Financial literacy

1, Discuss the pricing of stock options ? Answer the following in your essay: i.

1, Discuss the pricing of stock options? Answer the following in your essay: i. Which authors are influential in valuation options ii. what is the name of the model. iii. Why is t…

1, Lee is considering buying one of two newly-issued bonds. Bond A is a twenty-y

1, Lee is considering buying one of two newly-issued bonds. Bond A is a twenty-year, 7.5% coupon bond that is non -callable. Bond B is a twenty  year, 8.25% bond that is callable …

1, Lee is considering buying one of two newly-issued bonds. Bond A is a twenty-y

1, Lee is considering buying one of two newly-issued bonds. Bond A is a twenty-year, 7.5% coupon bond that is non -callable. Bond B is a twenty  year, 8.25% bond that is callable …

1, This is the totality of methods and treatment employed in the collection , de

1, This is the totality of methods and treatment employed in the collection , description and analysis of numerical data 2, These refer to the characteristtics of the population 3…

1, Use the growth rate of earnings per share and the current EPS to estimate the

1, Use the growth rate of earnings per share and the current EPS to estimate the dividend payment in 5 years. Given information in the question, If the growth rate of EPS is -0.78…

1, Which of the following is true regarding the WACc? a. The WACC is equal to th

1, Which of the following is true regarding the WACc? a. The WACC is equal to the firm s embedded debt cost times (1 the tax rate) b. The WACC can be estimated by taking the simpl…

1, Which of the following statements concerning disintermediation is (are) corre

1, Which of the following statements concerning disintermediation is (are) correct? I. It reduces reserves in the banking system. II. It reduces deposits held in banks.        A. …

1, You recently purchased a stock that is expected to earn 11 percent in a boomi

1, You recently purchased a stock that is expected to earn 11 percent in a booming economy, 9 percent in a normal economy and lose 6 percent in a recessionary economy. There is a …

1, Your broker recommends that you purchase ABC Inc. at $60. The stock pays a $2

1, Your broker recommends that you purchase ABC Inc. at $60. The stock pays a $2.40 dividend which (like its per share earnings) is expected to grow annually at 8 percent. If you …

1,) The market risk premium is 10.00 percent, and the risk-free rate is 4.80 per

1,) The market risk premium is 10.00 percent, and the risk-free rate is 4.80 percent. If the expected return on a bond is 10.86 percent, what is its beta? (Round answer to 2 decim…

1,000.00 I have come to it that I suck at financing and accounting. Can you plea

1,000.00 I have come to it that I suck at financing and accounting. Can you please show the steps on how this is done. I and very lost. Thank you. New Country LLC is forecasting i…

1,440,000 1,280,000 Compute the degree of operating leverage at the current leve

1,440,000 1,280,000 Compute the degree of operating leverage at the current level of sales. (Round your answer to 2 decimal places.)              The president expects sales to in…

1- A $12,000 investment will return annual benefit for six years with no salvage

1- A $12,000 investment will return annual benefit for six years with no salvage value at the end of six years.  Assume straight line depreciation and a 46% tax rate and the infla…

1- A Johnson corporation bond is currently selling for $850. The bond matures in

1- A Johnson corporation bond is currently selling for $850. The bond matures in 20 years, has a face value of $1,000, and a yield to maturity of 10.55%. The bond's coupon rate is…

1- A central question that must be addressed in bankruptcy proceedings is whethe

1- A central question that must be addressed in bankruptcy proceedings is whether the firm's inability to meet scheduled interest payments results from a temporary cash flow probl…

1- A firm is evaluating an investment that costs $90,000 and is expected to gene

1- A firm is evaluating an investment that costs $90,000 and is expected to generate annual cash flows equal to $20,000 for the next 6 years. If the firms required rate if return …

1- A law firm always orders 50 cases of paper from their office supply company.

1- A law firm always orders 50 cases of paper from their office supply company. They incur an annual holding cost of $15 per case and have an ordering cost of $25 each time they p…

1- A lender is promiseda $100 payment (including interest) one year from today.

1- A lender is promiseda $100 payment (including interest) one year from today. If the lender has an 8% opportunity cost of money, he should be willing toaccept what amount today?…

1- A particular security’s equilibrium rate of return is 8 percent. For all secu

1- A particular security’s equilibrium rate of return is 8 percent. For all securities, the inflation risk premium is 3.35 percent and the real risk-free rate is 2.2 percent. The …

1- A product is worth only 10 % of its purchase price after 7 years. Use the red

1- A product is worth only 10 % of its purchase price after 7 years.   Use the reducing balance process to calculate its % value after 3 years. ? 2- The functional cost of integra…

1- A project has an initial cost of $69,175, expected net cash inflows of $9,000

1- A project has an initial cost of $69,175, expected net cash inflows of $9,000 per year for 7 years, and a cost of capital of 14%. What is the project's PI? Do not round your in…

1- Alain Mire files a single tax return and has adjusted gross income of $297,00

1- Alain Mire files a single tax return and has adjusted gross income of $297,000. His net investment income is $60,000. What is the additional tax that Alain will pay on his net …

1- Alpha sold machinery, which it used in its business, to Beta, a related entit

1- Alpha sold machinery, which it used in its business, to Beta, a related entity, for $40,200. Beta used the machinery in its business. Alpha bought the equipment a few years ago…

1- An investment manager directs a certain client\'s orders to a certain broker

1- An investment manager directs a certain client's orders to a certain broker for execution in exchange for research from the broker. This arrangement is referred to as a: a- Pos…

1- Assuming simple interest how much will you have in an account if you deposit

1- Assuming simple interest how much will you have in an account if you deposit $10,000 for 6 months (182 days) at 7.75%? 2-    You make four quarterly payments of $425.60 on a $1…

1- Bonds issued with a floating interest rate are advantageous to the bond issue

1- Bonds issued with a floating interest rate are advantageous to the bond issuer if interest rates ________ and advantageous to an investor when interest rates ________. d. Decre…

1- Calculate the yield to maturity on the following bonds: A- A 8.6 percent coup

1- Calculate the yield to maturity on the following bonds: A- A 8.6 percent coupon (paid semiannually) bond, with a $1,000 face value and 10 years remaining to maturity. The bond …

1- Calculate the yield to maturity on the following bonds: A- A 8.6 percent coup

1- Calculate the yield to maturity on the following bonds: A- A 8.6 percent coupon (paid semiannually) bond, with a $1,000 face value and 10 years remaining to maturity. The bond …

1- Carolyn has an AGI of $39,800 (all from earned income), two qualifying childr

1- Carolyn has an AGI of $39,800 (all from earned income), two qualifying children, and is filing as a head of household. What amount of earned income credit is she entitled to? (…

1- Coffee Shop is considering a three-year project to purchase a new machine pre

1-     Coffee Shop is considering a three-year project to purchase a new machine press to improve its production efficiency. Six months ago, it contracted with Dr. right to provid…

1- Company Detox, is a private company that designs, manufactures and distribute

1- Company Detox, is a private company that designs, manufactures and distributes certain consumer products. In this fiscal year, Detox had revenues of $38 Millions of USDs and ea…

1- Consider the following two mutually exclusive projects: Year Cash Flow (A) Ca

1- Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 -$350,000 -$35,000 1 25,000 17,000 2 70,000 11,000 3 70,000 17,000 4 430,000 11,000 Y…

1- Critique the budget in its present form: Is the budget reflective of growth o

1- Critique the budget in its present form: Is the budget reflective of growth or decline? 2- What assumptions can you make when you change the numbers to reflect a: 1-Decrease in…

1- Define Call and Put Options. Discuss the uses of both long call and long put

1- Define Call and Put Options. Discuss the uses of both long call and long put from hedger’s perspective 2- Describe the process of investing in options using market identificati…

1- Diversification is a process that: reduces idiosyncratic risk by holding a hu

1- Diversification is a process that: reduces idiosyncratic risk by holding a huge number of stocks. reduces stock returns by holding a huge number of stocks. reduces idiosyncrati…

1- Estimate the annual cash flows for the brewpub project. Use the \"best case s

1- Estimate the annual cash flows for the brewpub project. Use the "best case scenario". To do this, calculate the annual revenues and annual expenses for the 10 year project,any …

1- Eugene Fama, Sr. (Nobel prize winner in economics) and Kenneth French publish

1- Eugene Fama, Sr. (Nobel prize winner in economics) and Kenneth French published a paper in 1992, which over the past 23 years as easily been the most influential academic paper…

1- Five years ago the price of a small 3 bedroom house in Lynbrook was $345,000.

1- Five years ago the price of a small 3 bedroom house in Lynbrook was $345,000. This year you notice that the price of the house is now estimated at $395,000. What is the annual …

1- Following are the estimated after-tax cash flows for two mutually exclusive p

1- Following are the estimated after-tax cash flows for two mutually exclusive projects: Following are the estimated after-tax cash flows for two mutually exclusive projects: year…

1- Frank wanted to have his firm, Krilx, Inc., raise a total of $7.5 million thr

1- Frank wanted to have his firm, Krilx, Inc., raise a total of $7.5 million through a stock offering. The company plans to sell stock to a local insurance company in the amount o…

1- If you Write a Put option, your profit goes up as.. A. The stock\'s price goe

1- If you Write a Put option, your profit goes up as.. A. The stock's price goes up B. The stock's price goes down C. The call option's price goes up D. The stock's volume goes up…

1- If you Write a Put option, your profit goes up as… A. The stock\'s price goes

1- If you Write a Put option, your profit goes up as…   A. The stock's price goes up   B. The stock's price goes down   C. The call option's price goes up   D. The stock's volume …

1- If you had invested in a diversified portfolio of long term junk bonds in at

   1-If you had invested in a diversified portfolio of long term junk bonds in at the end of 2008 and held this portfolio until the end of 2013 you would have been financially rui…

1- In deciding on the maturity of foreign debt to be issued, a U.S.-based MNC co

1- In deciding on the maturity of foreign debt to be issued, a U.S.-based MNC considering the issuance of foreign debt and observing a flat yield curve in the foreign country woul…

1- Lolli pop Inc. is a manufacture of candies with natural flavors and natural c

1- Lolli pop Inc. is a manufacture of candies with natural flavors and natural colors. This company ofers higher quality candies at higher prices then its competitors. October, De…

1- Merger activity is likely to heat up when interest rates are high because tar

1- Merger activity is likely to heat up when interest rates are high because target firms can expect to receive an especially high premium over the pre-announcement stock price. T…

1- Rexton Oil is an all-equity firm with 250 million of shares outstanding. Rext

1- Rexton Oil is an all-equity firm with 250 million of shares outstanding. Rexton currently has a cash flow of $290 Million of USDs and expects future free cash flows of $60 Mill…

1- Richard must decide how to allocate the capital in his portfolio. Richard has

1- Richard must decide how to allocate the capital in his portfolio. Richard has $36,000 available to invest. He finds the rates of return for four stocks for the past 12 years an…

1- Should the risk premium, Rm – Rf, be a spot (i.e., current) rate or a histori

1- Should the risk premium, Rm – Rf, be a spot (i.e., current) rate or a historical average? Should it be a long-term or short-term rate? In other words, should the risk premium b…

1- The cash conversion cycle (CCC) combines three factors: The inventory convers

1- The cash conversion cycle (CCC) combines three factors: The inventory conversion period, the average collection period, and the payables deferral period, and its purpose is to …