Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.

Get a Professional Answer

Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.

100% Satisfaction Guarantee

Rate the answer you receive.

Ask Bizhelp Your Own Question

Bizhelp,
CPA

Category: Homework

Satisfied Customers: 5748

Experience: Bachelors Degree and CPA with Accounting work experience

23848519

Type Your Homework Question Here...

Bizhelp is online now

Rappaport Corp.s sales last year were $320,000, and its net

Resolved Question:

Rappaport Corp.'s sales last year were $320,000, and its net income after taxes was $23,000. What was its profit margin on sales? Answer

a. 6.49%

b. 6.83%

c. 7.19%

d. 7.55%

e. 7.92%

Which of the following bank accounts has the highest effective annual return? Answer

a. An account that pays 8% nominal interest with monthly compounding.

b. An account that pays 8% nominal interest with annual compounding.

c. An account that pays 7% nominal interest with daily (365-day) compounding.

d. An account that pays 7% nominal interest with monthly compounding.

e. An account that pays 8% nominal interest with daily (365-day) compounding.

Suppose the U.S. Treasury offers to sell you a bond for $3,000. No payments will be made until the bond matures 10 years from now, at which time it will be redeemed for $5,000. What interest rate would you earn if you bought this bond at the offer price? Answer

a. 3.82%

b. 4.25%

c. 4.72%

d. 5.24%

e. 5.77% 10-year corporate bond has an annual coupon of 9%. The bond is currently selling at par ($1,000). Which of the following statements is NOT CORRECT? Answer

a. The bond’s expected capital gains yield is positive.

b. The bond’s yield to maturity is 9%.

c. The bond’s current yield is 9%.

d. If the bond’s yield to maturity remains constant, the bond will continue to sell at par.

e. The bond’s current yield exceeds its capital gains yield. Consider some bonds with one annual coupon payment of 7.25%. The bonds have a par value of $1,000, a current price of $1,125, and they will mature in 13 years. What is the yield to maturity on these bonds? Answer

a. 5.56%

b. 5.85%

c. 6.14%

d. 6.45%

e. 6.77%

4 points Keenan Industries has a bond outstanding with 15 years to maturity, an 8.75% coupon paid semiannually, and a $1,000 par value. The bond has a 6.50% nominal yield to maturity, but it can be called in 6 years at a price of $1,050. What is the bond’s nominal yield to call? Answer

a. 5.01%

b. 5.27%

c. 5.54%

d. 5.81%

e. 6.10% The Morrissey Company's bonds mature in 7 years, have a par value of $1,000, and make an annual coupon payment of $70. The market interest rate for the bonds is 8.5%. What is the bond's price? Answer

a. $923.22

b. $946.30

c. $969.96

d. $994.21

e. $1,019.06 The Morrissey Company's bonds mature in 7 years, have a par value of $1,000, and make an annual coupon payment of $70. The market interest rate for the bonds is 8.5%. What is the bond's price? Answer

a. $923.22

b. $946.30

c. $969.96

d. $994.21

e. $1,019.06 Bill Dukes has $100,000 invested in a 2-stock portfolio. $35,000 is invested in Stock X and the remainder is invested in Stock Y. X's beta is 1.50 and Y’s beta is 0.70. What is the portfolio's beta? Answer

a. 0.65

b. 0.72

c. 0.80

d. 0.89

e. 0.98 Mulherin's stock has a beta of 1.23, its required return is 11.75%, and the risk-free rate is 4.30%. What is the required rate of return on the market? (Hint: First find the market risk premium.) Answer

a. 10.36%

b. 10.62%

c. 10.88%

d. 11.15%

e. 11.43% Tom O'Brien has a 2-stock portfolio with a total value of $100,000. $37,500 is invested in Stock A with a beta of 0.75 and the remainder is invested in Stock B with a beta of 1.42. What is his portfolio’s beta? Answer

a. 1.17

b. 1.23

c. 1.29

d. 1.35

e. 1.42 For a stock to be in equilibrium, that is, for there to be no long-term pressure for its price to depart from its current level, then Answer

a. the expected future return must be less than the most recent past realized return.

b. the past realized return must be equal to the expected return during the same period.

c. the required return must equal the realized return in all periods.

d. the expected return must be equal to both the required future return and the past realized return.

e. the expected future returns must be equal to the required return. Reddick Enterprises' stock currently sells for $35.50 per share. The dividend is projected to increase at a constant rate of 5.50% per year. The required rate of return on the stock, rs, is 9.00%. What is the stock's expected price 3 years from today? Answer

a. $37.86

b. $38.83

c. $39.83

d. $40.85

e. $41.69 Goode Inc.'s stock has a required rate of return of 11.50%, and it sells for $25.00 per share. Goode's dividend is expected to grow at a constant rate of 7.00%. What was the last dividend, D0? Answer

a. $0.95

b. $1.05

c. $1.16

d. $1.27

e. $1.40 Huang Company's last dividend was $1.25. The dividend growth rate is expected to be constant at 15% for 3 years, after which dividends are expected to grow at a rate of 6% forever. If the firm's required return (rs) is 11%, what is its current stock price? Answer

a. $30.57

b. $31.52

c. $32.49

d. $33.50

e. $34.50 Other things held constant, the value of an option depends on the stock's price, the risk-free rate, and the Answer a. Strike price.

Other things held constant, the value of an option depends on the stock's price, the risk-free rate, and the Answer

a. Strike price.

b. Variability of the stock price.

c. Option's time to maturity.

d. All of the above.

e. None of the above.

4 points Suppose you believe that Johnson Company's stock price is going to increase from its current level of $22.50 sometime during the next 5 months. For $310.25 you can buy a 5-month call option giving you the right to buy 100 shares at a price of $25 per share. If you buy this option for $310.25 and Johnson's stock price actually rises to $45, what would your pre-tax net profit be? Answer

a. -$310.25

b. $1,689.75

c. $1,774.24

d. $1,862.95

e. $1,956.10 The current price of a stock is $50, the annual risk-free rate is 6%, and a 1-year call option with a strike price of $55 sells for $7.20. What is the value of a put option, assuming the same strike price and expiration date as for the call option? Answer

a. $7.33

b. $7.71

c. $8.12

d. $8.55

e. $9.00 An analyst wants to use the Black-Scholes model to value call options on the stock of Ledbetter Inc. based on the following data:

The price of the stock is $40. The strike price of the option is $40. The option matures in 3 months (t = 0.25). The standard deviation of the stock’s returns is 0.40, and the variance is 0.16. The risk-free rate is 6%.

Given this information, the analyst then calculated the following necessary components of the Black-Scholes model:

N(d1) and N(d2) represent areas under a standard normal distribution function. Using the Black-Scholes model, what is the value of the call option? Answer

a. $2.81

b. $3.12

c. $3.47

d. $3.82

e. $4.20

Customer:replied 3 years ago.

Do you know how much longer before these will be answered I have 30 minutes to finish.

THIS ANSWER IS LOCKED! You can view this answer by clicking here to Register or Login and paying $3. If you've already paid for this answer, simply Login.

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.

JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.

Web sites like justanswer.com/legal ...leave nothing to chance.

Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.

Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.

I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.Freshfield, Liverpool, UK

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.GPHesperia, CA

I couldn't be more satisfied! This is the site I will always come to when I need a second opinion.JustinKernersville, NC

Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. EstherWoodstock, NY

Thank you so much for taking your time and knowledge to support my concerns. Not only did you answer my questions, you even took it a step further with replying with more pertinent information I needed to know. RobinElkton, Maryland

He answered my question promptly and gave me accurate, detailed information. If all of your experts are half as good, you have a great thing going here.DianeDallas, TX