Question 1
0 out of 5 points
The common stock of Sweet Treats is valued at $10.80 a share. The
company increases its dividend by 8 percent annually and expects its
next dividend to be $0.40 per share. What is the total rate of return on
this stock?
Corre
Question 1
0 out of 5 points
If your nominal rate of return is 14.38 percent and your real rate of return
is 4.97 percent, what is the inflation rate?
Correct
Answer:
8.96
percent
Question 2
0 out of 5 points
An upward-sloping term structure of interest
Homework Solutions
Chapter 6 Interest Rates & Bond Valuation
Questions
2.
Price and yield move in opposite directions; if interest rates rise, the price of the bond will fall. This is
because the fixed coupon payments determined by the fixed coupon rate a
Nova Southeastern University
Huizenga College of Business & Entrepreneurship
FINP 5001 Acct & Finance Foundations
In-class Assignment Solution Equity Markets & Stock Valuation
1. XYZ Corp. is expected to pay a dividend of $1.50 per share next year. If the
Homework Solutions
Chapter 1 Intro to financial management
Questions
2.
Disadvantages: unlimited liability, limited life, difficulty in transferring ownership, hard to raise
capital funds. Some advantages: simpler, less regulation, the owners are also the
Nova Southeastern University
Huizenga College of Business & Entrepreneurship
FINP 5001 Acct & Finance Foundations (Evening) Fall 2016
Final Examination
Please answer the questions in the spaces provided. Show your work. Partial
credit may be awarded for q
Nova Southeastern University
Huizenga College of Business & Entrepreneurship
FINP 5001 Acct & Finance Foundations
In-class Assignment Time Value of Money
1. Suppose an account earns a 15% simple interest per year. What would be the future
value of a depos
Nova Southeastern University
Huizenga College of Business & Entrepreneurship
FINP 5001 Acct & Finance Foundations
In-class Assignment Solution Time Value of Money
1. Suppose an account earns a 15% simple interest per year. What would be the future
value o
Nova Southeastern University
Huizenga College of Business & Entrepreneurship
FINP 5001 Acct & Finance Foundations
In-class Assignment Interest Rates & Bond Valuation
1. XYZ Corp. just issued a bond. It will pay investors $20 every six months for ten years
Nova Southeastern University
Huizenga College of Business & Entrepreneurship
FINP 5001 Acct & Finance Foundations
In-class Assignment Equity Markets & Stock Valuation
1. XYZ Corp. is expected to pay a dividend of $1.50 per share next year. If the company
Nova Southeastern University
Huizenga College of Business & Entrepreneurship
FINP 5001 Acct & Finance Foundations
In-class Assignment Interest Rates & Bond Valuation
1. XYZ Corp. just issued a bond. It will pay investors $20 every six months for ten years
1.
A company has 7 percent coupon bonds on the market with 9 years left to maturity.
sells for $1,038.50, what is its yield to maturity?
Years
Coupon Rate
Bond Price (% of
par)
Face Value (% of
par)
Coupons per year
Yield to maturity
2.
A company issued 2
What is the name given to the model that computes the present value of a
stock by dividing next year's annual dividend amount by the difference
between the discount rate and the rate of change in the annual dividend
amount?
Selected
Answer:
Correct
Answe
PREFERDIV INC's preferred stock pays a $2.74 dividend every quarter forever. If the stock
currently sells for $31.17, what is the investors' required rate of return? Write in the value
with 4 decimal points but no % sign. For example, if answer is 7.82%,
Question 1
0 out of 5 points
A company has 8 percent coupon bonds on the market with 9 years left to
maturity. Coupons are paid annually. If the bond currently sells for
$1,038.50, what is its yield to maturity?
Selected
0.07
Answer:
Correct
0.074
Answer:
1. Perpetuity
If an investment policy pays you $25,000 per year forever and you require 6% p.a. return on this investment,
how much will you pay for this policy? What about a policy that pays $30,000 per year?
Amount
$
$
Return
6%
6%
25,000.00
30,000.00
$
If you lend $1,227 today and reveive $2,190 in 5 years, what is the interest rate you are
charging? Write your answer in decimals (e.g., write in .0852 for 8.52%).
Selected
Answer:
0.1228
Correct
Answer:
0.1228
0.002
Question 2
5 out of 5 points
You wil
Running Head: ARTICLE CRITIQUE
Article Critique
CSULB
April 29, 2014
Article Critique
Holtz, P., & Appel, M. (2011). Internet use and video gaming predict problem behavior in early
adolescence, Journal of Adolescence, 34, page 49-58
Running Head: ARTICLE
Question 1
5 out of 5 points
Marti had an unexpected surprise when she ate her Lotsa Good cereal this
morning. She found a piece of metal mixed in her cereal. The potential
claim that Marti has against this firm is that of a(n):
Selected
Answer:
Correct
A
Question 1
5 out of 5 points
Which one of the following is a working capital decision?
Selected
Answer:
Correct
Answer:
Response
Feedback:
How much cash should the firm keep
in reserve?
How much cash should the firm keep
in reserve?
Refer to Section
1.2.
On June 30, a company paid a premium of $2,400 for one year of insurance
coverage, which started on July 1. The company has a calendar year-end.
Which of the following statements about this situation is correct?
Correct
Answer:
Response
Feedback
:
Insura
Question 1
5 out of 5 points
Cash
Beg. Bal.
123,900
(a)
14,700
6,000
(c)
(b)
38,300
5,800
(d)
7,400
(e)
12,000
(f)
11,200
(g)
Use the information above to answer the following question. What is the
ending balance of the Cash account?
Selected
Answer:
Corr
Question 1
5 out of 5 points
Your company received payment from a customer last month for a service
that you provided this month. How will the business activity of the current
month affect the basic accounting equation?
Selected
Answer:
Correct
Answer:
Re
Question 1
A dance studio accepts $1,500 to provide a series of dance lessons to a
youth group during the month of July. The studio decides to record the
revenue in July. The studio incurs rent, utilities, and salaries expenses in
July. The studio decides
Which of the following accounts has a normal credit balance?
Correct
Answer:
Response
Feedback
:
Unearned
Revenue
Recall the accounting equation (Assets = Liabilities +
Stockholders' Equity) and that debits increase accounts on the leftside of the equati
Test 3
1. In the framework of accrual basis accounting, which of the statement below are valid?
Under accrual basis accounting, expenses should be recorded in the same period as the
revenues generate
2. Which of the items below would appear on an income
Test 2
1. Which of the following statements about the debit/credit framework are incorrect?
Common Stock has a normal credit balance
2. XYZ Corp borrows money from a bank. The journal entry to record the transaction would include
Debit to Cash and a cre