Reference no: EM13971368
1. A US$ corporate bond can never have a yield lower than a US government bond with the same maturity.
2. If interest rates rise a 10-year zero coupon bond would fall by about half as much as a 5-year zero coupon bond.
3. The capital appreciation on the Nikkei 225 index understates the investorAc€?cs actual realized return.
4. The Green Bay Packers are the only publicly owned NFL team. The stock in this team would have a great deal of systematic risk.
5. If the 10-year fixed-rate corporate bond of Morgan Inc. has a yield 50bp (.5%) higher than the 10-year government bond rate we know that the Morgan bond has very little risk.
6. The stock with the highest standard deviation of return should earn the highest rate of return.
7. If asset A has a standard deviation of .2 and asset B has a standard deviation of .2, then any portfolio that involves positive investment in both asset A and asset B will also have a standard deviation of .2.
8. For most firms, market value leverage is higher than book value leverage.
9. Since interest rates are currently very low, most newly issued corporate bonds are not callable.
10. Suppose asset A and asset B are uncorrelated and both have a Sharpe ratio of .4. Then a portfolio consisting of equal investment in asset A and asset B will also have a Sharpe ratio of .4.
11. Glover Inc. has a WACC of .07 and a tax rate of .30. If it issues a preferred stock with a par value of $50 and an annual dividend of $4, its WACC will increase.
12. Glover Inc. has a WACC of .07 and a tax rate of .30. If it issues a zero coupon bond with a par value of $1000, a maturity of 10 years and a price of $500, its WACC will increase.
13.From 2000 to 2014, the amount of public debt raised by US firms is about 5 times the amount of public equity raised.
|
The present market price per share is $36.
: If the company were to declare a 12 percent stock dividend, what would happen to these accounts? A 25 percent stock dividend? A 5 percent stock dividend?
|
|
What is the maximum net gain
: What is the maximum net gain (after the cost of the options is taken into account)? Show all working in detail including the strategy, cost and payoff of the options and total payoff.
|
|
What are their balances after closing
: Assuming that there were no other service revenue and rent expense transactions during 2012, journalize Gunther's closing entries at the end of 2012.
|
|
Compute the coefficient of variation
: A. Using the last two colums, compute the coefficient of variation for each of the four companies. Which company is the least risky? Which company is the most risky? B. Discuss which of the acquisition candidates is the most likely to reduce Treyno..
|
|
Great deal of systematic risk
: The Green Bay Packers are the only publicly owned NFL team. The stock in this team would have a great deal of systematic risk. If the 10-year fixed-rate corporate bond of Morgan Inc. has a yield 50bp (.5%) higher than the 10-year government bond rat..
|
|
What is the cost of dark chocolate bars concentrated
: Construct an ordered array. b. Construct a stem-and-leaf display. c. Does the ordered array or the stem-and-leaf display provide more information? Discuss. d. Around what value, if any, is the cost of dark chocolate bars concentrated? Explain
|
|
Should louisville accept this one-time special order
: Louisville will incur no variable selling costs for this special order. Should Louisville accept this one-time special order? Show your calculations.
|
|
Relationship between the police and the community impact
: How did the relationship between the police and the community impact the types of community policing strategies that were implemented in the community to address violence, crime, and vandalism in schools
|
|
How did the impact of the media coverage about crime rate
: How did the impact of the media coverage about the crime rate in the Anonymous Community (e.g., strained community relationships and national/international perceptions) demonstrate the importance of a good relationship between the police and the m..
|