id stringlengths 4 7 | question stringlengths 36 3.3k | answer stringlengths 1 222 | answer_type stringclasses 9
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199510 | Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.61 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $2,050,000 in annual sa... | $1,174,500 | Float | Finance | University |
36250 | Assume that Sally would like to purchase a vehicle in 8 years with a cost of $50,000. She believes that she can achieve a 14% annual rate of return on her investment.
How much should she invest today? | $17,528 | Float | Finance | Senior High School |
398139 | A stock just paid a dividend of D0 = $1.50. The required rate of return is rs = 8.0%, and the constant growth rate is g = 4.0%.
What is the current stock price? | $39 | Float | Finance | University |
1461453 | You own a lot in Florida that is currently unused. Similar lots have recently sold for $1.2 million. Over the past five years, the price of land in the area has increased 10 percent per year, with an annual standard deviation of 25 percent. A buyer has recently approached you and wants an option to buy the land in the ... | E | Multiple Choice | Finance | University |
1092905 | Suppose you put $100 into a savings account today, the account pays 8% compounded semiannually, and you withdraw $50 one year after your initial deposit. What would your ending balance be 20 years after the initial $100 deposit was made, assuming that you make no additional deposits? | $258.16 | Float | Finance | Senior High School |
1864629 | 1. Broussard Skateboard's sales are expected to increase by 15% from $7.4 million in 2016 to $8.51 million in 2017.
2. Its assets totaled $5 million at the end of 2016.
3. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales.
4. At the end of 2016, current liabilities we... | $541,505 | Integer | Finance | University |
572620 | Valence Industries issues a bond to finance a new project. It offers a 10-year, 5 percent semiannual coupon bond. Upon issue, the bond sells at $1,025.
What is Valence's before-tax cost of debt? | 4.68% | Percentage | Finance | University |
1285958 | Suppose that you are comparing put and call prices on the same underlying stock and the strike prices and time-to-expiration of the two options match. Further, suppose that there are no dividends expected for the coming year on the stock and the options are all European. If the put-call parity shows that the market pri... | a | Multiple Choice | Finance | University |
2049382 | You want to build a two asset portfolio including SPDRs and T-Bills that has an expected return of 10.06%. A SPDR is a Standard and Poor's Depositary Receipt. A SPDR is an exchange traded fund (ETF) that is designed to generate the same return as the S&P 500 index.
What is the portfolio weight on the SPDRs?
Assume th... | 1.26 or 126% | Float | Finance | University |
193887 | Victoria Exports. A Canadian exporter, Victoria Exports, will be receiving six payments of 12,000 euros, ranging from now to 12 months in the future. Since the company keeps cash balances in both Canadian dollars and U.S. dollars, it can choose which currency to exchange the euros for at the end of the various periods.... | U.S. dollars | String | Finance | University |
157992 | Hickock Mining is evaluating when to open a gold mine. The mine has 39,000 ounces of gold left that can be mined, and mining operations will produce 6,500 ounces per year. The required return on the gold mine is 10 percent, and it will cost $34.5 million to open the mine. When the mine is opened, the company will sign ... | $1,032,058 | Float | Finance | University |
1424186 | A previously issued A2, 15-year industrial bond provides a return that's 75% higher than the prime interest rate of 11%. A previously issued A2 public utility bonds provide a yield of three-fourths of a percentage point higher than the previously issued A2 industrial bonds of equal quality.
Finally, new issues of A2 p... | 21.5% | Percentage | Finance | Senior High School |
907962 | The McDonnell Company has outstanding bonds with a coupon rate of 6.75% and semi-annual payments. The bonds are redeemable at their face value on December 30, 2032. If Weege can earn 5% on comparable investments and settle the transaction on March 24, 2015, how much should he be willing to pay per $100 of face value fo... | $118.58 | Float | Finance | University |
795712 | Part of the income that a machine generates is put into a sinking fund to replace the machine when it wears out.
If $2,000 is deposited annually at 6% interest, how many years must the machine be kept before a new machine costing $35,000 can be purchased? | 12.32 years | Float | Finance | Senior High School |
1909037 | St. Vincent's Hospital has a target capital structure of 35% debt and 65% equity. Its cost of equity (fund capital) estimate is 12.5% and its cost of tax-exempt debt estimate is 6%.
What is the hospital's corporate cost of capital? | 10.23% | Percentage | Finance | University |
1226708 | Year 0 1
Revenue 800.00
Fixed costs 150.00
Variable costs 200.00
Add. investment in NWC 10.00
Add. investment in operating long-term assets 70.00
Depreciation 60.00
Interest expenses 35.00
Newly issued debt 25.00
Principle repayments 15.00
Market value of the firm: Price per share No. of shares Market valu... | D | Multiple Choice | Finance | University |
1300846 | What is the EAR if a bank charges you an APR of 7.65 percent, compounded quarterly?
a. 7.91 percent
b. 8.38 percent
c. 8.02 percent
d. 7.87 percent
e. 8.11 percent | d | Multiple Choice | Finance | Senior High School |
372288 | Sampdoria General Company (SGC) is considering a five-year investment which costs $100,000 today. The investment will produce cash flows of $25,000 each year for the first 2 years, $50,000 a year for each of the remaining three years. SGC uses the following criterions in its capital budgeting process:
WACC = 12{eq}\%
... | 24.40% | Percentage | Finance | University |
72316 | At the end of 6 years, how much is an initial $500 deposit followed by 5 year end, annual $100 payments worth,assuming a compound annual interest rate of 10%. | $1496.29 | Float | Finance | University |
1777866 | You purchased 300 shares of General Electric stock at a price of $65.18 four years ago.
You sold all stocks today for $63.34. During that period the stock paid dividends of $2.45 per share.
What is your annualized holding period return (annual percentage rate)? | 0.235% | Percentage | Finance | University |
1269772 | The manager of Gloria's Boutique has approved Carla's application for 24 months of credit with maximum monthly payments of {eq}\$70 {/eq}. If the APR is 14.2 percent, what is the maximum initial purchase that Carla can buy on credit?
A) {eq}\$1,300.00 {/eq}.
B) {eq}\$1,006.90 {/eq}.
C) {eq}\$1,228.46 {/eq}.
D) {eq}\$1,... | D | Multiple Choice | Finance | University |
1179594 | Chad Chocolate is considering the purchase of a new candy preset. The machine under consideration costs $17,550 and would generate $2,550 in annual savings of direct labor costs over its 20-year life. At the end of 20 years, the press could be sold for $500. Chad's required rate of return is 16%.
Which of the three rel... | c | Multiple Choice | Finance | University |
404971 | A company pays a constant $8.25 dividend on its stock. The company will maintain this dividend for the next 13 years and will then cease paying dividends forever. If the required return on this stock is 11.2 percent, what is the current share price? | 55 | Integer | Finance | University |
755571 | Pierce Furnishings generated $2 million in sales during 2014, and its year-end total assets were $1.5 million. Also, at year-end 2014, current liabilities were $500,000, consisting of $200,000 of notes payable, $200,000 of accounts payable, and $100,000 of accrued liabilities. Looking ahead to 2015, the company estimat... | $57,613.17 | Float | Finance | University |
510490 | Is buying a Ferrari a better investment than buying a Porsche as the value tends to go up over time for a Ferrari? | Yes | Boolean | Finance | Senior High School |
1478267 | Mercken Industries is contemplating four projects: Project P, Project Q, Project R, and Project S. The capital costs and estimated after-tax net cash flows of each mutually exclusive project are listed below. Mercken's desired after-tax opportunity cost is 12 percent, and the company has a capital budget for the year o... | Project Q and R | List | Finance | University |
555358 | You wrote a piece of software that does a better job of allowing computers to network than any other program designed for this purpose. A large networking company wants to incorporate your software into their systems and is offering to pay you $479,000 today, plus $479,000 at the end of each of the following six years ... | $2,762,171.43 | Float | Finance | University |
1300265 | Consider the following cash flows on two mutually exclusive projects:
Year Project A Project B
0 -$58,000 -$73,000
1 38,000 37,000
2 33,000 46,000
3 28,000 49,000
The cash flows of Project A are expressed in real terms, whereas those of Project B are expressed in nominal terms. The appropriate nominal discount rate i... | The net present value of Project A and B are 28,266.75 and 29,727.57 respectively. | Float | Finance | University |
992826 | You have accumulated some money for your retirement. You are going to withdraw $99,790 every year at the beginning of the year for the next 20 years, starting today. Your account pays you 9.1 percent per year, compounded annually. How much money have you accumulated for your retirement? To answer this question, you hav... | 986791.08 | Float | Finance | University |
585911 | Assuming that you are a hospital administrator and you realize that a major piece of medical equipment needs to be replaced in five (5) years time, determine how much money needs to be set aside from the hospital's monthly revenues for the next sixty (60) months in order to pay for the anticipated expenditure which cur... | $22,339.53 | Float | Finance | University |
954632 | The ABC Corporation expects to generate the following cash flows from a {eq}\$1,000,000
{/eq} investment:
Year 1 {eq}\$100,000
{/eq}
Year 2 {eq}\$400,000
{/eq}
Year 3 {eq}\$500,000
{/eq}
Year 4 {eq}\$300,000
{/eq}
Year 5 {eq}\$100,000
{/eq}
What is the net present value (NPV) of the investment if the firm e... | $64,141.17 | Float | Finance | University |
551594 | Dan is considering the purchase of Super Technology, Inc. bonds that were issued 9 years ago. When the bonds were originally sold they had a 30-year maturity and a 6.41 percent coupon interest rate, paid annually. The bond is currently selling for $773. Par value of the bond is currently $1000. What is the yield to mat... | 8.82% | Percentage | Finance | University |
1059779 | Maintenance cost for a new piece of equipment is expected to be $5,000 in the first year and increase $250 per year for every year thereafter. If the cost of funds is 10%, what is the present worth cost of maintenance for the next 5 years? | $18,100.50 | Float | Finance | University |
311205 | Calculate the cost of debt. (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25%)
The Imaginary Products Co. currently has a debt with a market value of $225 million outstanding. The debt consists of 9 percent coupon bonds (semiannual coupon payments) whic... | 6.48% | Percentage | Finance | University |
76552 | Here are data on two companies. The T-bill rate is 4.8% and the market risk premium is 9.2%.
Company $1 discount store Everything $5
Forecast Return 16 % 15%
Standard deviation of returns 23% 25%
Beta 1.4 1
A. What would be the fair return for each company, according to the capital asset pricing model (CAPM)?
C... | The fair return for $1 discount store is 17.68%. The fair return for Everything $5 is 14.00%. | Percentage | Finance | University |
1654033 | Mr. Jones has a 2-stock portfolio with a total value of $400,000. $300,000 is invested in Stock A and the remainder is invested in Stock B. If standard deviation of Stock A is 12.65%, Stock B is 21.55%, and correlation between Stock A and Stock B is 0.50, what would be the expected risk on Mr. Jones' portfolio? | 13.04% | Percentage | Finance | University |
1137723 | Christina purchased 200 shares of stock at a price of $62.30 a share and sold them for $70.25 a share. She also received $140 in dividends.
If the inflation rate was 4.6 percent, What was her approximate real rate of return on this investment? | 9.28% | Percentage | Finance | Senior High School |
2049496 | Och, Inc., is considering a project that will result in initial after-tax cash savings of $1.77 million at the end of the first year, and these savings will grow at a rate of 1 percent per year indefinitely. The firm has a target debt-equity ratio of .75, a cost of equity of 11.7 percent, and an after-tax cost of debt ... | 18437500 | Integer | Finance | University |
1612117 | You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2016. The bonds have a par value of $2,000.
Company (Ticker)
Coupon
Maturity
Last Price
Last Yield
EST $ Vol (000's)
Xenon, Inc. (XIC)
6... | 6.80% | Percentage | Finance | University |
133974 | Denzel Valentine started working for Bulls Inc., who offers their employees a 401k matching plan of $0.50 for every $1 contributed up to a maximum of $2,000. If Denzel chooses to contribute $2,500 to the 401k each year, and the fund managers believe they can earn a 8% annual return, how much will be in the account (FV)... | B | Multiple Choice | Finance | University |
1861905 | An asset had annual returns of 14 percent, 9 percent, -12 percent, 3 percent, and 32 percent for the past five years. What is the standard deviation of these returns? | 16.05% | Percentage | Finance | University |
1083930 | Your company doesn't face any taxes and has $750 million in assets, currently financed entirely with equity. Equity is worth $50.00 per share, and book value of equity is equal to market value of equity. Also, let's assume that the firm's expected values for EBIT depend upon which state of the economy occurs this year,... | $3.76 | Float | Finance | University |
175125 | Dee Company made two announcements concerning its common stock today. First, the company announced that the next annual dividend will be $1.82 per share. Secondly, all dividends after that will decrease by 1.20 percent annually. What is the value of this stock at a discount rate of 14.5 percent? | $11.59 | Float | Finance | University |
1189819 | Use Excel or your financial calculator to compute the monthly payment for a car costing $26,000. Assume that you will finance it for 5 years at an interest rate of 6%. (Round your answer to two decimal places.)
$_____ | $502.65 | Float | Finance | Senior High School |
175627 | Simple Interest versus Compound Interest - First City Bank pays 6 percent simple interest on its savings account balances, whereas Second City Bank pays 6 percent interest compounded annually. Required: If you made a deposit of $9,000 in each bank, how much more money would you earn from your Second City Bank account a... | 2629.77 | Float | Finance | Senior High School |
1522720 | If an analyst predicts that the benefits of a three-year project would be $100,000 at the end of the first year, $110,000 at the end of the second year, and $120,000 at the end of the project life, the scrap value of the project is expected to be $25,000 upon resale, and the discount rate is 4%, how much is the present... | 326759.50 | Float | Finance | University |
1169352 | Cleaner's, Inc., is switching to paying employees every 2 weeks rather than weekly and will therefore skip 1 week's pay. The firm has 25 employees who work a 60-hour week and earn an average wage of $12.50 per hour. Using a 10% rate of interest, how much will this change save the firm annually? | $1,875 | Integer | Finance | Senior High School |
1066283 | How much would an investor lose the first year if she purchased a 30-year zero-coupon bond with a $1,000 par value and a 10% yield to maturity, only to see market interest rates increase to 12% one year later? (Calculate {eq}P_0
{/eq} and {eq}P_1
{/eq} at the corresponding interest rate.)
A) $23.93
B) $25.66
C) $1... | C | Multiple Choice | Finance | University |
845575 | Dr Alla is planning to send her child to a summer camp in 9 months. The camp will cost her $1,200 at that time. She has decided to invest a lump sum of money now that will grow to $1,200 by the time it is needed. Assuming the money grows at a nominal annual interest rate of 12% compounded daily, how much money should s... | $1,096.73 | Float | Finance | Senior High School |
937060 | How much would you pay for an investment that will be worth $16,000 in three years? Assume interest is 5%. | $13,821.40 | Float | Finance | Senior High School |
1655854 | Can the quantitative methods used by Ed Thorp during his early days still be applicable to today's financial markets? | Yes | Boolean | Finance | University |
516438 | Lithium, Inc. is considering two mutually exclusive projects, A and B. Project A is expected to generate $65,000 in year one and $75,000 in year two. Project B costs $120,000 and is expected to generate $64,000 in year one , $67,000 in year two, $56,000 in year three, and 45,000 in year four. Lithium Inc's required rat... | 22.7969% | Percentage | Finance | University |
433487 | Six-month T-bills have a nominal rate of 4%, while default-free Japanese bonds that mature in 6 months have a nominal rate of 2.5%. In the spot exchange market, 1 yen equals $0.0098. If interest rate parity holds, what is the 6-month forward exchange rate ? | 0.00994 yen per 1 USD | Float | Finance | University |
2032282 | Calculate the present value of $7,800 to be received in 4 years discounted at 6%. | $6,178.33 | Float | Finance | Senior High School |
874086 | For R10,000 you can purchase a 5-year annuity that will pay R2,504.57 per year for five years. The payments are made at the end of each year. Calculate the effective annual interest rate implied by this arrangement. | 8.00% | Percentage | Finance | University |
110370 | Sander's Supplies has paid a constant dividend of $2.15 a share for the past 20 years. Yesterday, the firm announced the dividend will increase next year by 5% and will stay at the level for three years, after which time the dividends will increase by 4% annually. The required return on this stock is up 9%.
What is th... | 40.52 | Float | Finance | University |
801456 | A currency trader observes the following quotes in the spot market: 1 U.S. dollar = 10.875 Mexican pesos, 1 British pound = 6.205 Danish krone, 1 British pound = 1.65 U.S. dollars. Given this information, how many Mexican pesos can be purchased for 1 Danish krone? | 2.8918 Mexican Pesos | Float | Finance | Senior High School |
3962 | In 1998 X inc issued bonds with an 8% coupon rate and a $1,000 face value. The bonds mature on Mar. 1, 2023.
If an investor purchased one of these bonds on Mar. 1, 2008, determine the yield to maturity if the investor paid 1,050 for the bond. | 7.48% | Percentage | Finance | University |
1426267 | During 2006, NICO Corporation had EBIT of $100,000, a change in net fixed assets of $400,000, an increase in net current assets of $100,000, an increase in spontaneous current liabilities of $400,000, a depreciation expense of $50,000, and a tax rate of 30%. Based on this information, NICO's FCF is:
A. -$630,000
B. -... | D | Multiple Choice | Finance | University |
955585 | A company is considering an iron ore extraction project that requires an initial investment of $1,300,000 and will yield annual cash flows of $789,314 for two years. The company's discount rate is 9%. Calculate the IRR.
a. 14%
b. 16%
c. 13%
d. 12% | a | Multiple Choice | Finance | University |
194648 | Which of the following is true for normal projects if the WACC is positive?
a) If a project's IRR is positive, then its NPV will always be positive.
b) If a project's NPV is negative, then its Profitability Index will always be negative.
c) If a project's NPV is positive, then its IRR will always be positive.
d) No... | d | Multiple Choice | Finance | University |
2019529 | A financial planning service offers a college savings program. The plan calls for you to make six annual payments of $15,000 each, with the first payment occurring today, your child's 12th birthday. Beginning on your child's 18th birthday, the plan will provide $27,000 per year for four years. What return is this inves... | =IRR (A1:J1,0.1) | Expression | Finance | University |
696849 | Suppose you invest $3,600 in an account bearing interest at the rate of 14 percent per year. What will be the future value of your investment in five years? | $6,931.49 | Float | Finance | Senior High School |
1155698 | A business is considering a cash outlay of $300,000 for the purchase of land, which it could lease for $36,000 per year. If alternative investments are available that yield an 18% return, the opportunity cost of the purchase of the land is:
A. $36,000
B. $72,000
C. $18,000
D. $54,000 | C | Multiple Choice | Finance | University |
1904797 | Consider an asset currently worth $100. An investor plans to sell it in one year and is concerned that the price may have fallen significantly by then. To hedge this risk, the investor enters into a forward contract to sell the asset in one year. Assume that the risk-free rate is 5 percent.
Calculate the appropriate p... | $105.127 | Float | Finance | University |
11351 | Hawkeye Harvesters, Inc. is engaged in a contract with the United States Government to supply farm machinery. Hawkeye's required return is 11.2%. Their marginal tax rate is 35%. HHI must have $100,000 in working capital at the start of the project and must add $10,000 to working capital at the start of years 2, 3, 4, a... | C | Multiple Choice | Finance | University |
1323643 | If someone is trying to save money for retirement and has a future goal of $600,000 at the end of 20 years, determine the present value of the goal using a discount rate of 11%. | 74420 | Integer | Finance | Senior High School |
1547912 | Juanita was also asked to determine whether the installation of a new sprinkler system at the corporate headquarters building would be justified. The cost of the project would be $40,000. She estimates the project would provide an after-tax net cash flow of $25,000 per year for three years, with the first of these cash... | $22,172.50 | Float | Finance | University |
599925 | Is profit on the stock market directly proportional to risk? | Yes | Boolean | Finance | Senior High School |
29220 | Suppose you have $1,000 that serves as margin for a $9,000 one year loan where the interest rate is 1%. You invest the total = $10,000 in Europe where the exchange rate is $1.25 $/euro. The one year interest rate in Europe is 4%.
According to UIP, what is the expected exchange rate one year from now? | 1.2139 | Float | Finance | University |
526952 | A project will produce cash inflows of $1,650 a year for four years. The project initially costs $10,700 to get started. In year five, the project will be closed and as a result, should produce a cash inflow of $8,600. What is the net present value of this project if the required rate of return is 12.75%? | -$1,046.81 | Float | Finance | University |
1932448 | One dollar invested in a portfolio of long-term U.S. government bonds in 1900 would have grown in nominal value by the end of year 2011 to:
A. $719
B. $66
C. $74
D. $245 | D | Multiple Choice | Finance | University |
1739743 | What is the net present value for a project that costs $8000 now with the below anticipated annual cash streams and a cost of 12%?
CF1 2000
CF2 3000
CF3 4000
CF4 2000 | 295.45 | Float | Finance | University |
1761921 | Cindy Houston has a $27,600 debt that she wishes to repay four years from today; she has $19,553 that she intends to invest for the four years. What rate of interest will she need to earn annually in order to accumulate enough to pay the debt? | 9% | Percentage | Finance | Senior High School |
1252192 | The top prize in a state lottery is $100,000,000 and you decide to buy a ticket. Before you purchase a ticket you must decide to choose the cash option or an annual payment option. The cash option is $55,000,000. The annual payment option is 25 equal payments of 4,000,000 with the first payment made immediately on days... | The cash option should be chosen. It's worth $798,569.89 more than the annual payment option. | Float | Finance | University |
1672115 | A $1,000,000 life insurance policy with a present value of $100,000 is gifted by David, the insured-owner, to Arthur. If David dies within three years of the gift, only $900,000 of the $1,000,000 of insurance proceeds will be included in his estate for federal estate tax purposes. Explain. | $900,000 | Integer | Finance | University |
15038 | A small business owner visits his bank to ask for a loan. The owner states that he can repay a loan at $2,300 per month for the next three years and then $1,300 per month for two years after that. If the bank is charging customers 10.50 percent APR, how much would it be willing to lend the business owner? | $91,249.14 | Float | Finance | University |
2064143 | Find the IRR for the following project: Outflow is $200,000; required rate of return is 18%; inflows are $50,000, $70,000, $80,000, and $100,000 respectively at the end of each year for the next four years.
a. 12%
b. 13.7%
c. 16.4%
d. 30% | c | Multiple Choice | Finance | University |
1823821 | South Penn Trucking is financing a new truck with a loan of $10,000 to be repaid in 5 annual end-of-year installments of $2,504.56. What annual interest rate is the company paying? | 8% | Percentage | Finance | University |
262463 | Austin Company is investigating four different investment opportunities. Information on the four projects under study is given below:
Project Number
1
2
3
4
Investment required
$(600,000)
$(550,000)
$(400,000 )
$(520,000)
Present val... | Project 1: 1.25
Project 2: 1.17
Project 3: 1.65
Project 4: 1.23 | List | Finance | University |
320764 | Consider bonds A and B, as shown in the following table. Which bond will most likely experience the smallest percent change in price if the market discount rates for all bonds increase by 100 basis points (bps)?
Bond
Price
Coupon Rate
Time-to-Maturity
A
$101.886
5%
2 yea... | Bond A | String | Finance | University |
1332065 | You want to accumulate $1 minion by your retirement date, which is 25 years from now. You will make 25 deposits in your bank, with the first occurring today. The bank pays 8% interest, compounded annually, you expect to get annual raises of 3%, which will offset inflation, and you will let the amount you deposit each y... | $9,736.96 | Float | Finance | University |
1235228 | Water Wings Sports is considering an investment that costs $300,000 and is expected to generate cash flows of $90,000 per year during its 5-year life. If WWS's required rate of return is 15%, what is this investment's net present value? | 1694 | Integer | Finance | University |
1725641 | A proposed cost-saving device has an installed cost of $658,000. The device will be used in a five-year project but is classified as three year MACRS property for tax purposes. The required initial net working capital investment is $50,500, the marginal tax rate is 30%, and the project discount rate is 15%. The device ... | $215,627.66 | Float | Finance | University |
1765016 | You expect KT Industries (KTI) will have earnings per share of $3 this year and expect that they will pay out $1.50 of these earnings to shareholders in the form of a dividend. KTI's return on new investments is 15% and its equity cost of capital is 12%. What is the value of a share of KTI's stock? | $33.33 | Float | Finance | University |
608691 | What is the future value of an investment of $1,000 paid every year for five (5) years when the funds are invested at the end of the year at a rate of 11.0%? | 6,227.80 | Float | Finance | University |
586442 | Amalgamated Inc. is 100% equity financed with a stock price of $100 per share. Suppose an investor wishes to invest in the stock of the equivalent firm but with a 20% debt capital structure. Suppose that the investor has $100,000 to invest. Further, suppose that the investor can borrow at 5%, the same rate of interest ... | A | Multiple Choice | Finance | University |
29097 | Two years ago, Sheila invested $1,000 in MNO mutual fund. At the end of the first year, her account was worth $1,200, and she invested another $1,000. At the end of the second year, MNO's shares were priced at $50 a share. MNO paid no dividends during the 2 year period.
If Sheila originally purchased 22 shares, what w... | 4.88% | Percentage | Finance | Senior High School |
1576009 | You have the opportunity to purchase an office building. You have a tenant lined up that will generate {eq}\$16,000
{/eq} per year in cash flows for three years. At the end of three years, you anticipate selling the building for {eq}\$450,000
{/eq}. How much would you be willing to pay for the building? | $377,881.29 | Float | Finance | University |
1321748 | The December 31, 2015, balance sheet of Schism, Inc., showed long-term debt of $1,410,000, and the December 31, 2016, balance sheet showed long-term debt of $1,551,000. The 2016 income statement showed an interest expense of $102,800.
What was the firms cash flow to creditors during 2016? | -38,200 | Integer | Finance | University |
1163264 | What real rate of return is earned by a one-year investor in a bond that was purchased for $1,000, has a coupon rate of 8%, and was sold for $960 when the inflation rate was 6%? | -1.89% | Percentage | Finance | Senior High School |
218005 | What is the present value of payments of $5,000 a year for 5 years with interest of 16% compounded semiannually? | $33,550.40 | Float | Finance | University |
2045411 | Topstone Industries has a bond that is currently selling at 91% of its face value ($1,000). Issue matures in 10 years and pays semi-annual coupon of 7% of face value. What is the YTM for the bond? | 8.27% | Percentage | Finance | University |
774752 | Suppose you are buying your first home, a condominium, for $300,000. The down payment is $15,000 and you have arranged for a 30-year amortized mortgage at a 6.5% nominal rate of interest with the first payment due in one-month. If you pay an additional $500 per month in addition to the monthly payment, how soon will th... | 206 months or 17.18 years | Float | Finance | University |
585818 | A bond currently sells for $1,110, which gives it a yield to maturity of 5%. Suppose that if the yield increases by 25 basis points, the price of the bond falls to $1,065. What is the duration of this bond? | 16.2 | Float | Finance | University |
46008 | Firm is expected to pay a dividend of $2.95 next year and $3.10 the following year. Financial analysts believe the stock will be at their price target of $60 in two years. Compute the value of this stock with a required return of 12.9 percent. | $52.12 | Float | Finance | University |
1901059 | The Caughlin Company has a long-term debt ratio of .39 and a current ratio of 1.70. Current liabilities are $950, sales are $6,370, profit margin is 9.8 percent, and ROE is 20 percent. What is the amount of the firm's net fixed assets? | $4,451 | Float | Finance | University |
14716 | Tool makers, Inc. uses tool and die machines to produce equipment for other firms. The initial cost of one customized tool and die machine is $800,000. This machine costs $11,000 a year to operate. Each machine has a life of 3 years before it is replaced. What is the equivalent annual cost of this machine if the requir... | $332,691.84 | Float | Finance | University |
1540519 | As a college student, you probably receive many credit card offers in the mail. Consider these two offers. The first card charges a 17% APR. An examination of the footnotes reveals that this card compounds monthly. The second credit card charges 16.25% APR and compounds weekly. What is the effective annual rate of the ... | 17.62% | Percentage | Finance | University |
641767 | If you were offered $7,177.50 9 years from now in return for an investment of $1,500 currently, what annual rate of interest would you earn if you took the offer? | 19% | Percentage | Finance | Senior High School |
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