1. The following loan is not available through the discount window:

A adjustment credit

B primary credit.

C secondary credit

D seasonal credit

D None of the options is correct.

2. You are a manager at AAA Bank. You are evaluating the opportunity to offer a wider variety of products (addition of new types of products) and to simultaneously attain cost-reductions, by using the same human resources and physical assets. This new project is an example of:

A Product-line diversification effect

B Economies of scope effect

C Economies of scale effect

D Geographic diversification effect

E None of the options is correct.

3. The New Country Bank is planning on raising $800 million in a new offering of commercial paper through its holding company. It plans on using $725 million of it to fund new loans. The current interest rate for similar commercial paper is 6.45 percent and it expects 0.25 percent in issuing costs. What is the effective rate of interest on this issue of commercial paper?

A 7.75%

B 6.45 percent

C 7.05 percent

D 7.39 percent

4. A conventional Repurchase Agreement (RP) is ________ for the borrower than (as) a General Collateral Finance RP.

A more flexible

B less flexible

C as flexible

D less rigid

E None of the options is correct

## What is the yield to maturityA Treasury STRIPS is quoted at 61.159 and has 10 years until maturity. What is the yield to maturity? |

## The total return of the portfolio reduced by trading costsSuppose that every time a fund manager trades stock, transaction costs such as commissions and bid–ask spreads amount to 1.9% of the value of the trade. If the portfolio turnover rate is 50%, by how much is the total return of the portfolio reduced b.. |

## What is the after-tax cost of this debtA firm offers a 10- year maturity bond with $1,000 face value and 5.25% coupon rate. The current market price for the bond is $1025. Selling the bonds costs the firm $48 per share. What is the after-tax cost of this debt, assuming a 34% corporate tax |

## Calculate after-tax cash flow at disposalGenetic Insights Co. purchases an asset for $11,576. This asset qualifies as a seven-year recovery asset under MACRS. The seven-year fixed depreciation percentages for years 1, 2, 3, 4, 5, and 6 are 14.29%, 24.49%, 17.49%, 12.49%, 8.93%, and 8.93%, r.. |

## Determine the net present worth of the cash flowAssuming the contractor's tax rate is 31% per year, determine the net present worth of the cash flow from this machine. The company's MARR is 11%. |

## The fund is the entire risky portfolioWhich Fund exhibited the best performance over this period from the perspective of an Investor for whom the fund is the entire Risky portfolio? |

## What is the net present worth for this new computer systemKermit uses a MARR of 12 percent to evaluate investments. What is the net present worth for this new computer system? |

## What is the value of this bond to an investorA $1,000 bond is issued with a coupon rate of 8 percent and 20 years to maturity five years ago. If this bond pays interest semi-annually, what is the value of this bond (TODAY) to an investor who requires an 8 percent rate of return? |

## Company adheres to constant rate of growth dividend policyThe company adheres to a constant rate of growth dividend policy. |

## What is the total cash paid for this bond purchaseYou purchase a Eurobond, at a quoted price of 102%. The annual coupon is 6%, and we are exactly one month after the past coupon date. You buy 100,000 EUR nominal value of the bond. What is the total cash paid for this bond purchase? |

## Firm horizon or continuing and valueNONCONSTANT GROWTH VALUATION. What is the firm's horizon, or continuing, value? What is the firm's intrinsic value today, P0? |

## What is the pretax cost of debt-after-tax cost of debtWhat is the company's pretax cost of debt? Pretax cost of debt % If the tax rate is 35 percent, what is the after-tax cost of debt? |

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