Suppose you can type a paper in two hours or mow the lawn in four hours,
while it takes your friend Ann eight hours to type a paper or two hours to
mow the lawn. Which of the following is true?
Selected
Answer:
You have a comparative advantage in typing.
Louise McIntyres monthly gross income is $2,000. Her employer withholds $400 in federal, state,
and local income taxes and $160 in Social Security taxes per month. Louise contributes $80 per
month for her IRA. Her monthly credit payments for VISA, MasterC
1. Given the following information, calculate the net asset value for the Boston Equity mutual fund:
Total assets, $800,000,000
Total liabilities, $10,000,000
Total number of shares, 20,000,000
Net asset value = (800,000,000 10,000,000) / 20,000,000 =
790
If 2,000,000 people each receive an average refund of $1,600, based on an interest rate of 3 percent, what
would be the lost annual income from savings on those refunds?
2,000,000 X $1,600 X .03 = $96,000,000
Wendy Brooks prepares her own income tax retur
During the four quarters (1 year) for 2015, the Wilsons received two quarterly dividend payments of
$0.15, one quarterly payment of $0.10, and one quarterly payment of $0.12. If they owned 200 shares
of stock, what was their total dividend income for 2015
1.
What would it cost an insurance company to replace a familys personal property that originally cost
$15,000? The replacement costs for the items have increased 10 percent. The family has a replacement
policy with a 500 deductible.
$15,000 1.10 = $16,50
1. The before tax cost of debt should be equal to the market rate of
12.1%. The historical cost of the three bonds doesnt influence the
cost of debt.
Kd=Yield ( 1T )
=12.1 (1-.4) = 12.1 (.6) = 7.26%
2.
Kps=Dps /Pn
=7.80/80-2.50
=7.80/77.5
=.1006452
=10.06
In-Class Fall 2016 answer
Use the financial data below as it relates to buying an automobile. Calculate the monthly cost of buying
this motor vehicle with an $18,500 cash price:
Down payment (to finance vehicle) $3,000
Monthly loan payment $460
Length of
FIN 269 Ch. 1 Homework (Due Wed. 9/14/16, before class starts)
1. Using the rule of 72, approximate the following amounts.
a. If the value of land in an area is increasing 5 percent a year, how long will it take for property values to
double?
b. At an ann
Year
Jan
Feb
2016
236.916
237.111
2015
233.707
2014
233.916
2013
Mar Apr May
Jun
Jul
238.132
239.261
240.236
241.038
240.647
Aug
Sep
Oct
Nov
Dec
234.722
236.119
236.599
237.805
238.638
234.781
236.293
237.072
237.900
238.343
230.280
232.166
232.773
232.53
The percentage (rates) are always given per year, per 12 months, per 365 days.
If you wish to withdraw $100 each year for 10 years from an account that earns 14% compounded
annually, what amount must you deposit today?
Since each year means annuity and it
1-1
Personal Financial Planning
Objectives
Chapter Objectives
1. Identify social and economic
influences on personal financial
goals and decisions
2. Develop personal financial goals
3. Assess personal and financial
opportunity costs associated with
finan
FIN 269 Ch. 2 Homework Fall 2016
Based on this financial data, calculate the ratios requested:
Liabilities $7,200
Liquid assets $3,200
Monthly credit payments $400
Monthly savings $200
Net worth $25,000
Current liabilities $930
Take-home pay $2,175
Gross
Floral Fragrance, Inc.
Case Preparation
Presented By: John Stephens
FIN 561
Fall 2015
Overview of case
Should the company offer dividends?
We are tasked with advising on the benefits and detractors to offering
dividends
Company is in cosmetic Industry
Nev
The University of Michigan-Flint
School of Management
Finance 561(MBA, Net-Plus)
Fall 2015
Instructor:
Office:
Phone:
E-mail:
Office Hours:
Dr. John Stephens
Riverfront 2108
(810) 762-0779
johstep@umflint.edu
Mon, Tue, Wed, Thur 4:00 5:30
Required Text:
1
Question 1
5 out of 5 points
Frankli Franklin Corporation is expected to pay a dividend of $1.25 per share at the end of the year (D 1 = $1.25). The
stock sells for $32.50 per share, and its required rate of return is 10.5%. The dividend is expected to g
Question 1
5 out of 5 points
You want to purchase a motorcycle 4 years from now, and you plan to save $3,500 per
year, beginning immediately. You will make 4 deposits in an account that pays 5.7% interest.
Under these assumptions, how much will you have
Floral fragrance, Inc.
Case Preparation
FIN 561
Fall 2015
By: John Stephens
Introduction
The Floral Fragrance case is centered around the question of whether the company should
institute a dividend policy, and if so, how they should do it. As a member of
Chapter 3
Multiple Choice
Identify the choice that best completes the statement or answers the question.
spot rate.
1. Assume that a bank's bid rate on Japanese yen is
$.0041 and its ask rate is $.0043. Its bid-ask
7. Which of the following is not true wi
Chap-7-8
Multiple Choice
Identify the choice that best completes the statement or answers the question.
1.
Due to _, market forces should realign the relationship between the
interest rate differential of two currencies and the forward premium (or discoun
TEST BANK
182
Chapter 1
Introduction
1.
*
2.
*
3.
*
4.
*
5.
*
6.
*
Which of the following is the primary objective of a firm?
A.
employees' benefits
B.
satisfaction of customers
C.
satisfaction of suppliers
D.
prompt payment to creditors
E.
maximize stock
IFM -Madura
Multiple Choice
Identify the letter of the choice that best completes the statement or answers the question.
_
_
_
_
_
_
_
_
1. Which of the following theories identifies specialization as a reason for international business?
a. theory of comp
Ch1:Explain the agency problem of MNCs; Benefits and Risks of International Business;Describe constraints tha
interfere with an MNC's objective.
Dicussion: Should an MNC Reduce Its Ethical Standards to Compete Internationally?
Ch2: What is th
Chapter-4
Multiple Choice
Identify the choice that best completes the statement or answers the question.
A) reduce; increase
1. The value of the Australian dollar (A$) today is
B) increase; reduce
$0.73. Yesterday, the value of the Australian dollar
C) re
IN 4604 Sample Questions Set II
PART A:
1. Which of the following best describes currency options sold through an options
exchange. They grant the buyer a right:
a. To buy or sell and are standardized.
b. To buy or sell and are tailored to the desire of t
Chapter 11Managing Transaction Exposure
1. Assume zero transaction costs. If the 90-day forward rate of the euro is an accurate estimate of the spot
rate 90 days from now, then the real cost of hedging payables will be:
a. positive.
b. negative.
c. positi
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.htm
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Chapter 1
Multiple Choice
Identify the choice that best completes the statement or answers the question.
1 The commonly accepted goal of the MNC is to:
A) maximize short-term earnings.
B) maximize shareholder wealth.
C) minimize risk.
D) A and C.
E) maxim
Chapter-2-and-6
Unit 4 Quiz Questions Highlighted with Red Box
Multiple Choice
Identify the choice that best completes the statement or answers the question.
B) have no impact on
1. Recently, the U.S. experienced an annual balance
C) reduce
of trade repre
FIN 4604 SAMPLE PROBLEMS I
PART A
1. Suppose that the Brazilian real depreciates by 40% against the U.S. dollar. By
how much will the dollar appreciate against the real?
a. 67%
b. 40%
c. 32%
d. 28%
e. 75%
2. If the dollar appreciates by 300% against the T