Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
1. Which statement is FALSE?
a. A convertible bond gives the bondholder the right to exchange their bonds for a preset number of shares of stock.
b. A warrant is a security that is often sold with bonds but that can be detached (bought and sold separately) from the bond
c. Most preferred stock is owned by individual investors due to the fixed dividends.
d. Arrearages are unpaid preferred dividends.
2. Which of the following statements regarding depreciation is/are correct?
-1- Real estate used for residential rental purposes is depreciated on a straight-line basis over 27½ years.
-2- Real estate used for commercial purposes is depreciated on a straight-line basis over 39 years.
-3- Both the value of the land and the value of the improvements on the land can be depreciated.
-4- A mid-year convention is used in the depreciation of real property.
A. 1 and 2.
B. 3 and 4.
C. 1, 2, and 3.
D. 1, 2, 3, and 4.
You’re trying to determine whether to expand your business by building a new manufacturing plant. The plant has an installation cost of $12.4 million, which will be depreciated straight-line to zero over its four-year life. If the plant has projected..
The president of Lowell Inc. has asked you to evaluate the proposed acquisition of a new computer. The computer’s price is $60,000 and it falls into the MACRS 3-year class (33% in year 1, 45% in year 2, 15% in year 3, and 7% in year 4). The firm’s ma..
Assume a project has normal cash flows. A project’s IRR increases as the WACC declines. A project’s NPV increases as the WACC declines. A project’s MIRR is unaffected by changes in the WACC.
Your stock portfolio contains 4 stocks with the following betas and weight as a percentage of your portfolio. What is the portfolio beta? Weight Beta Stock A 30 pct.. 1.80 Stock B 35 pct.. 1.50 Stock C 15 pct. 1.38 Stock D 20 pct. 0.80
As a consultant to GBH skiwear, you have been ask to compute the appropriate discount rate to use to evaluate the purchase of a new warehouse facility. The firm's marginal tax rate is 34%. What discount rate should you use to evaluate the warehouse p..
Mary Spinks currently has $5,750 in a money market account paying 4.37 percent compounded semi-annually. She plans to use this amount and her savings over the next 5 years to make a down payment on a townhouse. She estimates that he will need $15,000..
For the given cash flows below, assume the cash flow is the same in the next 2 years. Compute the NPV for each project, and compute the incremental IRR. Compare and explain why NPV always gives the correct decision. Compare and contrast the uses of b..
make one lump sum investment today for your retirement, how much would that lump sum need to? be?You will need to make one lump sum investment today.
ABC Company currently has a cash cycle of 223 days. The firm is considering making some changes as follows: increase the inventory period by 9 days, increase the accounts receivable period by 68 days, and increase the accounts payable period by 7 day..
A loan commitment of $4.32 million has an up-front fee of 80 basis points and a back-end fee of 50 basis points. The take down on the loan is 60 percent. Calculate the total fees you will pay on this loan commitment.
Using arbitrage arguments, find upper and lower bounds for the forward price of the stock for a forward contract with maturity T >t.
The covariance of the returns between Willow Sock and Sky Diamond Stock is 0.0790. The variance of Willow is 0.1860, and the variance of Sky Diamond is 0.1460. What is the correlation coefficient between the returns of the two stocks?
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd