You have an opportunity to invest

$50,700

now in return for

$59,300

in one year. If your cost of capital is

8.3%​,

what is the NPV of this​ investment?

The NPV will be

​(Round to the nearest​ cent.)

A certain stock market had a mean return of 2.6% in a recent year. Assume that the returns for stocks on the market were distributed normally, with a mean of 2.6 and a standard deviation of 10. Complete parts (a) through (g) below.

a. If you select an individual stock from this population, what is the probability that it would have a return less than 0 (that is, a loss)?

The probability is (Round to four decimal places)

b. If you select an individual stock from this population, what is the probability that it would have a return between -11 and -19?

The probability is (Round to four decimal places)

c. If you select an individual stock from this population, what is the probability that it would have a return greater than -7?

The probability is (Round to four decimal places)

d. If you select a random sample of four stocks from this population, what is the probability that the sample would have a mean return less than 0 (a loss)?

e. If you select a random sample of four stocks from this population, what is the probability that the sample would have a mean return between -11 and -19?

The probability is (Round to four decimal places)

Compute the allowable BOOK depreciation amounts for each year of a machine that costs $55,000 to purchase, and $4,000 to install with a 5 year life. Use the DDB method (factor=2) switching to straight line and salvage=0. What is the allowable depreciation for year 4?

The answer is not 5098!!!

Derek will deposit $5,939.00 per year for 18.00 years into an account that earns 14.00%, The first deposit is made next year. He has $10,013.00 in his account today. How much will be in the account 36.00 years from today?

Derek will deposit $4,592.00 per year for 13.00 years into an account that earns 7.00%. Assuming the first deposit is made 6.00 years from today, how much will be in the account 35.00 years from today?

Suppose you deposit $2,798.00 into an account today that earns 10.00%. In 5.00 years the account will be worth $________.

A 10.25%, 14-year convertible bond has a conversion rate of 19 and is selling at a quote of 98.40. The common stock is selling at $35 and comparable non-convertible bonds are yielding 13%. The common stock pays an annual dividend of $1.50 per share.

A. Calculate the conversion value of the bond

B. Calculate the conversion premium (if any)

C. Calculate the investment value of the bond

D. Calculate the investment premium (if any)

E. Calculate the payback period

1. Stacie and Ryan are married and file jointly for the 2020 tax year. They have two sons. Their sons are age 10 and 14. Stacie and Ryan’s wages in total for the year was $133,000. Their employers withheld $18,000 in tax from their wages. In addition to the above, the following occurred the tax year:

• They moved several states away because of career relocation for Ryan. Their unreimbursed moving costs were $10,000.
• Stacie and Ryan pay $3,500 of the interest on a loan Ryan’s postsecondary education.
• They paid $2,000 in medical insurance premiums for the year. In addition, they paid $1,000 for hospital stay after an emergency room trip for Stacie.
• The couple paid $250 for an accountant to prepare their taxes.
• Their accountant calculates that their total state income tax liability is $4,000. The couple pay all their state taxes for the year.

1. Determine Stacie and Ryan’s AGI. (6 points)

$133,000 - $2500 = $130,500

2. Ignore your answer in a). Assume that Stacie and Ryan’s AGI for the year is $120,600. Determine the amount of itemized deduction Stacie and Ryan have available this year. (7 points)

3. Ignore your answer in b). Assume that the amount of itemized deduction available is $7,500. Using the 2020 standard deduction amounts (assuming no additional amounts for age or blindness) from Appendix D in your book, first determine whether Stacie and Ryan itemize or take the standard deduction. If you determine they itemize, write in the itemized deduction dollar amount given ($7,500). Alternatively, if you determine they will take the standard deduction, write in the standard deduction amount for which they qualify (tied to the appropriate filing status). (6 points)

4. Ignore your answer in a) - c). Assume that Stacie and Ryan’s taxable income is $163,250 and their employer withheld $18,000 in tax from their wages. Using the tax rate schedule from Appendix D in your book, determine the amount of taxes due or the amount of refund due. Remember to clearly mark the answer as either the amount of tax due or a refund due (e.g. refunds are negative amounts as represented with parentheses or a negative sign). Assume AMT does not apply, and there are no tax credits available. (6 points)

2. Shela is single and works for a law firm. In the 2020 tax year, she made $110,000 this year in salary and $10,000 of gross interest income from a corporate bond. Her law firm withheld $16,000 of tax from her salary this year. In addition to the above, the following occurred this year:

• She paid $7,000 in interest on her mortgage for her primary residence.
• She had a rental loss (had greater expenses as a landlord than revenue) by $2,000.
• She sold stock she had held for 9 months at $4,000 less than her tax basis at the time of the sale.
• Shela owned a 20% interest in a partnership during the year. The partnership had a $20,000 loss from operations during the year and made no distributions.
• Shela volunteers for the Red Cross using her legal skills to do administrative work for the charity. She estimates her time volunteering is worth $5,000.

1. Determine Shela’s AGI. (6 points)

2. Ignore your answer in a). Assume that Shela’s AGI in 2020 is $148,380. Determine the amount of itemized deduction Shela has available this year. (7 points)

3. Ignore your answer in b). Assume that the amount of itemized deduction available is $13,665. Using the 2020 standard deduction amounts (assuming no additional amounts for age or blindness) from Appendix D in your book, first determine whether Shela will itemize or take the standard deduction. If you determine she itemizes, write in the itemized deduction dollar amount given ($13,665). Alternatively, if you determine she will take the standard deduction, write in the standard deduction amount for which she qualifies (tied to the appropriate filing status). (6 points)

4. Ignore your answer in a) - c). Assume that Shela’s taxable income is $136,970 and her employer withheld $16,000 in tax from their wages. Using the tax rate schedule from Appendix D in your book, determine the amount of taxes due or the amount of refund due. Remember to clearly mark the answer as either the amount of tax due or a refund due (e.g. refunds are negative amounts as represented with parentheses or a negative sign). Assume AMT does not apply, and there are no tax credits available. (6 points)

Wang Company provides the following information for their first year of operation:

   Sales                         5,000 units @ $10                   Variable production costs per unit:     

   SG&A costs:                                                                        Direct materials          $2

     Fixed                    $1,000                                                 Direct labor                 $2

      Variable                $1 per unit                                           Var MOH                    $1

Fixed MOH             $7,500                                     Production                              7,500 units

   (T or F) If Wang uses variable costing, operating income will be $11,500.

True

False

Bond ABC is currently (year 2020) selling at 105% of par value, it matures by the end of 2030 but callable by the end of 2025.

When it is called in 2025, there is 6% call premium. The annual coupon rate is 8%. It is an annual coupon bond, and 2020's coupon has not been distributed to investors yet.

What is Bond ABC’s Yield to Call if you purchase it right now? (Please round up your answers to two decimals and write in percentage points without the sign. e.g. If your answer is 12.859%, type 12.86 without the percentage sign)