Question
An investment of $1,000 annually at the end of each year for the next 15 years will be worth $30,000 at the end of 15
An investment of $1,000 annually at the end of each year for the next 15 years will be worth $30,000 at the end of 15 years. What is the interest rate return on this investment?
| 8.26% |
| 10.54% |
| 9.27% |
| none of the above |
Sally Jones purchased a share of stock for $42. During the year she received $1.80 in dividends. At the end of the year she sold her stock for $40.50. Calculate the holding period return for her investment (excluding taxes).
| 4.29% |
| 0.71% |
| -3.57% |
| -7.86% |
Your are given the following information:
Hotel X
Return: 10%
Weight (proportion of portfolio): 75%
Risk (standard deviation of return): 3%
Hotel Y
Return: 20%
Weight (proportion of portfolio): 25%
Risk (standard deviation of return): 9%
Calculate the expected return of the portfolio.
| 10.0% |
| 12.5% |
| 15.0% |
| 17.5% |
Jones Restaurant Corporation has reported the following information as of December 31, 2011.
Total revenue: $4,000K
COGS: $2,300K
Gross Profit: $1,700K
Operating Expenses: $1,200K
Fixed Charges: $150K
Income Taxes: $100K
Net Income: $250K
Total Assets as of 12/31/11: $1,000K
You would like to purchase five 8.5% $10,000 bonds that are currently selling for 102. How much will it cost you to purchase all of these bonds?
| $10,200 |
| $50,500 |
| $51,000 |
| none of the above |
Calculate the return on assets for Jones Restaurant Corporation using the DuPont Analysis.
| 10% |
| 20% |
| 5% |
| 25% |
What is the future value of $1,000 invested for 10 years at 5%?
| $613.91 |
| $1276.28 |
| $1628.89 |
| none of the above |
You would like to purchase five 8.5% $10,000 bonds that are currently selling for 102. How much total interest will you earn in one year from these five bonds?
| $4,250 |
| $850 |
| $8,500 |
| none of the above |
Angie just won the lottery. The prize is yearly payments of $100,000 compounded annually for 30 years with the first payment being made today. What is the value of this prize today at an 8% interest rate?
| $1,125,778.33 |
| $1,215,840.60 |
| $1,271,650.59 |
| $1,280,128.26 |
What is the present value of $10,000 to be received in 5 years at 12%?
| $5,674.27 |
| $8,928.57 |
| $17,623.42 |
| none of the above |
Your are given the following information:
Hotel X
Return: 10%
Weight (proportion of portfolio): 75%
Risk (standard deviation of return): 3%
Hotel Y
Return: 20%
Weight (proportion of portfolio): 25%
Risk (standard deviation of return): 9%
Calculate the standard deviation of the portfolio with a 
of 0.
| 4.5% |
| 3.18% |
| 0% |
| none of the above
|
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Principles Of Financial Management
Authors: Haim Levy, Marshall Sarnat
1st Edition
0137097751, 978-0137097753
