Financial literacy

1) Research tools organizations use to communicate and collaborate. Be sure to r

1) Research tools organizations use to communicate and collaborate. Be sure to review your lessons and assigned readings. Post a response to the discussion board. Include in your …

1) S. Systems Inc. pays a $6 current dividend (D0=$6), the dividend is expected

1) S. Systems Inc. pays a $6 current dividend (D0=$6), the dividend is expected to grow at a constant rate of 8% a year, and the common stock currently sells for $45 per share. th…

1) Sand Key Development Company has a capital structure consisting of $20 millio

1) Sand Key Development Company has a capital structure consisting of $20 million of 10% debt and $30 million of common equity. The firm has 500,000 shares of common stock outstan…

1) Set up an equation that will solve for the discount rate at which the benefit

1) Set up an equation that will solve for the discount rate at which the benefits of groundwater regulations are equal to the cost Due to the drought, farmers in California have s…

1) Sharpe Knife Company expects sales next year to be $1,740,000 if the economy

1) Sharpe Knife Company expects sales next year to be $1,740,000 if the economy is strong, $920,000 if the economy is steady, and $740,000 if the economy is weak. Mr. Sharpe belie…

1) Shimmer\'s is presently enjoying relatively high growth because of a surge in

1) Shimmer's is presently enjoying relatively high growth because of a surge in the demand for recreational vehicles. Management expects earnings and dividends to grow at a rate o…

1) Show formula used or function. show work 2)Show formula used or function. sho

1) Show formula used or function. show work 2)Show formula used or function. show work You have developed the income statement for the Hugo Boss Corporation below. It represents t…

1) Simpkins Corporation does not pay any dividends because it is expanding rapid

1) Simpkins Corporation does not pay any dividends because it is expanding rapidly and needs to retain all of its earnings. However, investors expect Simpkins to begin paying divi…

1) Six months from now, Farmer Joe will harvest 20,000 bushels of wheat. In doin

1) Six months from now, Farmer Joe will harvest 20,000 bushels of wheat. In doing so, he incurs costs of $185,000. The current spot price of wheat is $9.70 per bushel, and the six…

1) Ski and Board are two identical firms of identical size operating in identica

1) Ski and Board are two identical firms of identical size operating in identical markets. Ski is unlevered with assets valued at $13000 and has 650 shares of stock outstanding. B…

1) Skoll Technologies is considering a 3-for-1 stock split on its common stock.

1) Skoll Technologies is considering a 3-for-1 stock split on its common stock. Skoll's current stock price is $72.00 per share, and teh stock split is supposed to be only an acco…

1) Stock in Country Road Industries has a beta of 1.23. The market risk premium

1) Stock in Country Road Industries has a beta of 1.23. The market risk premium is 8.5 percent, and T-bills are currently yielding 3 percent. The company's most recent dividend wa…

1) Stocks A and B have the following data A B Beta 1.10 0.90 Constant growth rat

1) Stocks A and B have the following data A B Beta 1.10 0.90 Constant growth rate 7.00% 7.00% The market risk premium is 6% and the risk-free rate is 6.4%. Assuming the stock mark…

1) Suppose a stock had an initial price of $50 per share, paid a dividend of $.8

1) Suppose a stock had an initial price of $50 per share, paid a dividend of $.80 per share during the year, and had an ending share price of $60. Compute the percentage total ret…

1) Suppose that LilyMac Photography has annual sales of $223,000, cost of goods

1) Suppose that LilyMac Photography has annual sales of $223,000, cost of goods sold of $158,000, average inventories of $6,200, average accounts receivable of $28,400, and an ave…

1) Suppose that Wall-E Corp. currently has the balance sheet shown below, and th

1) Suppose that Wall-E Corp. currently has the balance sheet shown below, and that sales for the year just ended were $6.8 million. The firm also has a profit margin of 25 percent…

1) Suppose that the U.S. Treasury decides to finance its deficit with mostly lon

1) Suppose that the U.S. Treasury decides to finance its deficit with mostly long-term funds, departing from its previous policy of using short-term and intermediate-term funds. T…

1) Suppose that today is August 27, 2018, and the federal funds rate target is c

1) Suppose that today is August 27, 2018, and the federal funds rate target is currently 3%. The current price of the September 2018 Federal Funds Rate Futures Contract is 96.9, a…

1) Suppose that two projects each cost $12,000. The first project returns $4,000

1) Suppose that two projects each cost $12,000. The first project returns $4,000 per year for 6 years. The second project returns $6,000 per year for 2 years. Which has the better…

1) Suppose the Japanese stock market bubble peaked at 48,200 in 1989. Two and a

1) Suppose the Japanese stock market bubble peaked at 48,200 in 1989. Two and a half years later it had fallen to 19,800.    What was the percentage decline? (Negative answer shou…

1) Suppose the Japanese stock market bubble peaked at 48,200 in 1989. Two and a

1) Suppose the Japanese stock market bubble peaked at 48,200 in 1989. Two and a half years later it had fallen to 19,800. What was the percentage decline? (Negative answer should …

1) Suppose the current exchange rate between German Mark and US dollar is M 1.55

1) Suppose the current exchange rate between German Mark and US dollar is M 1.5581 per $, and the 90 days foward rate between these currencies is M 1.5493 per $. a) M is selling a…

1) Suppose the current exchange rate between German Mark and US dollar is M 1.55

1) Suppose the current exchange rate between German Mark and US dollar is M 1.5581 per $, and the 90 days foward rate between these currencies is M 1.5493 per $. a) M is selling a…

1) Suppose the dividends for the Seger Corporation over the past six years were

1) Suppose the dividends for the Seger Corporation over the past six years were $1.17, $1.25, $1.34, $1.42, $1.52, and $1.57, respectively. Compute the share price using the perpe…

1) Suppose we are offered a 10-year, 11% annual coupon, $1000 face value bond at

1) Suppose we are offered a 10-year, 11% annual coupon, $1000 face value bond at a price of $1200. What is the current yield? 2) Suppose we are offered a 10-year, 11% annual coupo…

1) Suppose you deposit $ 2,000 today and your account will acuumulate to $ 4,000

1) Suppose you deposit $ 2,000 today and your account will acuumulate to $ 4,000 in 10 years. What is the nominal annual rate of interest, given semiannual compounding? a. 7.18% b…

1) Suppose you have a semi-annual coupon paying bond that has 10 years of maturi

1) Suppose you have a semi-annual coupon paying bond that has 10 years of maturity left, has a par value of $65,100, has a coupon rate of 7.23%, and has just paid its most recent …

1) Suppose you just won the state lottery, and you have a choice between receivi

1) Suppose you just won the state lottery, and you have a choice between receiving $2,075,000 today or a 20-year annuity of $250,000, with the first payment coming one year from t…

1) Suppose you know that a company’s stock currently sells for $60 per share and

1) Suppose you know that a company’s stock currently sells for $60 per share and the required return on the stock is 10 percent. You also know that the total return on the stock i…

1) Talbot Industries is considering launching a new product. The new manufacturi

1) Talbot Industries is considering launching a new product. The new manufacturing equipment will cost $12 million, and production and sales will require an initial $5 million inv…

1) The ABC Company paid total interest of $2,000 on its line of credit borrowing

1) The ABC Company paid total interest of $2,000 on its line of credit borrowings for the year. ABC paid a $100 commitment fee on an average borrowing of $20,000 for the year. Wha…

1) The Global Network has sales of $424580, cost of goods sold of $253865, and i

1) The Global Network has sales of $424580, cost of goods sold of $253865, and inventory of $57994. What is the inventory turnover rate? Round your answer to the nearest hundredth…

1) The International Fisher Effect states that inflation rates are equal across

1) The International Fisher Effect states that inflation rates are equal across the world. true / false 2)If forward rates are unbiased estimators of future spot rates, they 2 A) …

1) The Mexican peso futures contract is trading at 0.07713 $/MXN. Contract size

1) The Mexican peso futures contract is trading at 0.07713 $/MXN.  Contract size for the Mexican peso future is 500,000 pesos.  You believe the spot price will be 0.08365 $/MXN at…

1) The Stoney River Pennant Company uses commercial paper to satisfy part of its

1) The Stoney River Pennant Company uses commercial paper to satisfy part of its short-term financing requirements. Next week, it intends to sell $50 million in 180-day maturity p…

1) The U.S. corporate bond market Multiple Choice provides end-of-day values for

1) The U.S. corporate bond market Multiple Choice provides end-of-day values for all privately and publicly issued bonds. provides daily price quotes through BDEX, the bond dealer…

1) The \"percent of sales method\" is a method of preparing pro forma financial

1) The "percent of sales method" is a method of preparing pro forma financial statements. Which of the following would be an example of how the "percent of sales method" is develo…

1) The \"threat hypothesis\": a. reduces management\'s tendency to spend freely

1) The "threat hypothesis": a. reduces management's tendency to spend freely b. encourages management to use debt to further their own interests c. increases the agency problem d.…

1) The ________ is the mechanism by which participants transfer purchasing power

1) The ________ is the mechanism by which participants transfer purchasing power between countries, obtain or provide credit for international trade transactions, and minimize exp…

1) The __________ value of a bond is also called its face value. Bonds which sel

1) The __________ value of a bond is also called its face value. Bonds which sell at greater than face value are priced at a ______________, while bonds which sell at less than fa…

1) The __________ value of a bond is also called its face value. Bonds which sel

1) The __________ value of a bond is also called its face value. Bonds which sell at greater than face value are priced at a ______________, while bonds which sell at less than fa…

1) The ____________________ the coefficient of variation, the ________________ t

1)   The ____________________ the coefficient of variation, the ________________ the risk. a. more stable; higher b. lower; higher c. lower; lower d. higher; lower 2)   A beta coe…

1) The amount of extra compensation an investor should expect to receive for acc

1) The amount of extra compensation an investor should expect to receive for accepting the non-diversifiable risk associated with a risky security is equal to: A. the security The…

1) The amount of health insurance reimbursement actually paid may be reduced by

1) The amount of health insurance reimbursement actually paid may be reduced by [internal limits | co-payment caps]. Answer 2) Bob and Barbara Castle are each 39 years old and hav…

1) The bonds your company just issued carry a yield to maturity of 9%, and you h

1) The bonds your company just issued carry a yield to maturity of 9%, and you have preferred stock outstanding which pays a 7% dividend yield. Your company has a tax rate of 33%.…

1) The capital structure weights used in computing the weighted average cost of

1)    The capital structure weights used in computing the weighted average cost of capital are based on what values of the firm (i.e. book, adjusted book, market, etc): Debt 50,00…

1) The company that seeks to acquire another is called the _______________. A __

1) The company that seeks to acquire another is called the _______________. A ____________ _______________ is the firm that another company seeks to acquire. 2) A merger of two or…

1) The cost of a project is $500,000 and the present value of the net cash inflo

1) The cost of a project is $500,000 and the present value of the net cash inflows is $625,000. What is the increase in value of the firm as a result of accepting the project. 2) …

1) The cost of retained earnings is Select one: a. zero. b. equal to the cost of

1) The cost of retained earnings is Select one: a. zero. b. equal to the cost of a new issuance of common stock. c. equal to the cost of common stock equity. d. irrelevant to the …

1) The current price of a stock is $32, and the annual risk-free rate is 6%. A c

1) The current price of a stock is $32, and the annual risk-free rate is 6%. A call option with a strike price of $29 and 1 year until expiration has a current value of $5.30. Wha…