Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a face value of $1,000, and a coupon rate of 7.9% (annual payments). The yield to maturity on this bond when it was issued was 5.5%. What was the price of ..
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A sophisticated investor, B. Graham, sold 500 shares short of Amwell,Inc. at $42 a share. -What was the percentage gain or loss on thisinvestment?
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Trevi Corporation recently reported an EBITDA of $32,800 and $9,700 of net income. The company has $6,600 interest expense and the the corporate tax is 35 percent. What was the company's depreciation and amortization expense?
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Aerotron Electronics is considering purchasing a water filtration system to assist in circuit board manufacturing. The system costs $40,000. It has an expected life of 7 years, at which time its salvage value will be $7,500. hat is the IRR of this in..
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Mama Italiano Sauce Production of jars sauce-$20,000 Ingredient cost (variable)-$16,000 Labor cost (variable)-$9,000 Rent (fixed)-$4,000 Depreciation (fixed)-$6,000 Other (fixed)-$1,000 Total: $36,000 The company is currently producing and selling 25..
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Genetic Insights Co. purchases an asset for $17,234. 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..
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Suppose there exists a bank that offers an APR of 5.4% indefinitely on current deposits. If you wanted to setup an account that would pay monthly instalments of $3000 indefinitely, how much should your initial deposit be?
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Calculate the possible arbitrage profits given the following environment. Make sure you show all calculations and explain the steps needed to realize the profit. Spot exchange rate (peso/$) 6.172 3-mo forward rate 6.198 USD 3-mo interest rate 0.04 Pe..
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Which of the following is NOT generally considered an advantage of transitioning a firm from a private business to a public corporation, despite the time and expense required to do so?
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St. Johns River Shipyard's welding machine is 15 years old, fully depreciated, and has no salvage value. However, even though it is old, it is still functional as originally designed and can be used for quite a while longer. The new welder will cost ..
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First-year NOI for a long-term net lease is expected to be $75,000. Rent is escalating at a rate of 4 percent per year, but there is a two-year period between adjustments. Thus, the income for years 1 and 2 will be $50,000, increasing to $50,000 (1+...
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The spot exchange rate for the Canadian dollar on December 31, 2014 was 1.1583 C$/US$, while the 3 month Euro-rates on December 31st were quoted at 1.185% per annum and 0.31% per annum for the Canadian and U.S. dollars respectively. What should the 3..
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