Chapter 32:
8.
In General Theory, Keynes wrote of the importance of ideas. The world, he said, is ruled
by little else. How important do you think his ideas have been for economic policy today?
Sol. According to the classical school ( mainly David Ricardo
6-17 a.
Bond Calculator Inputs Calculator Solution
(1) N = 12, I = 11%, PMT = $110, FV = $1,000 $1,000.00
(2) N = 12, I = 15%, PMT = $110, FV = $1,000 $ 783.18
(3) N = 12, I = 8%, PMT = $110, FV = $1,000 $1,226.08
6-20
Bond A is selling at a discount to p
Colin has inherited $6,000 from the death of Grandma Anna. He would like to use this
money to buy his mom Hayley a new scooter costing $7,000 2 years from now. Will
Colin have enough money to buy the gift if he deposits his money in an account paying 8
pe
Calculate net operating profit after taxes (NOPAT) if a firm has sales of $1,000,000,
operating profit (EBIT) of $100,000, interest expense of $50,000, and a tax rate of 30%.
A) $35,000.
B) $700,000.
C) $70,000.
D) none of the above.
A firm has actu
If you invest $10,000 at 10% interest, how much will you have in 10 years?
A. $13,860
B. $25,940
C. $3,860
D. $80,712
To save for her newborn son's college education, Lea Wilson will invest $1,000 at the
beginning of each year for the next 18 years. The i
If you invest $10,000 at 10% interest, how much will you have in 10 years?
A. $13,860
B. $25,940
C. $3,860
D. $80,712
To save for her newborn son's college education, Lea Wilson will invest $1,000 at the
beginning of each year for the next 18 years. The i
Johnson, Inc. has just ended the calendar year making a
sale in the amount of $10,000 of merchandise purchased
during the year at a total cost of $7,000. Although the
firm paid in full for the merchandise during the year, it
has yet to collect at year end
Definition of 'Rule Of 72'
A rule stating that in order to find the number of years required to double your money at a given interest rate,
you divide the compound return into 72. The result is the approximate number of years that it will take for your
in
Information (2010 values)
1. Sales totaled $110,000
2. The gross profit margin was 25 percent.
3. Inventory turnover was 3.0.
4. There are 360 days in the year.
5. The average collection period was 65 days.
6. The current ratio was 2.40.
7. The tota
Chapter 20:
Concept Problem:
7.
Suppose unemployed people leave a state to obtain jobs in other states. What do you
predict will happen to the unemployment rate in the state experiencing the out-migration? What
might happen to the unemployment rates in th
Question 1
0 out of 0.5 points
The _ summarizes the firm's funds flow over a given period of
time
Selected
Answer:
Answers:
income statement
statement of retained
earnings
income statement
statement of cash flows
balance sheet
Question 2
0.5 out of 0.5 p
Question 1
0.5 out of 0.5 points
If bankruptcy were to occur, stockholders would have prior claim on
assets over
Selected
Answer:
Answers:
no one.
unsecured
creditors.
secured creditors.
preferred
stockholders.
no one.
Question 2
0.5 out of 0.5 points
Wh
Question 1
1 out of 1 points
A financial manager must choose between three alternative investments.
Each asset is expected to provide earnings over a three-year period as
described below. Based on the wealth maximization goal, the financial
manager would
A college received a contribution to its endowment fund of $2 million. They
can never touch the principal, but they can use the earnings. At an assumed
interest rate of 9.5 percent, how much can the college earn to help its
operations each year?
Selected
Question 1
0.5 out of 0.5 points
A _ bond generally has an interest rate that is higher than a
similar risk _ bonds, and a _ bond generally has an
interest rate that is lower than a similar risk _ bond.
Selected
Answer:
Answers:
callable; non-callable; c
Corporation X needs $1,000,000 and can raise this through debt at an annual rate of 10
percent, or preferred stock at an annual cost of 7 percent. If the corporation has a 40
percent tax rate, the after-tax cost of each is
A) debt: $100,000; preferred sto