Given the following information about Elkridge Sporting Goods, Inc., construct a balance sheet for June 30, 2017. On that date the firm had cash and marketable securities and accounts receivable totaling 28,764, inventory of 162,391, net fixed assets of 331,346, and other assets of 15,419. It had accounts payables and notes payable totaling 169,257, long-term debt of 177,202, and common stock of 112,991. How much retained earnings did the firm have? Round to whole numbers

The current spot price of Copper is $2.7445 per pound. The storage costs are $0.05 per pound per year payable monthly. Physical holding of copper now can yield $0.13 per pound per year which is achievable monthly. The price of a 9-month futures contract of copper is currently listed as 2.7685. Assume that interest rates are 10% per annum and monthly compounded.

a) If the cost-of carry relationship is held under no-arbitrage conditions, what should the 9-month futures price be (4 d.p.)? b) Is the listed 9-month futures price provide arbitrage opportunity (assume transaction costs are negligible)? Justify. c) If the listed futures price is correct, what would be the underlying annual yield.

b) Is the listed 9-month futures price provide arbitrage opportunity (assume transaction costs are negligible)? Justify.

c) If the listed futures price is correct, what would be the underlying annual yield.

A debt is said to be selling at par, when the _____ of the debt is equal to the _____.​

Select one:

a. ​face value; premium payment on the exercise of a call provision

b. ​market value; face value of the debt

c. ​principal value; discount on the issue of a zero coupon bond

d. ​maturity value; par value of the debt

e. ​par value; discounted value of the interest payments

A sinking fund call:​

Select one:

a. ​does not require the company to pay a small percentage of the issue every year.

b. ​requires the company to pay a penalty to investors.

c. ​does not require the company to pay a call premium.

d. ​requires the company to redeem bonds at market price.

e. ​requires the company to claim back all the interest payments from the bondholders.

A share of common stock has a current price of $82.50 and is expected to grow at a constant rate of 10 percent. If you require a 14 percent rate of return, what is the current dividend on this stock?​

Select one:

a. ​$2.81

b. ​$4.29

c. ​$6.13

d. ​$4.75

e. ​$3.00

A shareholder can transfer the right to vote to a second party, by means of an instrument known as _____.​

Select one:

a. ​allotment

b. ​rationing

c. ​consortium

d. ​arbitrage

e. ​proxy

1) You have begun saving for your retirement. Your starting salary is $60,000, and you invest 10% of your salary each year.
A) If the retirement plan has historically made 10% per year, how much will you have in your account after 40 years?
B) What will be your final contribution in year 40?

2)You have decided to purchase a house that needs quite a bit of work right away. You estimate the following yearly maintenance and upkeep costs:
Year Cost

0    $7500
1    $5500
2     $5500
3     $5500
4   $5200
5   $4900
6     $4600
7     $4300
8   $4000
9   $3700
10 $3400

If the interest rate is 8%, how money do you need to set aside when you purchase your house to pay for the first 10 years of maintenance and upkeep costs? Construct cash flow diagrams and show all your work. To receive full credit, you must use an arithmetic gradient.

Explain in 700 words why you would or would not recommend investing Walmart stock.

• Describe the relationship between the value of the stock and the price to earnings ratio.
• What information does the Market Capitalization (Market Cap) and Beta provide to the investor?

​(Future value) Leslie​ Mosallam, who recently sold her​ Porsche, placed $8000 in a savings account paying annual compound interest of 5 percent.

a. Calculate the amount of money that will accumulate if Leslie leaves the money in the bank for 3​, 7​, and 17 ​year(s).

b.Suppose Leslie moves her money into an account that pays 7 percent or one that pays 9percent.

Rework part (a​) using 7percent and 9 percent.

c.What conclusions can you draw about the relationship between interest​ rates, time, and future sums from the calculations you just​ did?

a.After placing ​$8,000 in a savings account paying annual compound interest of 5 percent​, the amount of money that will accumulate if Leslie leaves the money in the bank for 3

​year(s) is ​$___. ​(Round to the nearest​ cent.)

If she leaves the money in the bank for 7 years, the amount of money that will accumulate is $____. ​(Round to the nearest​ cent.)

If she leaves the money in the bank for 17 years, the amount of money that will accumulate is

​$____. ​(Round to the nearest​ cent.)

b. If Leslie moves her money into an account that pays 7 percent compounded annually for 3 year(s), the amount of money that will accumulate is

​$___ . (Round to the nearest​ cent.)

If Leslie moves her money into an account that pays 7percent compounded annually for 7 years, the amount of money that will accumulate is

​$____. ​(Round to the nearest​ cent.)

If Leslie moves her money into an account that pays 7 percent compounded annually for 17 years, the amount of money that will accumulate is

​$___. (Round to the nearest​ cent.)

If Leslie moves her money into an account that pays 9 percent compounded annually for 3 year(s), the amount of money that will accumulate is

​$_____. (Round to the nearest​ cent.)

If Leslie moves her money into an account that pays 9 percent compounded annually for 7 years, the amount of money that will accumulate is

​$____. (Round to the nearest​ cent.)

If Leslie moves her money into an account that pays 9 percent compounded annually for 17 years, the amount of money that will accumulate is

​$____. ​(Round to the nearest​ cent.)

c.What conclusions can you draw about the relationship between interest​ rates, time, and future sums from the calculations you just​ did?  

There is a positive/negative relationship between the interest rate used to compound a present sum and the future value of that sum. There is a positive/negative relationship between the number of years for which the compounding continues and the future value of that sum.

Snowy Mountain Timber Ltd is considering purchasing a new wood saw that costs $55,000. The saw will generate revenues of $100,000 per year for five years. The cost of materials and labour needed to generate these revenues will total $60,000 per year, and other cash expenses will be $10,000 per year. The machine is expected to sell for $1,000 at the end of its five-year life and will be depreciated on a straight-line basis over five years to zero. Snowy Mountain’s tax rate is 34 percent, and its opportunity cost of capital is 17.10 percent. The project's NPV is $___________,The project should be rejected or accepted?

16.13 Los Angeles and New York. The Bureau of Labor and Statistics publishes separate consumer price indexes for major metropolitan areas in addition to the national CPI. THe CPI (1982-84 = 100) in July 2015 was 247.1 in Los Angeles and 261.2 in New York.

(a) These numbers tell us that prices rose faster in New York than in Los Angeles between the base period and July 2015. Explain how we know this.

(b) These numbers do not tell us that prices in July 2015 were higher in New York than in Los Angeles. Explain why.

You just finished a capital budgeting investment analysis on a ​$209 million project. The​ project's life is 10 years and it will generate equal annual​ after-tax cash operating cash flows of ​$37.61 million. You assumed a ​$68 million salvage​ value, but the​ project's adjusted tax basis at termination will be ​$93 million. The project would have no effect on net working capital. With a 27​% marginal tax​ rate, the resulting NPV is ​$80.93 million. What cost of capital did you use for the​ analysis? ​ (Percent with​ 1decimal)

1) A 10-year corporate bond has a coupon rate of 6% with annual payments. If interest rates rise to 7% on similar bonds then what is the value of the bond in the marketplace?

2) A 10-year corporate bond has a coupon rate of 6% with annual payments. If interest rates rise to 5% on similar bonds then what is the value of the bond in the marketplace?

1. A 10-year corporate bond has a coupon rate of 6% with semi-annual payments. How much is the par value of this bond?

2. A 10-year corporate bond has a coupon rate of 6% with annual payments. How much in interest does the bondholder receive per year?

3. A 10-year corporate bond has a coupon rate of 6% with semi-annual payments. How much in interest does the bondholder receive per year and per interest payment?

You have $100,000 in an account that earns 2% APR (Compounded monthly)
You want to earn a higher rate of return and therefore are considering two alternative investments. You will put your $100,000 in one of the two new accounts.
Investment 1 will pay you $860 per month for starting next month 120 months.
Investment 2 will pay you $2,600 per month for starting next month 40 months.

Which account should you choose and how much does it increase your net worth?

Choose Investment 2 it increases your net worth by $528

Choose Investment 1 it increases your net worth by $544

Choose Investment 2 it increases your net worth by $508

Choose Investment 2 it increases your net worth by $547

How does the eToro Social trading model work? What is the core value or value proposition for eToro? Does it resonate with you?

7. Alset Motors is offering the 2019 Tesla Model S Sedan (basic model) for $79,900. You “wheel and deal” and get the price down to $75,000 with no money down (100%-financing). The only difficulty is that the monthly payments on the 7.2%, six-year loan are at the beginning of the month.

   1. What is the monthly payment on this loan?

   2. How much of the first payment is interest and how much is principal? (label them)

   3. How much of the sixteenth payment is interest and how much is principal? (label them)

   4. How much interest and how much principal would you pay in the loan’s second full year? (label them)

   5. How much interest and how much principal would you pay over the life of the loan? (label them)