ABC Expert Consulting Corp. has current liabilities of $18 million. Cash makes up 16 percent of current assets, and accounts receivable makes up another 50 percent of current assets. The corporation’s current debt-to-equity ratio is 0.357. What's the value of inventory listed on the firm's balance sheet?
A. $17.1 million
B. $15.4 million
C. $23.4 million
D. $18.8 million
Superior Widgets Manufacturing reported a debt-to-equity ratio of 1.9 times at the end of 2015. If the company's total debt at the end of the year was $29 million, how much equity does Superior Widgets have on its balance sheet?
A. $15.3 million
B. $16.8 million
C. $17.2 million
D. $14.9 million
What's the future value in year six of a $3,400 deposit in year one and another $5,000 deposit at the end of year three using a 6 percent interest rate?
A. $8,341
B. $12,446
C. $11,226
D. $10,778
The applicability of beta depends on a firm's
A. standard deviation.
B. growth rate.
C. historical returns.
D. future plans.
What annual rate of return is earned on a $4,000 investment when it grows to $8,200 in 5 years?
A. 14.34 percent
B. 13.58 percent
C. 15.44 percent
D. 12.22 percent
What’s the current yield of a 4.8 percent coupon corporate bond purchased for $100 and three years to maturity quoted at a current market price of $98.24?
A. 4.89 percent
B. 4.13 percent
C. 5.44 percent
D. 5.12 percent
Perpetuity payments are made
A. at the end of the year.
B. at the start of the year.
C. forever.
D. quarterly.
What type of values must investors use when dealing with future stock prices and future dividend payments?
A. Expected values
B. Certain values
C. Premium values
D. Discounted values
You have a portfolio with a beta of 1.46. What will the new portfolio beta be if you keep 75 percent of your money in the old portfolio and 25 percent in a stock with a beta of 0.6?
A. 1.25
B. 1.14
C. 1.67
D. 1.31
One-year Treasury bills currently yield 2.43 percent. You expect that one year from now, one-year Treasury bill rates will increase to 2.83 percent, and two years from now, one-year Treasury bill rates will increase to 3.04 percent. The liquidity premium on two-year securities is 0.08 percent and on three-year securities, 0.14 percent. If the liquidity premium theory is correct, what should the current rate be on three-year Treasury securities?
A. 3.26 percent
B. 2.68 percent
C. 1.94 percent
D. 2.91 percent