You should lease rather than buy whes the DI NAL from leasing is poaitive. IRR bei leaing exceeds the afeux oest of borrowing. m) Which ene of these is considered to be the best reason for obtaising s capital lease?m A) Te roduce the lisbilsies shows on O Te benefit fion the implicit ieterest ale of a lease D) To obtais 100 pencent financing D Te ened paynents over a period of tine mmts to sell at ofYor 4 for $22.500.The frm ues MACRSdepreciation with rapes of 33.33 percent, 4444 pencent, 14.32 peroent, and 7.4l percent over Years I to 4, regectively. The equipment can be leased for Siuo a year foe for year. The firm an cash flew foe Year 4 if the company decides to ease the equipment rather than parchase Steven's Auto is trying o decile whether to lease or bay sone wew equipment costing 23,000 that has a life of tree years, after which it will be worthless The afert discout rate is 5.8 percent. Assune the anmal depreciation tas shield is $1,610 and the hertax ansual lease peyment in 56,500. What is the net advange so leasing A)$1,315 ) A scanner that oosts $2.8 miltion wouild be depeiciated straight lise to sero over foer years and then be pescest and borrow at a pretax rate of 7.5 pemoent. However, the lessoe has losses and will aot pay ny taxes for at lesst the next five yoars What range of payments will allow a lea on this scanner bo be profitable for botks parties 5804,036 o 5805,481 5814,026 to 5815,123 5835,024 to 3835,989 5845,123 to 3846 417 5825,123 to 3826 82 both a lessor and a lessee have tax nes of 21 Assume that a 63) Firm X has total earnings ofS49,000, a market value per share of S64, abook value share of $38, and has 25,000 shares outstanding. Firm Y has total earnings of $34,000, a market value per share of $21, a book value per share of $12, and has 22,000shares outstanding. Assame Firm X acquires Firm Y by paying cash for all the shares outstanding at a merger premium of $2 per share. Also assume neither firm has any debe before or after the merger. What is the value of the total equity of the combined firm, XY, if the purchase method of accounting is used? ASI ,456,000 B) S ,427,000 OSI ,274,000 D) $1,316,000 ED) $1,412,000 6h_ The balance sheet of Meat Co. reflects current assets of$6,000, net fixed assets of $8,400, current liabilities of $1,800, long-term debt of $1,100, and equity of $11,500 The balance sheet of Loaf Inc. shows current assets of $2,000, net fixed assets of $3,300, current liabilities of $900, long-term debt of $500, and equity of $3,900. Suppose the fair market value of Loafs fixed assets is $4,100 versus the $3,300 book pays $5,200 for Loaf and raises the needed funds through an issue of long-serm debe Assume the purchase Meat Co. will have total debt of A) $14,500; $15,400 B) $1,600, $11,500 ) $9,500; $11,500 D) $1,600; $15,400 E S10,200; $15,400 value shown. Meat method of accounting is used. The post-merger equity of balance sheet of and total 65) Prior to the merger, Firm A has $1,250 in total earnings with 750 shares outstanding at a 5 market price per share of $42. Firm B has $740 in total earnings with 220 shares outstanding at $18 per share. Assume Firm A acquires Firm B via an exchange of stock at a price of $20 for each share of B's stock. Both A and B have no debt outstanding What will the camings per share of Firm A be after the merger? A) $1.86 E $2.10 D) $1.95 $2.33 B) $2.02 Rural Markets and Flo's Flowers are allequity firms Rural Markets has 2.300 dares outstanding at a market price of $16.50 a share. Flo's Flowers has 5,000 shares outstanding at a price of S17 a share. Flo's Flowers is acquiring Rural Markets for 39,000 in cash. The incremental value of the acquisition is $1,800. What is the net present value of acquiring Rural Markets to Flo's Flowers? A) $750 C)-$1,050D) $1,800 -$250 B) $400 -13- 33) A stock is selling for $62 per share. A call option with an esxancise price of $565 sells for $3.85 and expires in three months. The risk-free rate of interest is 2.8 pencent per year 3_ compounded contiously What i the prise of a put option with the same eserce price and expiration date? A) 56.95 B) $6.23 $6.67 D) 56.74 36.40 34) A pat option thas expires in elight moths with an exencise price of $35 sells for $7.34_ The stock is currently priced at $52, and the risk-free rate is 3.1 percent per year comgounded continuously. What is the price of a call option with the same esencise price and expiration datie? A) 35.67 )$4.92 D) $4.71 $5.34 E 55.47 35) Today, you purchased 300 shares of Lazy Z stock for $49.80 per share. You also beught three 1-yem, $30 put options on Lary Z stock at a cost of $.55 per share. What is the maximum total amount you can lose over the next year on these purchases? 38 -$15,105 D-5105 ) The one-year call on TLM stlock with a strike price of 565 is priced at $2.20 while the one-year put with a strike price of $65 is priced an 511.18 The aanal risk-free rate is 3.8 peroent, compounded continsoualy. What is the ounent price of IL.M stock? O $50.10 A) $47.65 ) 556.70 D) 553.60 D $48.90 37m) You invest $2,500 soday at 5.5 percest, compounded continuously. How much will this investment be worth 12 years from now? A) $3,728 3 B) $3,422 54837D$3,7914311 5) Assume a stock price of $31.18, risk-free ratc of 3.6 percent, standand deviation of 44 percent, N(d) value of 62789, and an Nid) value of 54232 What is the value of a 3-moath call option with a strike price of $30 given the Black-Scholes option pricing model? B) $3.45 A) $3.99 D) $3.38 E53.68 39) Assume a stock price of$42; . risk-free rate of35% per year, compounded asix-month maturity; and a standard deviation of64% per year. If a six-metal with an exercise price of S45 is priced at $6.66, what is the price of the sin-month $45 pat A) $9.07 ondnouly, D 58.88 E $7.93 $857 B)$8.74 40) You own a lot in Key West, Florida, that you are comsidering selling Similar lots have recently sold for $1.2 million. Over the past five years, the price of land in the area has varied with a standard deviation of 19 percent. A potential buyer wants an option to buy the land in the next 9 months for $1,310,000. The risk-free rate of interest is 7 percent per year, compounded continuously. How mach should you charge fior the option Round your answer to the nearest S100. A)$62,500 B)$60,400 0$62,000 D)$68.900 ES63,700 9 Which one of the following statements concerning convertible bonds is false A) A convertible bond is similar to a bond with a call option. B) A convertible bond should always be worth less than a comparable straight bond C) A convertible bond can be redeemed just like a straight bond at maturity D) A convertible bond can be described as having upside potential with downside 9) E) New shares of stock are issued when a convertible bond is converted 10) Rosa purchased three call option contracts on ABC stock with a strike preeofS27S0 when the option was quoted at $1.10 per share. The option expires today when the value of ABC stock is $29.30. Ignoring trading costs and taxes, what is the met profit on this _ A) $140 ) $70 $210 D)$330 E so n Visce sold two 545 call eption conimacts at a qusted price of sl 15 per shure What is the net profit on this investment if the price of the underlying asset is $48.10 on the option expiration date? 1gnore trading costs and taxes. A) $230 B) 50 D)-$090 Q$115 -$195 12) The market price of NM stock has been volatile rocently. Since you think the volunility12) will continue, you purchase a two-month European NM call option with a sarike price of S30 and an option price of $.60. You also parchase a two-moeth Europcan NM put option with a strike price of $30 and an option price of $1.20. What will be your net profit oe these option positions if the stock price is $23 on the day the options expiee? Ignore trading oosts and taxes. A) $20 b) -560 a $60 D) S0 13) You recently purchased six put option contracts on a stock with-exercise price ofus and an option premium of S.65. What is the total intrinsic value of these contracts it the stock is currently selling for $46.20 a share A)-$120 D) $420 E 5750 o so B)-5360 call option on RCI stock. The current stock price is $$1.20 1 14) You currently own a one-year and the risk-free rate of return is 3.36 percent. Your option has a strike price of $50 and you assume the option will finish in the money. What is the curent varoe of your call option? A) $1.16 $2.83D$1.24 $228 B) $3.13 15) Suppose the current share price of Dimension stock is $46. One year from now, this stock will sell for either $38 or $52 a share. T-bills currently yield 3.3 percent. What is the per share value of a Dimension call option if the exercise price is $40 per share and the expiration is one year from now? A) $7.90 $13.62 C)$10.39 D) $12.00 B) $8.48 price of 538ashae Resl Is bas 2,100 shares of sock ouistanding at a market poe of 524 ahae. Neither fm has ay delt. The p53929 A)$37.87-$3730 OS), 19 53692 ) Moone Indastries hes agreed to be acquied by Scott Entorprises for 800 shaes of Scot_ Enterprises tinck. Son Enterprise, on ty hm7300 shares of 0k outstanding at price of 538 a share Mone Indastries has 1,800 sharesng at a price of $12a hare. The lacremental valae of the aoqisoe is 51,100 What is the valae pet share of Scon Enterpriscs stock afler the soquistios? 52847$27.52 52796 indefinisly. The miltion. The ef Ats is 31436 $91,000.000: 5 90,824,141 $103,83720% 991,000)000 $304,00ooe 191,000,000, 991,338,092 related to thi lease. Which ) Financial ) Open 41) ) Assume a stock price of $sS; risk-free rane of 4 percent per year, compounded continuously, time to maturity of five months; standard deviation of 48 percent per year and a put and call exercise price of $85. What is the delta of the put option? A)-6850 -3742 D)-3158 B)-0525 -4685 2) Upside Down has a zero coupon bond issue outstanding with a $10,000 face value that matures in one year. The current market value of the firm's assets is $12,400 while the standard deviation of the returns on those assets is 22 percent annually. The annual risk-free rate is 4.6 percent, compounded continuously. What is the market value of the _ A) $8,900 $9,413 B) $8,415 $8,962 D)$9,311 43) Alpha is considering a parely financial merger with Beta. Alpha cumently has a market 43) value of $14 million, an asset retura standard deviation of 55 percent, and pure discount debt of $6 million that matures in four years. Beta has a market value of $6 million, an asset return standard deviation of 60 percent, and pure discount debt of $2 million that matures in four years. The risk free rate, coetinuously compounded, is 3.5 percent The equity value of the two separate firms is $14,180,806. By what amount will the combined equity value change if the merger occurs and the asset return standard deviation of the merged firm is 45 percent? A) 50 ) _sssas c)S286A03 D)-5314007 E)$99,087 40 Last month, Keyser Design acquired all of the assets and liabilities of Tenor Machine 4 Works. The combined firm is known as Keyser Design. Tenor Machine Works no longer exists as a separate entity. This acquisition is best described as a: A) spinoff. B) consolidation. C) merger D) tender offer E) divestiture. 45) The Daily News published an ad today wberein it announced its desire to purchase shares of a competing newspaper, the Oil Town Gossip. Which one of the following terms is best described by this announcement? A) Spinoff B) Tender offer C) Divestiture 45) D) Merger request 16, The assets oruptown sures are cumenty worth S346000. These assets are expected to be worth either $320,000 or $365,000 one year from now. The company has a pure discount bond outstanding with a $350,000 face value and a maturity date of one year The risk-free nte is 3.9 percent. What is the value of the oquity in this fim? A)$12,671 B)$10,015 $9915 D) $9,507$11,347 Westem Industrial Products is considering a project with a life of four years, a discount rate of 14.7 percent, and an initial cost of $268,000. The project is expected to produce sales of 2,100 units on the last day of each year. The cash Blow per unit is $S0. The firm will have the option to abandon the assets could be sold for an estimated $225,000. The firm should abandon the peoject immediately following the sales on the last day of the first year if the expected level of annual sales, starting with Year 2, fallst. -units or less. Ignore taxes. project after one year at which time the project's A) 1,922 units 8) 2,100 units C 1,961 units D) 1,667 units E 2,034 units western Shores isconsidering project th. hasan initial oot today diim ne project has a two-year life with cash inflows of $7,400 a year. Should the fiem opt to wai one year to commence this project, the initial cost will increase by 4 percent and the cash inflows will increase to applicable discoust rate is 9.5 percen? tn $3.900 a year. what l the value ofthe ogeie bow ifthe n$373 63 C)$182.67 21.56 E)530393 19) Which one of these is most equivalent to r i -12 718288 19) D 12.718288 D 12.7182R 20) In the Black-Scholes option peicing formula, Ndh) is the probability that a standardized, 20) nomaly distributed random variable is: A) equal to 1. 8) less than or equal to dy C) less than l D) equal to di E)less than or cqual to N(d). outstanding at a arket poe of 324 ahae. Neither m has ay debt. The wlue of the segudsitios is $1,200. Wht is the price per shore of Sleep Tight aher he 4)$3787 537 300s19 D5362 39.29 D) 536.92 n Moone Industries ha ngreed to be acquired by SconEntorprises for 800 sh of Scotl Enterprises stock. Soos Enserprises oumendly has 7,500 shaers of sock outstanding at a price of 578 a share Mone Indastries has 1,800 sharesg at a price of $12 a hare. The lscremental valae of the aoqisoe is 54,100 What is the valae pet share of A)$31.03 nere$28.04 31436 is teying to decide nilios in 991,000.000: 590,824.141 3104,000,000, 5304,02133 $104,000,000, 5103,837,209 991,000000 5304,00oe Maria has a fully anortieed 10-year lease on an induotrial-grade sewing nashine shich nurance goonians related to this lease. Which C) Financial You should lease rather than buy whes the DI NAL from leasing is poaitive. IRR bei leaing exceeds the afeux oest of borrowing. m) Which ene of these is considered to be the best reason for obtaising s capital lease?m A) Te roduce the lisbilsies shows on O Te benefit fion the implicit ieterest ale of a lease D) To obtais 100 pencent financing D Te ened paynents over a period of tine mmts to sell at ofYor 4 for $22.500.The frm ues MACRSdepreciation with rapes of 33.33 percent, 4444 pencent, 14.32 peroent, and 7.4l percent over Years I to 4, regectively. The equipment can be leased for Siuo a year foe for year. The firm an cash flew foe Year 4 if the company decides to ease the equipment rather than parchase Steven's Auto is trying o decile whether to lease or bay sone wew equipment costing 23,000 that has a life of tree years, after which it will be worthless The afert discout rate is 5.8 percent. Assune the anmal depreciation tas shield is $1,610 and the hertax ansual lease peyment in 56,500. What is the net advange so leasing A)$1,315 ) A scanner that oosts $2.8 miltion wouild be depeiciated straight lise to sero over foer years and then be pescest and borrow at a pretax rate of 7.5 pemoent. However, the lessoe has losses and will aot pay ny taxes for at lesst the next five yoars What range of payments will allow a lea on this scanner bo be profitable for botks parties 5804,036 o 5805,481 5814,026 to 5815,123 5835,024 to 3835,989 5845,123 to 3846 417 5825,123 to 3826 82 both a lessor and a lessee have tax nes of 21 Assume that a 63) Firm X has total earnings ofS49,000, a market value per share of S64, abook value share of $38, and has 25,000 shares outstanding. Firm Y has total earnings of $34,000, a market value per share of $21, a book value per share of $12, and has 22,000shares outstanding. Assame Firm X acquires Firm Y by paying cash for all the shares outstanding at a merger premium of $2 per share. Also assume neither firm has any debe before or after the merger. What is the value of the total equity of the combined firm, XY, if the purchase method of accounting is used? ASI ,456,000 B) S ,427,000 OSI ,274,000 D) $1,316,000 ED) $1,412,000 6h_ The balance sheet of Meat Co. reflects current assets of$6,000, net fixed assets of $8,400, current liabilities of $1,800, long-term debt of $1,100, and equity of $11,500 The balance sheet of Loaf Inc. shows current assets of $2,000, net fixed assets of $3,300, current liabilities of $900, long-term debt of $500, and equity of $3,900. Suppose the fair market value of Loafs fixed assets is $4,100 versus the $3,300 book pays $5,200 for Loaf and raises the needed funds through an issue of long-serm debe Assume the purchase Meat Co. will have total debt of A) $14,500; $15,400 B) $1,600, $11,500 ) $9,500; $11,500 D) $1,600; $15,400 E S10,200; $15,400 value shown. Meat method of accounting is used. The post-merger equity of balance sheet of and total 65) Prior to the merger, Firm A has $1,250 in total earnings with 750 shares outstanding at a 5 market price per share of $42. Firm B has $740 in total earnings with 220 shares outstanding at $18 per share. Assume Firm A acquires Firm B via an exchange of stock at a price of $20 for each share of B's stock. Both A and B have no debt outstanding What will the camings per share of Firm A be after the merger? A) $1.86 E $2.10 D) $1.95 $2.33 B) $2.02 Rural Markets and Flo's Flowers are allequity firms Rural Markets has 2.300 dares outstanding at a market price of $16.50 a share. Flo's Flowers has 5,000 shares outstanding at a price of S17 a share. Flo's Flowers is acquiring Rural Markets for 39,000 in cash. The incremental value of the acquisition is $1,800. What is the net present value of acquiring Rural Markets to Flo's Flowers? A) $750 C)-$1,050D) $1,800 -$250 B) $400 -13- 33) A stock is selling for $62 per share. A call option with an esxancise price of $565 sells for $3.85 and expires in three months. The risk-free rate of interest is 2.8 pencent per year 3_ compounded contiously What i the prise of a put option with the same eserce price and expiration date? A) 56.95 B) $6.23 $6.67 D) 56.74 36.40 34) A pat option thas expires in elight moths with an exencise price of $35 sells for $7.34_ The stock is currently priced at $52, and the risk-free rate is 3.1 percent per year comgounded continuously. What is the price of a call option with the same esencise price and expiration datie? A) 35.67 )$4.92 D) $4.71 $5.34 E 55.47 35) Today, you purchased 300 shares of Lazy Z stock for $49.80 per share. You also beught three 1-yem, $30 put options on Lary Z stock at a cost of $.55 per share. What is the maximum total amount you can lose over the next year on these purchases? 38 -$15,105 D-5105 ) The one-year call on TLM stlock with a strike price of 565 is priced at $2.20 while the one-year put with a strike price of $65 is priced an 511.18 The aanal risk-free rate is 3.8 peroent, compounded continsoualy. What is the ounent price of IL.M stock? O $50.10 A) $47.65 ) 556.70 D) 553.60 D $48.90 37m) You invest $2,500 soday at 5.5 percest, compounded continuously. How much will this investment be worth 12 years from now? A) $3,728 3 B) $3,422 54837D$3,7914311 5) Assume a stock price of $31.18, risk-free ratc of 3.6 percent, standand deviation of 44 percent, N(d) value of 62789, and an Nid) value of 54232 What is the value of a 3-moath call option with a strike price of $30 given the Black-Scholes option pricing model? B) $3.45 A) $3.99 D) $3.38 E53.68 39) Assume a stock price of$42; . risk-free rate of35% per year, compounded asix-month maturity; and a standard deviation of64% per year. If a six-metal with an exercise price of S45 is priced at $6.66, what is the price of the sin-month $45 pat A) $9.07 ondnouly, D 58.88 E $7.93 $857 B)$8.74 40) You own a lot in Key West, Florida, that you are comsidering selling Similar lots have recently sold for $1.2 million. Over the past five years, the price of land in the area has varied with a standard deviation of 19 percent. A potential buyer wants an option to buy the land in the next 9 months for $1,310,000. The risk-free rate of interest is 7 percent per year, compounded continuously. How mach should you charge fior the option Round your answer to the nearest S100. A)$62,500 B)$60,400 0$62,000 D)$68.900 ES63,700 9 Which one of the following statements concerning convertible bonds is false A) A convertible bond is similar to a bond with a call option. B) A convertible bond should always be worth less than a comparable straight bond C) A convertible bond can be redeemed just like a straight bond at maturity D) A convertible bond can be described as having upside potential with downside 9) E) New shares of stock are issued when a convertible bond is converted 10) Rosa purchased three call option contracts on ABC stock with a strike preeofS27S0 when the option was quoted at $1.10 per share. The option expires today when the value of ABC stock is $29.30. Ignoring trading costs and taxes, what is the met profit on this _ A) $140 ) $70 $210 D)$330 E so n Visce sold two 545 call eption conimacts at a qusted price of sl 15 per shure What is the net profit on this investment if the price of the underlying asset is $48.10 on the option expiration date? 1gnore trading costs and taxes. A) $230 B) 50 D)-$090 Q$115 -$195 12) The market price of NM stock has been volatile rocently. Since you think the volunility12) will continue, you purchase a two-month European NM call option with a sarike price of S30 and an option price of $.60. You also parchase a two-moeth Europcan NM put option with a strike price of $30 and an option price of $1.20. What will be your net profit oe these option positions if the stock price is $23 on the day the options expiee? Ignore trading oosts and taxes. A) $20 b) -560 a $60 D) S0 13) You recently purchased six put option contracts on a stock with-exercise price ofus and an option premium of S.65. What is the total intrinsic value of these contracts it the stock is currently selling for $46.20 a share A)-$120 D) $420 E 5750 o so B)-5360 call option on RCI stock. The current stock price is $$1.20 1 14) You currently own a one-year and the risk-free rate of return is 3.36 percent. Your option has a strike price of $50 and you assume the option will finish in the money. What is the curent varoe of your call option? A) $1.16 $2.83D$1.24 $228 B) $3.13 15) Suppose the current share price of Dimension stock is $46. One year from now, this stock will sell for either $38 or $52 a share. T-bills currently yield 3.3 percent. What is the per share value of a Dimension call option if the exercise price is $40 per share and the expiration is one year from now? A) $7.90 $13.62 C)$10.39 D) $12.00 B) $8.48 price of 538ashae Resl Is bas 2,100 shares of sock ouistanding at a market poe of 524 ahae. Neither fm has ay delt. The p53929 A)$37.87-$3730 OS), 19 53692 ) Moone Indastries hes agreed to be acquied by Scott Entorprises for 800 shaes of Scot_ Enterprises tinck. Son Enterprise, on ty hm7300 shares of 0k outstanding at price of 538 a share Mone Indastries has 1,800 sharesng at a price of $12a hare. The lacremental valae of the aoqisoe is 51,100 What is the valae pet share of Scon Enterpriscs stock afler the soquistios? 52847$27.52 52796 indefinisly. The miltion. The ef Ats is 31436 $91,000.000: 5 90,824,141 $103,83720% 991,000)000 $304,00ooe 191,000,000, 991,338,092 related to thi lease. Which ) Financial ) Open 41) ) Assume a stock price of $sS; risk-free rane of 4 percent per year, compounded continuously, time to maturity of five months; standard deviation of 48 percent per year and a put and call exercise price of $85. What is the delta of the put option? A)-6850 -3742 D)-3158 B)-0525 -4685 2) Upside Down has a zero coupon bond issue outstanding with a $10,000 face value that matures in one year. The current market value of the firm's assets is $12,400 while the standard deviation of the returns on those assets is 22 percent annually. The annual risk-free rate is 4.6 percent, compounded continuously. What is the market value of the _ A) $8,900 $9,413 B) $8,415 $8,962 D)$9,311 43) Alpha is considering a parely financial merger with Beta. Alpha cumently has a market 43) value of $14 million, an asset retura standard deviation of 55 percent, and pure discount debt of $6 million that matures in four years. Beta has a market value of $6 million, an asset return standard deviation of 60 percent, and pure discount debt of $2 million that matures in four years. The risk free rate, coetinuously compounded, is 3.5 percent The equity value of the two separate firms is $14,180,806. By what amount will the combined equity value change if the merger occurs and the asset return standard deviation of the merged firm is 45 percent? A) 50 ) _sssas c)S286A03 D)-5314007 E)$99,087 40 Last month, Keyser Design acquired all of the assets and liabilities of Tenor Machine 4 Works. The combined firm is known as Keyser Design. Tenor Machine Works no longer exists as a separate entity. This acquisition is best described as a: A) spinoff. B) consolidation. C) merger D) tender offer E) divestiture. 45) The Daily News published an ad today wberein it announced its desire to purchase shares of a competing newspaper, the Oil Town Gossip. Which one of the following terms is best described by this announcement? A) Spinoff B) Tender offer C) Divestiture 45) D) Merger request 16, The assets oruptown sures are cumenty worth S346000. These assets are expected to be worth either $320,000 or $365,000 one year from now. The company has a pure discount bond outstanding with a $350,000 face value and a maturity date of one year The risk-free nte is 3.9 percent. What is the value of the oquity in this fim? A)$12,671 B)$10,015 $9915 D) $9,507$11,347 Westem Industrial Products is considering a project with a life of four years, a discount rate of 14.7 percent, and an initial cost of $268,000. The project is expected to produce sales of 2,100 units on the last day of each year. The cash Blow per unit is $S0. The firm will have the option to abandon the assets could be sold for an estimated $225,000. The firm should abandon the peoject immediately following the sales on the last day of the first year if the expected level of annual sales, starting with Year 2, fallst. -units or less. Ignore taxes. project after one year at which time the project's A) 1,922 units 8) 2,100 units C 1,961 units D) 1,667 units E 2,034 units western Shores isconsidering project th. hasan initial oot today diim ne project has a two-year life with cash inflows of $7,400 a year. Should the fiem opt to wai one year to commence this project, the initial cost will increase by 4 percent and the cash inflows will increase to applicable discoust rate is 9.5 percen? tn $3.900 a year. what l the value ofthe ogeie bow ifthe n$373 63 C)$182.67 21.56 E)530393 19) Which one of these is most equivalent to r i -12 718288 19) D 12.718288 D 12.7182R 20) In the Black-Scholes option peicing formula, Ndh) is the probability that a standardized, 20) nomaly distributed random variable is: A) equal to 1. 8) less than or equal to dy C) less than l D) equal to di E)less than or cqual to N(d). outstanding at a arket poe of 324 ahae. Neither m has ay debt. The wlue of the segudsitios is $1,200. Wht is the price per shore of Sleep Tight aher he 4)$3787 537 300s19 D5362 39.29 D) 536.92 n Moone Industries ha ngreed to be acquired by SconEntorprises for 800 sh of Scotl Enterprises stock. Soos Enserprises oumendly has 7,500 shaers of sock outstanding at a price of 578 a share Mone Indastries has 1,800 sharesg at a price of $12 a hare. The lscremental valae of the aoqisoe is 54,100 What is the valae pet share of A)$31.03 nere$28.04 31436 is teying to decide nilios in 991,000.000: 590,824.141 3104,000,000, 5304,02133 $104,000,000, 5103,837,209 991,000000 5304,00oe Maria has a fully anortieed 10-year lease on an induotrial-grade sewing nashine shich nurance goonians related to this lease. Which C) Financial