Questions: Consider all questions below

1) Sam Lawson is a vice president at a large communications firm. His compensation includes a salary of $430,000, a bonus of $215,000 and a stock option package that allows him to purchase 33,000 shares of the company's stock at $45 per share. He can exercise the option anytime within a three-year period that starts on the first of next month. The stock is now selling at $63 per share. If the current price holds until the first of the month, and Sam exercises his option, how much will he make this year?

2)Henderson Industries Inc.'s stock is currently selling at $22.80 per share. Sharon Jacobs, the CEO, has options to buy 270,000 shares at $26.00 per share that expire at the end of this year. Sharon feels that if the traditional accounting method is used, implementing the deferred payment sales program will push the stock's price about half way toward the level it was at two years ago which was about $50.00.

If Sharon Jacobs is also a founder of the company and has retained 6 million shares of its stock, how much of a difference will the auditors' decision make in her personal wealth outside of the stock option? Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answer to one decimal place.

fill in the blank

$_____million

3)Nu-Mode Fashions Inc. manufactures quality women's wear and needs to borrow money to get through a brief cash shortage. Unfortunately, sales are down, and lenders consider the firm risky. The CFO has asked you to estimate the interest rate Nu-Mode should expect to pay on a one-year loan. She's told you to assume a 3.4% default risk premium, even though the loan is relatively short, and to assume the liquidity and maturity risk premiums are each %. Inflation is expected to be 4.5% over the next 12 months. Economists believe the pure interest rate is currently about 3%. Round your answer to one decimal place.

4)What is the future value of $3,220.84 deposited for 6 years at an interest rate of 9%? Round the answer to the nearest cent.

5)How much will $185 grow into if it is invested at 10% for 35 years? Round the answer to the nearest cent.

6)If you deposit $237.8 in an account that pays 4% and leave it there for 13 years, how much will you have in the account? Round FVF values in intermediate calculations to four decimal places. Round the answer to the nearest cent.

7)How much is a guaranteed promise of $15,950 to be received in 10 years worth today if interest is 16%? Round the answer to the nearest cent.

8)At what interest rate will $1,500 grow into $4,039.16 in 17 years? Round the answer to the nearest whole percentage. Do not round your intermediate calculations.

9)How much will $500 per year deposited at 13% be worth in 8 years? Round the answer to the nearest cent. Round FVFA value in intermediate calculations to four decimal places.

10) What interest rates are implied by the following lending arrangements?

You borrow $520 and repay $577.20 in one year. Round the answer to the nearest whole percentage. Do not round your intermediate calculations.

a) You lend $1,810 and are repaid $1,883.12 in two years. Round the answer to the nearest whole percentage. Do not round your intermediate calculations.

b)You lend $760 and are repaid $1,129.32 in five years with quarterly compounding. Round the answer to the nearest whole percentage. Do not round your intermediate calculations. (Note: Be sure to give your answer as the annual nominal rate.)

c)You borrow $12,500 and repay $21,364.24 in three years under monthly compounding. Round the answer to the nearest whole percentage. Do not round your intermediate calculations. (Note: Be sure to give your answer as the annual nominal rate.)

11)Branson Inc. has sold product to the Brandywine Company, a major customer, for $23,000. As a courtesy to Brandywine, Branson has agreed to take a note due in two years for half of the amount due.

a)What is the effective price of the transaction to Branson if the interest rate is:

6%. Round the answer to the nearest whole dollar. Round PVF values in intermediate calculations to four decimal places. Do not round other intermediate calculations.

b)8%. Round the answer to the nearest whole dollar. Round PVF values in intermediate calculations to four decimal places. Do not round other intermediate calculations.

c)10%. Round the answer to the nearest whole dollar. Round PVF values in intermediate calculations to four decimal places. Do not round other intermediate calculations.

d)12%. Round the answer to the nearest whole dollar. Round PVF values in intermediate calculations to four decimal places. Do not round other intermediate calculations.

Part II. Molar Enthalpy of Dissolution of a Salt Mass of water 75.41g Mass of NH.NO, 3.02 19.2"CQuestion 1 :1 point: Semistrong form efficiency implies: I a] All historical market information, including prices and volume. is included in the price. I b] All information, both public and private is already incorporated in the price. I c} Superior returns may be obtained by the analysis of past prices and volumes. d] All public information is already incorporated in the price. Question 211 point]- Which ofthe following is NOT an empirical challenge to market efficiency? I a] small stocks tend to outperform large stocks I b] value stocks tend to outperform growth stocks I c] investors appear to react slowly to earnings announcements di stocks sometimes return more than their expected return s, and at othertimes return less than their expected returns Question 3 [1 point]- Which ofthe following should not lead to an increase in market efciency? I a] Information is available faster I b] Infon'nation is available at a lower cost cjl There are more assets {for example, number of stocks) in the market for the same number of market participants I d] There are more participants in the markets for the same number ofassets Question 411 polnt] An exchange rate regime is one under which rates of exchange are determined in the market on the basis of predominantly private transactions is called: Apps ) New Tab CanipeWhitney 0 Shared with Sydney Following is a series of independent cases. In each situation, indicate the cash distribution to be made at the end of the liquidation process. Unless otherwise stated, assume that all solvent partners will reimburse the partnership for their deficit capital balances. a. The Simon, Haynes, and Jackson partnership presently reports the following accounts, Jackson is personaly insolvent and can contribute only an additional $10,000 to the partnership. Simon is also insolvent and has no available funds. $ 50,000 Liabilities 42,000 Haynes, loan 50,000 Simon, capital (40%) 36.000 Haynes, capital (2096) (26,000) Jackson, capital (40%) (52,000) Simon, Haynes, Capital Loan and Jackson. Capital Capital Beginning balances Contribution by Jackson Capital balances Elimination of Jackson's deficit Final distribution b. Hough, Luck, and Cummings operate a local accounting firm as a partnership. After working together for several years, they have decided to liquidate the partnership's property. The partners have prepared the following balance sheet: Cash $ 40,000 Liabilities $ 36,000 Hough, loan 41,000 Luck, loan 30.000 Noncash assets 202,000 Hough, capital (50%%) 150,000 Luck, capital (40%) 26,000 Cummings, capital (10%) 41.000 Total assets $283,000 Total Habilities and capital $283,000 The firm sells the noncash assets for $100,000; it will use $41,000 of this amount to pay liquidation expenses, All three of those partners are personally insolvent. Allocation based on 50:40:10 for Hough, Luck and Cummings capital respectively. Hough, Loan and Luck, Loan cummings, and Capital Capital Capital Beginning balances Loss on disposal Liquidation exporises Capital balances Allocation of Luck's deficit Final distribution O Type here to searchC O extomheducation.com/rimipx Apps [ New Tab CamipeWhitney 1 Shared with Sydney c. Hough, Luck, and Cummings operate a local accounting firm as a partnership. After working together for several yours, they have decided to liquidate the partnership's property. The partners have prepared the folowing balance sheet 540 000 Liabison $ 30,000 Cash 30,000 Hough, loan 41000 Luck, loan 150,000 Noncash ajob 202 000 Hough, capital Luck, capital 241000 Cummings, capital 41 040 Total mascots $20 007000 Toil Habilrios and capital $283,000 Assume that the profits and losses are split 2:4:4 to Hough, Luck, and Cummings, respectively, and that quidation expenses are only $26,000. The firm sells the noncash assets for $100,000; All three of thong partners are personally insolvent. (Do not round intermediate calculations. ] Hough, Luck, Loan Cummings, Loan and and Capital Capital Capital Beginning balancing Lose on disposal Liquidation expenses Capital balances Allocation of Cummings' deficit balance Capital balances Allocation of Luck's deficit balance Final distribution d, Following the liquidation of all poncash astols, The parmership of Redmond, Ledbetter. Watson, and Sandridge has the following account balances Redmond, loan Rodmond, capital post 181 000) Ledbatter, social CION] Hutton, capital (30) 5000 Sandridge, capital MOT 35090 Redmond is personally intoivent Redmond, Loan and Ledbetter, Watson, Sandridge, Capital Capital Capital Capital Mlocation of Redmond's deficit balance Capital balances Contribution by Ledbuffer and Watson Final distribution Plotarences .Book & Resources Problem liquidation Lolming Objective: 15-01 Determine amounts to be puld to partner Type here to search e 9