Market rate of interest vs contractual rate Definition of discount 4 statements about corperation select the...

Market rate of interest vs contractual rate
Definition of discount
4 statements about corperation select the one that’s not accure
Given a situation and asked to determine which group is responsible for this decision (board of directors, employees, stockholders, managers)
Issuing common stock(financial state steps)
Dividens and rears definition
Selection of a financial statement of a cash dividend what do we debit and what do we credit
Identify the impact on retained earnings on one of three things(stock split, stock dividend, cash dividend)
What accounts are presented in the stockholder’s equity section on the balance sheet
Identifying the primary purpose of statement of cash flows
Identify investing, financing, or operating activity

Answer as many questions as you can please

Expert Solution

ekkarill92 answered 1 year ago

A. The discount window and the federal funds market The discount rate is the interest rate...

A. The discount window and the federal funds market The discount rate is the interest rate the Fed charges on loans of reserves to banks. The federal funds rate is the interest rate banks charge for overnight loans of reserves to other banks. Which of the following statements about the discount rate and the federal funds rate are true? Check all that apply A.). A lower discount rate discourages banks from borrowing reserves and making loans. B.) Usually, banks borrow...

which of the following statements is incorrect (least correct)? A. if the discount (or interest) rate...

which of the following statements is incorrect (least correct)? A. if the discount (or interest) rate is positive, the future value of an expected series of payments will always exceed the presents value if the same series. B. Disregarding risk, if money has time value, it is impossible for the present value of a given sum to be greater than its future value. C. Disregarding risks, if the present value of a sum is equal To ITs future value, either...

1. Premium 2. Times interest earned ratio 3. Sinking fund 4. Market interest rate 5. Discount...

1. Premium 2. Times interest earned ratio 3. Sinking fund 4. Market interest rate 5. Discount 6. Stated interest rate 7. Capital lease 8. Amortization schedule 9. Operating lease 10. Debt to equity ratio The rate quoted in the bond contract used to calculate the cash payments for interest. The lessor owns the asset and the lessee simply uses the asset temporarily. Total liabilities divided by total stockholders' equity; measure a company's risk. The true interest rate used by investors...

Which of the following statements is FALSE? Select one: A. In a standard interest rate swap,...

Which of the following statements is FALSE? Select one: A. In a standard interest rate swap, one party agrees to pay coupons based on a fixed interest rate in exchange for receiving coupons based on the prevailing market interest rate during each coupon period. B. An interest rate swap is a contract entered into with a bank, much like a forward contract, in which the firm and the bank agree to exchange the coupons from two different types of loans....

4. Graphically explain how the discount rate and the interest on reserve together limit the fluctuation...

4. Graphically explain how the discount rate and the interest on reserve together limit the fluctuation of the Federal Funs rate.

Which of the following statements is FALSE? Select one: a. With a discount loan, the borrower...

Which of the following statements is FALSE? Select one: a. With a discount loan, the borrower is required to pay the interest at the end of the loan period. b. A bridge loan is another type of short-term bank loan that is often used to "bridge the gap" until a firm can arrange for long-term financing. c. Bridge loans are often quoted as discount loans with fixed interest rates. d. After a natural disaster, lenders may provide businesses with short-term...

The use of WACC as the discount rate to select investments is acceptable when A)...

The use of WACC as the discount rate to select investments is acceptable when A) the correlation of all new projects are equal. B) NPV is positive when discounted by the WACC C) the risk of the project is equal to the risk of the overall firm. D) the firm is well diversified and the unsystematic risk is negligible.

Discount Bonds Discount bonds such as Treasury bills have no stated interest rate. They are sold...

Discount Bonds Discount bonds such as Treasury bills have no stated interest rate. They are sold at a discount from face value, F. The yield or nominal interest rate is the percentage increase above the purchase price, P. The yield, i, is found as i = ((F – P)/P) * 100 You multiply by 100 to convert the decimal to a percentage. An example: Assume F = 1000 and P = 950 for a 1-year discount bond. Its yield...

5) Assume an installment note payable with a $240,000 face value, a 6% contractual interest rate,...

5) Assume an installment note payable with a $240,000 face value, a 6% contractual interest rate, and requiring monthly fixed principal payments of $2000. Create an installment payment schedule with headings for Interest Period, Cash Payment, Interest Expense, Reduction of Principal, and Principal Balance and complete the first four rows. Try to use a spreadsheet for this exercise.

Seven years ago you bought a $600,000, 15-year, deep discount bond with a market interest rate...

Seven years ago you bought a $600,000, 15-year, deep discount bond with a market interest rate of 5.15%. Since then market rates have gone to 5.9% and you find that you must sell the bond. a. What was the initial price of the bond? b. What is the current price of the bond? c. Calculate the current annual rate of return on this instrument and compare it to the annual rate of return you were expecting. d. Explain whether your...

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