Which of the following usually does NOT typically appear in a stock quote in the financial press?
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Your broker offers you the opportunity to purchase a bond wi…
Your broker offers you the opportunity to purchase a bond with a coupon rate of 7% per year and a face value of $1,000. If the yield to maturity on similar bonds is 6%, this bond should:
You discover the engine-oil additive your scientists develop…
You discover the engine-oil additive your scientists developed three years ago makes a great men’s after-shave once diluted properly using certain chemicals. How should you treat the original $125,000 of research & development (R&D) expenditures from three years ago that went into developing the engine-oil additive for your present decision regarding whether or not to begin production of the after-shave?
A project costs $75,000, will be depreciated straight-line t…
A project costs $75,000, will be depreciated straight-line to zero over its 3 year life, and will require a net working capital investment of $6,000 up-front. The project generates an annual operating cash flow (OCF) of $30,000. The fixed assets will be sold for $7,000 at the end of the project. If the firm has a tax rate of 35% and a required return of 8%, what is the project’s NPV?
A situation in which taking one investment prevents the taki…
A situation in which taking one investment prevents the taking of another is called:
Investors can value a bond or stock by discounting its futur…
Investors can value a bond or stock by discounting its future cash flows at the rate of return required by the investor for taking on the risk of owning the bond or stock.
A project costs $75,000 and will be depreciated straight-lin…
A project costs $75,000 and will be depreciated straight-line to zero over its 4 year life. The project generates annual OCF of $22,000 and the fixed assets will be sold for $9,000 at the termination of the project. If the firm has a tax rate of 35% and a required return of 10%, what is the NPV?
What is the profitability index of the following investment…
What is the profitability index of the following investment if the required return = 6%? Year 0 1 2 3 CF -150 +$50 +$70 +$70
A project costs $100,000, will be depreciated straight-line…
A project costs $100,000, will be depreciated straight-line to zero over its 4 year life, and will require a net working capital investment of $5,000 up-front. The firm has a tax rate of 35% and a required return of 15%. The project generates an annual operating cash flow (OCF) of $45,000. What is the project’s NPV?
Which one of the following bonds has the LEAST amount of int…
Which one of the following bonds has the LEAST amount of interest rate risk?