Financial literacy

1. How much will I have to save beginning today if interest is paid at the end o

1. How much will I have to save beginning today if interest is paid at the end of each year and is compounded annually? I plan to save for for 45 years at which time I will retire…

1. How much will u r friend pay you each month? 2. How much will you have in you

1. How much will u r friend pay you each month? 2. How much will you have in your account at the end of 36 months (to nearest $)? 3. What is your effective annual return EAR%? Sup…

1. How much would you be willing to pay for a bond that pays semi-annual coupon

1. How much would you be willing to pay for a bond that pays semi-annual coupon payments and has the following characteristics: (a) NPER: 12, (b) YTM: 5.25%, and Coupon Payment: $…

1. Hurricane Corp. recently purchased corporate bonds in the secondary market wi

1. Hurricane Corp. recently purchased corporate bonds in the secondary market with a par value of $11 million, a coupon rate of 12 percent (with annual coupon payments), and four …

1. Hurricane productions wants to arrange for $50 million in capital to finance

1. Hurricane productions wants to arrange for $50 million in capital to finance the building of a new facility to house the motion picture studios. The current plan is 60% equity …

1. I am 30 years old. I plan to retire in 50 years. I am self-employed. I save v

1. I am 30 years old. I plan to retire in 50 years. I am self-employed. I save via an IRA. I save $200 per month. The funds in the IRA are invested in the S&P 500 ETF. The sto…

1. I am 30 years old. I plan to retire in 50 years. I am self-employed. I save v

1. I am 30 years old. I plan to retire in 50 years. I am self-employed. I save via an IRA. I save $200 per month. The funds in the IRA are invested in the S&P 500 ETF. The sto…

1. I got the answer for this one just not sure if it is right. A 9 year project

1. I got the answer for this one just not sure if it is right. A 9 year project is expexted to generate annual revenues of 114,500, variable costs of 73600 and fixed costs of 1400…

1. I have three children; ages 2, 4 and 6. I earn $85,000 per year. My wife work

1. I have three children; ages 2, 4 and 6. I earn $85,000 per year. My wife works from home and earns an additional $50,000. If either me or my wife should pass away my family wou…

1. I have three children; ages 2, 4 and 6. I earn $85,000 per year. My wife work

1. I have three children; ages 2, 4 and 6. I earn $85,000 per year. My wife works from home and earns an additional $50,000. If either me or my wife should pass away my family wou…

1. IT question: Almost every organization, from high-tech firms (such as Apple,

1. IT question: Almost every organization, from high-tech firms (such as Apple, IBM, Microsoft, and Google) to small businesses, relies on information systems for everyday tasks. …

1. Identify ALL insurance coverages you will need to bind for the business. Be s

1.Identify ALL insurance coverages you will need to bind for the business. Be specific about the details of any aviation related coverages. 2. Business grows and soon you find it …

1. Identify the document that is developed from the project scope statement, the

1. Identify the document that is developed from the project scope statement, the project work breakdown structure (WBS) and the WBS dictionary that will be part of the procurement…

1. Identifying incremental cash flows When firms make capital budgeting decision

1. Identifying incremental cash flows When firms make capital budgeting decisions, they should concern themselves with incremental cash flows, not net income, when evaluating proj…

1. If I need a safe place to store my money short term, I should put it in _____

1. If I need a safe place to store my money short term, I should put it in ___________. a. Real Estate b. Stocks c. Bonds d. T-Bills 2.Suitable investments should be evaluated wit…

1. If Japanese consumers suddenly demand more of American rice when other things

1. If Japanese consumers suddenly demand more of American rice when other things are equal, the a. dollar would tend to appreciate b. value of yen in terms of dollar would remaine…

1. If Roten Rooters, Inc., has an equity multiplier of 1.65, total asset turnove

1. If Roten Rooters, Inc., has an equity multiplier of 1.65, total asset turnover of 1.70, and a profit margin of 4.5 percent, what is its ROE? (Do not round intermediate calculat…

1. If Wilkinson, Inc., has an equity multiplier of 1.61, total asset turnover of

1. If Wilkinson, Inc., has an equity multiplier of 1.61, total asset turnover of 2.3, and a profit margin of 4.1 percent, what is its ROE? a. 16.28% b.15.18% 9.43% 6.72% 2. Panda …

1. If a bond\'s coupon rate is equal to the market rate, then the bond will sell

1. If a bond's coupon rate is equal to the market rate, then the bond will sell none of these are true. at a price less than its face value. at a price equal to its face value. at…

1. If a company experiences a decrease in their credit rating, what is the likel

1. If a company experiences a decrease in their credit rating, what is the likely effect on the yield on their long term bonds? The yield will increase due to the default risk pre…

1. If a company uses its cost of capital to evaluate all projects. Will it under

1. If a company uses its cost of capital to evaluate all projects. Will it underestimate or overestimate the value of low-risk projects? 2. A company is 60% financed by risk-free …

1. If a constant dividend growth rate is 4.9%, and a dividend yield is 5.7% for

1. If a constant dividend growth rate is 4.9%, and a dividend yield is 5.7% for a company, what is the required rate of return on this company stock? 2. FD Corp. pays a constant $…

1. If a newly issued convertible bond is quoted at $90 and is convertible into 2

1. If a newly issued convertible bond is quoted at $90 and is convertible into 20 shares of stock , then the underlying stock will likely be trading at or below: a. $40 b. $45 c.$…

1. If a pair of Nike shoes cost $100 in U. S. while at the sane time, 654 n Chin

1. If a pair of Nike shoes cost $100 in U. S. while at the sane time, 654 n China, and the current exchange rate is 6. 40 RMB/USD, shat is the rea rate between RMB and USD? cost o…

1. If a project you are evaluating is more risky than average for your company,

   1. If a project you are evaluating is more risky than average for your company, should you use WACC as your discount rate, adjust WACC up, or adjust WACC down? 2.   Which of th…

1. If a security plots below the security market line, it is: A. ignoring all of

1. If a security plots below the security market line, it is: A. ignoring all of the security's unique risk. B. underpriced, a situation that should be temporary. C. offering too …

1. If an investment has a 20%(0.20) probability of returning $1,000; a 30%(0.30)

1. If an investment has a 20%(0.20) probability of returning $1,000; a 30%(0.30) probability of returning $1,500; and a 50%(0.50) probability of returning $1,800; the expected val…

1. If firm receives a cash flow from an investment that will increase by 10 perc

1. If firm receives a cash flow from an investment that will increase by 10 percent annually for an infinite number of years. This cash flow stream is called a. an annuity due. b.…

1. If foreign exchange traders become convinced that the value of the yen will r

1. If foreign exchange traders become convinced that the value of the yen will rise against the dollar in the future, the likely result is that: A) demand for the yen will fall in…

1. If inflation expectations increase, what would you expect to happen to the re

1. If inflation expectations increase, what would you expect to happen to the retums required by investors in bonds? What would happen to bond prices? Explain your answer 2. Expla…

1. If inventory is sold on credit, the current ratio will a. Increase b. decreas

1. If inventory is sold on credit, the current ratio will a. Increase b. decrease c. stay the same d. cannot be determined 2. If inventory is sold on credit, the quick ratio will …

1. If money is losing value at the rate of 2% annually because of inflation, how

1.         If money is losing value at the rate of 2% annually because of inflation, how long will it take a dollar, now assumed to be with 100 cents, to be worth 75 cents? Assume…

1. If sales growth for XYZ Inc. exceeds 6%, which in turn causes XYZ to seek ext

1. If sales growth for XYZ Inc. exceeds 6%, which in turn causes XYZ to seek external financing, then 6% is the a) External growth rate b) Internal growth rate c) Optimal growth r…

1. If the CEO of a company were to pass away, what do you think would happen to

1. If the CEO of a company were to pass away, what do you think would happen to the price of stock? A. It would increase because of the perceived increased risk due of lack of nea…

1. If the conditions for a line of credit require a your firm must pay the line

1. If the conditions for a line of credit require a your firm must pay the line down A) B) C) D) E) to zero once each year and maintain a zero balance for 45 to 60 days. payoff pe…

1. If the cost of new common equity is higher than the cost of internal equity,

1. If the cost of new common equity is higher than the cost of internal equity, why would a firm choose to issue new common stock? 2. Calculate all MCC break points for the follow…

1. If the cost of new common equity is higher than the cost of internal equity,

1. If the cost of new common equity is higher than the cost of internal equity, why would a firm choose to issue new common stock? 2. Calculate all MCC break points for the follow…

1. If the cost of new common equity is higher than the cost of internal equity,

1. If the cost of new common equity is higher than the cost of internal equity, why would a firm choose to issue new common stock? 2. Calculate all MCC break points for the follow…

1. If the current stock price is $50, the intrinsic value of a put option with a

1. If the current stock price is $50, the intrinsic value of a put option with an exercise price of 40 is -10 0 10 40 none of the above 2. Which of the following call options (X i…

1. If the direct price of the dollar is 2.5 in Sofia and transaction costs are .

1. If the direct price of the dollar is 2.5 in Sofia and transaction costs are .4% of the amount transacted, then the minimum maximum direct quotes for the Bulgarian Lev in New Yo…

1. If the economy booms, RTF, Inc. stock is expected to return 13 percent. If th

1. If the economy booms, RTF, Inc. stock is expected to return 13 percent. If the economy goes into a recessionary period, then RTF is expected to only return 3 percent. The proba…

1. If the economy booms, RTF, Inc. stock is expected to return 15%. If the econo

1. If the economy booms, RTF, Inc. stock is expected to return 15%. If the economy goes into a recessionary period, then RTF is expected to only return 3%. The probability of a bo…

1. If the economy is in a decline, which type of current asset financing should

1. If the economy is in a decline, which type of current asset financing should be used? a. compromise financing policy, b. flexible financing policy, c. restrictive financing pol…

1. If the option is exercised, a call writer must a. Purchase the underlying ass

1. If the option is exercised, a call writer must a. Purchase the underlying asset from the call buyer b. Purchase the underlying asset from the put writer c. Purchase the underly…

1. If the returns on two stocks are highly correlated, what does this mean? If t

1. If the returns on two stocks are highly correlated, what does this mean? If they have no correlation? If they are negatively correlated? 2. Why should younger investors be will…

1. If the spot rate for the Swiss Franc is that 1.15 SF is equal to 1 US $, and

1. If the spot rate for the Swiss Franc is that 1.15 SF is equal to 1 US $, and the annual interest rate on fixed rate one-year deposits of SF is 0.25% and for US$ is 1.75%, what …

1. If we are able to eliminate all of the unsystematic or diversifiable risk in

1. If we are able to eliminate all of the unsystematic or diversifiable risk in a portfolio then, what is the result?    a.    a risk-free portfolio b. a portfolio that has an exp…

1. If you are expecting dividend payments of $17.5 from your preferred stock, an

1. If you are expecting dividend payments of $17.5 from your preferred stock, and if you require a 12% return from this investment, what is the fair value of your preferred stock?…

1. If you assume market interest rates are expected to increase over the term of

1. If you assume market interest rates are expected to increase over the term of the loan, would you prefer a loan with a fixed interest rate for the life of the loan or rather a …

1. If you consider the debt tax shield, all the firms should have as much debt a

1. If you consider the debt tax shield, all the firms should have as much debt as they can, why then do we find that firms have not high levels of debt? 2. Is it true that the deb…