Some adjustable rate mortgages contain payment caps that limit monthly mortgage payments. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Married couples filing a joint return may take two standard deductions. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Martha’ s Interiors has a current beta of 1.2. The market risk premium is 6 percent and the risk-free rate of return is 4 percent. By how much will the cost of equity increase if the company completes an acquisition such that their company beta rises to 1.4? A) 0.12 percent B) 0.24 percent C) […]
Date: September 19th, 2020
Alyeska salmon Inc, a large salmon canning firm operating out of Valdez, Alaska, has a new automated production line project it is considering. The project has a cost of $275,000 and is expected to provide after-tax annual cash flows of $73,306 for eight years. The firm’s management is uncomfortable with the IRR reinvestment assumption and […]
Date: September 19th, 2020
Your lawyer presents you with a three year investment. You must invest $1,000 immediately, but you are promised after-tax cash flows of $600 after one year and another $600 after two years. What is the IRR of the investment? (Round answer to nearest percent). A) 10% B) 11% C) 12% D) 13% E) 14% […]
Date: September 19th, 2020
You will need $228,790 in 28 years to supplement your retirement funds. If you can earn 8% interest, you must save $________ each year. (Table or calculator required.) A) 8,100 B) 6,300 C) 3,600 D) 2,400 ANSWER D
Date: September 19th, 2020
What are some of the basic beliefs of the anti-globalists? What will be an ideal response? ANSWER Answer: The anti-globalist movement targets multinational corporations as one of the main villains of the globalization phenomenon that they believe is detrimental to the poor countries, their workers, and to disadvantaged people in developed countries. Laissez-faire […]
Date: September 19th, 2020
Globally why are certain types of firms seeking others with poor corporate governance? What will be an ideal response? ANSWER Answer: Hedge funds and private equity firms are very often looking for these poorly performing firms as potential targets for their value-enhancing activities.
Date: September 19th, 2020
Which one of the following is the most common method of overcoming the agency problem in developed countries outside of the U.S. and the U.K? A) concentrated ownership B) currency boards C) hostile takeovers D) foreign direct investment ANSWER Answer: A
Date: September 19th, 2020
Ferris Manufacturing is all equity financed. Current financial data for Ferris is provided in the table below for three states of nature, which correspond with three levels of sales. The CFO of Ferris, Cameron Fry, is considering a change in capital structure. In particular, he is thinking about borrowing $5,000. He will borrow the money […]
Date: September 19th, 2020
