Financial literacy

1.Why are you the ideal candidate for this scholarship? * Please keep your respo

1.Why are you the ideal candidate for this scholarship? * Please keep your response to around 125 words 2.Why do you think education is important? Please keep your responses aroun…

1.Why do we use market-based weights instead of book-value based weights when co

1.Why do we use market-based weights instead of book-value based weights when computing the WACC? 2.JaiLai Co's stock has a beta of 1.10, the current risk-free rate is 5.75 percen…

1.With sales of $250, a firm has $80 of fixed assets operating at 75% of capacit

1.With sales of $250, a firm has $80 of fixed assets operating at 75% of capacity. How large can sales be without any need of additional external funds? A)$312.5 B)$328.1 C)$333.3…

1.Write down the equation defining a project\'s internal rate of return (IRR). I

1.Write down the equation defining a project's internal rate of return (IRR). In practice how is IRR calculated? 2. You have the chance to participate in a project that produces t…

1.XYZ New Firm is trying to select the best name. Which of the following do not

1.XYZ New Firm is trying to select the best name. Which of the following do not adequately meet the criteria necessary for good naming A.All of the others are poor choices B.Dalla…

1.You and three of your friends (all equal shares) start a chain of Mexican rest

1.You and three of your friends (all equal shares) start a chain of Mexican restaurants (like Chipotle) that has presence only in the mountain states and in the western part of Ca…

1.You are a consultant to Pillbriar Company. Pillbriar’s target capital structur

1.You are a consultant to Pillbriar Company. Pillbriar’s target capital structure is 36% debt, 14% preferred, and 50% common equity. The interest rate on new debt is 7.8%, the yie…

1.You are a project manager of a project to develop a new software platform. The

1.You are a project manager of a project to develop a new software platform. The project life cycle is made up of the phases in the WBS below. Each control account plan (CAP) is p…

1.You are an analyst evaluating Up-and-Coming Airlines Inc., a very hot potentia

1.You are an analyst evaluating Up-and-Coming Airlines Inc., a very hot potential acquisition candidate your company is considering. Up-and-Coming currently has no debt and you es…

1.You are eligible for $1026 monthly payment on a 30 year 4.5% fixed rate mortga

1.You are eligible for $1026 monthly payment on a 30 year 4.5% fixed rate mortgage. You are interested in a condo whose property taxes are $300 a month and homeowners insurance ar…

1.You are trying to pick the least expensive car for your new delivery service.

1.You are trying to pick the least expensive car for your new delivery service. You have two choices: the Scion xA, which will cost $13,000 to purchase and which will have OCF of …

1.You believe the price of Twitter stock will move a lot over the next 3 months

1.You believe the price of Twitter stock will move a lot over the next 3 months, from today’s price of $15. However you don’t know if it will go up or it will go down. You are onl…

1.You deposit $3,000 at the end of each quarter into an account that pays 7% int

1.You deposit $3,000 at the end of each quarter into an account that pays 7% interest compounded monthly. How much will be in the account after 5 years? 2.The income statement for…

1.You estimate that Walmart\'s reward-to-risk ratio is less than the reward-to-r

1.You estimate that Walmart's reward-to-risk ratio is less than the reward-to-risk ratio of Target. If Walmart has a beta of 0.77 and Target has a beta of 1.38, you would conclude…

1.You forecast a company to have a ROE of 8%, a dividend payout ratio of 21%. Cu

1.You forecast a company to have a ROE of 8%, a dividend payout ratio of 21%. Currently the company has a price of $30 and $4 earnings per share.   What is the company's PEG ratio…

1.You have been assigned to estimate the cost of installing fiber optic cable in

1.You have been assigned to estimate the cost of installing fiber optic cable in a country in the Middle East. Fortunately, you have done a n;umber of similar projects in this are…

1.You have decided to purchase a house in livable, lovable Lodi that is priced a

1.You have decided to purchase a house in livable, lovable Lodi that is priced at $360,000. You decided to put $80,000 as a down payment and borrow $280,000 from the bank. The mor…

1.You invest $25,000 today at 8% per year. How much money will you have accumula

1.You invest $25,000 today at 8% per year. How much money will you have accumulated after 13 years? 2.You are going to receive $150,000 in 25 years. Calculate the present value of…

1.You invest $300 a month at the end of each month for 14 months at an annual ra

1.You invest $300 a month at the end of each month for 14 months at an annual rate of 3% compounded monthly.   How much money would you have at the end of the 14 months? A.$4269 B…

1.You invest $300 a month at the end of each month for 14 months at an annual ra

1.You invest $300 a month at the end of each month for 14 months at an annual rate of 3% compounded monthly.   How much money would you have at the end of the 14 months? A.$4269 B…

1.You invest $300 a month at the end of each month for 14 months at an annual ra

1.You invest $300 a month at the end of each month for 14 months at an annual rate of 3% compounded monthly.   How much money would you have at the end of the 14 months? A.$4269 B…

1.You just won the $45 million lottery. You will receive $2.5 million a year for

1.You just won the $45 million lottery. You will receive $2.5 million a year for the next 15 years plus an additional payment of $7.5 million at the end of 15 years. The interest …

1.You try to price the call option on XYZ corp. The current stock price of XYZ i

1.You try to price the call option on XYZ corp. The current stock price of XYZ is $100/share. The risk-free rate is 3%. What is the appropriate price of the 1 year call option of …

1.You want yo buy a new sports coupe for $84,600 and the finanace offer at the d

1.You want yo buy a new sports coupe for $84,600 and the finanace offer at the dealership has quoted you 7.1 percent APR loan for 48 months to buy the car. What will your monthly …

1.Your forecasting model projects an expected return of 10% for Stock A and an e

1.Your forecasting model projects an expected return of 10% for Stock A and an expected return of 17% for Stock B. Using your forecasted expected returns, what is your best estima…

1.Your forecasting model projects an expected return of 10% for Stock A and an e

1.Your forecasting model projects an expected return of 10% for Stock A and an expected return of 17% for Stock B. Using your forecasted expected returns, what is your best estima…

1.Zain retained Linda, an accountant, to prepare his federal income tax return.

1.Zain retained Linda, an accountant, to prepare his federal income tax return. In the course of preparing the return, Linda had several conferences with Zain, during which she ma…

1.\"A portfolio is composed of two stocks, A and B. Stock A has a standard devia

1."A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 12%, while stock B has a standard deviation of return of 5%. Stock A comprises 50%…

1.] Training increases revenue. The revenue could come from increased quality of

1.] Training increases revenue. The revenue could come from increased quality of the customer experience due to the impact of training. The numbers are percentages of customers in…

1.a -Using a required rate of return of 7%, calculate the Net Present Value & In

1.a -Using a required rate of return of 7%, calculate the Net Present Value & Internal Rate of Return for the following: Project A Project B Year 0 -800 -900 Year 1 300 300 Ye…

1.a How much would the Gerrards have to put down if the lender required a minimu

1.a How much would the Gerrards have to put down if the lender required a minimum 15 percent down payment? Round the answer to the nearest cent. 1.b Given that the Gerrards want t…

1.a house valued at 92000 was insured for 76000. The policy contained an 80 perc

1.a house valued at 92000 was insured for 76000. The policy contained an 80 percent coinsurance clause. A flood caused damages of 78000.       A. How much insurance is needed?    …

1.a trader buys a put option for $6 that gives the right to sell a share of stoc

1.a trader buys a put option for $6 that gives the right to sell a share of stock for $100. The stock price is $98. in this situation the option is a.ATM b.OTM c.ITM by $2 d. ITM …

1.a) 5 years ago, Empathy Co. purchased a lot of land to use for a warehouse, fo

1.a) 5 years ago, Empathy Co. purchased a lot of land to use for a warehouse, for $1,350,673. The firm spent $342,485 to build a warehouse on the lot. The current market price of …

1.a) A project has an initial cost of $84,272, and promises to pay a fixed cash

1.a) A project has an initial cost of $84,272, and promises to pay a fixed cash flow per year for 3 years. It has been determined that using a discount rate of 14 percent, its net…

1.a) A project is expected to create operating cash flows of $34,271 a year for

1.a) A project is expected to create operating cash flows of $34,271 a year for three years. The initial cost of the fixed assets is $40,592. These assets will be worthless at the…

1.a) A project is expected to create operating cash flows of $35,261 a year for

1.a) A project is expected to create operating cash flows of $35,261 a year for three years. The initial cost of the fixed assets is $41,879. These assets will be worthless at the…

1.a) A stock has an expected return of 11.6 percent and a beta of 1.51, and the

1.a) A stock has an expected return of 11.6 percent and a beta of 1.51, and the expected return on the market is 9.6 percent. What must the risk-free rate be? (Enter answer in per…

1.a) Consider an asset that costs $8,014 and is depreciated straight-line to zer

1.a) Consider an asset that costs $8,014 and is depreciated straight-line to zero over its nine-year tax life. The asset is to be used in a 6-year project; at the end of the proje…

1.a) Consider an asset that costs $8,946 and is depreciated straight-line to zer

1.a) Consider an asset that costs $8,946 and is depreciated straight-line to zero over its nine-year tax life. The asset is to be used in a 6-year project; at the end of the proje…

1.a) Consider an asset that costs $8,982 and is depreciated straight-line to zer

1.a) Consider an asset that costs $8,982 and is depreciated straight-line to zero over its nine-year tax life. The asset is to be used in a 7-year project; at the end of the proje…

1.a) For your reference, the following are depreciation percentages for a 5-year

1.a) For your reference, the following are depreciation percentages for a 5-year MACRS property, for years 1 through 6 respectively: 20%, 32%, 19.2%, 11.52%, 11.52%, 5.76%. A firm…

1.a) For your reference, the following are depreciation percentages for a 5-year

1.a) For your reference, the following are depreciation percentages for a 5-year MACRS property, for years 1 through 6 respectively: 20%, 32%, 19.2%, 11.52%, 11.52%, 5.76%. A firm…

1.a) You want to create a portfolio equally as risky as the market, and you have

1.a) You want to create a portfolio equally as risky as the market, and you have $500,000 to invest. Information about the possible investments is given below: How much must you i…

1.a) Your firm is contemplating the purchase of a new $621,735 computer-based or

1.a) Your firm is contemplating the purchase of a new $621,735 computer-based order entry system. The system will be depreciated straight-line to zero over its six-year life. It w…

1.a)Your firm is contemplating the purchase of a new $691,545 computer-based ord

1.a)Your firm is contemplating the purchase of a new $691,545 computer-based order entry system. The system will be depreciated straight-line to zero over its six-year life. It wi…

1.a. Consider a stock with a required return of 5 percent and a most recent divi

1.a. Consider a stock with a required return of 5 percent and a most recent dividend of $3.00. It is a growth stock and its dividend will increase by 10% next year and then mainta…

1.for a given amount, the lower the discount rate, the less the presen value A)

1.for a given amount, the lower the discount rate, the less the presen value A) True B)False What is the NPV of a project that costs $100,000 and returns $45,000 annually for thre…

1.go to www.bondsonline.com click on todays market, then on compostie bond yield

1.go to www.bondsonline.com click on todays market, then on compostie bond yields and then on click for date. under municipal bonds table, write down the yield on 20-year, AAA-rat…

1.value: 3.12 points Silver Company makes a product that is very popular as a Mo

1.value: 3.12 points Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak sales occur in May of each year, as shown in the company’s sales budget…