+1-415-315-9853

info@mywordsolution.com

## Accounting

 Accounting Basics Cost Accounting Financial Accounting Managerial Accounting Auditing Taxation

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

### Assignmenta manufacturer of computer chips has a computer

Assignment A manufacturer of computer chips has a computer hardware company as its largest customer. The computer hardware company requires all of its chips to meet specifications of 1.2 cm. The vice-president of manufac ...

### There are many challenges and opportunities facing managers

There are many challenges and opportunities facing managers in the long-term care system of the future. Describe what skills managers will need to meet those challenges and opportunities, and specifically what skills you ...

### Assignment- cost concepts and types of costing1 given the

Assignment- Cost Concepts and Types of Costing 1. Given the cost formula, Y = \$7,000 + \$1.80X, what would be the total cost for an activity level of 4,000 units? A. \$7,200 B. \$7,000 C. \$200 D. \$14,200 2. In describing th ...

### You may have to start with a free trial with a credit card

You may have to start with a free trial with a credit card and cancel directly after this module submission. Once QuickBooksTM is loaded, you may have to reboot your computer. Setting up company: Go to Home page, select ...

### Assignmentplease complete the following exercises below in

Assignment Please complete the following exercises below in either Excel or a word document (but must be single document). You must show your work where appropriate (leaving the calculations within Excel cells is accepta ...

### Assignmentconsider the listing at 4815 catoctin san diego

Assignment Consider the listing at 4815 Catoctin San Diego, CA 92115 Price \$475,000 Bob Betty Homebuyers want to make an offer on this property at the list price. Bob earns \$48,000 per year and Betty earns \$54,000 per ye ...

### 1 at what position levels of employees is ethics an

1. At what position levels of employees is ethics an important part of decision making in a company? 2. The Foreign Corrupt Practices Act outlaws what type of business practices and how? 3. Conduct a Porter’s 5 forces an ...

### Describe six different subjects a risk manager should

Describe six different subjects a risk manager should include in a curriculum designed for physicians to engage them in patient safety practices. Describe what might be included in each of these modules. Before you do th ...

### Consider four different stocks all of which have a required

Consider four different stocks, all of which have a required return of 18.5 percent and a most recent dividend of \$3.65 per share. Stocks W, X, and Y are expected to maintain constant growth rates in dividends for the fo ...

### Paperwrite a five- to seven-page financial statement

Paper Write a five- to seven-page financial statement analysis of a public company, formatted according to APA style as outlined in the Ashford Writing Center. In this analysis, you will discuss the financial health of t ...

• 13,132 Experts

## 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.

### 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

### Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen