challenge problem. each holiday season, Michael received a U.S. savings bond from his grandmother. Michael eventually received twelve savings bonds. the bonds vary in their rates of interest and their face values. Assume today is December 31, 2011. what is the value of this portfolio of U.S. savings bonds? on what date does each of the individual bonds reach its face value or maturity date ( note that the price is half the face value)? estimate to the nearest month and year for each bond.   Note the bonds continue earning interest past their maturity dates.

issue D,            price,     face V,   interest R, maturity D
12/31/90.         $25.        $50.        6.0%           ?
12/31/91.         $25.        $50.        5.0%           ?
12/31/92.         $50.        $100.      3.0%           ?
            93.          $25.        $50.        6.0%           ?
            94.          $50.        $100.      4.0%           ?
            95.          $25.        $50.        5.0%           ?
            96.          $25.        $50.        4.0%           ?
            97.          $25.        $50.        4.0%           ?
            98.          $50.        $100.      3.0%           ?
            99.          $25.        $50.        6.0%           ?
12/31/ 2000      $25.       $50.        3.0%           ?
12/31/2001      $50.       $100.      4.0%           ?
Total.                  $400

Your firm designs training materials for computer training classes, and you have just received a request to bid on a contract to produce a complete set of training manuals for an 8-session class. From previous experience, you know that your firm follows an 80% learning rate. For this contract, it appears that the effort will be substantial, running 300 hours for the first session. Your firm has an average cost of labor of $80/hour and the overhead is expected to run a fixed $1200 per session. The customer will pay you a flat fixed rate per session (Per Session Price.) If your profit markup is 10%, what will be the Total Price, the Per Session Price, and at what session will you break even?

Answer the following four questions:

1. What is the Total Price? This is what you would charge the customer so that you can have your profit markup of 10% over all of your costs. To calculate this, first figure out your cost per each session, add them up, and then add your profit.
2. What is the Per Session Price? This is the revenue that the customer pays you each time you complete a session. It is calculated by dividing the Total Price by the number of sessions.
3. What is the Break Even Point? At the beginning, your cost per session is more than your revenue per session. As each session is completed, however, your costs for the session declines so that eventually your cumulative revenue exceeds the cumulative cost. The break-even point is the session at which, for the first time, your revenue exceeds your cost.
4. Assume you win the contract and your customer likes the training so much, she orders a ninth course at the same price as the first eight. What will your profit be on the 9^th course?

The fact that insider trading consistently produces excess returns proves that the stock market is

1. Not strong form efficient
2. Not semi strong form efficient
3. Not weak form efficient
4. 100% efficient

The P/E ratio of a stock is roughly the reciprocal of

1. The debt ratio
2. The debt to equity ratio
3. The balance sheet ratio
4. The company’s return on equity

The recent drop in the stock market due to the Coronavirus is probably best classified as a

1. Systemic risk
2. non-systemic risk
3. fundamental risk
4. technical risk

Stock in X Corp. trades on the NYSE, is currently priced at $100 per share and has a beta of 1.6.  If the S&P 500 goes down by 2%, what would you expect the new price of X Corp shares to be?

                        Answer:  _____________________________  per share

In financial markets, the bid price is

1. the price at which you can buy a financial instrument
2. the price at which you can sell a financial instrument

In financial markets,

1. bid < ask
2. bid > ask
3. bid = ask

A stop-loss order will guarantee that you will not sell your stock below a certain price.  (T/F)   

In a short sale, you __________ shares today and __________ shares tomorrow.  (Fill in blanks)                         

Assume the average price available on eBay for a certain Broadway show is $100.00. Then the New York Times publishes a very favorable article about the show, and the number of people searching eBay for a ticket to this show increases dramatically. However, because the show is so "hot," there is no increase in the number of sellers on eBay.

Assume we are not in a COVID 19 world, so the theatres are still open. What will happen in the eBay market for tickets for this show?  

Group of answer choices

a.Demand increases but the quantity supplied does not, creating a shortage

b.Demand increases and the quantity supplied increases, resulting in higher prices

c.Demand increases but the quantity supplied does not, creating a surplus

d.Nothing, since $100 is the stated price on the ticket, prices will always be available on eBay at $100

A sample of 11 discount brokers showed a sample mean price charged for a trade of 100 shares at $50 per share was $35.80. Assume a population standard deviation of $6.40. Test the hypothesis that the mean price charged for a trade of 100 shares at $50 per share is at most $32 at a=0.0500. For the hypothesis stated above 1. What is the test statistic? (Answer must be typed to either 2 or 3 decimals depending on whether the Z table is appropriate). 2. What is the decision? Either A or B? A. Reject H0 B. Fail to reject H0 3. What is the p value ? Fill in only ONE of the following statements. A. If the Z table is appropriate, p value = ___ B. If the t table is appropriate, ___ < p-value < ___

1.) On June 13, the board of directors of Siewert Inc. declared a 5% stock dividend on its 120 million, $5 par, common shares, to be distributed on July 1. The market price of Siewert common stock was $23 on June 13.
Prepare a journal entry that summarizes the declaration and distribution of the stock dividend.

2.) On June 13, the board of directors of Siewert Inc. declared a 2-for-1 stock split on its 100 million, $1.00 par, common shares, to be distributed on July 1. The market price of Siewert common stock was $24 on June 13. Prepare a journal entry that summarizes the declaration and distribution of the stock split if it is to be effected in the form of a 100% stock dividend. What is the par per share after the split?

Capital component weights, cost of debt, cost of preferred stock, and cost of common equity.

Be sure to use 4 decimal places.

Current assets: 3,100

Property, plant and equipment: 3,400

Total assets: 6,500.

Current liablities: 1,500

Long term debt: 1,750

Preferred stock, $100 par: 500

Common stock, no par: 1,250

Retained earnings: 1,500

Total liabilities and equities: 6,500

Growth rate 7.5%

Coupon on new bonds: 7.75%

Corporate tax rate: 25%

Dividend on preferred: 8%

Price of common stock: $24.00

Price of $100 par value preferred: $75.00

Anticipated common dividend: $1.56

Flotation cost on preferred: $4.00

Flotation cost on common: $2.50

1) Suppose a country has a Perfectly Competitive market for a good where Demand is given as: P = 100 -.2Q and Supply is given as: P = 10 + 0.05Q.

A) In the absence of trade what the equilibrium values for P and Q.

B) Suppose the country can import the good at a price of 20. Determine the level of domestic consumption, the level of domestic production and the level of imports.

2. Now suppose this country's market was a Pure Monopoly where Demand is: P = 100 - 0.2Q and the firm's marginal cost is:

    MC = 10 + .05Q.

A) In the absence of trade what the equilibrium values for P and Q.

B) Suppose the country can import the good at a price of 20. Determine the level of domestic consumption, the level of domestic production and the level of imports.

Expansys Inc exports 100% of products outside of its currency area, 100% of which in a foreign currency (USD). The company produces €53 m. annual sales and hedges its currency risk on a quarterly basis. The EUR/USD spot rate is 1.09 (1.09 USD per 1 EUR) and three-month interest rates are 0.25% and 0.55% in EUR and USD, respectively. Find:

a. The quarterly risk exposure (in EUR and USD)

b. The 3-month forward exchange rate

c. The forward hedging strategy (contract specs)

d. The optimal choice between two forward contracts offered by Bank A (0.4% commission fee and 1.10 forward price) and Bank B (0.10% commission fee and 1.105 forward price)

Table contains some data about the economy of Potsteel. Assume that this is a complete record of the economy. Some parts of this question ask for numerical solutions. You must include both the final answer, and how you found that answer

Calculate the GDP deflator for 2017 to 2019, taking 2016 as the base year. Find the percentage change in GDP deflator for 2017 to 2019