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Finance Questions and Answers October 30, 2017

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Jon 1 Which of the following is NOT a reason to invest in mutual funds? vet ered ced out of ag question Select one: O a. Professional management of your investment b. Personal customized portfolio c. Invest low amounts in a diversified portfolio O d. Flexibility to buy and sell your investments as and when you want e. None of these Close-end
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A pension fund is expected to produce a cash flow of $1,000 at the end of the upcoming year. This cash flow will grow at a rate of 10% for five years and then at the rate of 7% indefinitely. Assume the annual interest rate for pension related investments is 12%. 1) What is the value of the pension fund?

Mary Jarvis is a single individual who is working on filing her tax return for the previous year. She has assembled the following relevant information: She received $130,000 in salary. She received $15,500 of dividend income. She received $4,700 of interest income on Home Depot bonds. She received $21,500 from the sale of Disney stock that was
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TSC, Inc. sells for $28 and pays an annual per share dividend of $1.10, which you expect to grow at 8 percent. What is your expected return on this stock? Round your answer to the two decimal places. What would be the expected return if the price were $33 a share? Round your answer to the two decimal places. %
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Question 13 5 pts The management of Dior Corp. is planning to invest in a machine which has a four-year life. The initial investment of the project is $8,000, the annual addition to working capital is equal to $4,000. The fixed cost would be $4,000. The unit contribution margin is $15. The firmabas marginal tax rate is 35%. The present value of
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fast please A company forecasts that the following sales:286 BD in May, 321 BD in June and 243 BD in July, Sales will be paid in three parts, 30% will be paid in cash, another 30% will be paid after one month and the remining 40% will be paid after two months. Additionally, the company will receive 145 BD in dividends in July, and 61 BD from the
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The required rate of return on both projects is 9 percent. The expected annual free cash inflows from each project are in the popup window: . Calculate the NPV, PI, and IRR for each project and indicate if the project should be accepted. a. What is the NPV of project A ? $ (Round to the nearest cent.) What is the NPV of project B ? (Round to the
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Answer the following three questions, I will give you a thumb up! a) Determine the future and present values of the cash flow (2, 2, 1, 1) with the period effective rate 10%. b) Determine the annual interest rate under which the two cash flows (4, 4, 6, 3) and (4, 2, 3, 8) are equivalent. c) Determine the internal rate of return for the cash flow

Hip Manufacturing produces denim clothing. This year it produced 3,000 denim jackets at a cost of $90,000. These jackets were damaged in the warehouse during storage. Management identified three alternatives for these Jackets. 1. Jackets can be sold as scrap to a secondhand clothing shop for $18,000. 2. Jackets can be disassembled at a cost of
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An investor puts 41.00% of his investment into Cisco Systems, and the remaining 59.00% into Apple Computer. The standard deviation on Cisco Systems stock is 38.00%, while the standard deviation on Apple Computer is 25.00%. Find the standard deviation of this portfolio if the correlation between the two stocks is 0.44. Answer format: Percentage

9. Which of the following statements is false? a. The broad primary functions of VCs are raising funds, performing due diligence, staging investments, abandoning badly performing firms, and exit strategy b. Burn rate is the monthly operating loss plus capital expenditures c. To the extent that a VC fund is focused on one industry, it is exposed to

There are two borrowing choices offered by the bank: borrowing cash at 10.5% per annum, annual compounding; borrowing gold at 2% per annum, annual compounding. (If gold is borrowed, interest must be repaid in gold. Thus, 100 ounces borrowed today would require 102 ounces to be repaid in one year.) Suppose that the price of gold now is $550 per

The answer to the first question is 13.20% and the second question is -0.45% are both wrong. Can someone please tell me why? Use these data for the following 2 questions (Total Mark: 2). Company X, a low-rated firm, desires a fixed-rate, long-term loan. X presently has access to floating interest rate funds at a margin of 2.25% over LIBOR. Its
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4.5 Refer to problem 4.4. Assume that the three patient services departments are Adult Services, Pediatric Services, and Other Services. The patient services revenue and hours of housekeeping services for each department are as follows: Department Adult Services Pediatric Services Other Services Total Revenue $3,000,000 1,500,000 500,000
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Locate the Treasury issue in Figure 5.4 maturing in August 2026. Assume a par value of $1,000. a. What is its coupon rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 3 decimal places, e.g., 32.161.) b. What is its bid price in dollars? (Do not round intermediate calculations and round your answer to 3
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QUESTION 10 A 5-year project is expected to generate revenues of $92,000, variable costs of $76,000 and fixed costs of $11,00o0. The annual depreciation is $4,000 and the tax rate is 3596. What is the annual operating cash flow? $3,840 A. $4,650 B $5,350 $10,500 D. E. $11,100 9 points Save
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show work please 4-4 Edelman Engines has $17 billion in total assets-of MARKET/BOOK AND EV/EBITDA RATIOS which cash and equivalents total $100 million. Its balance sheet shows $1.7 billion in current liabilities-of which the notes payable balance totals $1 billion. The firm also has $10.2 billion in long-term debt and $5.1 billion in common
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You are trying to pick the least - expensive car for your new delivery service. You have two choices: the Kia Rio, which will cost $ 1 8 , 0 0 0 to purchase and which will have OCF of - $ 2 , 0 0 0 annually throughout the vehicle's expected life of three years as a delivery vehicle; and the Toyota Prius, which will cost $ 2 7 , 0 0 0 to purchase
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You own a portfolio that has $1,600 invested in Stock A and $3,850 invested in Stock B. If the expected returns on these stocks are 12 percent and 15 percent, respectively, what is the expected return on the portfolio?

GTC imported 8 luxury buses from France costing EUR 50,000 each. As per the terms the payment has to be made on 30 th August 2021.The Company expects that the EURO may appreciate and wants to protect against exchange risk. Explain how the GTC can protect against the risk of fluctuation in exchange rate though a derivative contract. Assume that GTC

Which of these statements is true? A : A person may be the grantor, beneficiary, and trustee of his or her own trust. B : The trustee is the person or institution who receives the assets upon your death. C : A person may not be the grantor, beneficiary, and trustee of his or her own trust. D : The grantor is the person who administers assets and

1) Penny and Ernest want to purchase a new home for $150,000. Their combined income is $58,000, and they will make a down payment of $48,000. Taxes on the house are $1,800 per year and the heating cost is $1,300 annually. The house includes condo fees of $500. The couple's other debt payments are $623 per month for their car loan and their student

Please help me fill out the charts. At Pharoah's Totally Tapas restaurant, the estimated gross payroll total for all employees this year is $607,500. The job classifications and their estimated payroll are as follows: office staff $67,500 and restaurant staff $540,000. The premium rate for office staff is 0.2%, and the premium rate for restaurant
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Today, you purchase 2,564 shares of stock X at $25 per share and simultaneously sell SHORT 1,832 shares of stock Y at $33 per share. There are no trading commissions. Broker charges a 4.18% interest on loan balances and credits a 2.18% interest on any cash balance. Stock borrow fees are 1%. All rates are effective annual rates, and there are no
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Cost of common stock equity Ross Textiles wishes to measure its cost of common stock equity. The firm's stock is currently selling for $78.18. The firm just recently paid a dividend of $4.06. The firm has been increasing dividends regularly. Five years ago, the dividend was just $2.95. After underpricing and flotation costs, the firm expects to

St. Johns River Shipyards' welding machine is 15 years old, fully depreciated, and has no salvage value. However, even though it is old, it is still functional as originally designed and can be used for quite a while longer. The new welder will cost $82,500 and have an estimated life of 8 years with no salvage value. The new welder will be much

The company I have chosen is Apple, and I am at a total loss of what numbers I have to input. (The info comes from the SEC board and I am not sure what has to go on a balance sheet, cash flow sheet and income statement) Excel Project: Part I Instructions Company Information (Tab 1), and Historical Income Statements, Balance Sheets, and Cash Flows

5. Suppose the real risk-free rate is 3.50%, the average future inflation rate is 2.50%, a maturity premium of 0.20% per year to maturity applies, i.e, MRP=0.20%(c ). where t is the number of years to maturity. Suppose also that a liquidity premium of 0.50% and a default risk premium of 2.70% applins to A-rated corporate bonds. What is the
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(Related to Checkpoint 4.3) (Analyzing Profitability) In 2016, the Allen Corporation had sales of $66 million, total assets of $48 million, and total liabilities of $20 million. The interest rate on the company's debt is 6.1 percent, and its tax rate is 35 percent. The operating profit margin is 11 percent. a. Compute the firm's 2016 net operating
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3. [Short-Term Financial Planning] The PDC Company was described earlier in this chapter. Refer to the PDC Company's projected monthly operating schedules in Table 6.2. PDC's sales are projected to be $80,000 in September. A. Prepare PDC's sales schedule, purchases schedule, and wages schedule for August. B. Prepare a cash budget for August for
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Measuring standalone risk using realized data Returns earned over a given time period are called realized returns. Historical data on realized returns is often used to estimate future results. Analysts across companies use realized stock returns to estimate the risk of a stock. Five years of realized returns for Blue Llama Mining Inc. (Blue Llama)

The figure in the popup window, I shows the one-year return distribution for RCS stock. Calculate a. The expected return b. The standard deviation of the return Note: Make sure to round all intermediate calculations to at least five decimal places. a. The expected return. The expected return is %. (Round to two decimal places.) Graph/Chart - 35-
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10. You were in an accident and need to find some money to fix your car. You need to borrow $4100 to cover the cost of parts and labor. Your bank offers a 2.5 years loan with an annual simple interest rate of 4.5%. (a) Find the total interest that you will have to pay for the 2.5 years. (b) Find the total amount that you will have to repay at the
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16. Suppose Carson used the initial value method to record its investment in Gardena in 2020. (four extra points if you get it) The working paper entry to eliminate the difference in accounting methods between equity method and the initial value method in 2021? (Consolidated Journal Entry *C) Your answer: 17. Suppose Carson used the partial equity

TABLE 12.4 Historical returns and standard deviations, 1957-2017 Arithmetic Average Return Standard Deviation (%) Investment Canadian common stocks 10.15 16.32 US. common stocks (Cdn 11.87 16.56 S3 Long bonds S.37 9.55 Small stocks 12.43 25.64 TSX Venture stocks 7.83 41.67 Inflation 3.70 3.07 Treasury bills 5.62 3.91 a. What was the average annual
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You just won the $ 4 1 million lottery. You will receive $ 2 . 1 million a year for the next 1 5 years plus an additional payment of $ 9 . 5 million at the end of 1 5 years. The interest rate is 8 percent. How much is your lottery prize worth today? ( Enter your answer as a positive number rounded to 2 decimal places. )
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Your grandmother sent you a check of $1,000, telling you to start investing early. So you invest the $1,000 in a market index fund with an expected return of 8% annually. You also place $6 in a drawer each day and plan to invest the accumulated savings ($2,190) from the drawer into the same market index fund at the end of the year. If you keep

Financial executives insist that there should be no separation between an individual's personal ethics and his or her business ethics. "It's a jungle out there" and "business is business" should not be excuses for engaging in unethical behavior. Many firms have ethics codes which are based on economically rational concepts such as integrity and

T or F: Exchange Traded Funds (ETF's) have been blamed for the trend of decreasing correlations of stocks in the same sector True False 4 points T or F: When the FED wants to stimulate the economy it raises short term rates to attract new investment and encourage savings True False 4 points T or F : Value investors tend to prefer companies with
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1. E = $105, P0 = $100, rf = 20%. Stock will be either $110 or $130 in a year. What is the value of Call? 2. E = $90, S0 = $100, rf = 5%. Stock price will be either 20% up or 20% down in a year. What is the call option price?

Suppose the following bond quote for IOU Corporation appears in the financial page of today's newspaper Assume the bond has a face value of $2,000, and the current date is April 19, 2022 . a. What is the yield to maturity of the bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,
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Kahn Inc. has a target capital structure of 45% common equity and 55% debt to fund its $11 billion in operating assets. Furthermore, Kahn Inc. has a WACC of 16%, a before-tax cost of debt of 10%, and a tax rate of 25%. The company's retained earnings are adequate to provide the common equity portion of its capital budget. Its expected dividend

Which of the following is a characteristic of a pull production system? a ) Production is based on forecasted demand b ) Inventory is produced in advance and stored c ) Production is driven by actual customer demand d ) Production schedules are fixed and unchangeable

draw up some questions for research questionnaire for the topic: financial challenges faced by islamic banks in Oman. maximum 10 multiple choice questions with options

The following table shows the expected dividend payments and required rate of return of Globex Corp. Clearly explain the assumptions, if any, you are using to solve below question(s). Year 2021 2022 2023 2024 2025 2026 2027 ke Dividend $ 0.40 $ 0.44 $ 0.48 $ 0.53 $ 0.59 $ 0.61 $ 0.63 12% Calculate value of Globex Corp share in 2021.

Question 10 3 pts Greece government was in a huge financial mess after the 2008 Financial Crisis. The country had faced similar crisis more than once in recent history. However, it was not able to devaluate its currency to get out of the mess (like declaring bankruptcy) because: (A) it is part of the European Union and is subject to fiscal and
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Fezziwig International (FI) has been in the haberdashery business since 1869. It is an all-equity firm. At the end of the current year, Mr. Fezziwig expects EBIT to be $1.545M and the same earnings are expected annually in perpetuity. The company is not growing so CAPEX and investments in net working capital are zero. Fezziwigs shareholders

An investment project costs $18,600 and has annual cash flows of $3,500 for six years. a. What is the discounted payback period if the discount rate is zero percent? b. What is the discounted payback period if the discount rate is 3 percent? c. What is the discounted payback period if the discount rate is 19 percent? Guerilla Radio Broadcasting
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New-Project Analysis Madison Manufacturing is considering a new machine that costs $350,000 and would reduce pre-tax manufacturing costs by $110,000 annually. Madison would use the 3- year MACRS method to depreciate the machine, and management thinks the machine would have a value of $33,000 at the end of its 5-year operating life. The applicable
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4. Which of the following is NOT CORRECT? a. If a loan has a nominal rate of 10%, then the effective rate can never be less than 10%. b. If there is annual compounding, then the effective, periodic, and nominal rates of interest are both the same. c. An investment that compounds interest semiannually, and has a nominal rate of 10%, will have an

Question 54 A stock produced total returns of 10%, 12%, -20%, and 36% over the past four years, respectively. What is the average rate of return for this period of time? What is the geometric average return? Select one: a. 1.50%, 2.04% b. 9.50%, 7.60% c. 3.50%, 2.00% d. 3.50%, 1.30% e. 9.50%, 8.70%

A. B. C. Your wealthy uncle established a bank account with $2,600 for you when you were born. For the first 7 years of your life, the interest rate earned on the account was 5%. Since then, rates have been only 3%. Now you are 22 years old and ready to cash in. How much in your account? (Do not round intermediate calculations. Round your answer
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FIN-320-T4089 Principles of Finance 2014 Homework: 6-1 MyFinanceLab Assignment Score: 0 of 5 pts 12 of 12 (5 complete) P6-50 (similar to) (Present value of an uneven stream of payments) You are given three investment alternatives to analyze The cash flows from these three investments are as follows Investment - End of Year $ 1,000 $3,000 $ 4000
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1) A. (Related to Checkpoint? 9.1) ?(Floating-rate loans)The Bensington Glass Company entered into a loan agreement with the? firm's bank to finance the? firm's working capital. The loan called for a floating rate that was 29 basis points (0.29 percent) over an index based on LIBOR. In? addition, the loan adjusted weekly based on the closing value

Which of the following is NOT a systematic risk? (Multiple choice) A. The risk that the inflation is falling below zero B. The risk that the Federal Reserve lowers interest rate C. The risk that FDA rejects a potential drug by a major pharmaceutical company for treating cancer D. The risk that the economy slows down E. The risk that a global

Problem: Create a portfolio with the following payoff at a time T: (2S(T), if S(T)
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Beishan Technologies' end-of-year free cash flow (FCF1) is expected to be $70 million, and free cash flow is expected to grow at a constant rate of 5% a year in the future. The firm's WACC is 10%, and it has $600 million of long-term debt and preferred stock. If the firm has 28 million shares of common stock outstanding, what is the estimated

Question 9 Ivanhoe Corporation recently reported an EBITDA of $29.60 million and net income of s9.7 million. The company had s6.8 million in interest expense, and it's average corporate tax rate was 35 percent. What was its depreciation and expense? (Round answer to 2 decimal places and enter your answer in dollars, e.g. 9,700,000. Depreciation
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Problem 2-12 Free Cash Flows Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars) Assets Cash Short-term investments Accounts receivable Inventories Total current assets Net plant and equipment . Total assets \begin{tabular}{rr} $48.0 &
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Davis Chili Company is considering an investment of $29,000, which produces the following inflows: Year 1 Cash Flow $15,000 14,000 11,000 2. 3 Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. Determine the net present value of the project based on a zero percent
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Which companys stock would probably not be classified as an income stock? company 1 company 2 company 3 company 4 Company 1 2 3 4 Annual Cash Dividend per Share $12.00 9.00 7.90 1.70 Market Value per Share $ 176.47 109.76 75.96 124.45 Compute the dividend yield for each of these four separate companies. Dividend Yield Company Choose Numerator: /
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For this assignment (see Chapter 5, page 295: TIF 5-3 Real-world annual report), you should select a public company that interests you. Obtain the company's most recent annual report on Form 10-K. The Form 10-K is a company's annually required filing with the Securities and Exchange Commission (SEC). It includes the company's financial statements

Evaluating cash flows with the NPV methed The net present value (WFy) rule is contidered one of the most common and preferred ciaters that generally lead to good imestrient decioions Consider this case: Suppose Green Coterpiliar Garden Seopblies lnc, is evaluating a propesed capital budgeting peoject (project Beta) that will require an intial
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(Kontrol Noktas 6.6 ile ilgili) (Anitelerin ve karmak nakit aklarnn bugnk deeri) Analiz etmeniz iin size yatrm alternatifi verilir. Bu yatrmdan elde edilen nakit aklar aadaki gibidir: Yatrm Alternatifleri Yln sonu A B C 1 $ 15.000 $ 15.000 2 15.000 3 15.000 4 15.000 5 15.000 $ 15.000 6 15.000 75.000 7 15.000 8 15.000 9 15.000 10 15.000 15.000 Yllk

Lender's Perspective Checked Test 8 Financial Data EBIT Interest Expense Firm 1 730 77 Firm 2 650 67 Firm 3 620 Firm 4 850 91 68 Total Debt Total Assets 814 1859 720 1314 1040 4772 920 2805 Which of the following is true? A Fimm 1 or 2 has the best (highest) coverage ratio B Firm 3 or 4 has the best (lowest) leverage ratio C All of the above D
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if R15 Question completion Status QUESTION 2 24 points 1500 is invested at a bank offering interest for 10 years was the effect on the future Value of the nominal interest rates compounded as low mors per question Any Trimester every 4 months to Quarterly or every 3 months Every second month Month We al
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4/9 POINTS PREVIOUS ANSWERS CRAUDQL3 4.4.016. MY NOTES ASK YOUR TEACHER You have a credit card with an APR of 12%. You begin with a balance of $250, in response to which you make a payment of $100. The first month you make charges amounting to $50. You make a payment of $100 to reduce the new balance, and the second month you charge $60. Complete
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Use Kotters model to explain why the change effort at G.E. failed.

Find five years of monthly returns for two mutual funds, Vanguard's U.S. Growth Fund and U.S. Value Fund, as well as corresponding returns for the S8 and the Treasury-bill rate. (Use Spreadsheet.xls) a. Calculate each fund's excess rate of return over T-bills in each month. (Negative values should be indicated by a minus sign. Leave no cells bla
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need help with B1. please label. thumbs up! Fujita, Incorporated, has no debt outstanding and a total market value of $369,600. Earnings before interest and taxes, EBIT, are projected to be $51,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 15 percent higher. If there is a recession, then EBIT
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Bond rating agencies like Moody's and Fitch specialize in: O A. assessing the credit, default and liquidity risk of issuers. OB. assessing the credit and default risk of issuers. OC. assessing the validity of covenants and collateral by bond issuers. OD. guaranteeing a specific interest rate payment by bond issuers to investors
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The 2017 balance sheet of Kerbers Tennis Shop, Incorporated, showed $2.3 million in long-term debt, $710,000 in the common stock account, and $6.05 million in the additional paid-in surplus account. The 2018 balance sheet showed $3.3 million, $885,000, and $8.25 million in the same three accounts, respectively. The 2018 income statement showed an

If she had the better credit score rating of "Superprime", her interest rate would be lowered to 18%. With this change, how much interest would she pay and how long would it take to pay off this debt?

Cole Field Corporation pays a constant annual dividend of $2.50 per share. The shareholders of the companys main competitor face similar risk as those of Cole Field Corp. The competitor trades at $60, and its dividend last year was $1 and is expected to grow in perpetuity by 3% per year. What must Cole Field Corporations stock price be to reflect

Julia Sims has $26,000 of adjusted gross income and $4,160 of medical expenses. She will be itemizing her tax deductions this year. The most recent tax year has a medical expenses floor of 10 percent. How much of a tax deduction for medical expenses will Julia be able to take? For information purposes only: Under the new 2018 tax law, a 7.5

(10 points) A bank with $45 billion market value of assets with an effective duration of 1.4 is funded by $40 billion market value of liabilities with an effective duration of 1.7. First, derive the duration of equity for the bank by shocking yields +1% and -1%. Second, is the bank adversely affected by higher or lower rates of interest given
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You are given the following information for Hendrix Guitars, Inc. 6.1% Profit margin Total asset turnover Total debt ratio Payout ratio 1.1 42 25% Calculate the sustainable growth rate. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate
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Greta, an elderly investor, has a degree of risk aversion of A=3 when applied to return on wealth over a one-year horizon She is pondering two portfolios, the S&P 500 and a hedge fund, as well as a number of one-year strategies. (All rates are annual and continuously compounded.) The S&P 500 risk premium is estimated at 86% per year, with a SD of
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Q: a) Determine on which date firm discount period and credit period ends for the purchases made and invoices date 25 Nov under each of the following credit terms. .i)net 60 EOM, ii) net 30 date of invoice. (marks 2) b) Calculate the cost of giving up discount under following terms (marks 2) i) 3/10 net 40 ii) 5/15 eom 55 c) Garrett industries

eBook You have $15,478.34 in a brokerage account, and you plan to deposit an additional $6,000 at the end of every future year until your account totals $270,000. You expect to earn 12% annually on the account. How many years will it take to reach your goal? Round your answer to the nearest whole number. years
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(b) Discuss five factors determine a bond's rating
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Accrual to cash flows For each of the following items, calculate the cash sources or cash uses that should be recognized on the statement of cash flows for Baldin Co. for the year ended December 31, 2019: Sales on account (all are collectible) amounted to $560,000, and accounts receivable decreased by $34,000. How much cash was collected from

11. A rich relative has bequeathed you a growing perpetuity. The first payment will occur in a year and will be $1,000. Each year after that, you will receive a payment on the anniversary of the last payment that is 7% larger than the last payment. This pattern of payments will go on forever. Assume that the interest rate is 11% per year a. What
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Provide examples of Treasury, municipal, and corporate bonds.

Five years ago, Diane secured a bank loan of $ 3 4 0 , 0 0 0 to help finance the purchase of a loft in the San Francisco Bay area. The term of the mortgage was 3 0 years, and the interest rate was 7 % / year compounded monthly on the unpaid balance. Because the interest rate for a conventional 3 0 - year home mortgage has now dropped to 3 . 5 % /

Pls solve! You estimate that your soy farm will generate 2.2 million of profits on sales of 9.6 million under normal economic conditions. If sales turn out to by 9.3 million, profits are expectod to bo 1.8 milion. What is the degree of operating leverage? Entor your answer rounded to two decimal places
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Generally, which of the following is true? rE
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DePaul International Bank is a U.S. bank that wants to speculate on the dollar-euro exchange rate. A euro () costs $1.08 today. The bank expects it to cost $1.12 in 4 months. Current annual interest rates are as follows: Currency Borrowing rate Lending rate Euro 4.8% 4.1% U.S. dollar 7.5% 6.6% The bank doesn't want to use any of its own money, but

Complete the Year 2 income statement data for Cute Camel, then answer the questions that follow. Be sure to round each dollar value to the nearestwhole dollar. Siven the results of the previous income statement calculations, complete the following statements: - In Year 2, if Cute Camel has 5,000 shares of preferred stock issued and outstanding,
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17.Which of the following requirements will NOT help to ensure the fair treatment of brokerage firm clients when a new investment recommendation is made? a.Limit the number of people in the firm who are aware in advance that a recommendation is to be disseminated. b.Monitor the trading activities of firm personnel. c.Establish procedures to ensure

A firm is considering a project that is expected to generate a cash flow of $15 million in 1 year. Starting in year 2, the annual cash flows generated by the firm are expected to grow at a rate of 3% per year, each year, forever. The initial cost of the project is $225 million. The discount rate applicable to this project is 9.5% per year
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5. (Effective Annual Rate) Find the corresponding rates for: Ovo (a) 3% compounded monthly. 000.282 El sismos ON! (b) 18% compounded quarterly
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Consider the following two mutually exclusive projects: a. What is the IRR of Project X ? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16 . b. What is the IRR of Project Y ? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal
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A stable financial system mitigates the potential for losses by Select one: a. depositors b. depositors and policyholders c. depositors, policyholders and pension plan members

Stock PQR is expected to provide a constant annual dividend of $4 forever, i.e., there is zero growth expected in the future. PQR is trading for a price of $40 on the exchange (assume the market is efficient and all stocks are priced in equilibrium.) The risk-free rate is 4% and the expected market return is 12%. Assuming that all other variables

What is the range that 99% of the probable returns would fall into if a mutual fund had an average return of 8% and a standard deviation of 10%?

Problem #6: The function s(t)-0.1-0.03 e-t/4 provides the term structure of effective annual rates of zero coupon bonds of maturity t, with t in years. Find the following (a) The effective annual rate of a 3 year zero coupon bond (b) The 2-year forward effective annual rate for a one year period (c) The forward effective annual rate for a one year
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A student borrows $56,400 at 8.4% compounded monthly. Find the monthly payment and total interest paid over a 30 year payment plan. The payment size is $ (Round to the nearest cent.) Find the size of each of 4 payments made at the end of each year into a 9% rate sinking fund which produces $56000 at the end of 4 years. The payment size is $ (Round
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Suppose you bought a bond with an annual coupon of 5 percent one year ago for $979. The bond sells for $937 today. If the inflation rate last year was 3 percent and the face value of the bond is $1000, what was your total real rate of return on this investment?

The following forward rates apply: r1 = 0.10 r2 = 0.08 r3 = 0.05 a. Determine the spot rates for each of the three years to the nearest basis point. b.Compute the time zero present value of $100 to be received at time 3. c.Compute the time zero present value of $100 to be received at time 3 if 0.10 is the forward rate for all three years.

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