Fin 534 chapter 1‚Quiz 1 • Question 1 | | | | |You recently sold 100 shares of your new company‚ XYZ Corporation‚ to your brother at a family reunion. At the reunion your brother gave | | | | | |you a check for the stock and you gave your brother the stock certificates. Which of the following statements best describes
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Homework Chapter 4‚ Week 3 1. A $50‚000 loan is to be amortized over 7 years‚ with annual end-of-year payments. Which of these statements is CORRECT? C. The proportion of each payment that represents interest as opposed to repayment of principal would be lower if the interest rate were lower. If the interest rate is low on a loan‚ the amount of repayment is low. 2. Which of the following statements is CORRECT? C. to solve for I‚ one must identify the value of I that causes the PV of
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began its journey as purely a shell consisting of only a circuit board that first came to life in the garage of Steve Job ’s parents home. Although at that time it was not very practical or popular among gamers and gadget enthusiast‚ it would soon set the stage for the personal computer to come. A monument of innovation‚ the Apple I computer was an example of the capabilities that resulted from the innovative thinking. It wouldn ’t be long however before the Apple II computer would make its impressive
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statements is CORRECT? Correct Answer: If the underlying stock does not pay a dividend‚ it does not make good economic sense to exercise a call option prior to its expiration date‚ even if this would yield an immediate profit. Question 5 An investor who writes standard call options against stock held in his or her portfolio is said to be selling what type of options? Correct Answer: Covered Question 6 An option that gives the holder the right to
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F S Answer: a EASY 4. Determining a firm’s optimal investment in working capital and deciding how that investment should be financed are elements of working capital policy. a. True b. False (15-3) Permanent current assets F S Answer: a EASY 5. The concept of permanent current assets reflects the fact that some components of current assets do not shrink to zero even when a business is at its seasonal or cyclical low. Thus‚ permanent current assets represent a minimum level of current
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FIN 534 Week 3 HW Chapter 5 1. Three $1‚000 face value bonds that mature in 10 years have the same level of risk‚ hence their YTMs are equal. Bond A has an 8% annual coupon‚ Bond B has a 10% annual coupon‚ and Bond C has a 12% annual coupon. Bond B sells at par. Assuming interest rates remain constant for the next 10 years‚ which of the following statements is CORRECT? Answer: D. Bond A sells at a discount (its price is less than par)‚ and its price is expected to increase over the next year
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a. If a firm follows the residual dividend policy‚ then a sudden increase in the number of profitable projects is likely to reduce the firm’s dividend payout. Large investment opportunities coupled with low funds will have a low dividend payout. 5. DeAngelo Corp.’s projected net income is $150.0 million‚ its target capital structure is 25% debt and 75% equity‚ and its target payout ratio is 65%. DeAngelo has more positive NPV projects than it can finance without issuing new stock‚ but its board
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Monique Moore FIN 534 Homework Chapter 16 1. Swim Suits Unlimited is in a highly seasonal business‚ and the following summary balance sheet data show its assets and liabilities at peak and off-peak seasons (in thousands of dollars): Peak Off-Peak Cash $ 50 $ 30 Marketable securities 0 20 Accounts receivable 40 20 Inventories 100 50 Net fixed assets 500 500 Total
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firms. are usually changed every year to reflect earnings changes‚ and these changes are randomly higher or lower‚ depending on whether earnings increased or decreased. are usually set as a fixed percentage of earnings‚ e.g.‚ at 40% of earnings‚ so if EPS = $2.00‚ then DPS will equal $0.80. Once the percentage is set‚ then dividend policy is on "automatic pilot" and the actual dividend depends strictly on earnings. 2 points Question 3 Which of the following statements is correct? Answer Firms with
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Selected Answer: If an investment pays 10% interest‚ compounded annually‚ its effective annual rate will be less than 10%. Correct Answer: A bank loan’s nominal interest rate will always be equal to or less than its effective annual rate. . Question 5 . 0 out of 2 points Which of the following statements is CORRECT? Answer Selected Answer: If you solve for I and get a negative number‚ then you must have made a mistake. Correct Answer: If CF0 is positive and all the other CFs are negative
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