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 Linda_us Your Own Question

Linda_us, Finance, Accounts & Homework Tutor

Category: Homework

Satisfied Customers: 7162

Experience: Post Graduate Diploma in Management (MBA)

19873544

Type Your Homework Question Here...

Linda_us is online now

11)When the amount earned on a deposit has become part of the

Resolved Question:

11)When the amount earned on a deposit has become part of the principal at the end of a specified time period the concept is called A)future value. B)discount interest. C)compound interest. D)primary interest.

12)The future value of $100 received today and deposited at 6% for 4 years is A)$126. B)$124. C)$79. D)$116.

13)As the interest rate increases for any given period, the future value interest factor will A)decrease. B)increase. C)move toward 1. D)remain unchanged.

14) he present value of $100 to be received 20 years from today, assuming an opportunity cost of 8%, is A)$42.24. B)$ 75. C)$23.60. D)$21.45.

15)The ___ financing strategy requires the firm to pay interest on excess funds borrowed but not needed throughout the entire year. A)seasonal B)conservative C)permanent D)aggressive

16)Strikes, lawsuits, regulatory actions, and increased competition are all examples of A)nondiversifiable risk. B)economic risk. C)systematic. D)diversifiable risk.

Table 5.2 You are going to invest $20,000 in a portfolio consisting of assets X, Y, and Z, as follows: Asset Name Annual Asset Return Probability Beta Proportion

X 10% .50 1.2 .333 Y 8% .25 1.6 .333 Z 16% .25 2.0 .333

17)Given the information in Table 5.2, what is the expected annual return of this portfolio? A)10.0% B)11.7% C)11.0% D)11.4%

18)The beta of the portfolio in Table 5.2, containing assets X, Y, and Z, is A)1.6. B)2.4. C)1.5. D)2.0.

19)If the required return is greater than the coupon rate, a bond will sell at A)book value. B)a premium. C)a discount. D)par.

20)A firm has an issue of $1,000 par value bonds with a 10% stated interest rate outstanding. The issue pays interest annually and has 10 years remaining to its maturity date. If bonds of similar risk are currently earning 8%, the firm's bond will sell for __ today. A)$851.50 B)$1,134.20 C)$805.20 D)$1,268.20

21)A firm has an issue of $1,000 par value bonds with a 9% stated interest rate outstanding. The issue pays interest annually and has 20 years remaining to its maturity date. If bonds of similar risk are currently earning 11%, the firm's bond will sell for __ today. A)$840.67 B)$1,123.33 C)$1,000 D)$716.67

22)A firm has an expected dividend next year of $1.20 per share, a zero growth rate of dividends, and a required return of 10%. The value of a share of the firm's common stock is __. A)$100 B)$10 C)$12 D)$120

23)A firm has experienced a constant annual rate of dividend growth of 9% on its common stock and expects the dividend per share in the coming year to be $2.70. The firm can earn 12% on similar risk involvements. The value of the firm's common stock is ________. A)$9/share B)$90/share C)$22.50/share D)$30/share

Table 10.6 Yong Importers, an Asian import company, is evaluating two mutually exclusive projects, A and B. The relevant cash flows for each project are given in the table below. The cost of capital for use in evaluating each of these equally risky projects is 10%.

Year Project A Project B 0 $350,000 $425,000 Cash Inflows (CF) 1 $140,000 $175,000 2 165,000 150,000 3 190,000 125,000 4 100,000 5 75,000 6 50,000

24)The NPVs of projects A and B are ________. (See Table 10.6): A)$45,805 and -$19,312 respectively. B)$95,066 and $56,386, respectively. C)-$45,805 and $19,312 respectively. D)none of the above.

25)In the EBIT-EPS approach to capital structure, risk is represented by A)shifts in the cost of debt capital. B)the slope of the capital structure line. C)shifts in the cost of equity capital. D)shifts in the times-interest-earned ratio.

26)A firm has a current capital structure consisting of $400,000 of 12 percent annual interest debt and 50,000 shares of common stock. The firm's tax rate is 40 percent on ordinary income. If the EBIT is expected to be $200,000, two EBIT-EPS coordinates for the firm's existing capital structure are A)($152,000, $3.50) and ($150,000, $1.82). B)($36,000, $0) and ($200,000, $3.04). C)($48,000, $0) and ($200,000, $1.82). D)($0, $48,000) and ($200,000, $1.82).

Table 14.2 Flum Packages, Inc. Assets Liabilities & Equity Current assets $12,000 Current Liabilities $ 5,000 Fixed assets 20,000 Long-term debt 12,000 Equity 13,000 Total $30,000 Total $30,000

27)The company earns 5 percent on current assets and 15 percent on fixed assets. The firm's current liabilities cost 7 percent to maintain and the average annual cost of long-term funds is 20 percent. The firm's initial net working capital is ________. (See Table 14.2) A)$ 5,000. B)$10,000. C)$7,000. D)-$ 5,000.

28)The beta of the market A)is less than 1. B)is greater than 1. C)is 1. D)cannot be determined.

29)XYZ Corporation borrowed $100,000 for six months from the bank. The rate is prime plus 2 percent. The prime rate was 8.5 percent at the beginning of the loan and changed to 9 percent after two months. This was the only change. How much interest must XYZ corporation pay? A)$2,476. B)$5,417. C)$21,500. D)$18,212.

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