These two prices represent the last traded price

Assignment Help Financial Management
Reference no: EM13894211

Suppose that you saw two stock quotations on Yahoo! Finance one of which was 45.98 and the other was 47.12. Assuming that none of these two prices represent the last traded price or the closing price and that we are currently under standard market conditions, 47.12 would likely be the ________ price, 45.98 would likely be the ________ price, and the Bid-Ask Spread would be ________.

a) ask, bid, +1.14

b) ask, bid, -1.14

c) bid, ask, +1.14

d) bid, ask, -1.14

Reference no: EM13894211

Questions Cloud

Concerned with the price the trade crossed : If you needed to trade immediately and were not concerned with the price the trade "crossed" (or traded) at, nor were you particularly concerned with how much the implicit cost of liquidity happened to be, and you were not   concerned with how far pr..
Elizabeth is offered to buy a financial security : Elizabeth is offered to buy a financial security that guarantees to pay her $10 every 2 years forever. The annual interest rate is 8%. How much would she pay for it today if the first payment will be received today? How much would she pay for it toda..
About the valuation-options : The following information refers to six-month call option on the stock of XYZ, Inc. What is the intrinsic value of the option? What is the option's time premium at this price?
What is the current selling price-corporate bond : A $1,000 corporate bond with 20 years to maturity pays a coupon of 7% (semi-annual) and the market required rate of return is a0 6.6% b) 13%. What is the current selling price for a) and b)?
These two prices represent the last traded price : Suppose that you saw two stock quotations on Yahoo! Finance one of which was 45.98 and the other was 47.12. Assuming that none of these two prices represent the last traded price or the closing price and that we are currently under standard market co..
Discuss the major capital budgeting methods : Discuss the major capital budgeting methods used by corporations to evaluate projects. Why do many corporations continue to use the payback period method? Which method do you prefer: Explain why you prefer this method?
Claims that all financial crises involve bank runs : Gorton claims that all financial crises involve bank runs. An example of this is that interbank loans among domestically chartered commercial banks (interbank loans, domestically chartered commercial banks, seasonally adjusted (H8/H8/B1045NDMAM) fell..
What amount must be deposited in the account at retirement : Susan and Tom Houser believe that they will need payments of $4,460 at the beginning of each of their retirement. The payments will be made out of an account that is expected to earn 10% interest annually. If the payments are made over 20 years, what..
How many years will it take for him to achieve his goal : George Bennet wants to give his son $20,000 upon completion of his college education. If he invests $5,500 now in an account earning 9% annual interest, approximately how many years will it take for him to achieve his goal?

Reviews

Write a Review

 

Financial Management Questions & Answers

  While evaluating capital budgeting projects

While evaluating capital budgeting projects, ABC Corporation has calculated their retained earnings breakpoint to be $45 million. What does this mean?

  What must the annual coupon rate be on the bonds

Kathy wants to buy bonds on the market with 10.5 years to remaining maturity, a current yield to maturity of 10%, and current price of 102 (total par - $1,000,000). The bonds make semi annual payments. What must the annual coupon rate be on the bonds..

  Find the new portfolio beta

Assume that you manage a $10.00 million mutual fund that has a beta of 1.05 and a 9.50% required return. The risk-free rate is 2.20%. You now receive another $4.50 million, which you invest in stocks with an average beta of 0.65. What is the required..

  About the effective rate of interest

Find the interest rate (or rates of return) for each of the following situations. Round your answers to two decimal places. You borrow $700 and promise to pay back $749 at the end of 1 year. You lend $700 and receive a promise to be paid $749 at the ..

  What is the default risk premium on keys bonds

Keys Corporation's 5-year bonds yield 7.00%, and 5-year T-bonds yield 5.15%. The real risk-free rate is r* = 3.0%, the inflation premium for 5-year bonds is IP = 1.75%, the liquidity premium for Keys' bonds is LP = 0.75% versus zero for T-bonds, and ..

  Entered into a long position in the t-note futures

You have entered into a long position in the T-note futures of 5 contracts at a price of 125,000. The T-note Futures contract has a face value of $100,000 and trades in % and 32nd of 1%. The initial margin requirement for the contract is $1,430 and t..

  Estimate the cost of capital of the firm

You are analyzing Tiffany Corp, an upscale retailer. The regression estimate of the firm's beta is 0.75. Standard error of beta estimate is 0.50. The average unlevered beta of comparable specialty retailing firms is 1.15. Estimate the Cost of Capital..

  Importance of identifying the primary source of repayment

Explain the importance of identifying the primary source of repayment. Clearly, the primary source of repayment is always cash. The analysis question is really one of identifying the source of the cash used to repay the loan. Explain the advantages a..

  Cash management and receivables investment

Medwig Corporation has a DSO of 23 days. The company averages $5,000 in credit sales each day. What is the company's average accounts receivable? Round your answer to the nearest dollar. Williams & Sons last year reported sales of $13 million and an ..

  What are the monthly payments

Someone leases a car with the following terms: monthly payment, five year term, 5% annual interest rate, initial value of the lease is $35,000, and value at the end of the lease is $10,000. What are the monthly payments?

  Describes the characteristics of off-balance sheet financing

Leasing is often referred to as off-balance sheet financing of the way that the transaction is treated and reported in financial statements. Which of the following statements best describes the characteristics of off-balance sheet financing?

  Calculate the depreciation expense

You are given the following information for Calvani Pizza Co.: sales = $50,000; costs = $22,600; addition to retained earnings = $7,150; dividends paid = $2,600; interest expense = $5,000; tax rate = 35 percent. Calculate the depreciation expense.

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!

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