3.7…

1.An unexpected announcement by the Chairmen of the Federal Reserve is made befo

1.An unexpected announcement by the Chairmen of the Federal Reserve is made before the NYSE opens. The announcement indicates that the US economy is likely to enter into a prolong…

1.An unexpected announcement by the Chairmen of the Federal Reserve is made befo

1.An unexpected announcement by the Chairmen of the Federal Reserve is made before the NYSE opens. The announcement indicates that the US economy is likely to enter into a prolong…

1.Any cinema operator may find that it would be worthwhile to follow a policy of

1.Any cinema operator may find that it would be worthwhile to follow a policy of varying the cinema ticket prices rather than adopting a fixed- price policy. Under what circumstan…

1.Assume Alpha desires floating-rate debt and Beta desires fixed-rate debt. Assu

1.Assume Alpha desires floating-rate debt and Beta desires fixed-rate debt. Assume that a swap bank is involved as an intermediary and the bank is quoting five-year dollar interes…

1.Assume Alpha desires floating-rate debt and Beta desires fixed-rate debt. Assu

1.Assume Alpha desires floating-rate debt and Beta desires fixed-rate debt. Assume that a swap bank is involved as an intermediary and the bank is quoting five-year dollar interes…

1.Assume a company has the following account balances: Cash ($5,000); Accounts R

1.Assume a company has the following account balances: Cash ($5,000); Accounts Receivable ($11,000); Inventory ($24,000); Accounts Payable ($6500) Acccruals ($2000); Long term Deb…

1.Assume that interest rate parity holds. In the spot market 1 Japanese yen = $0

1.Assume that interest rate parity holds. In the spot market 1 Japanese yen = $0.01, while in the 180-day forward market 1 Japanese yen = $0.0105. 180-day risk-free securities yie…

1.Assume that you are a risk management consultant hired by Sports Authority . 2

1.Assume that you are a risk management consultant hired by Sports Authority. 2.On the trailing pages, list the potential risks faced by the company based on the case below. 3.The…

1.Assume that you contribute $120 per month to a retirement plan for 20 years. T

1.Assume that you contribute $120 per month to a retirement plan for 20 years. Then you are able to increase the contribution to $220 per month for another 20 years. Given a 7.0 p…

1.Assume that you deposit $ 1,605 each year for the next 15 years into an accoun

1.Assume that you deposit $ 1,605 each year for the next 15 years into an account that pays 10 percent per annum. The first deposit will occur one year from today (that is, at t =…

1.Assume that you deposit $ 3,727 into an account that pays 6 percent per annum.

1.Assume that you deposit $ 3,727 into an account that pays 6 percent per annum. How much money will be in the account 25 years from today? (Round your answer to 2 decimal places;…

1.Assuming the following expected returns for each asset, are the assets on the

1.Assuming the following expected returns for each asset, are the assets on the securities market line? If not, what will happen? Assume that the expected return on T-Bills is 3.0…

1.Best Value Outlet recently announced that it intends to pay dividends of $0.40

1.Best Value Outlet recently announced that it intends to pay dividends of $0.40, $0.60, $0.75, and $1.00 per share over the next four years, respectively. After that, the plan is…

1.Biggie Bank is going to charge you a 2 point origination fee on the loan descr

1.Biggie Bank is going to charge you a 2 point origination fee on the loan described in Problem #1. What is Biggie Bank’s yield on this loan if you pay it off over its full term (…

1.Bonds issued by Blue Sky Airlines have a face value of $1,000 and currently se

1.Bonds issued by Blue Sky Airlines have a face value of $1,000 and currently sell for $850. The annual coupon payments are $80. If the bonds have 10 years until maturity , what i…

1.Branch-typed business organization is a strategic alliance made between a bran

1.Branch-typed business organization is a strategic alliance made between a branch manager and executive managers in the headquarter True False A conflict of interest between prof…

1.Bridgton Golf Academy is evaluating different golf practice equipment. The \"D

1.Bridgton Golf Academy is evaluating different golf practice equipment. The "Dimple-Max" equipment costs $109,000, has a 4 year life, and costs $10,100 per year to operate. The r…

1.Calculate the operating cash flow 2.Calculate the change in net working capita

1.Calculate the operating cash flow 2.Calculate the change in net working capital. 3.Calculate the net capital spending. 4.Calculate the cash flow from assets. 5.Calculate the cas…

1.Chapter 3, Question 6. Bid/Ask Spread Utah Bank’s bid price for Canadian dolla

1.Chapter 3, Question 6. Bid/Ask Spread Utah Bank’s bid price for Canadian dollars is $.7938 and its ask price is $.8100. What is the bid/ask percentage spread? 2.Chapter 3, Quest…

1.Companies use ____ in capital budgeting project analysis because ________. a-

1.Companies use ____ in capital budgeting project analysis because ________. a- accounting profit; that is the total net income; b- after tax cash flow; that is what the owners wo…

1.Compare and contrast the two teleological philosophies: egoism and utilitarian

1.Compare and contrast the two teleological philosophies: egoism and utilitarianism. Include a discussion of the bases that each type uses to evaluate the morality of activities, …

1.Compute the NPV statistic for Project Y and note whether the firm should accep

1.Compute the NPV statistic for Project Y and note whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 12 pe…

1.Compute the PV of a $13,395.00 payment made in 7 years when the discount rate

1.Compute the PV of a $13,395.00 payment made in 7 years when the discount rate is 8.23%. $8,217.29 $8.006.37 $7,700.33 $7,429.95 2)You deposit $425.00 into an account which pays …

1.Compute the present value of an annuity of $ 681 per year for 23 years, given

1.Compute the present value of an annuity of $ 681 per year for 23 years, given a discount rate of 8 percent per annum. Assume that the first cash flow will occur one year from to…

1.Consider a company that has $100 million of debt outstanding that has a coupon

1.Consider a company that has $100 million of debt outstanding that has a coupon rate of 5%, 10 years to maturity, and is quoted at $98. What is the after-tax cost of debt if the …