No law prohibits citizens in a state that does not sponsor a state-operated lottery from purchasing lottery tickets in a state that does have such a lottery. Georgia did not have a state-operated lottery, so John and several other Georgia residents a..
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Bill and Susan are married and file a joint income tax return. For 2014, their modified AGI is $70,000. Their daughter, Kelly, is in her third year at State University. They paid $4,300 for Kelly's tuition. What is the American Opportunity Credit tha..
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In March 2012, Daniela Motor Financing (DMF), offered some securities for sale to the public. Under the terms of the deal, DMF promised to repay the owner of one of these securities $500 in March 2037, but investors would receive nothing until then. ..
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Miller Manufacturing has a target debt–equity ratio of .60. Its cost of equity is 14 percent, and its cost of debt is 8 percent. If the tax rate is 38 percent, what is the company’s WACC?
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Chuck Brown will receive from his investment cash flows of $3,175, $3,460, and $3,850 at the end of years 1, 2 and 3 respectively. If he can earn 7.5 percent on any investment that he makes, what is the future value of his investment cash flows at th..
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Potz and Pans, a small gift shop, has current assets of $45,000 (including inventory valued at $30,000) and $9,000 in current liabilities. WannaBees, a specialty clothing store, has current assets of $150,000 (including inventory valued at $125,000) ..
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The current one-period interest rate is 8% and has an equal probability of going up or down by 10%. What is the price of a two period put option on a zero coupon bond that matures in 4 periods, X=0.9. What is the price of a two period put option on a..
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What is the current account generally composed of? What is the financial account generally composed of? What are some of the major objectives of the IMF?
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In December 2016, Bay Watch Company factored accounts receivable that had a book value of $500,000 to Spirit Bank, with recourse and estimates the fair value of the recourse obligation to be $10,000. Under this arrangement, Klein provides Bay Watch w..
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Which of the following defines the value of a firm?
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Management has used seasonal variation time-series forecasting to calculate the following quarterly seasonal indices: 1.30, 0.90, 0.70, and 1.10. If the quarterly sales estimates for the next year are $100,000, $120,000, $140,000, and $160,000, calcu..
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For a Japanese bank, the option to sell 2 billion yen for 16 million USD on a date 18 months from today is worth 170 million yen. Volatility is 25%, and the continuously compounding interest rates are 3% in USD, and 1% in yen. What are the 2 billion ..
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