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Words 2652

Pages 11

Take Home Problem Set 4

Fall 2015

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Directions: This problem set covers chapters 8, 9 and 10 in the textbook. Determine or compute an answer for each question/problem. After you have computed an answer for every question, enter your answers online via the “quiz” function entitled “THPS-4 ANSWER SUBMISSION FORM.” See the course calendar for when the answer submission form will open and close. I will post a detailed solution key to the problem set right after the Answer Submission Form closes. See the course calendar for the day(s) on which I will answer questions about these problems in the chat room.

This is a take-home, open book, open notes financial statement analysis problem set. Work on this Assignment is to be yours alone - any discussion of either the questions on the assignment or your answers with anyone other than your instructor will be considered as cheating and, thus, as a violation of the GSU honor code.

All questions are equally weighted.

PART I: MULTIPLE CHOICE – Choose the letter of the most correct answer for each question. Record only one answer per question. Each question is worth 4 points.

1. IS THE FOLLOWING STATEMENT TRUE or FALSE? “A financial security is simply a contract between the provider of funds and the user of these funds that clearly specifies the amount of money that has been provided and the terms and conditions of how the user is going to repay the provider.”

a. True b. False

2. A consol is a bond that:

a. Pays a fixed annual coupon amount, and when originally issued, is set to mature in 30 years. b. Pays a fixed annual coupon amount, and when originally issued, is set to mature in 50 years.

c. Does not pay an annual coupon (i.e., the annual coupon payment is $0) but when it matures pays out the par…...

...Problem Set 4 Complete all questions listed below. Clearly label your answers. 1. What determines whether a financial asset is included in the M1 money supply? Why are interest-earning checkable deposits included in M1, whereas interest-earning savings accounts and Treasury bills are not? A financial assest is included in the M1 money supply when it can be quickly converted into the physical form of money, such as dollars and coins. Interested-earning checkable deposits are included because it can be quickly accessible without limitations, such as a checking account. Interest earning savings accounts and Treasury bills are short term investments and may have a time limit. 2. Why are banks able to maintain reserves that are only a fraction of the demand and savings deposits of their customers? Is your money safe in a bank? Why or why not? Savings cannot always be withdrawn and are more stable than checking accounts, as a result banks need to maintain reserves against their checking accounts (Gwartney, et al. 2013). Yes, money is safe in banks because the Federal Deposit Insurance Corporation (FDIC) was established in 1934 as a result of the 1922 to 1933 bank runs. This insurance insures me up to $250,000 per account if the bank fails. 3. What is the Federal Funds Interest rate? if the Fed wants to use open market operations to lower the federal funds rate, what action should it take? Federal Funds Interest rate is the interest rate at which the borrowing......

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..."Prepare responses to Problem Sets P2-6A (Page 85-86), and P13-2A (Page 731-732), from Chapter 2 and 13 of Financial Accounting: Tools for business decision making (6th ed.) by John Wiley & Sons." P2-6A Condensed balance sheet and income statement data for Sievert Corporation "SIEVERT CORPORATION Balance Sheets December 31" Assets 2012 2011 Cash $28,000 $20,000 Receivables (net) 70,000 62,000 Other current assets 90,000 73,000 Long-term investments 62,000 60,000 Plant and equipment (net) 510,000 470,000 Total assets $760,000 $685,000 Liabilities and Stockholders’ Equity Current liabilities 75,000 70,000 Long-term debt 80,000 90,000 Common stock 330000 300000 Retained earnings 275000 225000 Total liabilities and stockholders’ equity 760,000 685,000 "SIEVERT CORPORATION Income Statement For the Years Ended December 31" 2012 2011 Sales $750,000 $680,000 Cost of goods sold 440,000 400,000 Operating expenses (including income taxes) 240,000 220,000 Net income $70,000 $60,000 Additional information: Cash from operating activities $82,000 $56,000 Cash used for capital expenditures $45,000 $38,000 Dividends paid $20,000 $15,000 Average number of shares......

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...PROBLEM 4-2A | (a) | Date | | Account Titles | | Debit | | Credit | 1. | 2012 June 30 | | Supplies Expense Supplies ($2,000 – $720) | | 1,280 | | 1,280 | | | | | | | | | 2. | 30 | | Utilities Expense Accounts Payable | | 180 | | 180 | | | | | | | | | 3. | 30 | | Insurance Expense Prepaid Insurance ($2,880 ÷ 12 months) | | 240 | | 240 | | | | | | | | | 4. | 30 | | Unearned Service Revenue Service Revenue | | 4,100 | | 4,100 | | | | | | | | | 5. | 30 | | Salaries and Wages Expense Salaries and Wages Payable | | 1,250 | | 1,250 | | | | | | | | | 6. | 30 | | Depreciation Expense Accumulated Depreciation— Equipment | | 250 | | 250 | | | | | | | | | 7. | 30 | | Accounts Receivable Service Revenue | | 3,900 | | 3,900 | (b) Cash | 6/30 Bal. 6,850 | | Accounts Receivable | 6/30 Bal. 7,000 6/30 3,900 | | 6/30 Bal. 10,900 | | | | Prepaid Insurance | 6/30 Bal. 2,880 | 6/30 240 | 6/30 Bal. 2,640 | | Supplies | 6/30 Bal. 2,000 | 6/30 1,280 | 6/30 Bal. 720 | | PROBLEM 4-2A (Continued) Equipment | 6/30 Bal. 15,000 | | Accumulated Depreciation— Equipment | |......

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...------------------------------------------------- Top of Form Problem Set 4- Part A Table of Contents Part 1 of 1 - | Question 1 of 5 | 10.0 Points | Joe quits his computer programming job, where he was earning a salary of $50,000 per year, to start . He opens his own computer software business store in a building that he owns and was previously renting out for $24,000 per year. In his first year of business he has the following expenses: mortgage $18,000, salary paid to himself, $40,000; rent, $0; other expenses, $25,000. Find the economic cost associated with Joe's computer software business. | | | A. $83,000 | | | | B. $99,000 | | | | C. $81,000 | | | | D. $65,000 | | Reset Selection | Question 2 of 5 | 10.0 Points | Imagine that the total cost function is described by C(q)=64+(q^2)-12q. The marginal cost (MC) and average cost (AC) are | | | A. MC= 2q-12 AC= (64/q) + q - 12 | | | | B. MC= 64 AC= (64/q) + q - 12 | | | | C. MC= q-12 AC= 64 | | | | D. MC= 2q-12 AC= q - 12 | | Reset Selection | Question 3 of 5 | 10.0 Points | The previous technology (described by C(q)=64+(q)²-12q) exhibits diseconomies of scale whenever output is bigger than | | | A. 5 | | | | B. 6 | | | | C. 7 | | | | D. 8 | | Reset Selection | Question 4 of 5 | 5.0 Points | Last year, your firm purchased a building for $200,000 in cash. Real estate prices have been holding steady,......

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...Problem Set 4 Name: ________Kristina Silva______________________________________ Problem Set 4 is to be completed by 11:59 p.m. (ET) on Friday of Module/Week 8. 1. Movies are distributed in a variety of forms, not just first run theatrical presentations. What other ways are movies distributed? What are the different price points? Using this information, draw a fully labeled graph of the market for movies in which the distributor of the film price discriminates. (NOTE: This should not be perfect price discrimination.) There are retailers whe sell DVD or videos and then there are live streaming ways to distribute movies such as Netflix. (Q1 is vidoes/DVD’s, Q2 is Netflix) 2. Assume the following game is played one time only. Based on the information in the payoff matrix, PNC Bank and Citizens Bank are considering an implicit collusive agreement on interest rates. Payoffs to the two firms are represented in terms of profits in thousands of dollars: | | |Citizens Bank | | | | |Collude: Raise Rates |Defect: Keep Rates where they | | | | |are | |PNC |Collude: Raise Rates...

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...ECON 214 Problem Set 4 Problem Set 5 Problem Set 6 Click below link for Answer http://workbank247.com/q/problem-set-4-problem-set-5-problem-set-6/11317 http://workbank247.com/q/problem-set-4-problem-set-5-problem-set-6/11317 PROBLEM SET 4 Complete all questions listed below. Clearly label your answers. 1. What determines whether a financial asset is included in the M1 money supply? Why are interest-earning checkable deposits included in M1, whereas interest-earning savings accounts and Treasury bills are not? 2. Why are banks able to maintain reserves that are only a fraction of the demand and savings deposits of their customers? Is your money safe in a bank? Why or why not? 3. What is the Federal Funds Interest rate? if the Fed wants to use open market operations to lower the federal funds rate, what action should it take? 4. Suppose that the reserve requirement is 10 percent and the balance sheet of the People\'s National Bank looks like the accompanying example. a. What are the required reserves of People\'s National Bank? Does the bank have any excess reserves? b. What is the maximum loan that the bank could extend? c. Indicate how the bank\'s balance sheet would be altered if it extended this loan (show the new t-account). d. Suppose that the required reserves were 20 percent. If this were the case, would the bank be in a position to extend any additional loans? Explain. ......

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...ECON 214 Problem Set 4 Problem Set 5 Problem Set 6 Click below link for Answer http://workbank247.com/q/problem-set-4-problem-set-5-problem-set-6/11317 http://workbank247.com/q/problem-set-4-problem-set-5-problem-set-6/11317 PROBLEM SET 4 Complete all questions listed below. Clearly label your answers. 1. What determines whether a financial asset is included in the M1 money supply? Why are interest-earning checkable deposits included in M1, whereas interest-earning savings accounts and Treasury bills are not? 2. Why are banks able to maintain reserves that are only a fraction of the demand and savings deposits of their customers? Is your money safe in a bank? Why or why not? 3. What is the Federal Funds Interest rate? if the Fed wants to use open market operations to lower the federal funds rate, what action should it take? 4. Suppose that the reserve requirement is 10 percent and the balance sheet of the People\'s National Bank looks like the accompanying example. a. What are the required reserves of People\'s National Bank? Does the bank have any excess reserves? b. What is the maximum loan that the bank could extend? c. Indicate how the bank\'s balance sheet would be altered if it extended this loan (show the new t-account). d. Suppose that the required reserves were 20 percent. If this were the case, would the bank be in a position to extend any additional loans? Explain. ......

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...CT 246 Week 4 Lab – New 2015 http://www.devryguiders.com/downloads/ect-246-week-4-lab-new-2015/ CT 246 Week 4 Lab – New 2015 http://www.devryguiders.com/downloads/ect-246-week-4-lab-new-2015/ CT 246 Week 4 Lab – New 2015 http://www.devryguiders.com/downloads/ect-246-week-4-lab-new-2015/ CT 246 Week 4 Lab – New 2015 http://www.devryguiders.com/downloads/ect-246-week-4-lab-new-2015/ CT 246 Week 4 Lab – New 2015 http://www.devryguiders.com/downloads/ect-246-week-4-lab-new-2015/ CT 246 Week 4 Lab – New 2015 http://www.devryguiders.com/downloads/ect-246-week-4-lab-new-2015/ CT 246 Week 4 Lab – New 2015 http://www.devryguiders.com/downloads/ect-246-week-4-lab-new-2015/ CT 246 Week 4 Lab – New 2015 http://www.devryguiders.com/downloads/ect-246-week-4-lab-new-2015/ CT 246 Week 4 Lab – New 2015 http://www.devryguiders.com/downloads/ect-246-week-4-lab-new-2015/ CT 246 Week 4 Lab – New 2015 http://www.devryguiders.com/downloads/ect-246-week-4-lab-new-2015/ CT 246 Week 4 Lab – New 2015 http://www.devryguiders.com/downloads/ect-246-week-4-lab-new-2015/ CT 246 Week 4 Lab – New 2015 http://www.devryguiders.com/downloads/ect-246-week-4-lab-new-2015/ CT 246 Week 4 Lab – New 2015 http://www.devryguiders.com/downloads/ect-246-week-4-lab-new-2015/ CT 246 Week 4 Lab – New 2015 http://www.devryguiders.com/downloads/ect-246-week-4-lab-new-2015/ CT 246 Week 4 Lab – New......

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...FIN 515 Week 4 Problem Set http://www.homeworkwarehouse.com/downloads/fin-515-week-4-problem-set/ FIN 515 Week 4 Problem Set Bonds-1. Interest on a certain issue of bonds is paid annually with a coupon rate of 8%. The bonds have a par value of $1,000. The yield to maturity is 9%. What is the current market piece of these bonds? The bonds will mature in 5 years. Bonds-2. A certain bond has 12 years left to maturity. Interest is paid annually at a coupon rate of 10%. The bonds are currently selling for $850. What is their YTM? Bonds-3. A certain bond pays a semiannual coupon rate at a 10% annual rate. The bond has a par value of $1,000. There are eight years to maturity. The yield to maturity is 9%. What is the current price of the bond? Bonds-4. A particular corporate bond has a par value of $1,000. Coupon payments are $40 and are paid twice a year. Seven years are left on the life of the bond.The YTM is 9%. What is the price of the bond? Bond-5. A given bond has 5 years to maturity. It has a face value of $1,000. It has a YTM of 5% and the coupons are paid semiannually at a 10% annual rate. What does the bond currently sell for? Bond-6. A given bond has five years left to maturity. Interest is paid annually and the annual coupon rate is 9%. The par value of the bond is $1,000. The bond currently sells for $1,000. What is the yield to maturity? 9-1.Assume Evco, Inc., has a current price of $50 and will pay a $2 dividend in 1 year, and its equity cost of capital is......

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...ACC 455 Week 4 Problem Set http://www.tutoriallance.com/shop/uncategorized/acc-455-week-4-problem-set/ For any inquiry email us: Tutoriallance@gmail.com Visit Website For More Tutorials : http://www.tutoriallance.com/ C:6-5 Compare the tax consequences to the shareholder and the distributing corporation of the following three kinds of corporate distributions: ordinary dividends, stock redemptions, and complete liquidations. Current E&P Computation.Water Corporation reports $500,000 of taxable income for the current year. The following additional information is available: • For the current year, Water reports an $80,000 long-term capital loss and no capital gains. • Taxable income includes $80,000 of dividends from a 10%-owned domestic corporation. • Water paid fines and penalties of $6,000 that were not deducted in computing taxable income • In computing this year’s taxable income, Water deducted a $20,000 NOL carryover from a prior tax year. • Water claimed a $10,000 U.S. production activities deduction. • Taxable income includes a deduction for $40,000 of depreciation that exceeds the depreciation allowed for E&P purposes. Assume a 34% corporate tax rate. What is Water’s current E&P for this year? Comparison of Dividends and Redemptions.Bailey is one of four equal unrelated shareholders of Checker Corp. Bailey has held Checker stock for four years and has abasis in her stock of $40,000. Checker has $280,000 of current and accumulated......

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...FIN 515 Week 4 Problem Set http://www.homeworkwarehouse.com/downloads/fin-515-week-4-problem-set/ FIN 515 Week 4 Problem Set Bonds-1. Interest on a certain issue of bonds is paid annually with a coupon rate of 8%. The bonds have a par value of $1,000. The yield to maturity is 9%. What is the current market piece of these bonds? The bonds will mature in 5 years. Bonds-2. A certain bond has 12 years left to maturity. Interest is paid annually at a coupon rate of 10%. The bonds are currently selling for $850. What is their YTM? Bonds-3. A certain bond pays a semiannual coupon rate at a 10% annual rate. The bond has a par value of $1,000. There are eight years to maturity. The yield to maturity is 9%. What is the current price of the bond? Bonds-4. A particular corporate bond has a par value of $1,000. Coupon payments are $40 and are paid twice a year. Seven years are left on the life of the bond.The YTM is 9%. What is the price of the bond? Bond-5. A given bond has 5 years to maturity. It has a face value of $1,000. It has a YTM of 5% and the coupons are paid semiannually at a 10% annual rate. What does the bond currently sell for? Bond-6. A given bond has five years left to maturity. Interest is paid annually and the annual coupon rate is 9%. The par value of the bond is $1,000. The bond currently sells for $1,000. What is the yield to maturity? 9-1.Assume Evco, Inc., has a current price of $50 and will pay a $2 dividend in 1 year, and its equity cost of capital is......

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...FI 3300 THPS 3 Click Link Below To Buy: http://hwaid.com/shop/fi-3300-thps-3/ FI 3300 - CORPORATION FINANCE Take-Home Problem Set Three (THPS-3) Fall 2015 All questions are equally weighted. PART I: MULTIPLE CHOICE – Choose the letter of the most correct answer for each question. Record only one answer per question. 1. Which of the following investment options is most valuable? Assume a positive interest rate, and that all options have the same risk. a. receiving $20,000 today b. receiving 10 payments of $2,000 per year with the first payment made today c. receiving $4,000 per year for five years beginning next year d. receiving $10,000 today and $10,000 next year e. Without an interest rate there is not enough information to tell. 2. In 3 years you are to receive $5,000. If the interest rate were to suddenly increase, the present value of that future amount to you would: a. Increase. b. Decrease. c. Remain unchanged. d. Either increase or decrease depending on the interest rate. e. Cannot be determined without more information. 3. Assuming an interest rate of 0 percent, which of the following cash-inflow streams should you prefer? Answer Choice Year 1 Cash Flow Year 2 Cash Flow Year 3 Cash Flow Year 4 Cash Flow a. $400 $300 $200 $100 b. $100 $200 $300 $400 c. $250 $250 $250 $250 d. Any of the above, since the each sum to $1,000 4. Assuming an interest rate of 10 percent, which of the following......

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...FIN 515 Week 4 Problem Set Answers http://homeworklance.com/downloads/fin-515-week-4-problem-set-answers/ Bonds-1. Interest on a certain issue of bonds is paid annually with a coupon rate of 8%. The bonds have a par value of $1,000. The yield to maturity is 9%. What is the current market piece of these bonds? The bonds will mature in 5 years. Bonds-2. A certain bond has 12 years left to maturity. Interest is paid annually at a coupon rate of 10%. The bonds are currently selling for $850. What is their YTM? Bonds-3. A certain bond pays a semiannual coupon rate at a 10% annual rate. The bond has a par value of $1,000. There are eight years to maturity. The yield to maturity is 9%. What is the current price of the bond? Bonds-4. A particular corporate bond has a par value of $1,000. Coupon payments are $40 and are paid twice a year. Seven years are left on the life of the bond.The YTM is 9%. What is the price of the bond? Bond-5. A given bond has 5 years to maturity. It has a face value of $1,000. It has a YTM of 5% and the coupons are paid semiannually at a 10% annual rate. What does the bond currently sell for? Bond-6. A given bond has five years left to maturity. Interest is paid annually and the annual coupon rate is 9%. The par value of the bond is $1,000. The bond currently sells for $1,000. What is the yield to maturity? 9-1.Assume Evco, Inc., has a current price of $50 and will pay a $2 dividend in 1 year, and its equity cost of capital is 15%. What price must...

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...BUS 308 Week 4 Problem Set To Buy This material Click below link http://www.uoptutors.com/BUS-308/BUS-308-Week-4-Problem-Set Problem Set Week Four. Problem One The manager of a catering company is using the number of people in the party to predict the cost of the drinks that are required for the event. The following are the data for 12 recently catered events: Complete the calculations below using this data. Show all of your work and clearly label each of your calculations. a. Provide a scatterplot b. Calculate a linear regression c. Calculate the residuals d. Calculate the correlation between the two variables e. Calculate the mean, median, and standard deviation of the number of people and cost of drinks For additional assistance with these calculations reference the Recommended Materials for Week Four. Problem Two You are a real estate agent and you are trying to predict home prices for your clients that want to list their house for sale. You have a very small city without much data. You will need to use the data that you have available for the past year on homes that have been sold. Complete the calculations below using this data. Show all of your work and clearly label each of your calculations. Conduct a multiple regression analysis to predict home prices. In your analysis complete the following: a. Calculate the multiple regression analysis and report your data. b. Determine the list price for your client’s home if it has three bedrooms,......

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...FIN 515 Week 4 Problem Set To Buy This material Click below link http://www.uoptutors.com/fin-515-devry/fin-515-week-4-problem-set Bonds-1. Interest on a certain issue of bonds is paid annually with a coupon rate of 8%. The bonds have a par value of $1,000. The yield to maturity is 9%. What is the current market piece of these bonds? The bonds will mature in 5 years. Bonds-2. A certain bond has 12 years left to maturity. Interest is paid annually at a coupon rate of 10%. The bonds are currently selling for $850. What is their YTM? Bonds-3. A certain bond pays a semiannual coupon rate at a 10% annual rate. The bond has a par value of $1,000. There are eight years to maturity. The yield to maturity is 9%. What is the current price of the bond? Bonds-4. A particular corporate bond has a par value of $1,000. Coupon payments are $40 and are paid twice a year. Seven years are left on the life of the bond.The YTM is 9%. What is the price of the bond? Bond-5. A given bond has 5 years to maturity. It has a face value of $1,000. It has a YTM of 5% and the coupons are paid semiannually at a 10% annual rate. What does the bond currently sell for? Bond-6. A given bond has five years left to maturity. Interest is paid annually and the annual coupon rate is 9%. The par value of the bond is $1,000. The bond currently sells for $1,000. What is the yield to maturity? 9-1.Assume Evco, Inc., has a current price of $50 and will pay a $2 dividend in 1 year, and its equity cost of capital...

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