1.________ is an expense that is a legal obligation of the firm. 1. Labor expense 2. Interest expense 3. Salaries expense 4. Rent expense 2. Under MACRS, an asset which originally cost $10,000 is being depreciated using a 5-year normal recovery period. What is the depreciation expense in year 3? 1. $1,200 2. $1,
1) Mutual funds composed of stocks that have potential for very high growth, but may also be unproven, are called2) Investors sell a security short when they expect the price of the security to
1) Mutual funds composed of stocks that have potential for very high growth, but may also be unproven, are called a.income funds. b capital appreciation funds c specialty funds d dividend funds 2) Investors sell a security short when they expect the price of the security to a. increase substantially b. decrease c
1) No load mutual funds are normally promoted by ______. Load funds are promoted by ______. a registered representatives of a brokerage firm; registered representatives of a brokerage firm b registered representatives of a brokerage firm; the mutual fund of concern c the mutual fund of concern; registered representatives
1) When investors buy stock with borrowed funds, this is sometimes referred to as 2) Exchange traded funds can be
1) When investors buy stock with borrowed funds, this is sometimes referred to as a use of proxy b purchasing stock on margin c a margin call d a margin residual claim 2) Exchange traded funds can be a traded throughout the day b purchased on margin c sold short d all of the above
1) The ______ is commonly used to determine what a stock's price should have been2) Technical analysis involves tracking the trend of ______ to make investment decisions
1) The ______ is commonly used to determine what a stock's price should have been a capital asset pricing model b Treynor Index c Sharpe Index d B and C 2) Technical analysis involves tracking the trend of ______ to make investment decisions a interest rates b inflationary expectations c industry conditions d r
Please see attached questions and provide spreadsheet to support. For the following question: "you would expect Swinton Mining dividend yield to Options: A Decrease B Stay the same C Increase Can you provide an explanation to that question
6. (1) If the fair value of a held-to-maturity investment declines for a reason that is viewed as "other than temporary", A. the investment is not written down to fair value. B. the investment is written down to fair value, and the impairment loss is recognized in net income. C. the investment is written down to fair
16. (1) Straight-line amortization of bond discount or premium: A. Can be used for amortization of discount or premium in all cases and circumstances. B. Provides the same amount of interest expense each period as does the effective interest method. C. Is appropriate for deep discount bonds. D. Provides the same
Analyze the corporate financial decision-making process at Lockheed Martin. Conduct a capital structure analysis in which you examine the various debt/equity instruments used by Lockheed Martin, as well as the impact on EPS, PE Ratios, and price per share.
Zero-balance account Union Company is considering establishment of a zero balance account. The firm currently maintains an average balance of $420,000 in its disbursement account. As compensation to the bank for maintaining the zero-balance account, the firm will have to pay a monthly fee of $1,000 and maintain a $300,000 non-in
Relaxation of credit standards Lewis Enterprises is considering relaxing its credit standards to increase its currently sagging sales. Because of the proposed relaxation, sales are expected to increase by 10% from 10,000 to 11,000 units during the coming year; the average collection period is expected to increase from 45 to 60 d
Effective annual rate A financial institution made a $10,000, 1-year discount loan at 10% interest, requiring a compensating balance equal to 20% of the face value of the loan. Determine the effective annual rate associated with this loan. (Note: Assume that the firm currently maintains $0 on deposit in the financial institution
A health insurance policy pays 65% of physical therapy costs after a $200 deductible. In contrast, an HMO charges $15 per visit for physical therapy. How much would a person save with the HMO if he or she had 10 physical therapy sessions costing $50 each?
Mr. Jones is 45 years old and is in good health. He is married, and has two children aged 17 and 18. He and his wife own all shares in a Limited Liability Company that owns a tavern and adjacent restaurant presently valued, based on future cash flow projections, at $5.9 million. The property around the tavern and restaurant
Laurn has a margin account and deposited $50,000. Assume the prevailing margin requirement is 40 percent, commissions are ignored, and Gentry Shoe Corporation is selling at $35 per share. a- How many shares can Laurn purchase using the maximum allowable margin? b- What is Laurn's profit (loss) if the price of Gentry's s
Gamma Corporation is considering a two-step buyout of Delta Corporation. Delta Corporation has 2,000,000 shares outstanding and its stock price is currently $40 per share. In a two-step buyout, Gamma Corporation will offer to buy 51% of Delta Corporation's shares outstanding for $68 per share in cash, and the balance in a second
Gold Mining Corporation is seeking to raise $10,000,000 through a rights offering. The company presently has 1,000,000 shares of common stock outstanding at a current market price of $25 per share. (a) How many new shares must be sold via the rights offering if the subscription price of the new stock is $20 per share? (b
Elite Trailer Parks has an operating profit of $200,000. Interest expense for the year was $10,000; preferred dividends paid were $18,750.00 and common dividends paid were $30,000. The tax was $61,250. The firm has 20,000 shares of common stock outstanding. What was the increase in retained earnings for the year?
Check out a couple of mutual fund companies (e.g. vanguard.com, tiaa-cref.com) and analyze what types of funds and services they offer. What is the best mutual fund and which is the best mutual fund company? Explain (8-10 sentences).
Ben Bates graduated from college six years ago with a finance undergraduate degree. Although he is satisfied with his current job, his goal is to become and investment banker. He feels that a MBA degree would allow him to achieve his goal. After examining schools, he has narrowed his choice to either Wilton University or Mount P
1. Define the term "reserve price" and explain how the use of a reserve price can affect the progress and outcome of an auction. 2. Describe the services offered by an online auction escrow service. Name one advantage and one disadvantage of using this type of an escrow service.
Given the following cost elements, determine the total percentage in each of the four major quality cost categories. Please show each cost element's cost classification. Cost Element Amount ($) Incoming test and inspection 7,500 Scrap 35,000 Quality Training 0 Inspection 25,000 Test
A real estate agent in the coastal area of Georgia wants to compare the variation in the selling price of homes on the oceanfront with those one to three blocks from the ocean.
A real estate agent in the coastal area of Georgia wants to compare the variation in the selling price of homes on the oceanfront with those one to three blocks from the ocean. A sample of 21 oceanfront homes sold within the last year revealed the standard deviation of the selling prices was $45,600. A sample of 18 homes, als
During the past five years you owned two stocks that had the following annual rates of return: Year Stock A Stock B 1 0.18 0.09 2 0.6 0.04 3 -0.15 -0.11 4 -0.01 0.04 5 0.11 0.05 a) compute the arithmetic annual rate of return for each stock. Which stock is most desirable by this measure? b) Compute th
Darlene wishes to accumulate $50,000 by the end of 10 years by making Equal annual end-of-the year deposits over the next 10 years. If Darlene Can earn 5 percent on her investments, how much must she deposit at the end of each year? a. $3,975 b. $6,475 c. $5,000 d. $4,513 A corporation is considering expanding operat
1a. What is the cash flow of a 6% coupon bond that pays interest annually, matures in 7 years, and has a principle of $1,000? 1b. Assuming a discount rate of 8%, what is the price of the bond? 1c. Assuming a discount rate of 8.5%, what is the price of the bond? 1d. Assuming a discount rate of 7.5%, what is the price of
A company uses a Miller-Orr cash management approach with a lower limit of $50,000, an upper limit of $130,000, and a target balance of $75,000. Explain what each of these points represents; then explain how the system will work.
Becky has 25/50/10 automobile insurance coverage. If 2 other people are awarded $35,000 each for injuries in an auto accident in which Becky was judged at fault, how much of this judgment would the insurance cover?
Estimate the affordable monthly mortgage payment, the affordable mortgage amount, and the affordable home purchase price for the following situation: Monthly gross income $2,950 Down payment to be made- 15% of purchase price Other debt(monthly payment) $160 Monthly estimate for property taxes and insurance $210 30 year loan
Based on financial and opportunity costs, which of the following do you believe would be the wiser purchase? Vehicle 1: A 3 year old car with 45,000 miles, costing $6,700, and requiring $385 of immediate repairs. Vehicle 2: A 5 year old car with 62,000 miles, costing $4,500, and requiring $760 of immediate repairs.