Question 1
You have invested 30 percent of your portfolio in Jacob, Inc., 40 percent in Bella Co., and 30 percent in Edward Resources. What is the expected return of your portfolio if Jacob, Bella, and Edward have expected returns of 0.01, 0.13, and 0.14, respectfully?
Question 2
The covariance of the returns between Willow Stock and Sky Diamond Stock is 0.0720. The variance of Willow is 0.2210, and the variance of Sky Diamond is 0.1110. What is the correlation coefficient between the returns of the two stocks?
Question 3
On June 23, 2008, Mikhal Cosmetics sold $250,000 worth of its products to Rynex Corporation, with the payment to be made in 90 days on September 20. The goods were shipped to Rynex on July 2. The firm's accountants should recognize the sale on
June 23, 2008.
July 2, 2008.
September 20, 2008.
none of the above
Question 4
During the last year, Sigma Co had Net Income of $154, paid $18 in dividends, and sold new stock for $39. Beginning equity for the year was $610. Ending equity was
Question 5
The following items are components of a traditional balance sheet. How much are the total assets of the firm?
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Plant and equipment
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$43,300
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Common stock
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15,000
|
|
Cash
|
6,400
|
|
Inventory
|
23,800
|
|
Bad debt reserve
|
6,000
|
|
Paid in excess
|
6,000
|
|
Accumulated depreciation
|
27,100
|
|
Accounts receivable
|
22,000
|
Question 6
Brighton Corp. bought an oil rig exactly 6 years ago for $110,000,000. Brighton depreciates oil rigs straight line over 10 years assuming no salvage value. The rig was just sold to British Petroleum for $25,000,000. What Capital Gain/Loss will Brighton report on this transaction?
Comment: (given as feedback)
Question 7
Walker Corporation conducted the following activities during 2001: (1) they sold 10,000 shares of their own stock for $16.00 per share; (2) they issued bonds for which they received $493,000; (3) they paid dividends to their stockholders totaling $84,000; (4) they sold a piece of equipment for $50,000 that they were carrying on their books for $20,000; (5) they earned net income of $140,000. What would be shown on the Statement of Cash Flows for "Cash from financing activities" based on the information above?
Question 8
Given the following selected information on Cicalese's Chocolate, Inc., calculate Cash Flow from Operating Activities for 2001.
|
|
Last Year
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This Year
|
|
EAT
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$ 600,000
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$ 730,000
|
|
Depreciation Exp.
|
100,000
|
150,000
|
|
Dividends
|
400,000
|
550,000
|
|
Accounts Receivable
|
1,500,000
|
2,000,000
|
|
Inventory
|
3,500,000
|
2,000,000
|
|
Accts. Payable/Accr.
|
350,000
|
500,000
|
|
Long-Term Debt
|
2,300,000
|
3,000,000
|
|
Common Stock
|
2,200,000
|
2,500,000
|
|
Retained Earnings
|
6,150,000
|
6,350,000
|
Question 9
|
Accounts Payable
|
32
|
|
Accounts Receivable
|
65
|
|
Accruals
|
30
|
|
Accumulated Depreciation
|
(175)
|
|
Cash
|
31
|
|
Common Stock
|
120
|
|
Fixed Assets (gross)
|
390
|
|
Inventory
|
130
|
|
Long-Term Debt
|
200
|
|
Retained Earnings
|
65
|
What is Cameron Inc.'s Net Working Capital?
Question 10
A firm's current ratio is 1.8, and its quick ratio is 1.0. If its current liabilities are $10,100, what are its inventories?
Question 21
What is the future value of $1,300, placed in a saving account for four years if the account pays 0.10, compounded quarterly?
Question 22
Your brother, who is 6 years old, just received a trust fund that will be worth $22,000 when he is 21 years old. If the fund earns 0.11 interest compounded annually, what is the value of the fund today?
Question 23
If you were to borrow $9,100 over five years at 0.10 compounded monthly, what would be your monthly payment?
Question 24
Your uncle promises to give you $700 per quarter for the next five years. How much is his promise worth right now if the interest rate is 0.10 compounded quarterly?
Question 25
A stock has an expected return of 0.10 and a variance of 0.20. What is Its coefficient of variation?
Question 26
Use the following information to calculate your company's expected return.
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State
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Probability
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Return
|
|
Boom
|
20%
|
0.50
|
|
Normal
|
60%
|
0.12
|
|
Recession
|
20%
|
-0.17
|
Question 27
You have invested in stocks J and M. From the following information, determine the beta for your portfolio.
|
|
Expected
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Amount of
|
|
|
|
Return
|
Investment
|
Beta
|
|
Stock J
|
0.10
|
$100,000
|
1.02
|
|
Stock M
|
0.11
|
$300,000
|
0.72
|
Question 28
Frazier Manufacturing paid a dividend last year of $2, which is expected to grow at a constant rate of 5%. Frazier has a beta of 1.3. If the market is returning 11% and the risk-free rate is 4%, calculate the value of Frazier's stock.