• Q : What conditions must a persons preferences meet....
    Finance Basics :

    In the Rational Choice paradigm, what conditions must a person's preferences meet in order for us to consider them a rational person?

  • Q : What is the real risk factor....
    Finance Basics :

    If the 10 year Treasury bond rate is 5.7% , the inflation premium is 2.9% and the maturity risk premium on 10-year Treasury bond is .5%, assuming thatthere is no liquiity - risk premium on these bon

  • Q : How much tax must patriot pay on this transaction....
    Finance Basics :

    Patriot Industries recently sold its fin fabrication machine for $150,000. The machine originally cost $500,000 and has a current book value of $100,000.

  • Q : Why use the duration to estimate the change in pv....
    Finance Basics :

    What's the present value of a $1,000 bond that matures in 2 years and pays coupons at the rate of 2% per eyar> ( one coupon every 6 months) Assume that the risk free interest

  • Q : What is the simple interest rate for your account....
    Finance Basics :

    Starting with $2,000 on March 3, you deposit $500 23 days from March 3, withdraw $800 69 days from March 3, and deposit $600 121 days from March 3.

  • Q : Describe the use of the arithmetic progression....
    Finance Basics :

    You take a $5,000 loan with an interest rate of 10% and pay off a constant principal portion of $200 every year. Use the arithmetic progression.

  • Q : How to calculate the total sum of the assets cash flows....
    Finance Basics :

    If the asset's initial cash flow is $1,000 (a1 = 1000), what will the asset's cash flow be in 23 years? (a23 = ?)What is the total sum of the asset's cash flows for 50 years (starting from $1,000 init

  • Q : Discuss the correlation of returns between the two stocks....
    Finance Basics :

    You only invest in these two stocks. Your investment weight in W is -19. Graph stock correlation (x-axis) versus standard deviation of returns (y-axis) as the correlation of returns between the tw

  • Q : What after-tax amount of cash will canon receive....
    Finance Basics :

    Canon Corporation expects to receive $3 million of dividend income from the shares of stock it holds in Fuji Enterprises. Canon currently owns 15 percent of Fuji's outstanding stock.

  • Q : Calculate the standard deviation on the x-axis....
    Finance Basics :

    Stock A has expected return of 11% and standard deviation of 17%. Stock B has expected return of 5% and standard deviation of 8%. The correlation of returns between the two stocks is 0.6.

  • Q : What is the total asset turnover rate....
    Finance Basics :

    Cranberry, Inc. has sales of $224,700, cost of goods sold of $102,500, net profit of $9,800, fixed assets of $84,200, and current assets of $8,100. What is the total asset turnover rate?

  • Q : What is the profit margin....
    Finance Basics :

    The Cocona Co. has total equity of $639,400 and net income of $51,700. The debt-equity ratio is .55 and the total asset turnover is 1.5. What is the profit margin?

  • Q : Determine the accounts receivables turnover rate....
    Finance Basics :

    Tomato, Inc. has accounts receivable of $52,700, total assets of $269,250, cost of goods sold of $147,900 and sales of 205,790. What is the accounts receivables turnover rate?

  • Q : Calculate the real rate of inflation of interest....
    Finance Basics :

    If the real risk- free rate of interest is 4.1% and the rate of inflation is expected to be constant at a level of 3.4% , what would you expect 1-year treasury bills to return if you ignore the cros

  • Q : What annual interest rate is your firm paying....
    Finance Basics :

    Your company borrows $55,000 today to funds its growth initiatives. It must repay the bank in 4 annual payments of $17,100 at the end of each year. What annual interest rate is your firm paying?

  • Q : How to pays the coupons at the rate per year....
    Finance Basics :

    What's the present value of a $1,000 bond that matures in 2 years and pays coupons at the rate of 2% per eyar> ( one coupon every 6 months) Assume that the risk free interest rate is 3% throughou

  • Q : What would the single payment be....
    Finance Basics :

    You are supposed to make three payments, $550 in 4 months, $780 in 11 months, and $300 in 20 months. If you want to discharge your debt in 15 months with a single payment and the interest rate is 9%

  • Q : What is the total amount of interests for twenty years....
    Finance Basics :

    Starting with $2,000 on March 3, you deposit $500 23 days from March 3, withdraw $800 69 days from March 3, and deposit $600 121 days from March 3. If your final balance is $2,458 150 days from Marc

  • Q : What is the total sum of the assets cash flows....
    Finance Basics :

    In asset X's value follows a natural exponential function, X = et and an asset Y's value follows Y = e2t-1 where t is the number of years. When the ratio of Y's value to X's value is equal to 7.39,

  • Q : How to calculate the laws of logarithms....
    Finance Basics :

    An asset's value was $1,439 7 days ago. If the asset's value has uniformly increased and its value today is $1,522, what was its value 2 days ago?

  • Q : Find the values of x and y that maximize the firms revenue....
    Finance Basics :

    If the company buys x minutes of television advertising and y minutes of radio advertising, its revenue in thousands of dollars is given by:f(x,y) = -2x^2 - y^2 + xy + 8x + 3y

  • Q : Which bond would you buy....
    Finance Basics :

    You are considering buying either Bond A or Bond B. Both bonds have a 10 year maturity and have a 6% yield to maturity. However Bond A is a zero coupon bond and Bond B pays a 5% semiannual coupon.

  • Q : What will be the new of the bond....
    Finance Basics :

    A 10-year bond paying a 10%(semiannual)coupon is priced at 90.50% od face value. if the current yield changes to 12%, what will be the new of the bond?

  • Q : How much in usd value did you receive when you sold it....
    Finance Basics :

    A 10-year coupon (paid semianually) bond has a face value of $1000, you buy it at par and sell it one year later for a 6% yield to maturity. how much in USD value did you receive when you sold it?

  • Q : How much of your first payment will be applied towards....
    Finance Basics :

    ABC Electronics is considering an investment that will have cash flows of $16,000, $5,000 and $4,000 for years 1 through 3. What is the approximate value of this investment today if the appropriate

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