Finance questions and answers in January 2022

 A fund manager is required to submit an investment proposal to the Investment Committee on the merits of investing in ABC Corp. As an investment analyst supporting the team, you have been asked to a...
Based on the most recent end-of-year "Performance and Condition Ratios" data from the FDIC website, answer the following:     [0.4] Provide your BHC's return-on-equity (ROE) and return-on-assets (R...
Based on the evidence presented in the curriculum regarding the historical performance of the Credit Suisse Global Macro Index (CSGMI) between 2000 and 2014, which of the following conclusions is corr...
PT Keren Tbk. is planning to issue an eight-year maturity IDR 500,000,000,000 bond with a  10 percent annual coupon rate and paid semi-annually. The firm's finance officer considers  that 12 percent...
You have collected returns on AnaDone Corporation (AD Corp.), a large, di-versified manufacturing firm, and the NYSE index for five years:   Estimate the intercept (alpha) and slope (beta) of the reg...
Which of the following items is not a characteristic of a common stock?  it gives the owner priority if the firm files for bankruptcy it represents ownership in the firm  it represents a claim again...
Which of the following items is a characteristic of preferred stock? It represents a claim against future common dividends It gives the owner priority if the firm files for bankruptcy It can be used t...
You are investing $100 today in a savings account at your local bank. Which one of the following terms refers to the value of this investment one year from now? Principle Amounts Discounted value Pres...
Suppose a 10-year, 6% coupon bond is issued, and one year later similar bonds are issued paying 5.85% coupons. What will happen to the market value of the first bond?  A. The first bond's value will ...
1. Sukuk issued based on musharakah or mudarabah contracts represent evidence of investors' capital contributions to the investment activity, and their rights to the cash flow from this activity. TRUE...
1. Sukuk holders essentially share the profits and risks of the business, instead of receiving a fixed ratio of the capital invested. TRUE /FALSE   2. The return for Sukuk is determined based on the ...
1. The issuance process of Sukuk excludes establishing a special purpose company to represent the Sukuk holders before commencing the issuance process. TRUE /FALSE   2. The relationship between Sukuk...
1. The primary parties in Sukuk contracts are the Sukuk issuer, Sukuk holders and Sukuk trader. TRUE / FALSE   2. Sukuk is structured using normal financial contracts similar to bonds. TRUE / FALSE ?...
1. Conventional investors are not comfortable with Sukuk due to its innovative Shariah structure and competitive returns. TRUE / FALSE   2. Sukuk can be used as a hedging utility to potentially manag...
Week 2 - Assignment  Chapters 3 & 4 Instructions: Please select the correct answer. You need to EXPLAIN your answer and/or SHOW any applicable calculations to receive credit.  1. A good measure ...
Which of the following items reflects the time value of money? a.         Real risk-free rate. b.         Inflation premium. c.         Default risk premium. d.        ...
Koda's Manufacturing has a required return of 9.50%. If the market return is 13.0% and the nominal risk-free rate is 6.0%, what is Koda's beta? a.         0.5% b.         8.3% c.   ...
Use the following data to answer questions 5 and 6. Assume the following premiums reflect current market conditions: r* = 3.15%; IP (1-year bonds) = 2.35%; IP (3-year bonds) = 2.65%; IP (5-year bonds)...
Instructions: Please select the correct answer.  You need to EXPLAIN your answer and/or SHOW any applicable calculations. Koda's Manufacturing has a required return of 9.50%. If the market return is ...
Instructions: Please select the correct answer.  You need to EXPLAIN your answer and/or SHOW any applicable calculations. The beta for ABM Industries is 1.50. Assuming that the nominal risk-free rate...