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What is the investment opportunity curve and how is it accomplished?
What information is needed to prepare a cash budget? What is the relationship between an operating and a cash budget? Why is it important for an organization to prepare a cash budget?
Property taxes in DeKalb County are roughly 2.66% of the purchase price every year. If you just bought a $100,000 home, what is the PV of all the future property tax payments?
Consider a bond with a 7% annual coupon and a face value of $1,000. What relationship do you observe between yield to maturity and the current market value?
The accuracy of the percent of sales forecast method is impaired if:
A 1-year discount bond with a face value of $1,000 was purchased for $900. What is the yield to maturity? What is the yield on a discount basis?
A 7-year, $1,000 par bond has an 8% annual coupon and is currently yielding 7.5%. The bond can be called in 2 years at a call price of $1,010. What is the bond yielding, assuming it will be called
Can an option on the yen/euro exchange rate be created from two options, one on the dollar/euro exchange rate, and the other on the dollar/yen exchange rate?
A lottery claims its grand prize is $10 million, payable over 20 years at $500,000 per year. If the first payment is made immediately, what is this grand prize really worth? Use a discount rate o
The bond is callable after the 10th year for a call premium of $1,025. If the bond is trading with a yield to call of 6.25%, the bond's yield to maturity is what?
You bought a bond one year ago for $980. At the time the bond matured in six years. The bond has an 8% annual coupon. This investment had a nominal return of 9% and a real return of 6.75%. What was
How much money will you need to have saved up in your 401k plan at the begining of your retirement so that you can withdraw 50,250.67 a year for 20 years? Assume you can earn 10% on your money durin
A 10-year $1,000 par value bond has a 9% semi-annual coupon and a nominal yield to maturity of 8.8%. What is the price of the bond?
Why do you think some economist recommend to leave the economy alone for short term automatic correction?
You have 42,180.53 in brokerage account and you plan to deposit an additional 5000 at the end of every futhure year untill your account total 250000 you expect to earn 12% annually on the account ho
Would you expect the volatility of a stock index to be greater or less than the volatility of a typical stock? Explain your answer.
An investment had a nominal return of 12% when the inflation rrate was 4%. What was the investment's real return?
If the weighted average cost of capital is 11.0% and FCF is expected to grow at a rate of 5.0% after Year 2, what is the Year 0 value of operations, in millions?
You borrowed some money at 8 percent per annum. You repay the loan by making three annual payments of $247 (first payment made at t = 1), followed by five annual payments of $548, followed by four
The Milken Company is offering you an investment that promises you $10,000 at the end of 11 years if you invest $7,597 today. What is the annual return on this investment?
New stock can be sold to the public at the current price, but a flotation cost of 5% would be incurred. What would be the cost of equity from new common stock?
Sam refuses to retire until his retirement account has a balance of at least $381,557. Sam refuses to make any more deposits in the account. The account currently has a balance of $113,217 and earns
the maturity risk premium for all bonds is found with the formula MRP = (t - 1) × 0.1%, where t = number of years to maturity. What inflation premium (IP) is built into 5-year bond yields?
Which two of the six methods used to evaluate projects, and to decide whether or not they should be accepted, do you prefer as a financial manager?
Assume that the yield curve is horizontal, with rates expected to remain at current levels on into the future. What is the difference between this bond's YTM and its YTC?