Finance questions and answers in April 2021

Questions 2 RSS Recruitment Ltd places highly qualified personnel in employment in the marketing and advertising industry. The company was two years ago and the initial capital of Ghc 150,000.00 for t...
Which is/are true about bonds that stipulate a call feature callable bonds? a. Have higher required returns than non-callable bonds b. Will normally be called after interest rates drop c. Can be calle...
When credit rating agencies issue ________ credit rating to a company, you can expect to see __________ yields on securities issued by that company. a. Higher; lower b. Lower; lower c. Higher; higher ...
Which of the following would be considered a characteristic of money markets and money market securities. I Relatively small trading costs II Minimal price risk III Relatively high yield IV Maturity g...
Which of the following securities are sold at an auction for a price that is discounted from the face value of the security? a. Commercial Paper b. Repurchase agreements c. Banker's acceptances d. Tre...
Compute the first six-month coupon payment on an inflation-indexed Treasury bond that has 10 years to maturity and a 5% coupon rate if the inflation during the period was 2% and the bond has a face va...
The type of bidders in a Treasury auction who specify both the quantity of bonds they are looking to buy as well as the price they are willing to pay are called _______ . A. Negotiable B. Noncompetiti...
1- Kiara sells clay pots at her pottery studio for $27 each. The overhead expenses are $11 per pot and operating profit is 28% on selling price. a.  What is her amount of markup per pot?  Round to t...
On 15 October 2020, CSL Limited (CSL) share price is $300. You have a friend who works at CSL and she told you - in the strictest of confidence - that they have just made a major breakthrough in their...
The price of a stock on July 1 is $75.7. A trader enters a long European put option on this stock with a strike price of $84.5. The quoted option price is $9.8. One option contract covers 100 shares. ...
What is the chronology of a dividend payment?26 declaration date, holder-of-record date, payment date, ex-dividend date declaration date, ex-dividend date, holder-of-record date, payment date holder-o...
Assuming that project has normal cash flow (ie only one change in sign of cash flow during project life). Which statement is mostly accurate?6 a The NPV will decrease if we lower the WACC for calcul...
A firm is considering two equally risky, mutually exclusive projects, both of which have normal cash flows, and no conflict between IRR and NPV. Project A has an IRR of 14%, while Project B's IRR is ...
Issuing new financial instruments is not a cheap undertaking, and a firm will incur both direct and indirect costs when using an investment bank and the underwriters. Which of the following should be ...
ABC Co. is running a project that has normal cash flows (one negative cash flow at time 0 followed by series of positive cash flows.) In that case which choice is most accurate?3 a MIRR of project ...
No Excel! Please show all workings. Question 1: If the number of C$ per ¥1.00 decreases by 0.00054 from the value C$0.01205 = ¥1.00, which currency has appreciated and by what percentage? (Round to ...
No Excel! Please show all workings. Question 1: Kevin lives in Calgary and wants to buy a 2012 Corvette. The best price he can find for a low-mileage model in Alberta is $59,000. (No GST would be paya...
Pierre is 24 years old and has always lived in Quebec. Upon graduation from Concordia last year, he landed a fantastic full-time job and decided to spend his pay cheques on buying a BMW for his first ...
only offering answer is fine Identify which statement is  not  correct in relation to M&As. When evaluating mergers:            Select one: a. It is advisable to use more than one val...
only answer is fine Rights (or entitlement) share issues are:      Select one: a. Share offers used to distribute capital. Rights offers primarily target new investors and are offered at a discou...
Identify which statement is  not  correct. In a takeover bid to acquire a part or all shares in another company: Select one: a. Target company management would not accept an offer where the consider...
Identify a statement which is  not  correct. IPO underpricing can be explained as: Select one: a. The result of information asymmetry between investors and the issuing firm.  b. IPO firm's attempt ...
Lowell Corporation recently issued 10-year bonds at a price of $1,000 with a 8 percent semi-annual coupon at par. Now it wishes to issue new 10 year bonds with 4 percent semi-annual coupon with a fac...
No Excel! Please show all workings. Question 1: A five-year loan of $25,000 at 7.2% compounded quarterly requires quarterly payments. a) Calculate the interest component of Payment 10. b) Calculate th...
No Excel! Show all workings. Question 1: The Archibalds are eligible for Canada Mortgage and Housing Corporation's Mortgage Loan Insurance. Consequently, their limits are 95% for the loan-to-value rat...
Janet Lee and Ross both have employer-sponsored group health and dental plans that offer both a small amount of life insurance ($25,000 each), long-term disability (two-year any/own definition of disa...
/ "Blue Cheese Company purchases 16,763 boxes of cheese each year. It costs $14 to place and ship each order and $9.17 per year for each box held as inventory. The company is using Economic Order Quan...
Bridget is a participant in the Life-Long Learning Plan (LLLP) and has her first scheduled repayment due in 2021. Her annual repayment amount is $1,000, based on a 10-year schedule. Regarding Bridget'...
Brad tells you about his plans to upgrade his auto insurance. Specifically, he would like to add several types of coverage to his policy, such as family protection coverage and rental car coverage. Re...