Reference no: EM13891888
1. Factors that should be considered in taking a stock option position include:
A: The dividend paid on the underlying stock
B: The volatility of the underlying stock
C: The time to expiration
D: The anticipated direction of market movement
E: All of the above are relevant factors in the option decision
2. Advantages of investing in tax-exempt bond funds include all of the following EXCEPT:
A: Diversification
B: Provides additional benefits to tax-deferred retirement plans
C: Automatic reinvesting
D: Fund maintains individual investor’s tax reports and records
E: Low initial deposit
3. Angie deposits $250 in an account that earns 12% per year. If no other deposits or withdrawals are made, how much will Angie have in her account at the end of 15 years?
A: $ 280
B: $ 700
C: $1,368
D: $3,450
E: $4,200
4. Zack needs a $100,000 loan to start his new business. Due to his age and inexperience, he is unable to obtain a bank loan. Possible alternatives to raise the funds include all of the following EXCEPT
A: promissory note from his mother.
B: having his mother co-sign a bank loan.
C: selling personal assets.
D: issuing debt in the market.
E: all of the above are possible sources of funds for Zack.
5. Preferred stock with cumulative fixed dividends
A: Are required to pay dividends each quarter
B: Must pay the missed dividend before common shareholders can receive dividends
C: Are taxed on the accumulated dividends
D: Are considered to be bankrupted if one year of dividends is missed
E: All of the above are true
|
Dividend initiation and stock value a firm
: Dividend Initiation and Stock Value A firm does not pay a dividend. It is expected to pay its first dividend of $.90 per share in 2 years. This dividend will grow at 13 percent indefinitely. Using a 15 percent discount rate, compute the value of this..
|
|
Value a constant growth stock financial analysts
: Value a Constant Growth Stock Financial analysts forecast Best Buy Company (BBY) growth for the future to be 15.00 percent. Their recent dividend was $1.39. What is the value of their stock when the required rate of return is 16.23 percent?
|
|
A fast growing firm recently paid dividend
: A fast growing firm recently paid a dividend of $1.00 per share. The dividend is expected to increase at a rate of 15 percent rate for the next 3 years. Afterwards, a more stable 6 percent growth rate can be assumed. If a 10 percent discount rate is ..
|
|
Historical data refer to annual return or the stock prices
: If I want to calculate expected return of a company using historical data, what kind of historical data should I use? Where can I get the historical data? does the historical data refer to annual return or the stock prices?
|
|
Preferred stock with cumulative fixed dividends
: Factors that should be considered in taking a stock option position include: Advantages of investing in tax-exempt bond funds include all of the following EXCEPT: Preferred stock with cumulative fixed dividends
|
|
What is the exact real rate
: Treasury bills are currently paying 6 percent and the inflation rate is 2.8 percent. What is the approximate real rate of interest? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Approximate real rate % What is the exact r..
|
|
About the coupon bond with annual payments
: Grand Adventure Properties offers a 9.5 percent coupon bond with annual payments. The yield to maturity is 10.9 percent and the maturity date is 11 years from today. What is the market price of this bond if the face value is $1,000?
|
|
Coupon bond with annual payments
: Grand Adventure Properties offers a 9.5 percent coupon bond with annual payments. The yield to maturity is 10.9 percent and the maturity date is 11 years from today. What is the market price of this bond if the face value is $1,000?
|
|
Expect the stock price of gm to increase
: Suppose that I expect the stock price of GM to increase by about 15% over the next two months from $50 to $57.50. To monetize my view, I sell a put option on GM with 2 months to maturity with X= $57.50 and buy aput option again with 2 months to matur..
|