consumption allowances were 4 billion; personal savings were estimated at $2 billion; imports of goods and services amounted to $6.5 billion; and the exports of goods and services were $5 billion. a. Determine the nation's gross domestic product.
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1. Evaluate the advantages and disadvantages of the various decision-making tools listed (e.g., regular payback, discounted payback, net present value (NPV), internal rate of return (IRR), and modified internal rate of return).
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You own 2,200 shares of stock in Avondale Corporation. You will receive a $1.60 per share dividend in one year. In two years, Avondale will pay a liquidating dividend of $60 per share. The required return on Avondale stock is 20 percent. Suppose you ..
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Linus is 18 years old now, and is thinking about taking a 5-year university degree. The degree will cost him $25,000 each year. After he's finished, he expects to make $50,000 per year for 10 years, $75,000 per year for another 10 years, and $100,000..
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Company X has seven pending tasks, each of which takes a given number of days to be finished. The amount of time required for each of the tasks are (in days): 10, 8, 6, 5, 4, 4 and 3. There are three employees that can be assigned to any of the tasks..
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Simon recently received a credit card with an 18% nominal interest rate. With the card, he purchased an Apple iPhone 5 for $420. The minimum payment on the card is only $10 per month. If Simon makes the minimum monthly payment and makes no other char..
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The state lottery's million dollar payout provides for $2 million to be paid over 24 years in 25 payments of $80,000. The first $80,000 payment is made immediately, and the 24 remaining $80,000 payments occur at the end of each of the next 24 years. ..
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Mersey Chemicals manufactures polypropylene that it ships to its customers via tank car. Currently, it plans to add two additional tank cars to its fleet four years from now. When evaluating the proposed expansion, what incremental free cash flows sh..
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You own some equipment that you purchased four years ago at a cost of $287,000. The equipment is five-year property for MACRS. The MACRS rates are .2, .32, .192, .1152, .1152, .0576, for years 1 to 6, respectively. You are considering selling the equ..
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Consider two firms, Firm X and Firm Y, that have identical assets that generate identical cash flows. Firm Y is an all-equity firm, with 1 million shares outstanding that trade for a price of $24 per share. Firm X has 2 million shares outstanding and..
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Which one of the following makes the capital structure of a firm irrelevant?
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Heath Foods's bonds have 12 years remaining to maturity. The bonds have a face value of $1,000 and a yield to maturity of 9%. They pay interest annually and have a 9% coupon rate. What is their current yield? Round your answer to two decimal places.
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