Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Accounting Expert

problem1.  Auto Loans R Them loans you $24,000 for four years to buy a car. The loan must be repaid in 48 equal monthly payments. The annual interest rate on the loan is 9 percent. What is the monthly payment?

A) $500.92
B) $543.79
C) $563.82
D) $597.24

problem2.  It is your 6th birthday today. You have a trust fund with $50,000 that is earning 8% per year. You expect to withdraw $30,000 per year for 7 years starting on your 22nd birthday for graduate school. How much money will be left in the trust fund after your last withdrawal (rounded to the nearest $10)?

A) $125,660
B) $35,780
C) $4,140
D) You will not have enough money to pay for graduate school.

problem3. Your company has received a $50,000 loan from an industrial finance company. The annual payments are $6,202.70. If the company is paying 9 percent interest per year, how many loan payments must the company make?

A) 15
B) 13
C) 12
D) 19

problem4. What is the present value of an annuity of $4,000 received at the beginning of each year for eight years? The first payment will be received today, and the discount rate is 9% (round to nearest $1).

A) $36,288
B) $35,712
C) $25,699
D) $24,132

problem5. It is January 1st and Darwin Davis has just established an IRA (Individual Retirement Account). Darwin will put $1000 into the account on December 31st of this year and at the end of each year for the following 39 years (40 years total). How much money will Darwin have in his account at the end of the 40th year? Assume that the account pays 12% interest compounded annually and round your answer to the nearest $1000.

A) $93,000
B) $766,000
C) $767,000
D) $850,000

problem6. Charlie wants to retire in 15 years, and he wants to have an annuity of $50,000 a year for 20 years after retirement. Charlie wants to receive the first annuity payment the day he retires. Using an interest rate of 8%, how much must Charlie invest today in order to have his retirement annuity (round to nearest $10)?

A) $167,130
B) $200,450
C) $256,890
D) $315,240

problem7. Assume that you have $330,000 invested in a stock that is returning 11.50%, $170,000 invested in a stock that is returning 22.75%, and $470,000 invested in a stock that is returning 10.25%. What is the expected return of your portfolio?

A) 15.6%
B) 12.9%
C) 18.3%
D) 14.8%

problem8. Investment A has an expected return of 14% with a standard deviation of 4%, while investment B has an expected return of 20% with a standard deviation of 9%. Therefore

A) A risk adverse investor will definitely select investment A because the standard deviation is lower.
B) A rational investor will pick investment B because the return adjusted for risk (20% - 9%) is higher than the return adjusted for risk for investment A ($14% - 4%).
C) It is irrational for a risk-averse investor to select investment B because its standard deviation is more than twice as big as investment A's, but the return is not twice as big.
D) Rational investors could pick either A or B, depending on their level of risk aversion.

problem9. The investor is worried that the beta of his portfolio is too high, so he wants to sell some stock C and add stock D, which has a beta of 1.0, to his portfolio. If the investor wants his portfolio to have a beta of 1.72, how much stock C must he replace with stock D?

A) $18,000
B) $24,000
C) $31,000
D) $36,000

problem7. LRQ Inc. sold bonds on July 1, 2006. The bonds had a coupon rate of 5.5%, with interest paid semi-annually. The face value of the bonds is $1,000 and the bonds mature on July 1, 2021. What is the intrinsic value of an LRQ Corporation bond on July 1, 2012 to an investor with a required return of 7%?

A) $901.08
B) $902.27
C) $1,000.00
D) $1,104.28

problem8. Andre owns a corporate bond with a coupon rate of 8% that matures in 10 years. Ruth owns a corporate bond with a coupon rate of 12% that matures in 25 years. If interest rates go down, then

A) The value of Andre's bond will decrease and the value of Ruth's bond will increase.
B) The value of both bonds will increase.
C) The value of Ruth's bond will decrease more than the value of Andre's bond due to the longer time to maturity.
D) The value of both bonds will remain the same because they were both purchased in an earlier time period before the interest rate changed.

problem9. Assume that Bunch Inc. has an issue of 18-year $1,000 par value bonds that pay 7% interest, annually. Further assume that today's required rate of return on these bonds is 5%. How much would these bonds sell for today? Round off to the nearest penny.

A) $1,233.79
B) $1,201.32
C) $1,134.88
D) $1,032.56

problem10. Master Craft Control Inc. has bonds that mature in 6 1/2 years with a par value of $1,000. They pay a coupon rate of 9% with semi-annual payments. If the required rate of return on these bonds is 11% what is the bond's value?

A) $1,026.73
B) $973.76
C) $1,022.74
D) $908.83

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M93691

Have any Question? 


Related Questions in Financial Accounting

Bulllocate 1-2 articles from a news source that discusses

• Locate 1-2 articles from a news source that discusses the Federal Intelligence Surveillance Court (FISA Court) and write a 1-2 page paper that answers the following questions: 1. How and why was this court created? 2. ...

Research case-comparing financial reporting objectives gasb

Research Case-Comparing Financial Reporting Objectives. GASB Concepts Statement No. 1, "Objectives of Financial Reporting," states that "Accountability is the cornerstone of all financial reporting in government." FASB S ...

Assignmentpart 11crimpson company had the following petty

Assignment Part 1 1. Crimpson Company had the following petty cash transaction during January 2016: Jan. 1 Established a petty cash fund of $200 12 Reimbursed the fund for the following expenses: Supplies expense $65.00 ...

What does it mean to be jewish today select one of the

What does it mean to be Jewish today? Select one of the major branches of this faith—Orthodox, Reform, Conservative, Reconstructionist—and answer this question from the perspective of that group. Post must be at least 30 ...

Noting discussion of supreme court decisions 1 meritor

Noting discussion of Supreme Court decisions: 1) Meritor Savings Bank v. Mechelle Vinson and 2) Oncale v. Sundowner Offshore, research both cases online and respond to the following questions. 1. Provide a paragraph summ ...

Qualified stock purchaseabc corporation acquired 20 of xyz

Qualified Stock Purchase ABC Corporation acquired 20% of XYZ Corporation on January 2, April 1, June 1, October 1 and December 31 of the year 20x1. a. Has a qualified stock purchase taken place? How long does ABC Corpora ...

Excel project instructionsassume abc company has asked you

EXCEL PROJECT INSTRUCTIONS Assume ABC Company has asked you to not only prepare their 2015 year-end Balance Sheet but to also provide pro-forma financial statements for 2016. In addition, they have asked you to evaluate ...

Assignmentfinancial statement analysisprepare an eight- to

Assignment Financial Statement Analysis Prepare an eight- to ten-page fundamental financial analysis (excluding appendices, title page, abstract, and references page) that will cover each of the following broad areas bas ...

1 differentiate between economic rights and non-economic

1. Differentiate between economic rights and non-economic rights under the 14 th amendment. 2. Explain the importance of quality management and apply statistical quality control techniques. 3. To what extent do sole prop ...

Accounting assignmentproject datanoble company is a small

Accounting Assignment Project Data Noble Company is a small but growing manufacturer of telecommunications equipment. The company has no sales force of its own; rather, it relies completely on independent sales agents to ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro