Question 1
Question 1 1. The stock of Billingsley United has a beta of 0.92. The market risk premium is 8.4 percent and the risk-free rate is 3.2 percent. What is the expected return on this stock? 8.87 percent 9.69 percent 10.93 percent 11.52 percent 12.01 percent 1 points Expected return on stock = risk-free rate + beta(market risk premium) = 3.2 + 0.92(8.4) = 10.928 = 10.93 Question 2 1. You own a portfolio of two stocks, A and B. Stock A is valued at $6,540 and has an expected return of 11.2 percent. Stock B has an expected return of 8.1 percent. What is the expected return on the portfolio if the portfolio value is $9,500? 9.58 percent 9.62 percent 9.74 percent 9.97 percent 10.23 percent 1 points Return on stock A: 6,540 x 0.112 = $732.48 Return on stock B: 2,960 x 0.081 = $239.76 Total return on $9,500 portfolio: $972.24. Rate of return on $9,500 portfolio: 972.24 ? 9,500 = 0.1023 = 10.23%. Question 3 1. Portfolio diversification eliminates which one of the following? Total investment risk Portfolio risk premium Market risk Unsystematic risk Reward for bearing risk 1 points Question 4 1. What is the beta of the following portfolio? 0.98 1.02 1.11 1.14 1.20 1 points Question 5 1. You own a portfolio that has $1,900 invested in Stock A and $2,700 invested in Stock B. If the expected returns on these stocks are 9 percent and 15 percent, respectively, what is the expected return on the portfolio? 10.57 percent 11.14 percent 11.96 percent 12.52 percent 13.07 percent 1 points E(r) = [1,900/($1,900 + $2,700)][0.09] + [$2,700/($1,900 + $2,700)][0.15] = 12.52 percent Question 6 1. Standard deviation measures _____ risk while beta measures _____ risk. systematic; unsystematic unsystematic; systematic total; unsystematic total; systematic asset-specific; market 1 points Question 7 1. A $36,000 portfolio is invested in a risk-free security and two stocks. The beta of stock A is 1.29 while the beta of stock B is 0.90. One-half of the portfolio is invested in the risk-free security. How much is invested in stock A if the beta of the portfolio is 0.58? $6,000 $9,000 $12,000 $15,000 $18,000 1 points Question 8 1. What is the beta of the following portfolio? 1.08 1.14 1.17 1.21 1.23 1 points Question 9 1. The systematic risk is same as: Unique risk Diversifiable risk Asset-specific risk Market risk Unsystematic risk 1 points Question 10 1. Suppose a stock had an initial price of $69.81 per share, paid a dividend of $5.4 per share during the year, and had an ending share price of $98.14. What are the percentage returns? Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. 1 points Question 11 1. Suppose the returns for Stock A for last six years was 4%, 7%, 8%, -2%, 9%, and 7%. Compute the standard deviation of the returns. Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. 1 points Question 12 1. Suppose a stock had an initial price of $60.3 per share, paid a dividend of $9 per share during the year, and had an ending share price of $108.76. What are the dollar returns? Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box. 1 points Question 13 1. Calculate the expected returns of your portfolio Stock Invest Exp Ret A $204 8.2% B $994 14.4% C $1,210 27.6% Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 12.345% then enter as 12.35 in the answer box. Question 14 1. Suppose a stock had an initial price of $77.74 per share, paid a dividend of $8.4 per share during the year, and had an ending share price of $90.3. What are the percentage returns? Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. 1 points Question 15 1. Suppose a stock had an initial price of $65.43 per share, paid a dividend of $8.3 per share during the year, and had an ending share price of $108.54. If you own 45 shares, what are the dollar returns? Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box. 1 points Question 16 1. Suppose the real rate is 2.52% and the nominal rate is 11.89%. Solve for the inflation rate. Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. 1 points Question 17 1. Suppose the real rate is 3.56% and the inflation rate is 6.06%. Solve for the nominal rate. Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. 1 points Question 18 1. You own a portfolio invested 16.68% in Stock A, 11.93% in Stock B, 13.69% in Stock C, and the remainder in Stock D. The beta of these four stocks are 0.78, 0.38, 0.51, and 0.73. What is the portfolio beta? Note: Enter your answer rounded off to two decimal points. For example, if your answer is 12.345 then enter as 12.35 in the answer box. 1 points Question 19 1. You have observed the following returns on ABC's stocks over the last five years: 3.8%, 8.8%, -5.8%, 12.7%, -3.8% What is the arithmetic average returns on the stock over this five-year period. Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. 1 points Question 20 1. You have observed the following returns on ABC's stocks over the last five years: 4.2%, 8%, -5.5%, 13.6%, -8.4% What is the geometric average returns on the stock over this five-year period. Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. 1 points Question 21 1. Suppose the nominal rate is 10.82% and the inflation rate is 5.82%. Solve for the real rate. Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. 1 points Question 22 1. You have observed the following returns on ABC's stocks over the last five years: 2%, 8.4%, 9%, 11.2%, 7.9% What is the geometric average returns on the stock over this five-year period. Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. 1 points Question 23 1. Suppose a stock had an initial price of $63.92 per share, paid a dividend of $5.6 per share during the year, and had an ending share price of $90.08. What are the percentage returns if you own 25 shares? Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. 1 points Question 24 1. Calculate the expected returns of your portfolio Stock Invest Exp Ret A $203 3.5% B $670 18.2% C $464 23.5% Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 12.345% then enter as 12.35 in the answer box. 1 points Question 25 1. You have observed the following returns on ABC's stocks over the last five years: 4.5%, 9.7%, 7.5%, 12.9%, 4.9% What is the arithmetic average returns on the stock over this five-year period. Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. 1 points Question 26 1. Based on the following information, calculate the expected returns: Prob Return Recession 30% 33.1% Boom 70% 3.1% Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 12.345% then enter as 12.35 in the answer box. 1 points Question 27 1. A portfolio is invested 41.2% in Stock A, 18.8% in Stock B, and the remainder in Stock C. The expected returns are 18.6%, 33.4%, and 18.9% respectively. What is the portfolio's expected returns? Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 12.345% then enter as 12.35 in the answer box. 1 points Question 28 1. You own a portfolio invested 22.72% in Stock A, 16.67% in Stock B, 28.63% in Stock C, and the remainder in Stock D. The beta of these four stocks are 0.65, 0.19, 0.73, and 1.39. What is the portfolio beta? Note: Enter your answer rounded off to two decimal points. For example, if your answer is 12.345 then enter as 12.35 in the answer box.
Question 2
QUESTION 1 A value system represents __________ in a culture. A. what actually occurs B. what is expected or hoped for C. the most religious or moral behaviors D. the traditional patterns 4 points QUESTION 2 A ?salad bowl? is a more apt characterization of the U.S. than a ?melting pot? because __________. A. individual subcultures retain their own identity and integrity B. the subcultures are very similar, like the vegetables in a salad C. a ?salad bowl? provides more positive imagery than a ?melting pot? D. subcultures borrow from the cultural patterns, or flavors, of their neighbors 4 points QUESTION 3 Americans working with Mexican colleagues must adapt to a cultural pattern known as __________ syndrome. A. el d?a B. ma?ana C. mas tarde D. trabajador 4 points QUESTION 4 Anthropologists known as __________ work inside many of the leading manufacturing and service companies around the world. a. linguistic and symbolic anthropologists b. business and organizational anthropologists c. forensic and biomedical anthropologists d. international and domestic anthropologists 4 points QUESTION 5 How are high- and low-context communication related to the collectivism-individualism dimension of culture? A. People in high-context cultures need a lot of background information to function efficiently B. Employees in low-context cultures share common goals. C. Members of high-context cultures have transitory relationships. D. Goals in low-context cultures tend to be individually defined. 4 points QUESTION 6 How do we know that culture is learned, not biological? a. Culture is too complex to be biological. b. There are too many different cultures for them to be passed down genetically c. Children have the same culture as their parents. d. A child adopted into a new country can easily learn the family?s culture. 4 points QUESTION 7 How is the bipolar, dimensional approach related to ethnocentrism? A. Both assume a relative approach to cross-cultural communication, in which each culture?s value systems are viewed as equally valid. B. Ethnocentrism is an antiquated idea that has been replaced by frameworks such as the dimensional approach. C. The dimensional approach aims to replace other culture?s value systems with more modern, western ones D. The framework assumes that cross-cultural awareness takes place only when you view other cultural values in relation to your own. 4 points QUESTION 8 In the U.S., it is expected that high-status people will __________. A. continue to move up into higher-status positions B. play down their superior rank C. make no notice of rank among their colleagues D. reinforce their rank through titles, clothing, and behavior 4 points QUESTION 9 In the past 30 years, the percentage of the U.S. population that is foreign born has __________. a. declined by 10% b. stayed the same c. doubled d. tripled 4 points QUESTION 10 Market research provides information on __________, which is often lacking when American companies move abroad. a. values, attitudes, and buying practices b. income and savings c. employment and education d. kinship and marital status 4 points QUESTION 11 Metaphors not lend themselves well to cross-cultural comparisons because they __________. A. are vague and open to interpretation B. require at least a university degree to understand C. are too complex to translate into another language D. are culturally specific by nature 4 points QUESTION 12 Organizations aligned with the __________ view of culture are more comfortable with the nature and pace of change in today?s modern world. A. developing B. emergent C. evolving D. rising 4 points QUESTION 13 Precise-reckoning-of-time cultures believe that __________. A. social relationships are secondary to business B. social relationships are most important C. time is money D. time is plentiful 4 points QUESTION 14 Start-ups represent a __________ culture. A. change-embracing B. change-fearing C. precise-reckoning-of-time D. loose-reckoning-of-time 4 points QUESTION 15 What role did the IT community have in resolving the 2002 conflict between India and Pakistan? a. They used their power to withhold funds from the Indian army. b. They funded U.S. and European peacekeeping forces. c. They convinced the governments to stand down, to prevent a disruption of the global economy. d. They applied economic sanctions on India and Pakistan until the two governments came to a peace agreement. 4 points QUESTION 16 What limitation of the dimensional approach described in this chapter must we keep in mind? A. Cultures change so rapidly that the dimensions are not stable. B. It provides only an imprecise version of reality. C. There are only a few possible combinations of dimensions. D. This approach does not allow for cultural change. 4 points QUESTION 17 What is meant by the statement ?culture is an integrated system?? a. The culture is an amalgam of many cultures that came before it. b. The culture has remained intact throughout history, with little to no diffusion. c. The components of the culture are a random collection. d. The components of the culture are interrelated into an organized system. 4 points QUESTION 18 What is a major source of criticism for microfinance projects? A. The entrepreneurs do not have the skills to budget their loan money. B. The banks do not have sufficient money to make the loans. C. The interest rates are too high. D. The loans are not always repaid. 4 points QUESTION 19 What important information does participant observation provide the business community? a. It creates unusual marketing campaigns to use in other cultures. b. It gathers statistics through the use of detailed interview methods. c. It reveals what people actually do, in contrast to what they say they do. d. It explains why people purchase the things they do. 4 points QUESTION 20 What features are characteristic of corporate cultures? a. morals, symbols, and legends b. symbols, legends, and heroes c. legends, heroes, and morals d. heroes, morals, and symbols 4 points QUESTION 21 The tendency to evaluate a foreigner?s behavior by the standards of your own culture is known as __________. a. ethnoprimism b. ethnocentrism c. cultural relativism d. cultural exclusionism 4 points QUESTION 22 The equality?hierarchy dimension is also referred to as __________. A. autonomy gap B. class-caste dimension C. power distance D. stratification 4 points QUESTION 23 The American view of the future is generally __________. A. long term B. short term C. truncated D. pessimistic 4 points QUESTION 24 That Americans even outsource some religious rituals, to which type of transaction is the text referring? a. Priests in India conduct masses by e-mail request. b. Buddhist monks are paid to chant for world peace. c. Materials for religious services, such as communion wafers, are manufactured in Taiwan. d. Many priests are Mexican-born immigrants to the U.S. 4 points QUESTION 25 What was the primary assumption of Kluckhohn and Strodtbeck?s value-orientations approach for understanding cultural differences? A. All cultures have the same basic underlying values. B. Value systems are culturally relative and cannot be compared across societies. C. There are only a limited number of solutions to universal human problems. D. Cultural diversity is too great to have any underlying universal values. 4 points Click Save and Submit to save and submit. Click Save All Answers to save all answers.
Question 3
1. Given the following information on S & G Inc.'s capital structure, compute the company's weighted average cost of capital. Type of Percent of Before-Tax Capital Capital Structure Component Cost Bonds 40% 7.5% Preferred Stock 5% 11% Common Stock (Internal Only) 55% 15% The company's marginal tax rate is 40%. (Points : 1) 13.3% 7.1% 10.6% 10% 2. Asian Trading Company paid a dividend yesterday of $5 per share (D0 = $4). The dividend is expected to grow at a constant rate of 8% per year. The price of Asian Trading Company's stock today is $29 per share. If Asian Trading Company decides to issue new common stock, flotation costs will equal $2.50 per share. Asian Trading Company's marginal tax rate is 35%. Based on the above information, the cost of retained earnings is (Points : 1) 28.38%. 24.12%. 26.62%. 31.40%. 3. Five Rivers Casino is undergoing a major expansion. The expansion will be financed by issuing new 15-year, $1,000 par, 9% annual coupon bonds. The market price of the bonds is $1,070 each. Gamblers flotation expense on the new bonds will be $50 per bond. Gamblers marginal tax rate is 35%. What is the pre-tax cost of debt for the newly-issued bonds? (Points : 1) 8.76% 8.12% 7.49% 10.25% 4. A new machine can be purchased for $1,200,000. It will cost $35,000 to ship and $15,000 to modify the machine. A $12,000 recently completed feasibility study indicated that the firm can employ an existing factory owned by the firm, which would have otherwise been sold for $180,000. The firm will borrow $750,000 to finance the acquisition. Total interest expense for 5-years is expected to approximate $350,000. What is the investment cost of the machine for capital budgeting purposes? (Points : 1) $2,180,000 $1,780,000 $1,442,000 $1,430,000 5. Zinc, Inc. is considering the acquisition of a new processing line. The processor can be purchased for $4,550,000. It will cost $65,000 to ship and $190,500 to install the processor. A recently completed feasibility study that was performed at a cost of $45,000 indicated that the processor would produce a positive NPV. Studies have shown that employee-training expenses will be $150,000. What is the total investment in the processing line for capital budgeting purposes? (Points : 1) $4,550,000 $4,700,000 $4,955,500 $5,000,500 6. Porky Pine Co. is issuing a $1,000 par value bond that pays 8.5% interest annually. Investors are expected to pay $1,100 for the 12-year bond. Porky will pay $50 per bond in flotation costs. What is the after-tax cost of new debt if the firm is in the 35% tax bracket? (Points : 1) 8.23% 4.55% 4.70% 7.45% 7. Nickel Industries is considering the purchase of a new machine that will cost $178,000, plus an additional $12,000 to ship and install. The new machine will have a 5-year useful life and will be depreciated using the straight-line method. The machine is expected to generate new sales of $85,000 per year and is expected to increase operating costs by $10,000 annually. Nickel's income tax rate is 40%. What is the projected incremental cash flow of the machine for year 1? (Points : 1) $54,800 $60,200 $66,350 $68,200 8. Clanton Company is financed 75 percent by equity and 25 percent by debt. If the firm expects to earn $30 million in net income next year and retain 40% of it, how large can the capital budget be before common stock must be sold? (Points : 1) $7.5 million $12.0 million $15.5 million $16.0 million 9. A project for Jevon and Aaron, Inc. results in additional accounts receivable of $400,000, additional inventory of $180,000, and additional accounts payable of $70,000. What is the additional investment in net working capital? (Points : 1) $580,000 $510,000 $270,000 $150,000 10. Kelly Corporation will issue new common stock to finance an expansion. The existing common stock just paid a $1.50 dividend, and dividends are expected to grow at a constant rate 8% indefinitely. The stock sells for $45, and flotation expenses of 5% of the selling price will be incurred on new shares. What is the cost of new common stock be for Kelly Corp.? (Points : 1) 11.33% 11.51% 11.60% 11.79% 12.53
Question 4
Deployment of a deep water oil rig (such as the Deepwater Horizon) Construction of the Empire State Building Construction of Centennial Olympic Park in Atlanta Construction of the Panama Canal Deployment of a deep water oil rig (such as the Deepwater Horizon) Assembly of the International Space Station Launch of the Spirit and Opportunity Mars Rovers Identification of the Human Genome Project Development of the Boeing 787 Dreamliner Create a two fault or event trees (or one of each) that would support the exploration of risk for one of the above major construction projects (See Chapter 17, pages 216-220). The fault or event tree should offer at a minimum a listing of potential risks and impacts in the event of two smaller failures. For example, a smaller failure could be the loss of water pressure or a fire in a construction project rather than examining what risk was involved with the collapse of the construction project. Write a discussion of risks that supports the fault trees that have been created. Make a separate write up for each of these smaller risks (Your paper should have a general introduction that should introduce the two fault or event trees that will be discussed and then the paper should have a discussion regarding each fault or event tree. The discussion write up regarding the identified risks should be from 3-5 pages in length. Note that this page length is a guideline and if you find that your paper supporting the risk tree is longer, there will be no penalty as the final assignment will need to be from 15-20 pages in length. Sample outline of typical course project paper part I Title Page Introduction Fault Tree One Discussion of Fault Tree One Fault Tree Two Discussion of Fault Tree Two Conclusions Works cited
Question 5
Precision tools makes high quality pocket knives. These knives are sold for $40 each to hardware stores like Ace Hardware. Precision Tools reported the following information about the production and sale of pocket knives. Annual capacity---70,000 Annual production and sales---50,000 Per unit Total Variable manufacturing costs----$8 per unit-----$400,000 Fixed manufacturing overhead costs---10 per unit----500,000 Variable SG+A costs---3 per unit----150,000 Fixed Selling and administration costs---2 per unit---100,000 ---------------------------------------------------------------------------------------- Total costs---------------$23 per unit------$1,150,000 Extreme Camping, Inc.,has approached Precision Tool with a one-time special order. Precision made the following notes about the special order. Extreme will purchase 15,000 knives at a price of $20 per unit. These knives are identical to precision's regular units, except that a logo will be affixed to the knife To install the logos, Precision will need to purchase a special stamping machine for $11,000 and pay $1.5 for each logo Because Extreme will pick up the special order, it will not need to be shipped. This will reduce variable shipping cost by $ 1.25 per units. 1. Rather than paying $20 per unit, Extreme will pay a $4 markup over the current total manufacturing cost for regular units. Compute the change in profit that would result if Precision accepts the special order with this new price. 2. Assume that Before accepting the special order, Precision's management learns that capacity has been reduced to 55,000 units due to an equipment failure. Compute the lowest price that Precision should be willing to accept for the special order. 3. Return to the original data above. Assume that annual production and sales is 65000 units. Compute the lowest price that Precision should be willing to accept for the special order.
