{"id":43964,"date":"2022-03-21T14:58:21","date_gmt":"2022-03-21T14:58:21","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/fin-515-midterm-exam-accounting-homework-help\/"},"modified":"2022-03-21T14:58:21","modified_gmt":"2022-03-21T14:58:21","slug":"fin-515-midterm-exam-accounting-homework-help","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/fin-515-midterm-exam-accounting-homework-help\/","title":{"rendered":"Fin 515 midterm exam | Accounting homework help"},"content":{"rendered":"
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Week 4 : Business Valuation and Stock Valuation – Exam <\/span><\/strong><\/p>\n

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1. <\/span><\/strong>(TCO A) Which of the following statements is CORRECT?<\/span><\/p>\n

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2. <\/span><\/strong>(TCO G) Smith & Constantine Inc. recently announced that their net income increased sharply from the previous year, yet their net cash flow from operations declined. Which of the following could explain this performance?<\/span><\/p>\n

\u00a0<\/span><\/p>\n

3. <\/span><\/strong>(TCO G) Lucky Corp. has $312,900 of assets, and it uses only common equity capital (zero debt). Its sales for the last year were $620,000, and its net income after taxes was $24,655. Stockholders recently voted in a new management team that has promised to lower costs and get the return on equity up to 15%. What profit margin would Lucky Corp. need in order to achieve the 15% ROE, holding everything else constant?<\/span><\/p>\n

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4. <\/span><\/strong>(TCO B) Suppose a state of Delaware bond will pay $1,000 10 years from now. If the going interest rate on these 10-year bonds is 5.5%, how much is the bond worth today? <\/span><\/p>\n

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5. <\/strong>(TCO B) Your father paid $10,000 (CF at t = 0) for an investment that promises to pay $750 at the end of each of the next five years, then an additional lump sum payment of $10,000 at the end of the fifth year. What is the expected rate of return on this investment?<\/span><\/p>\n

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6. (TCO B) Suppose you borrowed $14,000 at a rate of 10.0% and must repay it in five equal installments at the end of each of the next five years. How much interest would you have to pay in the first year? <\/span><\/p>\n

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7. <\/span><\/em><\/strong>\u00a0<\/span><\/strong>(TCO D) A 15-year bond with a face value of $1,000 currently sells for $850. Which of the following statements is CORRECT?<\/span><\/p>\n

\u00a0<\/span><\/p>\n

8. <\/span><\/strong>(TCO D) Garvin Enterprises\u2019 bonds currently sell for $1,150. They have a six-year maturity, an annual coupon of $85, and a par value of $1,000. What is their current yield?<\/span><\/p>\n

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9. (TCO C) 5-year Treasury bonds yield 5.5%. The inflation premium (IP) is 1.9%, and the maturity risk premium (MRP) on five-year bonds is 0.4%. What is the real risk-free rate, r*?<\/span><\/p>\n

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10. (TCO C) Assume that to cool off the economy and decrease expectations for inflation, the Federal Reserve tightened the money supply, causing an increase in the risk-free rate, rRF. Investors also became concerned that the Fed’s actions would lead to a recession, and that led to an increase in the market risk premium, (rM – rRF). Under these conditions, with other things held constant, which of the following statements is most correct?<\/span><\/p>\n

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\u00a0<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Week 4 : Business Valuation and Stock Valuation – Exam \u00a0 1. (TCO A) Which of the following statements is CORRECT? \u00a0 2. (TCO G) Smith & Constantine Inc. recently announced that their net income increased sharply from the previous year, yet their net cash flow from operations declined. Which of the following could explain […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-43964","post","type-post","status-publish","format-standard","hentry","category-education"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/43964","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=43964"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/43964\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=43964"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=43964"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=43964"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}