Finance

Suppose that Google stock has a beta of 1.06 and Boeing stock has a beta of 1.31. The beta on a ...

Suppose that Google stock has a beta of 1.06 and Boeing stock has a beta of 1.31. The beta on a ...

Suppose that Google stock has a beta of 1.06 and Boeing stock has a beta of 1.31.  The beta on a portfolio that consists of 30% Google stock and 70% Boeing stock is closest to:
A) 1.06
B) 1.14
C) 1.19
D) 1.24

johnpaech   212   4 Replies

Noor Iqbal

Which of the following statements is FALSE?

Which of the following statements is FALSE?

Which of the following statements is FALSE?
A) Beta is the expected percent change in the excess return of the security for a 1% change in the excess return of the market portfolio.
B) Beta represents the amount by which risks that affect t

Memphic   946   4 Replies

zahid juma

Your firm is planning to invest in a new electrostatic power generation system. Electrostat Inc is ...

Your firm is planning to invest in a new electrostatic power generation system. Electrostat Inc is ...

Your firm is planning to invest in a new electrostatic power generation system.  Electrostat Inc is a firm that specializes in this business.  Electrostat has a stock price of $25 per share with 16 million shares outstanding.  Electros

EpiscoWhat   656   4 Replies

Shruti Sivadasan

Suppose that Rearden Metal currently has no debt and has an equity cost of capital of 12%. Rearden ...

Suppose that Rearden Metal currently has no debt and has an equity cost of capital of 12%. Rearden ...

Suppose that Rearden Metal currently has no debt and has an equity cost of capital of 12%.  Rearden is considering borrowing funds at a cost of 6% and using these funds to repurchase existing shares of stock.  Assume perfect capital markets

johnpaech   273   4 Replies

Rmwalsh73

Rearden Metal has no debt, and maintains a policy of holding $50 million in excess cash reserves, ...

Rearden Metal has no debt, and maintains a policy of holding $50 million in excess cash reserves, ...

Rearden Metal has no debt, and maintains a policy of holding $50 million in excess cash reserves, invested in risk free treasury securities currently yielding 4%. If Rearden is in the 40% marginal tax bracket, the cost of permanently maintaining this

Memphic   413   4 Replies

Erion Mediu

Taggart Transcontinental shares are currently trading at $200 per share. The split ratio needed to ...

Taggart Transcontinental shares are currently trading at $200 per share. The split ratio needed to ...

Taggart Transcontinental shares are currently trading at $200 per share. The split ratio needed to bring the stock price down to $80 is:
A) 2:1
B) 3:1
C) 2:5
D) 5:2

johnpaech   460   4 Replies

Robin1

The financial manager most directly responsible for producing the company's financial statements ...

The financial manager most directly responsible for producing the company's financial statements ...

The financial manager most directly responsible for producing the company's financial statements and directing its cost accounting functions is the
A) chief financial officer.
B) controller.
C) treasurer.
D) vice president-financier.

borteleto   142   4 Replies

lNaughtl

Bart's Moving Company bonds have a 11% coupon rate. Interest is paid semiannually. The bonds have a ...

Bart's Moving Company bonds have a 11% coupon rate. Interest is paid semiannually. The bonds have a ...

Bart's Moving Company bonds have a 11% coupon rate. Interest is paid semiannually. The bonds have a par value of $1,000 and will mature 8 years from now. Compute the value of Bart's Moving Company bonds if investors' required rate of return is 9.5%.

samualson   104   4 Replies

Antonio Rodriguez

Distant Thunder, Inc. paid a dividend of $5.00 per share on its common stock yesterday. Dividends ...

Distant Thunder, Inc. paid a dividend of $5.00 per share on its common stock yesterday. Dividends ...

Distant Thunder, Inc. paid a dividend of $5.00 per share on its common stock yesterday. Dividends are expected to grow at a constant rate of 10% for the next two years, at which point the dividends will begin to grow at a constant rate indefinitely.

samualson   268   4 Replies

Blue Dreamer

How do interest rates affect the optimal order quantity Q*?

How do interest rates affect the optimal order quantity Q*?

How do interest rates affect the optimal order quantity Q*?
A) As interest rates increase, Q* decreases.
B) As interest rates decrease, Q* decreases.
C) As interest rates increase, Q* increases until it reaches a maximum, after which any further i

samualson   228   4 Replies

Virgo Dover

A C corporation earns $7.40 per share before taxes. The corporate tax rate is 39%, the personal tax ...

A C corporation earns $7.40 per share before taxes. The corporate tax rate is 39%, the personal tax ...

[html]A C corporation earns $7.40 per share before taxes.  The corporate tax rate is 39%, the personal tax rate on dividends is 15%, and the personal tax rate on non-dividend income is 36%.  What is the total amount of taxes paid if the company pays

anhsu   160   4 Replies

emr21

Conventional mortgage

Conventional mortgage

Bobby-Sue has established that she can afford a weekly payment of $550. She would
like to have a mortgage with an amortization of 30 years and a 10 year term. Current
interest rates for a 10 year term are 6.95% compounded semi-annually not

Morpin   77   4 Replies

bio_man

A home insurance company anticipates the following pattern of claims, based on historical data. What ...

A home insurance company anticipates the following pattern of claims, based on historical data. What ...

[html]A home insurance company anticipates the following pattern of claims, based on historical data. What is the expected claim on the next policy sold by the company?

Name2   460   4 Replies

jamesbove

You are a shareholder in a "C" corporation. This corporation earns $4 per share before ...

You are a shareholder in a "C" corporation. This corporation earns $4 per share before ...

You are a shareholder in a "C" corporation.  This corporation earns $4 per share before taxes.  After it has paid taxes, it will distribute the remainder of its earnings to you as a dividend.  The dividend is income to you, s

johnpaech   114   3 Replies

WOG43

Zoe Dental Implements has gross property, plant and equipment totaling $1.4 million, depreciation ...

Zoe Dental Implements has gross property, plant and equipment totaling $1.4 million, depreciation ...

Zoe Dental Implements has gross property, plant and equipment totaling $1.4 million, depreciation expense this year of $200,000, and accumulated depreciation of $750,000.  What is the book value of Zoe's property, plant and equipment?

johnpaech   674   3 Replies

cnmshabi

Which of the following statements is FALSE?

Which of the following statements is FALSE?

Which of the following statements is FALSE?
A) The difference between an annuity and a perpetuity is that an annuity ends after some fixed number of payments.
B) Most car loans, mortgages, and some bonds are annuities.
C) A growing per

johnpaech   81   3 Replies

Nicoleta Chihaia

You work for a pharmaceutical company that has developed a new drug. The patent on the drug will ...

You work for a pharmaceutical company that has developed a new drug. The patent on the drug will ...

You work for a pharmaceutical company that has developed a new drug.  The patent on the drug will last for 17 years.  You expect that the drug will produce cash flows of $10 million in its first year and that this amount will grow at a rate

johnpaech   121   3 Replies

smiley_1307

Assume that you are 30 years old today, and that you are planning on retiring at age 65. Your ...

Assume that you are 30 years old today, and that you are planning on retiring at age 65. Your ...

Assume that you are 30 years old today, and that you are planning on retiring at age 65.  Your current salary is $45,000 and you expect your salary to increase at a rate of 5% per year as long as you work.  To save for your retirement, you

Memphic   221   3 Replies

Sidra

Wesley Mouch's auto loan requires monthly payments and has an effective annual rate of 6.43%. The ...

Wesley Mouch's auto loan requires monthly payments and has an effective annual rate of 6.43%. The ...

Wesley Mouch's auto loan requires monthly payments and has an effective annual rate of 6.43%. The APR on this auto loan is closest to:
A) 6.00%
B) 6.25%
C) 6.50%
D) 6.62%

johnpaech   101   3 Replies

kadru

Floyd Ferris invested $3000 into an account five years ago. Today his account has grown to have a ...

Floyd Ferris invested $3000 into an account five years ago. Today his account has grown to have a ...

Floyd Ferris invested $3000 into an account five years ago. Today his account has grown to have a balance of $3927.50. Given that his account offered monthly compounding of interest, the APR on this account is closest to:
A) 5.00%
B) 5.25%

Memphic   1142   3 Replies

Marta Sirko

Assume that you presently have a monthly home mortgage with a stated interest rate of 7% APR. If ...

Assume that you presently have a monthly home mortgage with a stated interest rate of 7% APR. If ...

Assume that you presently have a monthly home mortgage with a stated interest rate of 7% APR.  If your income tax rate is 20%, then the after tax EAR for your home mortgage is closest to:
A) 5.6%
B) 7.2%
C) 5.8%
D) 7.0%

johnpaech   83   3 Replies

Moody Mood

Assuming the appropriate YTM on the Sisyphean bond is 9.0%, then the price that this bond trades for ...

Assuming the appropriate YTM on the Sisyphean bond is 9.0%, then the price that this bond trades for ...

Assuming the appropriate YTM on the Sisyphean bond is 9.0%, then the price that this bond trades for will be closest to:
A) $946
B) $919
C) $1086
D) $1000

johnpaech   73   3 Replies

beissan albatal

The number of potential IRRs that exist for Rearden's mining operation is equal to:

The number of potential IRRs that exist for Rearden's mining operation is equal to:

The number of potential IRRs that exist for Rearden's mining operation is equal to:
A) 0
B) 1
C) 2
D) 12

johnpaech   114   3 Replies

胡浩翔

The incremental cash flow that the Krusty Krab will incur in year 1 if they elect to upgrade to the ...

The incremental cash flow that the Krusty Krab will incur in year 1 if they elect to upgrade to the ...

The incremental cash flow that the Krusty Krab will incur in year 1 if they elect to upgrade to the new grill is closest to:
A) 6500
B) 7800
C) 10,800
D) 11,500

johnpaech   131   3 Replies

Bodunrin Jaiyeola

If the Krusty Krab's opportunity cost of capital is 12%, then the NPV for upgrading to the new ...

If the Krusty Krab's opportunity cost of capital is 12%, then the NPV for upgrading to the new ...

If the Krusty Krab's opportunity cost of capital is 12%, then the NPV for upgrading to the new grill is closest to:
A) -22,875
B) -15,025
C) 7130
D) 10,630

johnpaech   157   3 Replies

Анна Петрова

If the Krusty Krab's opportunity cost of capital is 12%, what decision should the Krusty Krab take ...

If the Krusty Krab's opportunity cost of capital is 12%, what decision should the Krusty Krab take ...

If the Krusty Krab's opportunity cost of capital is 12%, what decision should the Krusty Krab take regarding the new grill?
A) Do not install the new grill since NPV is approximately = - $10,630
B) Install the new grill since NPV is ap

Memphic   581   3 Replies

Sam Hsu

NoGrowth industries presently pays an annual dividend of $1.50 per share and it is expected that ...

NoGrowth industries presently pays an annual dividend of $1.50 per share and it is expected that ...

NoGrowth industries presently pays an annual dividend of $1.50 per share and it is expected that these dividend payments will continue indefinitely.  If NoGrowth's equity cost of capital is 12%, then the value of a share of NoGrowth's

johnpaech   236   3 Replies

Đỗ Huyềnn

The Sisyphean Company's common stock is currently trading for $25.00 per share. The stock is ...

The Sisyphean Company's common stock is currently trading for $25.00 per share. The stock is ...

The Sisyphean Company's common stock is currently trading for $25.00 per share. The stock is expected to pay a $2.50 dividend at the end of the year and the Sisyphean Company's equity cost of capital is 14%.  If the dividend payout rat

johnpaech   222   3 Replies

Andreas Neubauer

Monsters Inc. is a utility company that recently paid a common stock dividend of $2.35 per share. ...

Monsters Inc. is a utility company that recently paid a common stock dividend of $2.35 per share. ...

Monsters Inc. is a utility company that recently paid a common stock dividend of $2.35 per share.  Determine the current price of a share of Monsters' common stock if its divided growth rate is expected to remain at 7 percent per year indef

Memphic   764   3 Replies

Celina Zhu

MJ LTD is expected to grow at various rates over the next five years. The company just paid a $1.00 ...

MJ LTD is expected to grow at various rates over the next five years. The company just paid a $1.00 ...

MJ LTD is expected to grow at various rates over the next five years.  The company just paid a $1.00 dividend.  The company expects to grow at 20% for the next two years (effecting D1 and D2), then the company expects to grow at 10% for thr

Memphic   314   3 Replies

wowcoolme

Suppose that Defenestration decides to pay a dividend of only $2 per share this year and use the ...

Suppose that Defenestration decides to pay a dividend of only $2 per share this year and use the ...

Suppose that Defenestration decides to pay a dividend of only $2 per share this year and use the remaining $2 per share to repurchase stock.  If Defenestration's payout rate remains constant, then Defenestration's stock price is closes

Memphic   210   3 Replies

sports457

You expect Whirlpool Corporation (WHR)to have earnings per share of $6.10 over the coming year. If ...

You expect Whirlpool Corporation (WHR)to have earnings per share of $6.10 over the coming year. If ...

You expect Whirlpool Corporation (WHR)to have earnings per share of $6.10 over the coming year.  If Whirlpool stock is currently trading at $87.00 per share, then Whirlpool's P/E ratio is closest to:
A) 17.00
B) 13.50
C) 14.2

johnpaech   159   3 Replies

dabby14

Suppose an investment is equally likely to have a 35% return or a -20% return. The variance on the ...

Suppose an investment is equally likely to have a 35% return or a -20% return. The variance on the ...

Suppose an investment is equally likely to have a 35% return or a -20% return.  The variance on the return for this investment is closest to:
A) .151
B) .0378
C) 0
D) .075

Memphic   286   3 Replies

Nitish Yadav

The excess return is the difference between the average return on a security and the average return ...

The excess return is the difference between the average return on a security and the average return ...

The excess return is the difference between the average return on a security and the average return for:
A) Treasury Bonds.
B) a portfolio of securities with similar risk.
C) a broad based market portfolio like the S&P 500 index.

johnpaech   132   3 Replies

Jon Marshall

The expected return on security with a beta of 0.8 is closest to:

The expected return on security with a beta of 0.8 is closest to:

The expected return on security with a beta of 0.8 is closest to:
A) 0.0%
B) 3.2%
C) 6.4%
D) 7.2%

johnpaech   77   3 Replies

apocryphal

The weight on Abbott Labs in your portfolio is:

The weight on Abbott Labs in your portfolio is:

The weight on Abbott Labs in your portfolio is:
A) 50%
B) 40%
C) 30%
D) 20%

johnpaech   955   3 Replies

Maximillian Kitaychik

The variance on a portfolio that is made up of a $6000 investments in Duke Energy and a $4000 ...

The variance on a portfolio that is made up of a $6000 investments in Duke Energy and a $4000 ...

The variance on a portfolio that is made up of a $6000 investments in Duke Energy and a $4000 investment in Wal-Mart stock is closest to:
A) .050
B) .045
C) .051
D) -0.020

johnpaech   271   3 Replies

corazones

The volatility of a portfolio that consists of a long position of $10,000 in Wal-Mart and a short ...

The volatility of a portfolio that consists of a long position of $10,000 in Wal-Mart and a short ...

The volatility of a portfolio that consists of a long position of $10,000 in Wal-Mart and a short position of $2000 in Microsoft is closest to:
A) 9%
B) 14%
C) 11%
D) 12%

johnpaech   273   3 Replies

Temitope Malomo

Suppose that Google stock has a beta of 1.06 and Boeing stock has a beta of 1.31. If the risk-free ...

Suppose that Google stock has a beta of 1.06 and Boeing stock has a beta of 1.31. If the risk-free ...

Suppose that Google stock has a beta of 1.06 and Boeing stock has a beta of 1.31.  If the risk-free interest rate is 4% and the expected return from the market portfolio is 12%, then the expected return on a portfolio that consists of 30% Google

Memphic   564   3 Replies

Minh Anh

The weight on Taggart Transcontinental stock in the market portfolio is closest to:

The weight on Taggart Transcontinental stock in the market portfolio is closest to:

The weight on Taggart Transcontinental stock in the market portfolio is closest to:
A) 15%
B) 20%
C) 25%
D) 30%

johnpaech   180   3 Replies

Austin Payne