Financial literacy

9. Suppose that you just borrowed $250,000 in the form of a 15-year loan with an

9. Suppose that you just borrowed $250,000 in the form of a 15-year loan with an annual interest rate of 3.5% with monthly payments and monthly compounding. How much interest will…

9. Sutton Corporation, which has a zero tax rate due to tax loss carry-forwards,

9. Sutton Corporation, which has a zero tax rate due to tax loss carry-forwards, is considering a 5-year, $6,000,000 bank loan to finance service equipment. The loan has an intere…

9. Taxation of salvage AaAa Kitsch Tech is a company that produces iGadgets, amo

9. Taxation of salvage AaAa Kitsch Tech is a company that produces iGadgets, among several other products. Suppose that Kitsch decided to terminate production of iGadgets before t…

9. Ten years ago, Hollow Inc. earned $0.50 per share. Its earnings this year wer

9.Ten years ago, Hollow Inc. earned $0.50 per share. Its earnings this year were $2.20. What was the growth rate in earnings per share (EPS) over the 10-year period? a)       15.1…

9. The ABC Co. earned $10 million before interest and taxes on revenue of $60 mi

9. The ABC Co. earned $10 million before interest and taxes on revenue of $60 million last year. Investment in fixed capital was $12 million, and depreciation was $8 million. Work…

9. The Capital Asset Pricing Model (CAPM) measures a. the expected rate of retur

9. The Capital Asset Pricing Model (CAPM) measures a. the expected rate of return of an asset. b. the realized rate of return of an asset. c. the risk-free rate of return. d. the …

9. The Excel Corp. has $1 million in corporate debt outstanding with a after-tax

9. The Excel Corp. has $1 million in corporate debt outstanding with a after-tax cost of 5%, and a maturity of two years. The only way it can finance a $500,000 investment is to r…

9. The North Kingstown Cancer Infusion expects tremendous growth over the next y

9.   The North Kingstown Cancer Infusion expects tremendous growth over the next year and is projecting the following cost and rate structure for the service. Revenues are $750 pe…

9. The SEC regulation that prescribes the content of SEC filings other than fina

9. The SEC regulation that prescribes the content of SEC filings other than financial statements is a. The Securities Act of 1933 b. The Securities Exchange Act of 1934 c. SEC Reg…

9. The annual planning process at Century Office Systems, Inc. had been arduous

9. The annual planning process at Century Office Systems, Inc. had been arduous but produced a number of important marketing initiatives for the next year. Most notably, company e…

9. The approach argues that equilibrium exchange rates are achieved when the net

9. The approach argues that equilibrium exchange rates are achieved when the net inflow of foreign exchange arising from current account activities is equal to the net outflow of …

9. The beta coefficient Aa Aa A stock\'s contribution to the market risk of a we

9. The beta coefficient Aa Aa A stock's contribution to the market risk of a well-diversified portfolio is called the Capital Asset Pricing Model (CAPM), this risk can be measured…

9. The common stock of Marc Company is selling for $32.84. Dividend paid last pe

9. The common stock of Marc Company is selling for $32.84. Dividend paid last period was $2.94/share and has growth rate of 9.5%. If you purchase the common stock at the market wh…

9. The estimated value of a real estate asset in a financial statement should be

9. The estimated value of a real estate asset in a financial statement should be based upon the a. Income tax basis of the asset, after adjusting straight line and accelerated dep…

9. The following table shows an abbreviated income statement and balance sheet f

9. The following table shows an abbreviated income statement and balance sheet for Quick Burger Corporation for 2016. In 2016 Quick Burger had capital expenditures of $3,069. a. C…

9. The internal rate of return method assumes that the cash flows over the life

9. The internal rate of return method assumes that the cash flows over the life of the project are reinvested at a)the risk-free rate b)the firm's cost of capital c)the computed i…

9. The major asset of the Federal Reserve is A. loans to domestic banks B. depos

9. The major asset of the Federal Reserve is A. loans to domestic banks B. depository institution reserves. C. US. Treasury Securities D. vault cash of commercial banks. E. gold a…

9. The process of sending cash flows from a foreign subsidiary back to the paren

9. The process of sending cash flows from a foreign subsidiary back to the parent company is known as a. net present value analysis b. Monte Carlo simulation c. pure play method d…

9. The renewal probability is assumed to be 60% for a particular lease with 12 m

9. The renewal probability is assumed to be 60% for a particular lease with 12 months vacant if the lease is not renewed. The expected vacancy at the end of the lease is: (A) (A)4…

9. The spot exchange rate in New York is 1.650 dollars per British d. The 360 da

9. The spot exchange rate in New York is 1.650 dollars per British d. The 360 day forward exchange rate is 1.680 dollars per pound. The one-year interest rate in the United States…

9. The statement of financial position of PPK Bhd. provides the following inform

9. The statement of financial position of PPK Bhd. provides the following information RM (m) RM (m) Equity Ordinary shares (RM1 nominal value) Reserves 25 15 40 Non-Current Liabil…

9. The stock of Kramer\'s Machine Shop has an expected return of 3.3%. Given the

9. The stock of Kramer's Machine Shop has an expected return of 3.3%. Given the information below, what is the expected return on this stock if the economy booms?                 …

9. There is one Economist article that was suggested as a useful reading. (Korea

9. There is one Economist article that was suggested as a useful reading. (Korea University subscribes to this magazine.) Below is the quote from that article. Please fill in the …

9. To maintain the current standard of living an economy must grow a. at its tre

9. To maintain the current standard of living an economy must grow a. at its trend rate b. at least 10 percent per year c. at least as fast as its population is growing d. at a sl…

9. U.S. Government bond was quoted at 92:12 \"bid\" and 92:16 \"asked\". How muc

9. U.S. Government bond was quoted at 92:12 "bid" and 92:16 "asked". How much would you have to pay for one of these $1,000.00 face value bonds? 10. During the past 20 years, Satu…

9. Use the following information for the problem. Year 2 4 MACRS Depreciation Al

9. Use the following information for the problem. Year 2 4 MACRS Depreciation Allo wances for 3-year Property 33.33% 44.44% 14.82% 7.41% t a new distillation unit for $120,000. Su…

9. Using the data Date Close Dividends Adj. Close 12/31/2015 150.64 148.57 11/18

9. Using the data Date Close Dividends Adj. Close 12/31/2015 150.64 148.57 11/18/2015 157.39 1.025 155.23 8/19/2015 145.87 1.025 142.93 5/20/2015 161.90 1.025 157.54 2/11/2015 164…

9. Using the following methods which asset would you recommend? Discount Rate 15

9. Using the following methods which asset would you recommend? Discount Rate 15%. a. Net Present Value b. Profitability Index c. Internal Rate of Return. If the company have an I…

9. Valuing preferred stock Companies that have preferred stock outstanding promi

9. Valuing preferred stock Companies that have preferred stock outstanding promise to pay a stated dividend for an infinite period. Preferred stock is treated like a perpetuity if…

9. What is the expected return, standard deviation and variance of each stock? 1

9. What is the expected return, standard deviation and variance of each stock? 10. If the investor invests $1000 if A, $2000 in B, $3000 in C and $4000 in D, what is the return of…

9. When the yield curve is steep for short maturities it is possible to get some

9. When the yield curve is steep for short maturities it is possible to get some interesting dislocations between the equity options markets and the fixed income markets. (a) (5 p…

9. Which of the following is another name for the minimum desired rate of return

9. Which of the following is another name for the minimum desired rate of return? A. Discount rate B. Required rate of return C. Hurdle rate D. All of the above 10. Which of the f…

9. Which of the following statements is CORRECT? Assume that the project being c

9. Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows. a. If Project A …

9. Which of the following statements is CORRECT? a) Futures contracts have less

9. Which of the following statements is CORRECT? a) Futures contracts have less default risk because the exchange acts as the counterparty for all transactions b) Forward contract…

9. Which of the following statements is CORRECT? a. There is an \"opportunity co

9. Which of the following statements is CORRECT? a. There is an "opportunity cost" associated with using retained earnings, hence they are not "free." b. The WACC as used in capit…

9. Which of the following statements is NOT CORRECT? a a. Owners of preferred st

9. Which of the following statements is NOT CORRECT? a a. Owners of preferred stock have greater voting rights than common shareholders. b. From an individual investor's perspecti…

9. Which of the following would NOT be considered a money market rate? (Points :

9. Which of the following would NOT be considered a money market rate? (Points : 3)        the prime rate        the (reference) Treasury bond rate        the London interbank off…

9. Which one of the following is not a reason a firm may decide to repurchase it

9. Which one of the following is not a reason a firm may decide to repurchase its own stock. (Points : 3)        future corporate needs        financial restructuring        inves…

9. William Inc. is the manufacturer of cosmetics, soaps and shower gels. It also

9. William Inc. is the manufacturer of cosmetics, soaps and shower gels. It also markets its products using its own highly successful sales and marketing department. It is seen as…

9. Year Cash Flow 0 ?$10,000 1 3,900 2 6,000 3 2,500 Required : (a) What is the

9. Year Cash Flow 0 ?$10,000           1 3,900           2 6,000           3 2,500              Required : (a) What is the profitability index for the cashflows if the relevant di…

9. You are a budget analyst at Global Motors and gave been asked to evaluate the

9. You are a budget analyst at Global Motors and gave been asked to evaluate the following proposal. The company is considering replacing its existing metal stamping press with a …

9. You are buiishonTelecom s t Thear ent market p ce s Oper share, a you have S4

9. You are buiishonTelecom s t Thear ent market p ce s Oper share, a you have S4000 o your owntom est You bomow an addtional S4000from yor broker at an ne estreo 45% per year and …

9. You are considering buying the bonds of a very risky company. A bond with a $

9. You are considering buying the bonds of a very risky company. A bond with a $100 face value, a 1-year maturity, and a coupon rate of 22% is selling for $95. You consider the pr…

9. You are planning to borrow $100,000 for a major purchase, to be repaid in equ

9. You are planning to borrow $100,000 for a major purchase, to be repaid in equal monthly instalments over the next ten years. If interest rates are 13% per annum (compounded mon…

9. You are short 25 gasoline futures contracts, established at an initial settle

9. You are short 25 gasoline futures contracts, established at an initial settle price of $2.57 per gallon, where each contract represents 42,000 gallons. Over the subsequent four…

9. You buy a 30 year zero coupon bond which will pay you $1000 in 30 years at an

9. You buy a 30 year zero coupon bond which will pay you $1000 in 30 years at an annual yield of i 14% compounded once per year, 25 years later it will be a 5 year zero coupon bon…

9. You just graduated and started a iob. Wisely, you have started make equal mon

9. You just graduated and started a iob. Wisely, you have started make equal monthly deposits into an account which earns 8.00% pa. compo an to a retirement plan. You pl unded mon…

9. You see an article in the newspaper that details the performance of mu- tual

9. You see an article in the newspaper that details the performance of mu- tual funds over the last five years. You see that, out of 5,600 actively managed mutual funds in the stu…

9. Your job pays you only once a year for all the work you did over the previous

9. Your job pays you only once a year for all the work you did over the previous 12 months, Today, December 31, you just received your salary of $60,000 and you plan to spend all …

9. _______________ is a warranty that goods sold are properly identified and rea

9. _______________ is a warranty that goods sold are properly identified and ready for resale. 10. ______________ is the seller’s right to correct anything that may be wrong with …