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146354 | In 1690, Blackbeard hired Davy Jones and the Flying Dutchman for $ 4,000 to search the shores of the Caribbean Sea for the Fountain of Youth.
At last, in 1740, they located the Fountain for him, providing $ 15 million of Youthful Happiness.
What is the internal rate of return to Blackbeard for the Fountain search, gi... | 17.89% | Percentage | Finance | University | 124,087 |
1807411 | Use the Black-Scholes formula to find the value of a call option based on following inputs:
Stock price
$57
Exercise price
$61
Interest rate
0.08
Dividend yield
0.04
Time to expiration
0.50
Standard deviation of st... | 3.7323 | Float | Finance | University | 8,004 |
869249 | The Bet-r-Bit Company has a six-year bond outstanding with a 5 percent coupon. Interest payments are paid semi-annually. The face amount of the bond is $1,000. This bond is currently selling for 98 percent of its face value. What is the company's pre-tax cost of debt?
A. 5.31 percent
B. 5.35 percent
C. 4.72 percent
... | E | Multiple Choice | Finance | University | 212,910 |
2017024 | The future value of $500 to be received at the end of each year for seven years at a discount rate of 8 percent is? | $4,461.40 | Float | Finance | University | 217,789 |
968478 | Linda inherited a sum of $50,000 from one of her grandparents. She would like to wisely invest the inheritance in one of the following three investment opportunities available for a period of 10 years. Help choose the best investment opportunity for Linda.
a. 9% compounded quarterly
b. 8.95% compounded monthly
c. 8.... | 8.95% compounded monthly | String | Finance | Senior High School | 219,800 |
348082 | A bank is offering to pay compound interest of 5% per year on new CD accounts. An e-bank is offering 5.5% per simple interest on a 5-year Savings account. Which bank do you select to deposit your money? | A | Multiple Choice | Finance | Senior High School | 108,748 |
1550537 | Karen needs $35,000 as a down payment for a house 8 years from now. She earns 3 percent on her savings. She can either deposit one lump sum today for this purpose or wait a year and deposit a lump sum. How much additional money must she deposit if she waits for one year rather than making the deposit today? | $828.88 | Float | Finance | Senior High School | 100,301 |
1260077 | What is the internal rate of return of a project with an initial outlay of $9,000 resulting in a free cash flow of $1,086 at the end of the year for the next 12 years? | 6.21% | Percentage | Finance | University | 160,571 |
201067 | Rob has just received an insurance settlement of {eq}\$58,400
{/eq}. He wants to save this money until his oldest daughter goes to college. Rob can earn an average of {eq}8.5
{/eq} percent, compounded annually, on this money. How much will he have saved for his daughter's college education if his daughter enters coll... | $182,990.77 | Float | Finance | Senior High School | 80,630 |
758400 | What payment at the end of each year is required to accumulate $23,000 in 6 years time, if the account earns 5.5% p.a.?
a) $4,121.06
b) $3,339.12
c) $4,604.12
d) $3,256.07 | b | Multiple Choice | Finance | Senior High School | 46,691 |
1289356 | "c is trying to determine whether to convert her convertible term life policy to whole life insurance using her original age or attained age. what factor would affect her decision the most?" | cost | String | Finance | Senior High School | 2,197 |
109180 | Assume the U.S. interest rate is .075, the New Zealand interest rate is 0.055, the spot rate of the NZ$ is $0.58, and the one-year forward rate of the NZ$ is $.50. At the end of the year, the spot rate is $0.47. Based on this information, what is the effective financing rate for a U.S. firm that takes out a one-year, u... | -14.51% | Percentage | Finance | University | 45,650 |
1929822 | You have borrowed $ 250,000 for 12 years at 26 per cent. There are 3 payments per year, and there are 3 payments remaining. Confirm that you owe $58,086.9906.
(Hint: Each payment is $22,811.3422) | $58,083.53 | Float | Finance | University | 118,852 |
1677561 | What is the present value of $40,000 due after 4 years and discounted at 11% compounded semiannually? | $26,064 | Float | Finance | University | 24,112 |
729374 | Consider a five-year project with the following information:
Initial fixed asset investment = $500,000
Straight-line depreciation to zero over the five-year life
Zero salvage value
Price = $35 per unit
Variable costs = $20 per unit
Fixed costs = $350,000 per year
Quantity sold = 90,000 units per year
Tax rate = 34%
Ho... | $9.90 | Float | Finance | University | 64,241 |
542130 | A 5-year bond with 10% coupon rate and $1000 face value is selling for $1123. Calculate the yield to maturity on the bond assuming annual interest payments. | 7.1% | Percentage | Finance | University | 171,509 |
840725 | Suppose the exchange rate between U.S. dollars and Japanese yen is $1 US = 80.5 JPY, and the exchange rate between the U.S. dollar and the British pound is $1 US = 0.57 GBP. What is the cross rate of Japanese yen to British pounds? (In other words, how many yen are needed to purchase 1 pound?)
(Round to two decimal ... | 141.23 JPY/GBP | Float | Finance | Senior High School | 226,149 |
1436368 | Facade Securities has an issue of $1,000 par value bonds with 16 years remaining to maturity. The bonds pay 7.5% interest on a semiannual basis. The current market price of the bonds is $1,160. What is the yield-to-maturity of the bonds? | 6.019% | Percentage | Finance | University | 113,057 |
835505 | Heidi Hoi Jensen is now evaluating the arbitrage profit potential in the same market after interest rates change. (Note that any time the difference in interest rates does not exactly equal the forward premium, it must be possible to make a CIA profit one way or another.)
Arbitrage funds available $5,000,000
Spot exc... | $110,000 | Integer | Finance | University | 214,862 |
846513 | Your investment portfolio consists of $10,000 worth of Google stock. Suppose that the risk-free rate is 4%, Google stock has an expected return of 14%, and a volatility of 35%, and the market portfolio has an expected return of 10% and a volatility of 18%. Assume that the CAPM assumptions hold. The expected return on t... | 21.6% | Percentage | Finance | University | 83,212 |
157083 | Your client's annual cash flows follow: wages {eq}(\$75,000)
{/eq}, bonus {eq}(\$5,000)
{/eq}, fixed-rate mortgage payments {eq}(\$26,000)
{/eq}, utilities {eq}(\$5,500)
{/eq}, fixed-rate school loan payments {eq}(\$1,500)
{/eq}, fixed-rate car loan payments {eq}(4,200)
{/eq}, childcare fees {eq}(\$1,825)
{/eq},... | $19,627 | Integer | Finance | Senior High School | 20,271 |
1974852 | Suppose the spot and six-month forward rates on the South Korean won are SKW 1,304.88 and SKW 1,315.02, respectively. The annual risk-free rate in the United States is 5 percent, and the annual risk-free rate in South Korea is 8 percent. What must the six-month forward rate be to prevent arbitrage? | 1,323.39 | Float | Finance | University | 130,741 |
354823 | Yuyen Corporation just paid a $5 dividend per share, you expect the dividend to grow at 10% for the next three years and expect to sell the stock at $65 at the end of year 3. What is the maximum price you would pay to buy the stock? The required rate of return is 15%. | $56.47 | Float | Finance | University | 31,195 |
1230332 | Which ratio signals a greater risk of bankruptcy as it increases?
A) debt to equity
B) quick ratio
C) debt to assets
D) cash flow per share | C | Multiple Choice | Finance | University | 185,297 |
1898645 | You plan on depositing $3,000 in an account at the end of each of the next 5 years. If the account is paying interest at an annual rate of 10% per year, what will the total value of your investment be at the end of the 10th year? | $29,496.97 | Float | Finance | University | 81,634 |
1208636 | A mutual fund manager has a $20 million portfolio with a beta of 0.80. The risk-free rate is 4.75%, and the market risk premium is 4.0%. The manager expects to receive an additional $5 million, which she plans to invest in a number of stocks. After investing the additional funds, she wants the fund's required return to... | 12.1 | Float | Finance | University | 134,967 |
1338760 | Assume following are forecasts of Abercrombie & Fitch's sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of January 29, 2011.
Reported
Horizon Period
(in millions)
2011
2012
2013
2014
2015
Terminal period
Sales ($... | 64.32 | Float | Finance | University | 8,517 |
1438000 | As compared to a firm with low financial leverage, a firm with a high amount of financial leverage in an expanding market should have
A) lower profits.
B) higher profits.
C) higher earnings per share.
D) lower earnings per share.
E) higher sales revenue. | C | Multiple Choice | Finance | University | 108,399 |
1241827 | Calculate the future value of $1,100 invested for 8 years at an interest rate of 9% compounded monthly. | $2,253.81 | Float | Finance | Senior High School | 145,668 |
895966 | Find the present value of $4,100 under the following rate and period:
8.9 percent compounded monthly for five years | $2,631.70 | Float | Finance | Senior High School | 17,303 |
2007762 | T-bill price Maturity (days)
T-Bill 1 $95.00 100
T-Bill 3 $500
Based on $100 par value, What price for T-Bill 3 will yield the same discount rate as for T-Bill 1? | $475 | Integer | Finance | University | 169,416 |
406980 | Your firm's strategic plan calls for a net increase in total assets of $100 million during the next five years, which represents an annual compounded growth rate of 15 percent. Equity growth is also projected to be 15 percent per year. Assume that the firm's Total Asset Turnover will average 1.0 in each of the five yea... | 6.38% | Percentage | Finance | University | 113,147 |
943883 | On January 1, 206, Morton Sales Co. issued zero-coupon bonds with a face value of $6.8 million for cash. The bonds mature in 12 years and were issued at a price of $2,417,604.
What was the annual effective interest rate in the market when the bonds were issued? | 0.09 | Float | Finance | University | 81,226 |
53259 | What is the present value of $7,220 to be received at the end of each of 18 periods, discounted at 5% compound interest? | $84,398.82 | Float | Finance | University | 130,491 |
1022714 | Hubrey Home Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $3.9 million. The fixed asset falls into Class 10 for tax purposes (CCA rate of 30 percent per year), and at the end of the three years can be sold for a salvage value equal to its UCC. The project is ... | 614865.82 | Float | Finance | University | 105,038 |
228568 | Mr. Wise is retiring in 25 years. He would like to accumulate $1,000,000 for his retirement fund by then. He plans make equal monthly payments to achieve his goal.
If the rate of return on the retirement fund is 12% (APR), what will his monthly payments be? | $532.24 | Float | Finance | University | 107,072 |
1911082 | Assume a four-stock portfolio of stocks with following characteristics:
Stock Percentage of Total Beta Rate of Return
K 20% 0.9 -3.6%
L 25% 1.2 7.0%
M 30% 1.4 9.0%
N 25% 1.5 -2.2%
What is the standard deviation of the above portfolio? | 5.50% | Percentage | Finance | University | 8,268 |
813377 | What is the value today of a 15-year annuity that pays $720 per year? The annuity s first payment occurs six years from today. The annual interest rate is 12 percent for Years 1 through 5, and 14 percent thereafter. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) | 2509.37 | Float | Finance | University | 118,292 |
1135648 | If the nominal rate of interest is 12 41% and the real rate of interest is 7.16%, what is the expected rate of inflation? (Round to two decimal places.) | 5.25% | Percentage | Finance | Senior High School | 174,231 |
513888 | Watters Umbrella Corp, issued 15-year bonds 2 years ago at a coupon rate of 6.6 %. The bonds make semiannual payments. If these bonds currently sell for 115% of par value, what is the YTM? | 5.066% | Percentage | Finance | University | 156,762 |
129852 | Gorman Distributors shows the following information on its 2014 income statement: sales = $317,800; costs = $211,400; other expenses = $18,500; depreciation expense = $31,200; interest expense = $2,100; taxes = $18,600; dividends = $12,000. In addition, you're told that the firm issued $4,500 in new equity during 2014,... | b | Multiple Choice | Finance | University | 160,793 |
2025138 | A bond currently has a price of $1,050. The yield on the bond is 7%. If the yield increases by 20 basis points, the price of the bond will go down to $1,040. The duration of this bond is __________ years. | 4.75 | Float | Finance | University | 67,180 |
831623 | A bond currently sells for $1,170, which gives it a yield to maturity of 5%. Suppose that if the yield increases by 30 basis points, the price of the bond falls to $1,140. What is the duration of this bond? (Do not round intermediate calculations. Round answer to 4 decimal places.) | 8.55 | Float | Finance | University | 215,494 |
496125 | Your firm is planning to issue preferred stock. The stock is expected to sell for $98.74 a share and will have a $100 par value on which the firm will pay a 13.1 percent dividend. What is the cost of capital to the firm for the preferred stock? | 13.45% | Percentage | Finance | University | 108,801 |
1813655 | An Exxon bond carries an 8 percent coupon, pays interest semiannually, and has 10 years to maturity. If this bond is currently selling for $925, what is the exact yield to maturity (to the nearest tenth of 1 percent)?
A) 9.2%
B) 8.8%
C) 9.8%
D) 10.2% | A) 9.2% | Percentage | Finance | University | 219,058 |
294138 | Bertha is considering taking an early retirement offered by her employer. She would receive $3,000 per month, indexed for inflation. However, she would no longer be able to use the company's health facilities, and she would be required to pay her hospitalization insurance premiums of $8,000 each year. Bertha and her hu... | The decline in disposable income after retirement is $14442 | Integer | Finance | University | 112,697 |
673019 | The last dividend paid by Klein Company was $2.00. Klein's growth rate is expected to be 30% for 3 years, then 8% forever. Klein's required rate of return on equity (ks) is 12%. What is the current price of Klein's common stock? | $ 92.46 | Float | Finance | University | 34,185 |
1051848 | Acme Company is considering investing in a new machine that costs $54,878 and that has a useful life of 9 years with no salvage value. The machine will generate $11,500 annually in net cash inflows. The internal rate of return on the investment is:
A.) 13%.
B.) 9%.
C.) 11%.
D.) 15%. | 15% | Percentage | Finance | University | 164,626 |
335397 | A rich donor gives a hospital $1,200,000 one year from today. Each year after that, the hospital will receive a payment 4% larger than the previous payment, with the last payment occurring in 10 years' time. What is the present value of this donation, given that the interest rate is 10%? | $8,586,036 | Float | Finance | University | 2,462 |
1590837 | Assume that you are the portfolio manager of the SF fund, a $3m hedge fund that contains the following stocks. The required return on the market is 11%, and the risk-free rate is 2%. What rate of return should investors expect (and require) on this fund?
Stock
Amount
Beta
A
1075000 ... | 11.18% | Percentage | Finance | University | 183,942 |
1637983 | Ms. Child is considering the purchase of a new food packaging system. The system costs $105,625. Ms. Child plans to borrow one-third of the purchase price from a bank at 4.5% per year compounded annually. The loan will be repaid using equal, annual payments of a 7 year period. The system is expected to last 15 years an... | -80336 | Integer | Finance | University | 80,184 |
1375628 | Sandy Kupchack just graduated from State University with a bachelor's degree in history. During her four years at the university, Sandy accumulated $9,750 in student loans.
She asks for your help in determining the amount of the quarterly loan payment. She tells you that the loan must be paid back in five years and th... | $596 | Float | Finance | University | 19,548 |
1020690 | Find the present value of {eq}\$500
{/eq} discounted for five years at {eq}12\%
{/eq} with quarterly compounding. | $276.84 | Float | Finance | Senior High School | 107,194 |
1832940 | Suppose shares of Hind Ltd. and Nirmala Ltd. were selling, at Rs 100, two years ago. Hind's price fell, in the first year, by 12%, and rose by 12% in the second year. The reverse was the case for Nirmala's share price: it increased by 12%, and then decreased by 12%. Would they have the same price, after two years? Why ... | 98.56 | Float | Finance | Senior High School | 210,564 |
251131 | You can distinguish the various types of bonds by their terms of contract, pledge of collateral, and so on.
Description
Type of Bond
These bonds are collateralized securities with first claims in the event of bankruptcy.
Senior mortgage bonds
These bonds are traded in the bo... | A | Multiple Choice | Finance | University | 161,983 |
5913 | Suppose you buy a house for $250,000. One year later, the market price for the house has fallen to $200,000. What is the return on your investment in the house if you made a down payment of 10 percent and took out a mortgage loan for the other 90 percent? | -200% | Percentage | Finance | Senior High School | 141,493 |
447326 | Find the yield to maturity of a $10,000, 8 percent coupon bond that sells for $10,100 . | 8.06% | Percentage | Finance | University | 29,437 |
112293 | Apple Inc has a beta of 1.35. The tax rate is 40%, and Apple is financed with 30% debt. What is Apple's unlevered beta? | 1.073 | Float | Finance | University | 119,801 |
1701361 | Suppose you are offered $7,000 today but must make the following payments:
Year Cash Flows ($)
0 $7,000
1 -3,700
2 -2,400
3 -1,500
4 -1,200
What is the IRR of this offer? | 12.4% | Percentage | Finance | University | 225,251 |
44576 | 2 years ago you borrowed $75,000 to buy a car. The loan was a 6-year loan with monthly payments with a 3.2% APR. You have decided to repay the loan today (2 years after you borrowed the money). How much do you owe the bank? | $51,581.57 | Float | Finance | Senior High School | 113,975 |
2018385 | Your brother, who is 6 years old, just received a trust fund that will be worth $21,000 when he is 21 years old. If the fund earns 0.11 interest compounded annually, what is the value of the fund today? Please show work in excel format. | 4389.09 | Float | Finance | Senior High School | 219,096 |
1622528 | Take two Industrial Engineers from two different schools that are hired by the same company at the same time, but the California graduate will get a $5,000 per year additional premium, while the Idaho graduate will get just the base $64,000 annual salary that all new Industrial Engineer hires get. If both engineers wor... | $93,323.07 | Float | Finance | University | 40,604 |
1909614 | Diane Ross has $20,000 to invest today at 9$ to pay a debt of $47,347. How many years will it take her to accumulate enough to liquidate the debt? | 10 years | Integer | Finance | Senior High School | 125,759 |
973804 | Could I Industries just paid a dividend of $1.10 per share. The dividends are expected to grow at a rate of 20 percent for the next six years and then level off to a growth rate of 4 percent indefinitely.
If the required return is 12 percent, what is the value of the stock today? | 30.09 | Float | Finance | University | 198,099 |
1094879 | A Treasury STRIPS is quoted at 59.705 and has 17 years until maturity. What is the yield to maturity? | 3.057% | Percentage | Finance | University | 181,873 |
1892705 | A Japanese company has a bond outstanding that sells for 88 percent of its 100,000 yen par value. The bond has a coupon rate of 5.5 percent paid annually and matures in 17 years. What is the yield to maturity of this bond? | 6.60% | Percentage | Finance | University | 114,638 |
379176 | What is the accumulated sum of the following stream of payments?
$2,738 every year at the end of the year for 10 years at 6.95 percent, compounded annually. | $37,740.21 | Float | Finance | University | 30,178 |
1741507 | You have just received notification that you have won the $3.5 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you're around to collect), 76 years from now.
What is the present value of your windfall if the appropriate discount rate is 10%?
a. $2,451.... | b | Multiple Choice | Finance | University | 176,019 |
1945649 | Konawalski's Kustom Erdapfel Chips, Inc., is the maker of gourmet German-style potato chips. The company began business three years ago in rural North Carolina and grew quickly as the product became known. Konawalski is now poised for national growth. Some analysts call the firm the next Krispy Kreme. The company pays ... | $30.86 | Float | Finance | University | 162,968 |
1228755 | In evaluating a new project with some uncertainty, you decide to consider real options approach to estimating its cash flows. As the base case, we are expecting to sell 6,250 units per year for a net cash flow of $145 each for the next 30 years (no taxes). In other words, the expected cash flow is 6,250 × $145 = $906,2... | 1316978.47 | Float | Finance | University | 148,957 |
1458449 | Today, you are purchasing a 20-year, 6 percent annuity at a cost of $120,000. The annuity will pay annual payments starting 1 year from today.
Required:
What is the amount of each payment? | $10,462.15 | Float | Finance | University | 167,712 |
661185 | You purchased bare land for {eq}\$500
{/eq} per acre as an investment to supplement your retirement income. After three years, you plan to reforest the property at a cost of {eq}\$400
{/eq} per acre. You estimate your income from selective timber harvesting will be {eq}\$5,000
{/eq} per acre beginning {eq}25
{/eq} ... | $4,233.70 | Float | Finance | University | 67,226 |
1655768 | What is the after-tax cost of preferred stock that sells for $10 per share and offers a $1.20 dividend when the tax rate is 35%? | 12% | Percentage | Finance | University | 111,738 |
1971019 | Suppose an investment offers to double money in 12 months.
What rate of return per quarter is being offered? | 18.92% | Percentage | Finance | Senior High School | 58,291 |
200112 | HiLo, Inc., doesn't face any taxes and has $319.75 million in assets, currently financed entirely with equity. Equity is worth $20 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,... | $0.26 | Float | Finance | University | 218,092 |
894855 | A corporate bond with a face value of $1,000 matures in 4 years and has a coupon rate of 6.25%. The current price of the bond is $932 and interest is paid semiannually. What is the yield to maturity? | 8.22% | Percentage | Finance | University | 163,077 |
126318 | You purchased 300 shares of General Electric stock at a price of $71.09 four years ago. You sold all stocks today for $64.62. During that period the stock paid dividends of $4.80 per share.
What is your annualized holding period return (annual percentage rate)? Round the answers to two decimal places in percentage for... | -0.59% | Percentage | Finance | University | 11,080 |
11761 | What nominal return would an investor need to receive if he desires a real return of 4% and the rate of inflation is 5% | 9% | Percentage | Finance | Senior High School | 166,298 |
1253576 | Our company has been doing well, reaching $1.19 million in earnings, and is considering launching a new product. Designing the new product has already cost $516,000. The company estimates that it will sell 812,000 units per year for $3.02 per unit and variable non-labor costs will be $1.18 per unit. Production will end... | $1,823,584.17 | Float | Finance | University | 218,193 |
995109 | You are considering the purchase of a stock with the following characteristics: the current price is $26 and you expect three annual dividends of $.40, $.50 and $.60, and at the end of three years you anticipate the stock will sell for $35. What is the AYTM of the stock? | 12.14% | Percentage | Finance | University | 52,378 |
1332564 | Consider an asset that costs $666,000 and is depreciated straight-line to zero over its nine-year tax life. The asset is to be used in a five-year project; at the end of the project, the asset can be sold for $169,000. If the relevant tax rate is 30%, what is the aftertax cash flow from the sale of this asset? | $207,100 | Float | Finance | University | 213,148 |
1014151 | Faisal has $15,000 in his savings account and can save an additional $5000 per year. If interest rates are 12%, how long will it take his savings to grow to $50,000? | 4.244 years | Float | Finance | University | 182,651 |
92786 | You have a loan outstanding. It requires making five annual payments of $7,000 each of the end of the next five years. Your bank has offered to allow you to skip making the next four payments, and in lieu of these payments, make one large payment at the end of the loan's term in five years. If the interest rate on the ... | $39,459.65 | Float | Finance | University | 204,631 |
1623352 | The market price of a $500,000 ten-year 12% (pays interest semiannually) bond issue sold to yield an effective rate of 19% is _____. | $345,772 | Float | Finance | University | 170,199 |
1264786 | Folmar Co. is considering the following alternative financing plans:
Plan 1 Plan 2
Issue 10% bonds (at face value) $1,800,000 $900,000
Issue preferred $1 stock, $10 par 1,490,000
Issue common stock, $5 par 1,800,000 1,210,000
Income tax is estimated at 40% of income.
Required:
Determine the earnings per share on ... | Plan 1: $0.67
Plan 2: $1.33 | Float | Finance | University | 4,704 |
1930694 | What is the value in year 18 of a $1,400 cash flow made in year 8 when the interest rates are 4.8 per cent? | $2,237.39 | Float | Finance | Senior High School | 182,397 |
630482 | Josh Kavern bought 10-year, 10.0 percent coupon bonds issued by the U.S. Treasury three years ago at $900.00. If he sells these bonds, for which he paid the face value of $1,000, at the current price of $800.00, what is his realized yield on the bonds? Assume similar coupon paying bonds make annual coupon payments. | 22.22% | Percentage | Finance | University | 120,204 |
1213507 | In order to convert constant-value dollars into future dollars, it is necessary to:
(a) Multiply by (1 + i){eq}^n
{/eq}
(b) Divide by (1 + f){eq}^n
{/eq}
(c) Divide by (1 + i){eq}^n
{/eq}
(d) Multiply by (1 + f){eq}^n
{/eq}
(e) Multiply by (1 + i{eq}_f
{/eq}){eq}^n
{/eq} | d | Multiple Choice | Finance | University | 208,507 |
1444211 | Find the present value of {eq}\$500
{/eq} due in the future under each of these conditions: {eq}8 \%
{/eq} nominal rate, semiannual compounding, discounted back {eq}8
{/eq} years. Round your answer to the nearest cent. | $266.95 | Float | Finance | Senior High School | 67,757 |
1163811 | You buy a car for $1,600,000 and the terms are 20% down payment and the balance is to be paid off over 10 years at a rate of 12% on the unpaid balance. What are the 10 equal payments? | $226,539.73 | Float | Finance | Senior High School | 111,193 |
1496881 | The following 12%, $1,000 notes were issued on December 1. Which of the following is the correct method of calculation for the interest accrued as of December 31 of the same year on each of the notes described?
(a) Interest on a 4-month note is calculated as: $1,000 x 12% x 1/12
(b) Interest on a 3-month note is calc... | a | Multiple Choice | Finance | Senior High School | 200,180 |
530084 | A credit card bill shows a balance due of $2500 with a monthly interest rate of 1.53%. What is the EAR? | 19.98% | Percentage | Finance | Senior High School | 224,586 |
1008768 | Great Wall Pizzeria issued 13-year bonds one year ago at a coupon rate of 7 per cent. If the YTM on these bonds is 9.2 per cent, what is the current bond price? | $829.90 | Float | Finance | University | 64,683 |
892550 | Charles Berkeley, Inc. just paid an annual dividend of $3.60 per share on its stock. The dividends are expected to grow at a constant rate of 4.5 percent per year, indefinitely. If investors require an 11 percent return on this stock, what will the price be in 12 years?
a. $91.71
b. $93.62
c. $95.75
d. $98.15
e. $... | D | Multiple Choice | Finance | University | 149,991 |
1262704 | Consider the following information concerning three portfolios, the market portfolio, and the risk-free asset:
Portfolio RP Sigma_P Beta_P
X 14% 20% 1.8
Y 13 15 1.3
Z 9.2 5 0.85
Market 11.1 10 1
Risk-free 6.6 0 0
Assume that the tracking error of Portfolio X is 10.6 percent. What is the information ratio for Portfoli... | -0.0660 | Float | Finance | University | 174,033 |
1849836 | You are planning to save for retirement over the next 35 years. To do this, you will invest $840 per month in a stock account and $440 per month in a bond account. The return of the stock account is expected to be 10.4 percent, and the bond account will pay 6.4 percent. When you retire, you will combine your money into... | $25,412 | Float | Finance | University | 26,842 |
1934891 | 3. Compute the discounted payback statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 10 percent and the maximum allowable discounted payback is three years.
Time: 0 1 2 3 4 5
Cash Flow: -1000 500 480 400... | 2.5 | Float | Finance | University | 189,341 |
1256244 | A bond sells for $921.08 and has a coupon rate of 6.80 percent. If the bond has 16 years until maturity, what is the yield to maturity of the bond? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) Yield to maturity % | 7.59 | Percentage | Finance | University | 16,765 |
1858248 | Compute the IRR statistic for Project X and note whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 10 percent.
Year
0
1
2
3
4
5
Cash flows
-75
-75
0
100
75
90 | 18.08% | Percentage | Finance | University | 181,550 |
966994 | La Empresa Cochinillo Asado recently issued non-callable bonds that mature in 15years. They have a par value of $1,000 and an annual coupon of 5.7%. If the current market interest rate is 6.8%, at what price should the bonds sell?
A. $844.62
B. $979.40
C. $736.80
D. $1,006.36
E. $898.53 | E | Multiple Choice | Finance | University | 130,001 |
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