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Which two of the six methods used to evaluate projects, and to decide whether or not they should be accepted, do you prefer as a financial manager?
Assume that the yield curve is horizontal, with rates expected to remain at current levels on into the future. What is the difference between this bond's YTM and its YTC?
Does the concept of revenue less expense equaling an increase in equity or fund balance make sense? if not why?
Ed Sloan wants to withdraw $25,000 (including principal) from an investment fund at the end of each year for five years. How should he compute his required initial investment at the beginning of the
If the yield to maturity of both bonds increases by the same amount, which of the following statements would be correct?
As a president of successful web company, you know that you are hired by the board of directors, which is elected by the stockholders. What is your responsibility to both groups in terms of Coporate
Suppose your credit card issuer states that it charges a 15.00% nominal annual rate, but you must make monthly payments, which amounts to monthly compounding. What is the effective annual rate?
They mature exactly 10 years from today. The yield to maturity is 11%, so the bonds now sell below par. What is the current market value of the firm's debt?
Now Dana acquires some risky assets that cause its beta to increase by 30%. In addition, expected inflation increases by 2.00%. What is the stock's new required rate of return?
If Jill replaces Stock A with another stock, E, which has a beta of 1.50, what will the portfolio's new beta be?
A Shavon company has total fixed costs of $6,000,000 and total variable cost of $3,000,000 at a volume level of 300,000 units. What price would be charged if the company used cost plus pricing and
February, March, and April of 6,000, 5,000, 5,550, and 2,000, respectively. During the same months, the costs were $500,000, 400,000, 425,000, and 200,000. The fixed costs are:
Assuming that interest rates are 10% per annum for all maturities, calculate the futures price of silver for delivery in 9 months.
Three cost incurred by the Kenyon Company are summarized below:
The variable cost per pack is $10 and at current annual sales of $50000 packs, the store earns $75000 before taxes on course packs. How much are the fixed costs of producing the course packs.
Which of the following costs are always incremental and relevant in decision analysis?
Last year Wei Guan Inc. had $350 million of sales, and it had $270 million of fixed assets that were used at 65% of capacity. In millions, by how much could Wei Guan's sales increase before it is re
Is the futures price of a stock index greater than or less than the expected future, value of the index'? Explain your answer.
What are the forward price and the initial value of the forward contract? (b) Six months later, the price of the stock is $45.
At the beginning of July 2004, the U.S. dollar equivalent of a euro was $1.2167. In mid-March 2007, the U.S. dollar equivalent of a euro was $1.3310. Determine the percentage change of the euro betw
Using the following information determine the size of the demand deposits component of the Ml money supply.
The dividend yield on a stock index is 3.2% per annum. The current value of the index is 150. What is the 6-month futures price?
We are considering offering a new product, and need to determine the cash flows of this "project." For each of the following items, indicate whether we need to consider the item in determining the c
Explain carefully what is meant by the expected price of a commodity on a particular future date. Suppose that on February 4, 2.004, speculators tended to be short crude oil futures.
If you were a credit analyst who approved or disapproved commercial loans, which financial statement(s) and financial ratios would you be most concerned with? Which would provide the most relevant i