Cass purchased 100 shares of Polar Tek stock on Monday, September 3. Polar Tek paid its quarterly dividend of $.80 a share on Friday, September 28. The record date was Wednesday, September 5. How much did Cass receive as a dividend payment on Septemb..
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Lithium, Inc. is considering two mutually exclusive projects, A and B. Project A costs $95,000 and is expected to generate $65,000 in year one and $75,000 in year two. Project B costs $120,000 and is expected to generate $64,000 in year one, $67,000 ..
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The current stock price of Alpha airlines is $80. If Alpha issues equity, Alpha’s management anticipates that the market will react negatively and that Alpha will only be able to sell the new shares for $70 per share. If Alpha needs to finance the pu..
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Advantage First Corporation has sales of $4,964,060; income tax of $514,886; the selling, general and administrative expenses of $224,035; depreciation of $368,851; cost of goods sold of $2,900,500; and interest expense of $101,207. What is the amoun..
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Wilson Ltd. Corporation will need to purchase 200,000 British pounds in 90 days. A call option exists on British pounds with an exercise price of $1.68, a 90 day expiration date, and a premium of $.04. Determine the amount of dollars it will pay for ..
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The Perfect Rose Co. has earnings of $2.10 per share. The benchmark PE for the company is 10. What stock price would you consider appropriate? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) What if th..
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What is the required rate of return on a preferred stock with a $50 par value, a stated annual dividend of 7% of par, and a current market price of (a) $51, (b) $77, (c) $120, and (d) $146 (assume the market is in equilibrium with the required return..
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Mullin Interiors, a successful retailer of high-quality furniture, is located in affluent suburb where a large insurance company has just announced that it will lay off 4,000 employees. Because most of Mullin Interiors' sales are mad on credit, accou..
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To finance some manufacturing tools it needs for the next 4 years, Waldrop Corporation is considering a leasing arrangement. Waldrop Corporation has no use for the machine beyond the expiration of the lease, and the machine has an estimated residual ..
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Suppose you buy a put option on a $100,000 Treasury bond futures contract with an exercise price of $100,000 for a premium of $1500. If on expiration the futures contract has a price of $99,000, what is your profit or loss on the contract?
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Large-cap stocks had the nominal rates of return of 8.95 percent. The rate of inflation during the last year was 2.212 percent. What is the real rate of return for large-cap stocks?
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Total Risk Rank the following three stocks by their total risk level, highest to lowest. Night Ryder has an average return of 12 percent and standard deviation of 32 percent. The average return and standard deviation of WholeMart are 11 percent and 2..
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