S
  1. study help
  2. subject categories
  3. business
  4. finance
  5. february 2025
  6. 8

Finance Questions and Answers February 8, 2025

Expert-verified solutions to help you succeed

QUESTION 6 In your first week operating the cafe, you only expect sales of 2 7 0 medium cups of coffee daily, Monday through Friday. You plan to sell the specialty coffee for at $ 3 . 4 0 each. You also know that variable costs ( coffee , cups, milk, etc. ) average $ 0 . 8 0 per cup and weekly fixed expenses ( rent , wages, etc. ) are $ 6 , 5 0 0
QUESTION 6 In your first week operating the cafe,

A borrower is faced with choosing between two loans. Loan A is available for $ 9 3 , 0 0 0 at 6 percent interest for 3 0 years, with 6 joints to be included in closing costs. Loan B would be made or the same amount, but for 7 percent interest for 3 0 years, with 2 points to be included in the closing costs. Both loans will be ully amortizing.
A borrower is faced with choosing between two

Your firm has a line of credit with RBC . The line of credit has a limit of $ 7 5 0 , 0 0 0 , an APR of 6 % and a commitment fee of 1 . 1 5 % . In 2 0 2 3 you borrowed $ 4 0 0 , 0 0 0 on your line of credit for five months. For the year, you will pay a commitment fee of $
Your firm has a line of credit with RBC . The

Question 6 6 pts Assume that you purchased a corporate bond with a face value of $ 1 4 , 0 0 0 . The interest rate is 4 . 8 0 percent. What is the dollar amount of annual interest you will receive each year? $ 6 7 2 $ 4 8 0 $ 8 7 0 $ 8 1 2
Question 6 6 pts Assume that you purchased a

What real annuity ( in today s dollars ) will $ 1 million support if the real interest rate at retirement is 2 % and the annuity must last for 2 0 years? Note: Do not round intermediate calculations. Enter your answers in whole dollars, not in millions.

Question 5 1 pts In order to prevent damage to your hearing, you should reduce your exposure time to loud sounds as the frequency of the sound increases. True False
Question 5 1 pts In order to prevent damage to

What value will you get if you solve this formula: { ( 1 + 1 R 1 ) [ 1 + E ( 2 r 1 ) ] [ 1 + E ( 3 r 1 ) ] } 1 / 3 Multiple choice question. Today's rate for a 1 - year Treasury security 3 - year Treasury security rate for 1 year from today Today's rate for a 3 - year Treasury security 1 - year Treasury security rate for 3 years from today

What soes the C stand for in a PICO research question

Chutes & Co . has interest expense of $ 1 . 0 0 million and an operating margin of 1 0 . 0 % on total sales of $ 3 0 . 0 0 million. What is Chutes' interest coverage ratio?

Consider both the CAPM formula and weighted average portfolio beta calculations. Which of the following is correct for an asset with a negative beta? Negative beta assets are expected to return less than the riskless rate when the risk premium is positive. II . A negative beta asset can be combined with a positive beta asset to produce a zero beta
Consider both the CAPM formula and weighted

Kimono, Incorporated, has an issue of preferred stock with a $ 5 . 7 5 stated dividend that just sold for $ 9 4 per share. What is the bank s cost of preferred stock? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e . g . , 3 2 . 1 6 .

Q 1 According to optimization reports, the investor should use $ 1 2 , 0 0 0 to buy Fund B . The status of the investment in Fund B shows "Binding", and the shadow price for the investment in Fund B is 0 . 0 2 . Which statement is correct? A . Since the status is "Binding", the slack value of the investment in Fund B should be 0 . 0 2 . B . Since

The present value of $ 7 0 0 expected in three years from today at a discount rate of 6 % is: Group of answer choices $ 5 7 6 . 2 9 $ 5 5 1 . 7 0 $ 5 8 7 . 7 3 $ 5 4 5 . 0 0

Back Row opens a brokerage account, and purchases 3 0 0 shares of Internet Dreams at $ 4 0 per share. They borrow $ 4 , 0 0 0 from their broker to help pay for the purchase. The interest rate on the loan is 8 % . a ) What is the initial margin in Back Row s account when they first purchased the stock? Be sure to draw a t - account. b ) If the

What is the cost of debt of Redtail Unlimited if its 1 1 - year bonds are priced at $ 5 7 6 . 4 2 and the coupon rate is 1 2 . 9 5 % ? The coupons are paid semiannually and the face value of the bond is $ 1 , 0 0 0 . a . 2 4 . 2 0 % b . 2 4 . 0 5 % c . 2 4 . 0 0 % d . 2 4 . 1 0 % e . 2 4 . 1 5 %

What is the APR on a 4 8 month loan of $ 2 9 0 0 . The total finance change is $ 6 9 8 .

Fresh air company, installs and repairs commercial and residential eight back systems had recently acquired inventory from the bankrupt competitor. What is the best type of term of credit to meet the borrowing needs?

The ability to provide financial records sufficient to attract and retain financing is called

Assume you can earn 1 1 % per year on your investments. a . If you invest $ 6 0 , 0 0 0 for retirement at age 3 0 , how much will you have 3 5 years later for retirement? b . If you wait until age 4 0 to invest the $ 6 0 , 0 0 0 , how much will you have 2 5 years later for retirement? c . Why is the difference so large? a . If you invest $ 6 0 , 0
Assume you can earn 1 1 % per year on your

Problem 6 - 1 3 Historical Realized Rates of Return Stocks A and B have the following historical returns: Year 2 0 1 2 - 2 2 . 5 0 % - 1 5 . 1 0 % 2 0 1 3 3 1 . 0 0 2 5 . 3 0 2 0 1 4 1 5 . 7 5 2 9 . 5 0 2 0 1 5 - 2 . 0 0 - 5 . 4 0 2 0 1 6 2 8 . 0 0 1 5 . 9 5 Calculate the average rate of return for each stock during the 5 - year period. Round your

What is the price of the bond if market interest rates are 4 percent? $ 1 0 5 , 2 4 2 . 1 4 . $ 1 0 0 , 0 0 0 . 0 0 . $ 1 0 5 , 8 1 6 . 4 4 . $ 1 0 6 , 2 9 0 . 5 6 . $ 1 0 5 , 2 8 7 . 6 7 .

Anderson Anchor Corporation needs to raise $ 5 4 million to support its expansion plans. Anderson s investment banker normally charges 1 0 percent of the market value to handle an equity issue. If the price of Anderson s stock is expected to be $ 1 2 , how many shares of stock must be issued so that the company receives the needed $ 5 4 million?

Which of the following statements best describes the relationship between the discount rate ( r ) and present and future values ( PV and FV ) ? Vhen r increases, PV decreases and FV increases. When r increases, PV increases and FV decreases. When r increases, PV and FV both increase. When r increases, PV and FV both decrease. What is a discount
Which of the following statements best describes

How does market maker competition typically affect the bid - ask spread?

What is the most important benefit of micro - lending for entrepreneurs?

The geometric mean is the appropriate measure to analyze multi - year investments. True false question. True False

One study found that a 1 0 percent increase in a measure of goal - setting activity at firms was associated with a 6 percent increase in industry - adjusted stock returns. True or False
One study found that a 1 0 percent increase in a

The spot rates on the 4 - , 5 - , and 6 - year zero coupon Treasury securities are 3 . 6 8 % , 4 . 1 2 % , and 4 . 2 3 % , respectively. What is the 1 - year forward rate for year 6 ? Multiple choice question. 4 . 6 7 % 0 . 4 2 % 5 . 9 0 % 4 . 7 8 %

good point. how much is their stock worth if they were to stop growing their dividend at 2 . 4 % after 3 years and instead grow at 1 . 3 % after that

Once a company completes its IPO, the company stock starts trading in the aftermarket also called the secondary market after IPO investors can buy cell company stock in the secondary markets. Examples of US secondary equity markets include the New York Stock Exchange American stock exchange and national Association of securities dealers,

Jensen Production Corporation is a manufacturing company. Jensen s new CFO is reviewing the company s payment policy with the accounting staff. She has learned that Jensen has not taken advantage of discounts in the past, and it typically pays its suppliers 3 0 days after the invoice date. The CFO has instructed the accounting staff to take

Luke deposited $ 5 0 0 0 into a savings account that earns 6 . 0 0 % annually but is compounded 2 times per year. He plans to leave the funds in the accounts for 6 . 0 0 years. However, at the end of 2 . 0 0 years, Luke has to withdraw $ 8 0 0 . What amount will be in the account at the end of the original 6 . 0 0 years

Five years ago today, Ron purchased a stock for $ 4 5 . Over the past five years, the stock has paid thefollowing dividends: $ 1 . 2 5 ( year 1 ) , $ 2 . 0 0 ( year 2 ) , $ 2 . 5 0 ( year 3 ) , $ 3 . 2 5 ( year 4 ) , $ 1 . 7 5 ( year 5 ) . At theend of the fifth year, the stock is selling for $ 4 7 . What was Rons compounded rate of return ( IRR )

Which of the following statements regarding money market instruments is not true? They have maturities from 1 to 3 years. Their rates tend to move together. They tend to be highly marketable. They tend to have a low probability of default.
Which of the following statements regarding money

To see if Willa in fact will have plenty left over, she has been advised to put together a 6 - month budget to plan cash inflows and outflows. For her budget, Willa must consider the following details. 1 . She will be working in Houston, Texas. Her start date is September 1 , 2 0 2 4 . 2 . She will make $ 5 0 , 0 0 0 per year before tax

Your parents will retire in 1 9 years. They currently have $ 2 2 0 , 0 0 0 saved, and they think they will need $ 9 5 0 , 0 0 0 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places.

Table 3 1 presents RTable 3 1 presents R Assets Current assets: Cash and securities Accounts receivable Inventories Prepaid expenses Total current assets Net fixed assets Total assets \ table [ [ $ 6 7 1 , $ 5 5 1 , $ 6 4 4 , $ 4 1 2 Show all images Show all images Show all images done loading
Table 3 1 presents RTable 3 1 presents R Assets

The Cat's Meow will recieve a payment of $ 5 0 0 next year. This payment will increase by 2 . 5 percent annually and continue forever. What is the current value of this cash flow stream at a discount rate of 9 percent? 4 5 4 5 . 4 5 , 7 6 9 2 . 3 1 , 2 7 7 7 . 7 8 , 7 1 4 2 . 8 6 , or 5 6 6 6 . 6 7

Key resource requirements specify the hard assets and working capital a firm will need to achleve its mission.
Key resource requirements specify the hard assets

. What is the cost of equity of Sandcastle Corp. if its next annual dividend is expected to be $ 1 . 3 , the ROE is 1 6 . 8 % , the payout ratio is 7 1 % , and the current stock price is $ 9 . 8 9 ? a . 1 8 . 1 3 % b . 1 8 . 0 2 % c . 1 8 . 2 4 % d . 1 7 . 9 1 % e . 1 8 . 3 5 %

Consider a $ 1 0 0 0 face value 2 - year government bond which provides coupons of 9 % per annum paid semi - annually. a ) Calculate the current price of the bond if the interest rate over the period is constant at 1 2 % .

Calculate the value of a bond that matures in 1 8 1 8 years and has a $ 1 comma 0 0 0 $ 1 , 0 0 0 par value. The annual coupon interest rate is 1 5 1 5 percent and the market's required yield to maturity on a comparable - risk bond is 1 1 1 1 percent.

The LSUS Corporation recently purchased a lot four years ago at a cost of $ 3 9 8 , 0 0 0 . At that time, the firm spent $ 2 8 9 , 0 0 0 to build a small retail outlet on the site. The most recent appraisal on the property placed a value of $ 6 2 9 , 0 0 0 on the property and building. Samson s now wants to tear down the original structure and

Consider you work for a hospital based in Australia, which also sells services to a hospital in Canada. Although your service sales to that country were stable, something strange happened at the end of the last fiscal year: the exchange rate was 1 Australian dollar = 0 . 9 1 Canadian dollars ( meaning 1 Australian dollar bought 0 . 9 1 Canadian

Question 1 2 pts ( Ch 5 Module ) The FDIC ( Federal Deposit Insurance Corporation ) insures against losses in your checking and savings accounts up to $ 2 5 0 , 0 0 0 . When the FDIC was first put into place in 1 9 3 3 how much coverage did it offer? $ 2 , 5 0 0 $ 2 5 0 , 0 0 0 $ 2 5 0 $ 2 5 , 0 0 0
Question 1 2 pts ( Ch 5 Module ) The FDIC (

The hypothesis that market prices reflect all avallable information of every kind is called q , form efficiency. Multple Cholce open stable strong H = 3 serlstorg
The hypothesis that market prices reflect all

3 5 Multiple Choice 2 points A firm is considering a new project. Analysts at the firm would be justified in having the greatest level of certainty in the: timing of the last cash inflow from the project. amount of the project's cash inflow in Year 3 . risk of a pessimistic scenario occurring. amount of the cash inflow from the project in Year 1 .
3 5 Multiple Choice 2 points A firm is

eBookHint Print References Check my workCheck My Work button is now enabled 9 9 Item 1 0 Problem 6 - 2 4 Calculating Annuity Future Values [ LO 1 ] You are planning to make monthly deposits of $ 4 2 0 into a retirement account that pays an APR of 8 percent compounded monthly. If your first deposit will be made one month from now, how large will

If you purchase a house worth $ 1 1 3 , 0 0 0 and make a 1 0 % down payment, how much would 1 mortgage point cost at closing

Lin and Derek ask for guidance on the most tax advantaged method to use a $ 1 5 0 , 0 0 0 high - yield savings account they have dedicated to philanthropy

The SEC in the national Association of securities dealers regulate trading activity and exchanges to prevent unlawful activities, true or false. The SEC monitors insider trading so that insiders don t take advantage of their position at the expense of other shareholders.

Why could a hockey goalkeeper potentially be a challenge for an athlete endorsement? History of poor personality fit for commercial endorsements Shortness of careers due to injuries Physical nature of the role is not a desirable for corporate role model Protective equipment hinders identity of athlete
Why could a hockey goalkeeper potentially be a

Which of the following is not one of the measures on which a companys performance is jectigedy / sccorctl? Retum on aver age stoch holders equity ( ROF ) Cloudt Farmings per sthave
Which of the following is not one of the measures

You have $ 3 0 0 0 0 saved 3 years from today in order to make a down payment in a house. To fund this, you will make deposits each week from your paycheck to an account thatnwkkk earn 5 . 3 8 percent compound weekly how much must you deposit weekly

How are the products of Harley - Davidson marketed to retail customers worldwide?

a stock has a beta of 1 . 7 and an expected return of 1 2 percent. A risk - free asset currently earns 2 . 8 percent

Derek plans to buy a $ 2 6 , 2 9 7 . 0 0 car. The dealership offers zero percent financing for 5 7 . 0 0 months with the first payment due at signing ( today ) . Derek would be willing to pay for the car in full today if the dealership offers him $ _ _ _ _ cash back. He can borrow money from his bank at an interest rate of 5 . 0 1 % .

Current assets and current liabilities. What is the change in net working capital?

You want to have 6 1 , 2 4 5 dollars in 9 years ( single payment ) . Assuming that you can invest in a financial instrument that compounds interest annually at a rate of 6 % , how much do you need to invest now in order to achieve this goal? ( note: round your answer to the nearest cent and do not include spaces, currency signs, or commas )

Consider the following case Lincoln Corp. in 2 0 1 1 Lincoln issued its IPO, which is processed at $ 4 5 a year on the first day of hit a heart of $ 1 2 0 . 7 0 after six months IPO the company stock was trading at a double the process IPO there are several theories that explain IPO under processing one of them is that the under based an honest

can a taxpayer be exempt from early withdrawal penalty on distributions of $ 2 5 , 0 0 0 as a qualified first time home buyer

How long would it take, approximately, for you to double your money if your investment earned on average a 1 0 . 8 % return

A zero coupon bond with a time to maturity of 6 months and a face value of 1 0 0 0 is selling for 9 2 3 . 6 . What is the yeild to maturity ( APR , semiannually compounded ) of this bond?

EBIT is usually the same thing as: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . Question 5 options: Operating profit Funds provided by operations Net income Earnings before taxes

Most bonds pay coupons how many times per year? 4 3 1

How much money must you invest today in order to grow to a value of $ 9 5 , 0 0 0 in 1 0 years if your money grows at 4 % ?

Upon retirement, an individual wants to cash in a whole life policy and use the proceeds for investment purposes, but also wants to postpone the tax consequences of doing this. This individual could

You are long 1 0 July 2 0 2 2 rough rice futures contracts. Calculate your dollar profit or loss from this trading day.

The balance sheet provides information on all of the following except: Multiple Choice how management invested its money. where the money came from. assessing rates of return. the market price of the company s stock.

Here is the capital structure of Microsoft. What part of the $ 7 7 7 . 6 7 share price ( to the nearest dollar ) is represented by cash? $ 1 7 $ 1 1 $ 2 1 .
Here is the capital structure of Microsoft. What

You are saving for retirement. To live comfortably, you decide you will need to save $ 1 comma 6 0 0 comma 0 0 0 1 , 6 0 0 , 0 0 0 by the time you are age 6 7 6 7 . Today is your 2 0 2 0 th birthday , and you decide, starting today and continuing on every birthday up to and including your 6 7 6 7 th birthday , that you will put the same amount

If RRE seeks to maximize total market value, should the company issue debt or equity to finance the land purchase? Explain. Suppose RRE decides to issue equity to finance the purchase. What is the net present value ( NPV ) of the project? Construct RRE's market value balance sheet after it announces the firm will finance the purchase using equity.

Calculate the NPV with the following cashflows: WACC is 9 . 3 3 % ( 4 5 , 0 0 0 ) 9 4 , 6 4 0 8 5 , 0 8 0 8 6 , 0 9 0 8 1 , 5 4 5 9 4 , 4 4 3 1 0 1 , 9 9 9 1 0 3 , 5 7 5 1 0 5 , 1 6 7 1 0 6 , 7 7 4 1 0 8 , 3 9 6

If Roderick dies today how much of the annuity will be included in his gross estate

What does the 5 in 5 / 1 ARM mean?

Describe the real life experience of the innate immune system when it comes to the glu

What is the average tax rate for a firm with a taxable income of 1 2 1 5 1 3

How much would you pay for the right to receive $ 4 , 3 0 0 at the end of year 1 , $ 3 , 3 0 0 at the end of year 2 , and $ 7 , 3 0 0 at the end of year 5 ? How long will it take for a $ 1 , 3 0 0 investment to double in value? What will be the value in 2 0 years of $ 1 , 1 0 0 invested at the end of each year for the next 2 0 years?

Lana and Ryan are considering buying treasury bills. Lana wants to buy a US Treasury Bill that has an effective annual yield equal to 4 . 3 % and 1 5 0 days to maturity. Ryan wants to buy a Canadian Treasury Bill that has an effective annual yield equal to 3 . 2 % and 1 2 0 days to maturity. A . What is the bank discount yield on the Treasury Bill

A friend asks to borrow $ 4 7 . 0 0 4 7 . 0 0 from you and in return will pay you $ 5 0 . 0 0 5 0 . 0 0 in one year. If your bank is offering a 5 . 5 % 5 . 5 % interest rate on deposits and loans: a . How much would you have in one year if you deposited the $ 4 7 . 0 0 4 7 . 0 0 instead ? b . How much money could you borrow today if you pay the

Derek borrows $ 2 6 3 , 8 7 2 . 0 0 to buy a house. He has a 3 0 - year mortgage with a rate of 5 . 3 8 % . After making 1 2 7 . 0 0 payments, how much does he owe on the mortgage?

Cyclicality Which industry is likely to have the greatest degree of rest from cyclicality? The auto repair or grocery industry or the construction

You have $ 4 0 0 4 0 0 and a bank is offering 7 % 7 % interest on deposits. If you deposit the money in the bank, how much will you have in one year?

Edie Morgan plans to buy a house for $ 2 8 2 , 0 0 0 . If the real estate in Edies area is expected to increase in value 3 percent each year, what will its approximate value be five years from now?

True or False - the reason why industries with large investments have a high barrier to entry is because it is costly to raise capital for large investments

In early 2 0 2 2 2 0 2 2 , United AirlinesUnited Airlines ( UALUAL ) had a market capitalization of $ 1 4 . 3 1 4 . 3 billion , debt of $ 3 9 . 4 3 9 . 4 billion , and cash of $ 1 8 . 4 1 8 . 4 billion. United AirlinesUnited Airlines had revenues of $ 2 4 . 6 2 4 . 6 billion. Southwest AirlinesSouthwest Airlines ( LUVLUV ) had a market

Types of Life Policies Options Question 8 of 1 5 In term policies, what happens to the premium throughout the term of the policy? A . Premium gradually increases. B . Premium always remains level. C . Premium fluctuates. D . Premium gradually decreases. Next INTROD
Types of Life Policies Options Question 8 of 1 5

US treasury bills: must be held to maturity and may not be resold

Every year, Mark puts $ 5 0 0 in a bank account that earns an annual rate of return of 6 % at the end of the interest rate cycle. How much will you have in that bank account after 6 years? 3 6 9 6 . 9 2 3 4 8 7 . 6 6 - 3 4 8 7 . 6 6 - 3 6 9 6 . 9 2
Every year, Mark puts $ 5 0 0 in a bank account

What is the net asset value of an investment company with $ 1 0 , 9 0 0 , 0 0 0 in assets, $ 6 3 0 , 0 0 0 in current liabilities, and 1 , 3 0 0 , 0 0 0 shares outstanding? Round your answer to the nearest cent.

What is the price of a semi annual bond that has a face value of 1 0 0 0 a coupon rate of 6 % ?

Suppose you are going to receive $ 2 0 , 0 0 0 per year for five years. The appropriate interest rate is 7 percent. a . What is the present value of the payments if they are in the form of an ordinary annuity? What is the present value if the payments are an annuity due?

One year later, Green Caterpillar s shares are trading at $ 4 8 . 3 6 per share, and the company reports the value of its total common equity as $ 4 6 , 7 6 2 , 2 0 0 . Given this information, Green Caterpillar s market - to - book ratio is

Managers can achieve the results of duration matching by using these to hedge interest rate risk. Rate sensitive assets. Coupon bonds. Rate sensitive liabilities. Derivatives. Consol bonds.

allocate 5 0 % to U . S . equities assets pros and cons

Problem 5 - 2 0 MIRR Duo Corporation is evaluating a project with the following cash flows: YearCash Flow 0 $ 2 8 , 0 0 0 1 1 0 , 2 0 0 2 1 2 , 9 0 0 3 1 4 , 8 0 0 4 1 1 , 9 0 0 5 8 , 4 0 0 The company uses an interest rate of 9 percent on all of its projects. Calculate the MIRR of the project using the discounting approach. ( Do not round

What are tax - free savings accounts into which people with high - deductible health insurance plans can place funds each year called?

Suppose that the present value of a security is $ 4 5 . 0 0 and it will mature in exactly two time periods. Its future value is $ 9 0 . 0 0 . What is its interest rate, or yield - to - maturity, rounded to the closest percent?

1 6 True or False 5 points According to Carr, companies should aggressively seek an edge through IT investments True False
1 6 True or False 5 points According to Carr,

The financial management function is generally defined as: ( Select the best response. )

Showing 1 - 100 of 1502
  • 1 / 16