6.)The prime rate is the interest rate banks charge their best customers, and is 3% above the Federal Funds rate..
7.)Capital markets are market for
A.For financial assets with a maturity of less then one year
B.For financial assets with a maturity of more then one year
C.For use in cash transactions
D.For use in foreign exchange transactions
8.)If a firm's board of directors wants to maximize value for its stockholders in general (as opposed to some specific stockholders), it should design an executive compensation system whose goal is to maximize the stock's intrinsic value rather than the stock's current market price.
9.) IPO stands for initial public offering and is usually handled by investment banks.
10.)The Federal Funds Rate is influenced by the FOMC and is currently 2.25%.
11.)There are twelve members on the FOMC. Seven of which are employed by the Federal Reserve, the other five are not.
In: Finance
If expectations about the future course of the economy don't
change at all, then a large increase in wealth will
generally:
Question 34 options:
|
decrease savings at a given interest rate and shift the supply curve for loanable funds to the right. |
|
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increase savings at a given interest rate and shift the supply curve for loanable funds to the left. |
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increase savings at a given interest rate and shift the supply curve for loanable funds to the right. |
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decrease savings at a given interest rate and shift the supply curve for loanable funds to the left. |
If purchasing power parity holds between Canada and the USA:
Question 37 options:
|
it makes no difference whether one shops in Canada using Canadian $ or in the USA using US $. |
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the nominal exchange rate must be 1. |
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trade must be balanced between the two countries. |
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Canada must no longer have a trade deficit. |
If money has intrinsic value, it has:
Question 40 options:
|
value that is conferred by fiat. |
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None of these is true. |
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value unrelated to its use as money. |
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value only as its use as money. |
In Canada over the last 50 years:
Question 42 options:
|
the percentage of GDP that represents imports and exports has remained fairly steady. |
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the economy had become much more open to foreign trade. |
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both imports and exports have fallen dramatically. |
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imports have grown, and exports have fallen. |
During times of economic recovery, the labour force participation rate typically:
Question 44 options:
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falls, as more incomes per household are needed to make ends meet. |
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rises, as more people need work. |
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rises, as discouraged workers start looking hard for work. |
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falls, as more people quit their jobs when times are good. |
When the economy is producing at a quantity that is less than its long-run aggregate supply:
Question 48 options:
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it is pushing some of its resources to operate beyond capacity. |
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the short-run aggregate supply curve will shift to the left |
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in the absence of government intervention, the short-run aggregate supply curve will shift to the right. |
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the aggregate demand curve will shift to the right. |
In: Economics
The expected return on Natter Corporation’s stock is 18%. The stock’s dividend is expected to grow at a constant rate of 14%, and it currently sells for $50 a share. Which of the following statements is CORRECT?
a. The stock price is expected to be $57 a share one year from now.
b. The current dividend per share is $4.00.
c.The stock’s dividend yield is 8%.
d.The stock’s dividend yield is 7%.
e.The stock price is expected to be $54 a share one year from now.
In: Finance
Dillon Labs has asked its financial manager to measure the cost of each specific type of capital as well as the weighted average cost of capital. The weighted average cost is to be measured by using the following weights: 40% long-term debt, 20% preferred stock, and 40% common stock equity (retained earnings, new common stock, or both). The firm's tax rate is 25%.
Debt The firm can sell for $980 a 13-year, $1,000-par-value bond paying annual interest at a 7.00% coupon rate. A flotation cost of 2% of the par value is required in addition to the discount of $20 per bond.
Preferred stock 8.00% (annual dividend) preferred stock having a par value of $100 can be sold for $85. An additional fee of $3 per share must be paid to the underwriters.
Common stock The firm's common stock is currently selling for $50 per share. The dividend expected to be paid at the end of the coming year (2016) is $3.16. Its dividend payments, which have been approximately 50% of earnings per share in the past 5 years, were as shown in the following table:
Year Dividend
2015 2.95
2014 2.76
2013 2.58
2012 2.41
2011 2.25
It is expected that to attract buyers, new common stock must be
underpriced $6 per share, and the firm must also pay $2.00 per
share in flotation costs. Dividend payments are expected to
continue at 50% of earnings. (Assume that rr =
rs)
a. The after-tax cost of debt using the bond's yield to
maturity (YTM) is? (Round to two decimal places.)
-The after-tax cost of debt using the approximation formula is?
(Round to two decimal places.)
b. The cost of preferred stock is? (Round to two decimal
places.)
c. The cost of retained earnings is? (Round to two decimal
places.)
-The cost of new common stock is? (Round to two decimal
places.)
d. Using the cost of retained earnings, the firm's WACC is?
(Round to two decimal places.)
Using the cost of new common stock, the firm's WACC is? (Round to
two decimal places)
In: Finance
Write a java program that lets the user to enter any two integers and weave them digit by digit and print the result of weaving their digits together to form a single number. Two numbers x and y are weaved together as follows. The last pair of digits in the result should be the last digit of x followed by the last digit of y. The second-to-the-last pair of digits in the result should be the second-to- the-last digit of x followed by the second-to-the-last digit of y. And so on.
You should write weaveNumber method that works as following examples weaveNumber( 271 ,389).should return 237819. If one of the numbers has more digits than the other, you should imagine that leading zeros are used to make the numbers of equal length. For example, weaveNumber(2384, 12) should return 20308142 (as if it were a call on weaveNumber(2384, 0012)). Similarly, weaveNumber(9, 318) should return 30198 (as if it were a call on weaveNumber(009, 318)).
In: Computer Science
Question 3 [7]
Identify and briefly describe seven (7) policy measures that have
been proposed and
instituted to address structural unemployment in South Africa.
Question 4 [18]
In the aftermath of Covid-19, a further decrease in government
expenditure can be expected
to be announced by the minister. Discuss in detail the internal and
external effects of such
an expected decrease in government expenditure. In your answer,
address the expected
primary effect in terms of the real side of the economy, as well as
other monetary effects
expected, such as effects in the money market, the expected foreign
reserves adjustment
process and the expected exchange rate adjustment process, all as
part of the secondary
Question 6 [17]
Using diagrams, illustrate and explain in detail what the basic
idea of macroequilibrium is.
Tip: Use two diagrams next to each other.
Question 7 [14]
7.1. Indicate which variables that are relevant to the IS and LM
curves will help you
remember which curve is which. (4)
7.2. Draw a diagram of a typical IS-LM model and on the diagram
indicate the changes in
all the variables should there be an increase in aggregate
expenditure causing a shift
of the IS curve to the right (indicate the shift in the IS curve on
your diagram). Label
the axes properly. (5)
7.3. Interpret the diagram that you have drawn for 7.2 and briefly
explain your
understanding of what the IS-LM model is reflecting in terms of
macroeconomics. (5)
Question 8 [15]
8.1. Define the balance of payments (BoP) of a country. Also
explain what the current
account of the BoP records and what the financial account of the
BoP reflects. (6)
8.2. Which important factors determine the volume of imports in a
country such as South
Africa? (4)
8.3. What does the term “net exports” mean and what is a direct
component of net exports
in real terms? (2)
8.4. Explain in detail what capital flows reflect in terms of the
BoP analysis and what flows
are included.
effect
In: Economics
Beryl's Iced Tea currently rents a bottling machine for $51,000 per year, including all maintenance expenses. It is considering purchasing a machine instead and is comparing two options:
a. Purchase the machine it is currently renting for $160,000. This machine will require $23,000 per year in ongoing maintenance expenses.
b. Purchase a new, more advanced machine for $260,000. This machine will require $19,000 per year in ongoing maintenance expenses and will lower bottling costs by $13,000 per year. Also, $38,000 will be spent up front to train the new operators of the machine. Suppose the appropriate discount rate is 7% per year and the machine is purchased today. Maintenance and bottling costs are paid at the end of each year, as is the cost of the rental machine. Assume also that the machines will be depreciated via the straight-line method over seven years and that they have a 10-year life with a negligible salvage value. The marginal corporate tax rate is 40%.
Should Beryl's Iced Tea continue to rent, purchase its current machine, or purchase the advanced machine? To make this decision, calculate the NPV of the FCF associated with each alternative.
In: Finance
Considering the following projects.
Project | Year | 0 | 1 | 2 | 3 | 4 |
A | Cash flows | -$100 | $35 | $35 | $35 | $35 |
B | Cash flows | -$100 | $60 | $50 | $40 | $30 |
Project A has WACC = 6.00% while project B has WACC = 8.50%.
If these two projects are mutually exclusive, which project should the company accept based on the NPV, IRR, MIRR, payback, and discounted payback period for each project?
Would your decision (Your answer from part A) change if these two projects were independent?
In: Finance
Suppose the probabilities of having a boy or a girl child are the same—both are 50%. Answer the following questions about a couple that has two children, showing any calculations.
a. What is the probability that the couple has two girls?
b. The eldest of the two children is a girl. Given this, what is the probability that the couple has two girls?
c. At least one of the children is a girl. What is the probability that the couple has two girls?
Your answers to a, b, and c should all be different numbers. Explain why each is different from the others. (Hint: (b) specifies that the older child is a girl, while (c) simply states that one of the two children is a girl without indicating whether it’s the older or younger child.)
In: Statistics and Probability
Question 1.
Khan is running a flower shop since last five years successfully. He has five employees like two salesmen, one cleaner, one shop manager and one accountant. Business growing continuously and expending, so he has opened some more shops in other cities. Due to too much load in accountant department, he decided to do some task himself like to be maintaining cash book, bank dealing and other cash related issues. Ali is commerce graduate, but he is not good in MS. Excel, being a friend you decided to teach him how to maintain three column cash books in MS. Excel The records for the
month of March 2020 transactions are as mentioned below
2020
March .
8. Purchased a used office equipment OMR 1,200. Spent OMR 50 on its repair.
10. Received a purchase order for OMR. 250 from KM LLC.
11 Issued a cheque for OMR 6,500 to ABC Traders in full settlement of his account OMR 6,750.
12. Withdrew from bank OMR 1,000.
15. Received a cheque OMR 2,500 from CDC traders settled his account OMR2,800.
18. Withdrew for personal use OMR 1,000.
20. Purchased machinery from ABC LLC for OMR 5,000 and paid 40% by cash and balance paid by cheque.
24. Paid ROP fine OMR 200. (Online).
31. Paid carriage charges OMR. 50 by cash.
Required: -Prepare three columns cash book for the month using MS Excel.
In: Accounting