Question 1
1 out of 1 points
Tom earned $120 in interest on his savings account last year. Tom has decided to leave
the $120 in his account so that he can earn interest on the $120 this year. This process
of earning interest on prior interest earnings is
Question 1
Which of the following terms can be used to describe unsystematic risk?
I. asset-specific risk
II. diversifiable risk
III. market risk
IV. unique risk
Answers:
I and IV
only
II and III only
I, II, and IV
only
II, III, and IV
only
I, II, III, an
Homework 6: Chapter 7 (4,5,13,16, 17)
20 points (5 points for each question)
4. Stock Values. Nofal Corporation will pay a $3.65 per share dividend next year. The company
pledges to increase its dividend by 5.1 percent per year, indefinitely. If you requi
Question 1
1.333 out of 1.333 points
Services United is considering a new project that requires an initial cash investment of
$75,000. The project will generate cash inflows of $26,500, $32,700, $18,500, and
$10,000 over each of the next four years, respe
Homework 7: Chapter 10
20 points
1. What are the implications of the semi-strong form of market efficiency for investors who
buy and sell stocks in an attempt to beat the market? (4 points)
The implications of the semi-strong form of market, according to
Question 1
1.333 out of 1.333 points
What is the net present value of a project that has an initial cost of $40,000 and
produces cash inflows of $8,000 a year for 11 years if the discount rate is 15 percent?
Selected
Answer:
$1,869.69
Answers:
$798.48
$1,
BA 312 Fall 2014
Homework 1 (Chapter 2: EXERCISES :6,7, 21, 22)
6.
Using Table 2.3, we can see the marginal tax schedule. The first $50,000 of income is taxed at 15
percent, the next $25,000 is taxed at 25 percent, the next $25,000 is taxed at 34 percent,
Question 1
1 out of 1 points
The Road House would like to issue some semiannual coupon bonds at par.
Comparable bonds have a current yield of 8.16 percent, an effective annual yield of 8.68
percent, and a yield to maturity of 8.50 percent. What coupon rat
Question 1
6.67 out of 6.67 points
The law of one price:
Question 2
0 out of 6.67 points
Appreciation of the real exchange rate:
Question 3
0 out of 6.67 points
The real and nominal exchange rates differ in the sense that:
Question 4
6.67 out of 6.67 poi