User Account

All Pages

Saving account that paid an annual interest rate

Assignment Help Financial Management
Reference no: EM13971906

1. Holy Regis invested 10,000 in a saving account that paid an annual interest rate of 6% compounded monthly. In three years, holly will have

A. 11,967

B. 10,623

C. 11,415

D. 11,067

E. None of the above

2. The concept that an item is not large enough to influence the users of a financial statement is

A. Cost effectiveness

B. Materiality

C. Reliability

D. Relevance

E. None of the above

3. Credit sales increase

A. cash

B. Accounts recieveable

C. Owners equity

D. Both b and c

E. None of the above

4. Karen is saving for a car. The car cost 22,000. How much must Karen invest in a savings account that pays 4% annually to have the $22,000 in three years. Round to the nearest dollar

A. $20,147

B. $19,107

C. $19,558

D. $19,328

E. None of the above

5. The quality that ensure that information is reasonable free from error is

A. Reliability

B. Relevant

C. Understandability

D. Consistent

E. None of the above

6. Which of the following is not an expense?

A. Utilities

B. Insurance

C. Dividends

D. Cost of goods sold

E. None of the above

7. Ginger invested $10,000 in a bank account offshore bank. The account pays 3% interest compounded annually. How much will Ginger have in 5 years? Round to the nearest dollar

A. $11,593

B. $11,108

C. $10,123

D. $12,619

E. None of the above

8. Holly invested $6,000 in a savings account that paid an annual interest rate f 6%!l compounded annually. In three years, holly will have

A. $11,967

B. $10,623

C. $11,415

D. $11,067

E. None of the above

Reference no: EM13971906

Questions Cloud

Binomial model-what is the fair market value for this option : Consider a two period binomial model where in each round the stock increases or decreases by 10%. The current stock price is $20 and the risk free rate is 3.33% each period. We first consider a European call option with a strike of $20. Calculate val..
Interpreting financial statement relations : Exhibit 1.29 presents common-size and percentage change balance sheets and Exhibit 1.30 (page 81) presents common-size and percentage change income statements for Starbucks for2009–2012. Net earnings as a percentage of total revenues increased from 3..
Calculate the NPV for both conveyor belt systems : Lang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System A costs $240,000, has a four-year life, and requires $75,000 in pretax annual operating costs. System B costs $340,000, has a six-year life..
With the mission of maximizing shareholder value in mind : With the mission of maximizing shareholder value in mind, how could the health care financial manager help to motivate a large group of employees to exceptional performance? Explain in detail. Should the financial manager have any influence on care m..
Saving account that paid an annual interest rate : Holy Regis invested 10,000 in a saving account that paid an annual interest rate of 6% compounded monthly. In three years, holly will have. Karen is saving for a car. The car cost 22,000. How much must Karen invest in a savings account that pays 4% a..
What is the current market price of the bonds : Callaghan Motors' bonds have 10 years remaining to maturity. The coupon rate is 8% and the bonds have a yield to maturity of 9%. What is the current market price of the bonds?
At what price would the bonds sell : Suppose Ford Motor Co. sold an issue of bonds with a 10-year maturity, $1,000 par value, and 10% coupon rate. Two years after the bonds were issued, the going rate of interest on similar bonds fell to 6%. At what price would the bonds sell? Instead o..
Reduced or eliminated its common stock cash dividend : Now locate a company that has reduced or eliminated its common stock cash dividend over the past year. Why did the company reduce or eliminate its dividend? What has happened to the company’s stock price over the year?
What is the difference between net working capital and cash : What is the difference between net working capital and cash? Will it make a difference to you knowing the difference when investing either professionally or personally?

Reviews

Write a Review

Financial Management Questions & Answers

  Trade on the stock exchange and market risk premium

Company XYZ is expected to pay no dividends for the next 10 years (that is, up to, and including Year 10). In year 11, the company will pay a dividend of $0.75. After that, all subsequent dividends will be growing at 5.5% per year forever. Company XY..

  Future values affected by changes in interest rates

How are future values affected by changes in interest rates?

  More closely approximate market or fair value

Should we continue to record and maintain the value of long-term assets at historical cost or should we adjust their value to more closely approximate market or fair value?

  Bond has negative term premium-pure expectations theory

If a bond has a negative term premium, then the yield implied by the pure expectations theory (PET) of the term structure is higher than the yield implied by the liquidity preference theory of the term structure.

  Most important determinant of meeting retirement goals

Most state lotteries in the U.S. give Lottery winners of particularly large prizes the option of taking the total prize as an annuity over several years, usually 10-20, or as a discounted lump sum now. What does this relationship suggest to potential..

  Calculate the firms operating cycle

Cash conversion cycle: American Products is concerned about managing cash efficiently. On the average, inventories have an age of 90 days, and accounts recievable are collected in 60 days. Calculate the firms’s operating cycle. Calculate the firm’s c..

  Dividend payment-cost of giving up cash discounts

Dividend Payment: Cost of giving up cash discounts: Determine the cost of giving up cash discount under each of the following terms of sale.

  All future dividends are expected to grow

Johnny Cake Ltd. has 8 million shares of stock outstanding selling at $17 per share and an issue of $40 million in 10 percent annual coupon bonds with a maturity of 18 years, selling at 92.5 percent of par. Assume Johnny Cake’s weighted-average tax r..

  What is the adjusted basis in the home

Steve purchased his home for $500,000. As a sole proprietor, he operates a certified public accounting practice in his home. For this business, he uses one room exclusively and regularly as a home office. In year 1, $3,042 of depreciation expense on ..

  What is the expected return on a portfolio-portfolio weights

A stock has a beta of 1.29 and an expected return of 12.7 percent. A risk-free asset currently earns 4.25 percent. What is the expected return on a portfolio that is equally invested in the two assets? If a portfolio of the two assets has a beta of 0..

  What is the investment in accounts receivable

Zucha Corporation has an inventory period of 55 days, an accounts receivable (A/R) period of 6 days, and an accounts payable (A/P) period of 3 days. The company’s annual sales is $182,795. If the company’s annual sales are on credit, what is the inve..

  Recapitalization-earnings and equal dividends per shares

Michaely Inc. is an all-equity firm with 100,000 shares outstanding. It has $500,000 of EBIT, which is expected to remain constant in the future. The company pays out all of its earnings, so earnings per share (EPS) equal dividends per shares (DPS).

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd