I need help. Thank you! See attached file. Thanks I need help. Thank you! See attached file. Thanks
d. 1. Assume the most recent nominal GDP growth was 3% (and up strongly from its prior
reading), the unemployment rate is at 4% (down from 6% in the prior period) and CPI is
growing at 5% (up from just 3% in the prior month). What do you think the Federal
Reserve is likely to do?
Lower rates to further increase GDP growth and further lower unemployment.
Lower rates to slow GDP growth and reduce inflation.
Raise rates to further increase GDP growth and further lower unemployment.
Raise rates to slow GDP growth and reduce inflation. 2. A federal budget deficit:
a. Generally slows economic growth due to higher interest rates.
b. Generally increases economic growth due to higher demand for goods and services.
3. The best way to maximize a firm?s value is to maximize its Earnings Per Share (EPS).
4. Suppose the US Treasury announces plans to issue $50 billion of new bonds. Assuming this
announcement was a surprise and all other things are held constant, what effect would this
announcement have on bond prices and interest rates?
a. Prices and interest rates would both rise.
b. Prices would rise and interest rates would decline.
c. Prices and interest rates would both decline
d. There would be no change in prices or interest rates.
e. Prices would decline and interest rates would rise. 5. Which of the following factors would be most likely to lead to an increase in interest rates in the
a. Households reduce their consumption and increase their savings
b. The Federal Reserve decides to try to stimulate the economy
c. There is a decrease in expected inflation
d. The economy falls into a recession.
e. Most businesses decide to modernize and expand their manufacturing capacity, and to install
new equipment to reduce labor costs.
d. To calculate taxes, a firm can deduct all of the following EXCEPT:
None of the above 31.
d. At its core, what is FCF?
The cash available for distribution to investors.
A driver of the fundamental value of the firm.
All of the above
None of the above 32.
d. A financial metric used to determine if growth is adding value is
NOPAT 33. An inverted yield curve doesn?t happen much. When it does, short-term bonds yield more than
long-term bonds, all else equal.
34. Market Value Added (MVA) = Market Value of the firm - Book value of the firm. This metric,
d. The value added by management since the inception of the firm.
The value added by management since last year.
The value added by management since last quarter.
None of the above. 35.
e. What affects an investment?s value?
The amount of expected cash flows
The timing of cash flows
The risk of cash flows
All of the above
None of the above 36.
e. The WACC is the weighted average cost of capital and is affected by what?
The capital structure of the firm
The current interest rate environment
The risk of the firm
All of the above
None of the above 37. A California Muni Bond yielding 5% or a corporate bond yielding 7%. Assuming all other factors
are equal, which bond should you prefer if your marginal tax rate is 30%?
a. The muni bond
b. The corporate bond c. Either. You would be indifferent to the two. 38. Dilbert Enterprises has issued $1 billion of bonds with a sinking fund provision. With 5 years left
until maturity, Dilbert Enterprises does not retire bonds as provided for in the sinking fund
provision. What is the consequence of this action on the company?
a. Nothing as long as it still pays interest on the bonds and pays them off at maturity.
b. The bonds are in default as a result of violating the sinking fund covenant.
c. It depends on the payment history of Dilbert Enterprises.
d. None of the above.
39. A bond that currently trades at a premium will see its price do what until maturity (assuming
nothing else changes except the passage of time)?
a. Rise to par
b. Fall to par
c. Remain the same since prevailing interest rates have not changed
d. None of the above
40. You put $2,000 in a CD paying 6% for 10 years. How much money do you have at the end of 10
years? 41. You put $10,000 in a company 401K each year. The company matches this investment. You
expect to earn 8% each year on this money and you work for the company for 25 years before
you retire. How much money do you have at retirement?
42. You have decided that you need $3 million to retire in 35 years. How much money should you
save each month if you can earn 9% on this money? 43. You purchase a rental house for $100,000 with 20% down. The rental income pays for all
expenses and the mortgage for the entire time you own it. You sell it 18 years after you
purchase it. Assuming real estate prices increase 3.5% per year, at what price did you sell this
44. Assuming you owe $45,000 on this house when you sell it, what is your gain on the house
above? 45. What is your rate of return on your equity investment given this gain?
This question was answered on: Sep 18, 2020
Buy this answer for only: $15
This attachment is locked
We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free copy from our tutoring website www.aceyourhomework.com (Deadline assured. Flexible pricing. TurnItIn Report provided)
Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
About this QuestionSTATUS
Sep 18, 2020EXPERT
GET INSTANT HELP/h4>
We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.
You can also use these solutions:
- As a reference for in-depth understanding of the subject.
- As a source of ideas / reasoning for your own research (if properly referenced)
- For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
NEW ASSIGNMENT HELP?
Order New Solution. Quick Turnaround
Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.
WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN YOUR SET DEADLINE.