Category: Uncategorized

Prepare the 2012 fiduciaryincometax return (form 1041) for the Blue Trust. In addition,

Question
	Prepare the 2012 fiduciary return (form 1041) for the Blue Trust. In addition, determine the amount and character of the income and expense items that each beneficiary must report for 2012, and prepare a schedule K-1 for Betty Blue. Omit all alternative minimum tax computations. The 2012 activities of the trust include the following

Dividend income, all U.S. stocks $50,000

 interest income 30,000

Tax-exempt interest income 20,000

Fiduciary's fees 4,000

The trust and Betty both use the calender. Under the terms of the trust instrument, fiduciary's fees are allocated to income. The trustee must distribute all of the entity's accounting income to Betty Blue by February 15 of the following year. The trusteee followed this change and made no other distributions during the year. Fiduciary's fees properly were assigned as an offset to taxable interest income. The trust was created on July 8, 1990. There are no tax credits for the year, and none of the entity's income was derived from a personal services contract. The trust has no economic interest in any foreign trust. It's Federal identification number is XXXXX The trustee, Hoover State Federal Bank, is located at 4959 Cold Harbor Boulevard, Mountain Brook, AL 35223. Its employer identification number is XXXXX XXXXX XXXXXves atXXXXX Birmingham, AL 35212. Her Social Security number is XXXXX	

CIS 500 Assignment 3 Mobile Computing and Social Networking

Question
	
Assignment 3 Mobile Computing and Social Networking
Mobile computing has dramatically changed how information is accessed and shared. Wireless networking has been an enabler of mobile computing. One profession that mobile computing has had a big impact on is health care management. Patients are now able to monitor their vital signs such as blood pressure, glucose levels, etc. without having to periodically visit a doctor’s office or hospital. There are devices such as the Withings Blood Pressure Monitor that works with an iPhone, iPod Touch, or iPad to record, track, and graph a patient’s blood pressure. There are other devices that can measure blood glucose levels, oxygen levels, heart rate, etc. and use an iPhone to send the results to a clinical server. Doctors and caregivers are then able to access the data on the clinical server.
According to the American College of Gastroenterology, social networking sites like Facebook, Twitter, and YouTube are used as powerful platforms to deliver and receive health care information. Patients and caregivers are increasingly going online to connect and share experiences with others with similar medical issues or concerns Patients are able to take advantage of social networks to do more than just share pictures and tweets.
Write a four to five (45) page paper in which you
Compare and contrast monitoring of patient vital signs using mobile computing technology to inpatient visits to the doctor’s office or hospital.
Analyze the advantages and disadvantages of using mobile computing technology to monitor patients.
Assess the security concerns with regard to the transmission of personal medical information over wireless networks.
Assess the use of social networking for group support for patients with similar medical concerns.
Use at least three (3) quality resources in this assignment.NoteWikipedia and similar Websites do not qualify as quality resources.
Your assignment must follow these formatting requirements
Be typed, double spaced, using Times New Roman font (size 12), with oneinch margins on all sides; citations and references must follow APA or schoolspecific format. Check with your professor for any additional instructions.
Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
The specific course learning outcomes associated with this assignment are
Describe the use of network management, Web, wireless, and mobility technologies.
Outline the strategic implications of information assurance and security in an information technology environment.
Use technology and information resources to research issues in information systems and technology.
Write clearly and concisely about topics related to information systems for decision making using proper writing mechanics and technical style conventions.
	

Select a representative natural ecosystem in your area or one in which you are interested

Question
	Select a representative natural ecosystem in your area or one in which you are interested—such as a lake, preserve, or park—that is managed for native species.


Write a 700- to 1,050-word paper explaining the following:



· The major structural and functional dynamics of your selected ecosystem



· How humans may have affected the cycling of matter in ecosystems, including effects to the nitrogen, phosphorus, or carbon cycle



· How knowledge about that ecosystem’s structure and function can help or has helped to develop plans for its restoration or management



· The implication of species interactions on your selected ecosystem



Include two outside references.	

Chapter 6 Managing Employee Separations, Downsizing, and Outplacement

Question
	
26. According
to your text, studies show that _____ of voluntary employee separations are
avoidable.

a)
30%

b)
50%

c)
80%

d)
85%

e)
90%



 

27. Voluntary
separations may include:

 a) early retirements.

 b) hiring freezes.

 c) discharges.

 d) rightsizing.

e)
job redesigns.



 



28. Similar to a quit, a ______ is initiated by
the employee, but in this case the employee is unlikely to search for another
job.

a)
layoff

b)
retirement

c)
discharge

d)
buyout

e)
rightsizing

 



29. Sara is 57 years old and she has been a
division manager for Elf Cookies for 32 years.
Recently, the business has seen an increase in efficiency and has found
itself with a surplus of labor. Elf
Cookies is offering employees who are 55 and older, and who have worked for the
company for over 30 years, specific benefits and financial incentives to retire
within the next 60 days. Sara does
so. She has:

a)
quit.

b)
been bought out.

c)
copped out.

d)
taken early retirement.

e)
been discharged.



 







30. The
decision to terminate is management’s employment role. HR’s role is to:

 a) implement the decision.

 b) be the employee’s advocate by trying to
change management’s mind.

 c) make certain the employee receives due
process.

 d) side with management in enforcing the
company’s employment policy.

e)
document poor performance so
the termination can be justified.



 



31. Alex is a
first-line supervisor with an employee who has a performance problem. After
much coaching of the employee with little apparent improvement, Alex decides to
terminate the employment relationship. This type of separation is called:

 a) a layoff.

 b) a voluntary separation.

 c) a discharge. 

 d) rightsizing.

e)
a retirement.



 



32. Bertha
wishes to discharge one of her poorly performing employees. She has tried
progressive discipline with no effect. She asks you, the HR manager, what she
must do to discharge the employee. You tell her the policy and procedures, and
then ask her if she has ____ in order to protect the company from a wrongful
discharge suit.

 a) documented the inappropriate behavior and her
efforts to correct it

 b) cooperated with the HR department and
followed their instructions

 c) given 60 days notice as required by law

 d) used non-progressive discipline

 e) considered department morale and how it will
be affected by the discharge



 



33. Delmus
performance reports have been increasingly poor, and he seems to have negative
relationships with other workers in his department. His line manager has taken him aside twice to
discuss his behavior and work and has offered him time to improve, but there
has been very little positive progress.
Management decides to end the employment relationship with Delmus. This is an example of a:

a)
voluntary separation.

b)
layoff.

c)
quit.

d)
discharge.

e)
buyout.



 

34. The primary
difference between a layoff and a discharge is:

a)
a layoff is an involuntary
separation and a discharge is a voluntary separation.

b)
a layoff is a voluntary
separation and a discharge is an involuntary separation.

c)
a discharge occurs when the
company’s strategy forces it to reduce its workforce and a layoff occurs when
there is a poor fit between the employee and the organization.

d)
a layoff occurs when the
company’s strategy forces it to reduce its workforce and a discharge occurs
when there is a poor fit between the employee and the organization.

e)
a layoff does not affect the
morale of surviving employees as much as an employee discharge does.



 



35. Layoffs are
one way to reduce the workforce. Layoffs happen because:

 a) there is no direct cause.

 b) the company offers incentives or buyouts to
reduce the workforce.

 c) adequate documentation has been kept of the
poor performance.

 d) there is a poor fit between the employee and
the company or job.

e)
the company’s environment or
strategy force a reduction in its workforce.



 



36. Which of
the following people may be affected by a company’s decision to perform a
layoff?

a)
Surviving employees.

b)
Company stockholders.

c)
Members of the community where
the company exists.

d)
Laid-off employees.

e)
All of the above



 



37. A company
needs to reduce its long-term workforce.
It aims to remove layers of bureaucracy and services that do not add
value to the product. The company is:

 a) conducting a layoff.

 b) downsizing.

 c) buying out the workforce.

 d) rightsizing.

e)
changing its internal
employment policies to reduce the workforce.



 







38. If a business is downsizing, it is
necessarily doing which of the following?

a)
Reconfiguring the front-line
employees.

b)
Performing a layoff.

c)
Rightsizing the company.

d)
Reducing the size and scope of
the business.

e)
Offering early retirements.



 



39. The major
difference between downsizing and rightsizing is:

a)
rightsizing involves reducing
the size and scope of a business, while downsizing is a reorganization of the
business.

b)
more workers are likely to be
fired during rightsizing than during downsizing.

c)
downsizing involves reducing
the size and scope of a business, while rightsizing is a reorganization of the
business.

d)
the purpose of rightsizing is
to improve financial performance, while the purpose of downsizing is to
increase efficiency.

e)
a and d



 



40. One of the
more popular alternatives to layoffs for reducing the size of a company’s
workforce is:

 a) large scale discharges.

 b) inducing quits.

 c) early retirement programs.

 d) providing outplacement services.

 e) transferring workers to other plants.



 

41. Early
retirement programs consist of two main features: financial incentives and:

 a) generous severance packages.

 b) open windows during which employees can
choose the program.

 c) outplacement services.

 d) other jobs with another non-competing
company.

e)
health-care benefits.



 





42. Elizabeth is a 59-year-old account
representative at a large bank. Due to
the increasing popularity of online banking, the bank has more employees than
it needs. Recently, the bank has offered
early retirement to account representatives between the ages of 55 and 65 who
have been with the company for a minimum of 15 years. 4 employees meet these requirements, and
Elizabeth is one of them. It is likely
that:

a)
the bank is pinpointing
Elizabeth and encouraging her specifically to take early retirement.

b)
Elizabeth will receive full
retirement benefits, including medical coverage, if she takes early retirement.

c)
the bank is violating the Age
Discrimination Act because they are forcing her to retire.

d)
Elizabeth is incapable of
performing her job as well as the younger employees.

e)
the package won’t be as
substantial as it might have been five years ago.





43. Early retirement programs:

 a) can substantially reduce the size of a
company’s workforce.

 b) often drive stock prices up because of the
reduced overhead.

 c) generally have fewer people than projected
take advantage of the programs.

 d) has very little effect on reducing the size
of a company’s workforce.

e)
require very little effort for
very large returns.



44. While a
popular way to reduce the workforce, early retirement programs are not without
problems, including:

 a) insufficient participation to do the company
any good.

 b) making a company’s cash flow problems worse
over the short run.

 c) excessive unplanned health-care costs.

 d) too short a “participation window” which
limits the program’s effectiveness.

e)
too many people — often the
wrong ones in a strategic sense — take advantage of it.



45. A firm can
manage participation in an early retirement program by:

 a) restricting the program to areas of the
business with a redundancy of employees.

 b) making it available only to female employees.

 c) offering it only to protected-class
individuals.

 d) offering the program only to employees who
can quickly find other jobs.

e)
having participating employees
sign a “no-compete” agreement.



 

46. A manager
comes to you, the HR manager, to ask you about helping some employees make
decisions about early retirement. You caution the manager that certain
behaviors on his part will appear coercive and he must avoid them. These behaviors include:

 a) suddenly lowering performance appraisals
which have been good over past years.

 b) discussing the particulars of the early
retirement program with the employees.

 c) treating older employees better than younger
employees.

 d) offering older employees the opportunity to
bump younger, less senior employees.

e)
implementing an
across-the-board pay cut.



 



47. The key to
avoiding lawsuits over early retirement programs is to:

 a) give preferential treatment to
protected-class individuals.

 b) treat all employees the same regardless of
age.

 c) take potential retirees aside and “counsel”
them to take the offer, “or else.”

 d) study the probable impact on the local
community.

e)
not offer early retirement and
use some other alternative to reducing the workforce.



 

48. A layoff is
typically implemented by an organization when:

a)
it has no other means to
reduce its labor costs.

b)
HR doubts whether offering
early retirement will achieve the needed results.

c)
a majority of employees have
been working for the organization for less than 15 years.

d)
there are less than 100
employees.

e)
the organization has excellent
outplacement services.



 



49. Once a firm
has decided to reduce its workforce through voluntary means, its next choice
is:

 a) whether to lay off or discharge excess
employees.

 b) if it should downsize or rightsize.

 c) what outplacement services to offer.

 d) to determine what alternative strategies to
layoffs are available.

e)
none of the above



 





50. Compared
with the United States, Japan’s employment policies:

a)
are relatively short term.

b)
are more likely to be
“life-long.”

c)
are much more permissive.

d)
are very confusing.

e)
tend to discourage a strong
corporate culture.
	

Advanced Management Accounting Questions

Question
	Advanced Management Accounting Questions
Question 1)
There is a company called Walmart, and it deals with machining work that is conventional. A variety of machines are used within the company, and these machines are frequently restored and changed.
George Bush is the manager of this factory, and he has given permission to acquire an automated machine from Machine Ltd. at a price of $2,000,000. Recently, the new automated machine was set up. It is believed that this new machine will last for 10 years and this new machine will incur operating costs of $700,000 (on a yearly basis). By the end of the 10 years, the machine will be useless.
George Bush’s salary is $75,000 and he also obtains ½ of 1% of the corporate net income as his yearly bonus. Brad thinks he will stay with Walmart for an additional 2 years. Afterwards, he believes that by moving to a different company he will obtain a hefty salary increase and a promotion.
Super Machine Ltd. (another company) is offering a new machine. This machine executes the same jobs as the new machine from Machine Ltd. George Bush has his reservations about this new growth. The machine at Super Machine Ltd. costs $2,500,000 and has the capability of lasting for 10 years. The yearly operating costs are $300,000 and after 10 years the machine will have a nil salvage value. It has caused Walmart’s machine as outdated and the net of salvage, its present amount has gone down to $500,000.
Based on the following questions, ignore income taxes and make the assumption that the company’s compulsory return is 14%. In order to calculate the depreciation, this company uses the straight-line method.

a)	From the company’s view point, what is the best conclusion?
b)	What do you think is George Bush’s desired conclusion? Make sure to include the computations of income.
c)	By incorporating short-run financial methods of accomplishment as incentives for rewards, what do you think would be the motivation difficulties?
d)	How can the discrepancies in parts (a) and (b), and the motivation difficulties in part (c) be diminished?	

general business data bank

Question


300. Converse started selling its
"high-top" canvas basketball shoes in colors such as hot pink, lime
green, and purple, to accompany their traditional colors of black and white.
Converse seems to be pursuing a

opportunity.

A.
market
penetration 

B.
market development 

C.
product development 

D.
diversification 

E.
breakthrough 



301. Heinz, in order to boost its sales,
came up with ketchup in gross green and funky purple colors. It packaged the
ketchup in EZ Squirt dispensers molded to fit little hands. This is an example
of:

A.
Product development. 

B.
Market development. 

C.
Diversification. 

D.
Market penetration. 



302. In developing trails for hiking and
biking to bring its winter ski customers back in the summer, Mountain High Ski
Resort is pursuing what type of opportunity?

A.
Channel penetration. 

B.
Diversification. 

C.
Product development. 

D.
Market development. 

E.
Market penetration. 



303.
Zippo is pursuing opportunities
with its Multi-Purpose Lighter that is designed to light candles,

fireplaces,
grills, and more.

A.
market penetration 

B.
market development 

C.
product development 

D.
diversification 

E.
channeling 



304. Hewlett-Packard decided that too
many other companies were attracting its customers by advertising their
computer printers as "having all of the features of Hewlett-Packard's
LaserJet." So Hewlett-Packard designed a new color printer with a
completely new set of features which no competitors' equipment offered.
Hewlett-Packard then introduced it to the same market with the hope that it
could develop a larger and more profitable share. This was an effort at:

A.
market development. 



B.
diversification. 

C.
market penetration. 

D.
product development. 



305. To improve its profits, Delta Tool
Corp. has redesigned its entire line of rechargeable power drills-- adding
several new or improved features and three new models. Apparently, Delta Tool is
pursuing a

opportunity.

A.
combiner


B.
market development 

C.
product development 

D.
diversification 

E.
market penetration 






























306. Professional Dental Supply has been
successfully selling dental instruments to dentists for the past twenty years,
and has developed strong customer relations. When looking for new marketing
opportunities, Professional Dental Supply will most likely look first at

A.
market penetration. 

B.
diversification. 

C.
market development. 

D.
product development. 

E.
Professional Dental
Supply will look at all opportunities equally. 



307.means
moving into totally different lines of business, perhaps entirely unfamiliar
products, markets, or even levels in the production-marketing system. 



A.
Diversification 

B.
Market development 

C.
Product development 

D.
Differentiation 

E.
Market penetration 



308. When a firm
tries to increase its total sales by offering new products to new markets, it's
pursuing:

A.
diversification. 



B.
product development. 

C.
market development. 

D.
market penetration. 

E.
All of these. 



309. When Sony Corp., an electronics
producer, purchased the Pebble Beach golf course in California, it was pursuing
what type of opportunity?

A.
Diversification 

B.
Market development 

C.
Market penetration 

D.
Product development 



310. Cheese manufacturer, Ashe Mountain
Corp., started a new chain of movie theaters called Ashe Mountain's Movie
World. The theaters have been a major success and significantly increased the
revenues of Ashe Mountain Corp. This is an example of:

A.
Diversification. 

B.
Market development. 

C.
Product penetration. 

D.
Differentiation. 

E.
Market penetration. 



311. A beer distributor, concerned about
increasing regulation of alcoholic beverages, decides to start a new business
distributing children's toys. This company seems to be pursuing

A.
market development. 

B.
diversification. 

C.
product development. 

D.
market penetration. 



312. Industrial Plastics Corporation has
decided to manufacture and sell electric motors for fishing boats. The firm
appears to be pursuing a opportunity.

A.
combiner


B.
product development 

C.
market development 

D.
market penetration 

E.
diversification 




















313. A producer of home burglar alarm
devices decides to start manufacturing portable video cameras for use in
industrial security situations. This is an example of

A.
market development. 

B.
diversification. 

C.
product development. 

D.
market penetration. 



314. If a cola
producer bought out a Mango juice producer in an attempt to appeal to
health-conscious


 

 

 
consumers who do not drink soft drinks, it would be
 pursuing a
 
 

 

 
 

 
opportunity.
 

 

 

 
A.
 market development
 
 

 

 
 

 

 

 

 

 
B.
 diversification
 
 

 

 
 

 

 

 

 

 
C.
 market penetration
 
 

 

 
 

 

 

 

 

 
D.
 product development
 
 

 

 
 

 

 

 

 

 
315.
 The most risky and challenging opportunities usually involve:
 
 

 

 
 

 

 

 

 

 
A.
 market development.
 
 

 

 
 

 

 

 

 

 
B.
 product development.
 
 

 

 
 

 

 

 

 

 
C.
 diversification.
 
 

 

 
 

 

 

 

 

 
D.
 market penetration.
 
 

 

 
 

 

 

 

 

 
E.
 all of these are similar in terms of risk.
 
 

 

 
 

 

 

 

 

 
316.
 The most risky types of marketing opportunity to pursue usually involve
 
 

 

 
 

 

 

 

 

 
A.
 market development.
 
 

 

 
 

 

 

 

 

 
B.
 market penetration.
 
 

 

 
 

 

 

 

 

 
C.
 diversification.
 
 

 

 
 

 

 

 

 

 
D.
 product development.
 
 

 

 
 

 

 

 

 

 
E.
 All of these are equally risky.
 
 

 

 
 

 

 

 

 

 
317. Because companies are likely to be most familiar
 with their own operations,
 
 

 

 
 

 

 
 

 
opportunities
 

 

 

 
are
 usually the easiest to pursue.
 
 

 

 
 

 

 

 

 

 
A.
 market penetration
 
 

 

 
 

 

 

 

 

 
B.
 product development
 
 

 

 
 

 

 

 

 

 
C.
 market development
 
 

 

 
 

 

 

 

 

 
D.
 diversification
 
 

 

 
 

 

 

 

 

 
E.
 All of these are equally easy.
 
 

 

 
 

 

 

 

 

 

 

 

 






318. Which of
the following statements is True regarding international opportunities in
marketing?

A.
There is no need to
consider international opportunities when the domestic market is prosperous. 



B.
International trade is
decreasing worldwide. 



C. A
product with slow sales growth in a domestic market may experience faster
growth in another country. 



D.
Only large firms can
engage in international marketing. 

E.
All of these statements
about international opportunities in marketing are True. 



319. All of the following are reasons
why international opportunities should be considered by managers, EXCEPT

A.the
world is getting smaller. 

B.
serving international
markets may improve economies of scale. 



C.favorable
trends at home and unfavorable trends in other countries make international
marketing particularly attractive. 



D.
around the world,
potential customers have needs and money to spend. 

E.
it helps to develop a
competitive advantage at home and abroad. 







	

Thomas Edison State LDR305 Case 1 assignment

Question
	
Read the
Leadership Case Problem A (on John Thain at Merrill) at the end of chapter 2,
and answer questions 1, 2, and 3.

Leadership Case Problem A: The Methodical John Thain Takes Over at
Merrill
1. What traits
and characteristics of Thain are revealed by this story?

2. What emphasis did the Merrill board place on
cognitive characteristics in their selection of Thain?

3. Based on the information presented, what advice
can you offer John Thain about emphasizing the right traits to be successful as
the head of Merrill?

4. How strong does Thain’s power motive appear to be?
	

post university BUS 204 business law unit 2 assignment

Question
	
Unit 2 Safe Assignment
Assignments submitted through this link will be checked using SafeAssign by Blackboard. Your work will not be used for any purpose other than preventing plagiarism in the University. Ownership of the intellectual property contained in your written work will not be transferred to any third party. Please submit your paper as a Word Document. If you have the 2010 version of Word, please save your paper in a previous version (Word 97-2003 document) as Safe Assign may not accept the most recent version.
Assignments submitted through this link will be checked using SafeAssign by Blackboard. Your work will not be used for any purpose other than preventing plagiarism in the University. Ownership of the intellectual property contained in your written work will not be transferred to any third party.
Please submit your paper as a Word Document.
If you have the 2010 version of Word, please save your paper in a previous version (Word 97-2003 document) as Safe Assign may not accept the most recent version.
Please submit answers to the link below no later than 11:59 PM Sunday at week's end.

Assignment Questions:

(Short Essay Format -- minimum 100 words per answer)

You must give the Source(s) of your answers (textbooks; websites etc.)
to avoid receiving a low grade.
Define "Jurisdiction."
On what bases could a private dispute be decided in Federal Court?
What is the result of a Motion to Dismiss if the moving party is successful?
Define "Enforcing a Judgment."
How does ADR compare to Civil Litigation?
End of Questions

Note: Assignment grades will be determined as follows: 50% content; 30% analysis; and 20% organization and mechanics.

	

1)Starting from long-run equilibrium

Question
	1)Starting from long-run equilibrium, use the basic aggregate demand and aggregate supply diagram to show what happens in both the long run and the short run when consumers are more optimistic about the future of the economy. That is, demonstrate how the economy "contains within it the mechanism to self-correct." Explain each step of the process. 2)Starting from long-run equilibrium, use the basic aggregate demand and aggregate supply diagram to show to show what happens in both the long run and the short run when consumers are more pessimistic about the future of the economy. That is, demonstrate how the economy "contains within it the mechanism to self-correct." Explain each step of the process.	

Fin 221 Exam 2

Question


Multiple Choice

Identify the choice
that best completes the statement or answers the question.



1.
Stock
A and Stock B each have an expected return of 12 percent, a beta of 1.4, and a
standard deviation of 25 percent. The returns on the two stocks have a
correlation of 0.6. Portfolio P has half of its money invested in Stock A and
half in Stock B. Which of the following statements is correct?



A)
Portfolio
P has an expected return of 12 percent.

B)
Portfolio
P has a beta of 1.4.

C)
Portfolio
P has a standard deviation of 25 percent



D)
Both
statements A and B are correct

E)
All
of the above are correct.



2.
Universe On-line (UOL)
announced that they will pay their first dividend of $1 on their common stock
in a year (D1).
Analysts think dividends will grow by 30% in year 2, by 40% in year 3, and by
25% in year 4 before settling into a constant growth rate of 12% in year 5 and
beyond. What is the value of UOL’s stock today based on this information if the
required return is 16%?



A)
$34.59




B)
$39.43


C)
$28.00




D)
$25.00




E)
$63.70




3.
Ford preferred stock has
a par value of $25 with a dividend yield of 10%. What is the value of this
stock if the required return is 8%?



A)
$31.25




B)
$30.00




C)
$28.75




D)
$25.00


E)
$20.00




4.
As a manager of the 221
Fund, a well-diversified portfolio, you have been given the following
information for 4 potential new stocks to add to the 221 Fund.




 

 

 
Stock
 
 

 
Expected
 Return
 
 

 
Required
 Return
 
 

 
Coefficient of
 Variation (CV)
 

 

 

 
Acme,
 Inc.
 
 

 
15%
 
 

 
13%
 
 

 
1.0
 

 

 

 
Bubba
 Co.
 
 

 
21%
 
 

 
24%
 
 

 
1.5
 

 

 

 
Cosmo-Cola
 
 

 
17%
 
 

 
18%
 
 

 
0.9
 

 

 

 
Da
 Bares Enterprises
 
 

 
20%
 
 

 
25%
 
 

 
1.4
 





Which
stock(s) would you add to the well-diversified 221 Fund portfolio based on the
information given?



A)
Acme




B)
Cosmo-Cola




C)
Bubba




D)
Da
Bares











5.
The
risk-free rate is 5 percent. Stock A has a beta = 1.0 and Stock B has a beta =
1.4. Stock A has a required return of 11 percent. What is Stock B's required
return?

A)
13.4%




B)
15.4%


C)
12.4%




D)
14.4%


E)
16.4%




6.
In
the years ahead the market risk premium is expected to fall, while the
risk-free rate is expected to remain at current levels. Given this forecast,
which of the following statements is most correct?



A)
The
required return will increase for stocks with a beta less than 1.0 and will
decrease for stocks with a beta greater than 1.0.

B)
The
required return will fall for all stocks but will fall less for stocks with
higher betas.



C)
The
required return will fall for all stocks but will fall more for stocks with
higher betas.

D)
The
required return on all stocks will remain unchanged.

E)
The
required return for all stocks will fall by the same amount.



7.
Assume
that inflation is expected to decline steadily in the future, but that the real
risk-free rate, r*, will remain constant. Which of the following statements is
CORRECT, other things held constant?



A)
If
the pure expectations theory holds, the Treasury yield curve must be downward
sloping.



B)
If
inflation is expected to decline, there can be no maturity risk premium.



C)
The
expectations theory cannot hold if inflation is decreasing.



D)
If
there is a positive maturity risk premium, the Treasury yield curve must be
upward sloping.



E)
If
the pure expectations theory holds, the corporate yield curve must be downward
sloping.



8.
Harbuck’s Coffee is a
constant growth stock selling for its equilibrium price of $40. Harbucks has a
beta of 1.2 and the current dividend is $1.20. What is Harbuck’s expected constant
growth rate if the risk-free rate is 3% and the market return is 12%?



A)
14.0%




B)
10.8%




C)
14.4%




D)
10.5%




E)
13.8%




9.
If the constant growth
model is to give a "reasonable" valuation of a stock, which of the
following isnot
a valid assumption for the model?



A)
A
growth rate greater than the required rate of return



B)
An
exceptionally high required rate of return



C)
A
growth rate of zero



D)
A
negative growth rate

E)
All
of the above are valid assumptions for the model.



10.
An
analyst seeks to determine the value of Bulldog Industries. After careful
research, the analyst believes that free cash flows for the firm will be $80
million in the upcoming year (year 1) and will grow at 10% annually for each of
the two following years (years 2 and 3). The free cash flows will grow at a
rate of 5% after year 3. What is the Terminal Value (in millions of $) of
Bulldog at the end of year 3 at a WACC of 10%?









A)
1,936


B)
2,033




C)
1,016


D)
2,274




11.
Commercial
papaer is an example of a security traded in the ________ market.

A)
stock




B)
money


C)
capital


D)
futures




12.
The
real risk-free rate is expected to remain constant at 3% in the future, a 2%
rate of inflation is expected for the next 2 years, after which inflation is
expected to increase to 4%, and there is a positive maturity risk premium that
increases with years to maturity. Given these conditions, which of the
following statements is CORRECT?

A)
The
conditions in the problem cannot all be true--they are internally inconsistent.




B)
The
yield on a 2-year T-bond must exceed that on a 5-year T-bond.

C)
The
yield on a 7-year Treasury bond must exceed that of a 5-year corporate bond.



D)
The
Treasury yield curve under the stated conditions would be humped rather than
have a consistent positive or negative slope.

E)
The
yield on a 5-year Treasury bond must exceed that on a 2-year Treasury bond.



13.
Consider
the following information and then calculate the required rate of return for
the Global Investment Fund, which holds 4 stocks. The market's required rate of
return is 9.50%, the risk-free rate is 7.00%, and the Fund's assets are as
follows:




 

 

 
Stock
 
 

 
Investment
 
 

 
Beta
 

 

 

 
A
 
 

 
$200,000
 
 

 
1.50
 

 

 

 
B
 
 

 
$300,000
 
 

 
-0.50
 

 

 

 
C
 
 

 
$500,000
 
 

 
1.25
 

 

 

 
D
 
 

 
$1,000,000
 
 

 
0.75
 





A)
8.91%




B)
10.42%


C)
6.77%




D)
10.06%




E)
8.64%




14.
Which of the following (all other
factors held constant) will cause an increase in a stock’s value?



A)
An
increase in the risk-free rate



B)
A
decrease in the stock’s beta



C)
An
increase in the market risk premium



D)
A
decrease in the constant growth rate in dividends



15.
Grossnickle
Corporation issued 20-year, noncallable, 7.8% annual coupon bonds at their par
value of $1,000 one year ago. Today, the market interest rate on these bonds is
5.5%. What is the current price of the bonds, given that they now have 19 years
to maturity?



A)
$1,165.62




B)
$1,507.70




C)
$1,114.94










D)
$1,266.98


E)
$1,064.26




16.
Kholdy
Inc's bonds currently sell for $1,275. They pay a $120 annual coupon and have a
20-year maturity, but they can be called in 5 years at $1,120. Assume that no
costs other than the call premium would be incurred to call and refund the
bonds, and also assume that the yield curve is horizontal, with rates expected
to remain at current levels on into the future. What is the difference between
the bond's YTM and its YTC?



A)
1.68%


B)
1.54%




C)
1.82%


D)
1.91%




E)
1.48%




17.
If
current market interest rates rise, what will happen to the value of
outstanding bonds?



A)
They
will remain unchanged.

B)
They
will rise.

C)
They
will fall.



D)
There
is no connection between current market interest rates and the value of
outstanding bonds.



18.
Which
of the following factors would be most likely to lead to an increase in nominal
interest rates?



A)
A
new technology like the Internet has just been introduced, and it increases
investment opportunities.



B)
There
is a decrease in expected inflation.

C)
The
Federal Reserve decides to try to stimulate the economy.



D)
The
economy falls into a recession.



E)
Households
reduce their consumption and increase their savings.



19.
Kelly
Inc's 5-year bonds yield 7.50% and 5-year T-bonds yield 4.50%. The real
risk-free rate is r* = 2.5%, the default risk premium for Kelly's bonds is DRP
= 0.40%, the liquidity premium on Kelly's bonds is LP = 2.6% versus zero on
T-bonds, and the inflation premium (IP) is 1.5%. What is the maturity risk
premium (MRP) on all 5-year bonds?

A)
0.56%




B)
0.40%




C)
0.38%




D)
0.50%




E)
0.59%




20.
Which
is the best measure of risk for a single asset held in isolation, and which is
the best measure for an asset held in a diversified portfolio?

A)
Standard
deviation; correlation coefficient.



B)
Coefficient
of variation; beta.



C)
Beta;
beta.



D)
Variance;
correlation coefficient.



E)
Beta;
variance.



21.
Here are the expected returns on two
stocks:










 

 

 

 
 

 
Probability
 
 

 
X
 
 

 
Y
 

 

 

 

 
 

 
0.1
 
 

 
-20%
 
 

 
10%
 

 

 

 

 
 

 
0.8
 
 

 
20
 
 

 
15
 

 

 

 

 
 

 
0.1
 
 

 
40
 
 

 
20
 





What is stock
X’s coefficient of variation?



A)
1.56




B)
0.96


C)
0.78


D)
0.64




E)
1.32




22.
Burns Nuclear Power
common stock has a beta of 0.8 and currently pays a dividend of $3. The US
Treasury bill rate is 2.5% and the market risk premium is 9.5%. What is the
value of this stock if a constant annual growth rate of 4% is expected in
dividends and earnings?



A)
$51.15




B)
$64.82




C)
$73.17




D)
$49.18




E)
$76.10




23.
You
recently sold 200 shares of Disney stock, and the transfer was made through a
broker. This is an example of:



A)
A
secondary market transaction.

B)
A
primary market transaction.



C)
A
money market transaction.



D)
An
over-the-counter market transaction.



E)
A
futures market transaction.



24.
Company
A has a beta of 0.70, while Company B's beta is 1.30. The required return on
the stock market is 11.00%, and the risk-free rate is 4.25%. What is the
difference between A's and B's required rates of return? (Hint: First find the
market risk premium, then find the required returns on the stocks.)

A)
4.05%




B)
3.73%


C)
4.90%




D)
4.74%




E)
3.60%




25.
Which
of the following bonds would have the most re-investment rate risk?



A)
A
20-year, 11% coupon bond

B)
A
5-year, 11% coupon bond



C)
A
5-year zero coupon bond



D)
A
20-year zero coupon bond



26.
Which
of the following statements is CORRECT?



A)
If
a coupon bond is selling at a premium, then the bond's current yield is zero.



B)
The
current yield on Bond A exceeds the current yield on Bond B. Therefore, Bond A









must have a higher
yield to maturity than Bond B.



C) If a coupon bond is selling at a discount, then the
bond's expected capital gains yield is negative.



D) If a bond is selling at a discount, the yield to
call is a better measure of the expected return than the yield to maturity.

E) If a coupon bond is selling at par, its
current yield equals its yield to maturity.



27. Assume that you manage a $10.00 million mutual fund
that has a beta of 1.05 and a 9.50% required return. The risk-free rate is
4.20%. You now receive another $8.50 million, which you invest in stocks with
an average beta of 0.65. What is the required rate of return on the new
portfolio? (Hint: You must first find the market risk premium, then find the
new portfolio beta.)

A) 8.57%



B) 9.00%

C) 7.80%

D) 8.14%



E) 7.97%



28. Assume the pure expectations hypothesis (or theory)
holds and you observe the following Treasury bond rates.




 

 

 
Years to Maturity
 
 

 
Yield
 

 

 

 
1
 
 

 
2.0%
 

 

 

 
2
 
 

 
3.2%
 

 

 

 
3
 
 

 
4.0%
 



What is the expected one-year
Treasury yield two years from today?

A) 2.00%

B) 6.18%



C) 4.00%

D) 5.62%



E) 5.58%



29. Suppose the real risk-free rate is 3.25%, the
average future inflation rate is 4.35%, and a maturity risk premium of 0.07%
per year to maturity applies to both corporate and T-bonds, i.e., MRP =
0.07%(t), where t is the years to maturity. Suppose also that a liquidity
premium of 0.50% and a default risk premium of 1.00% apply to A-rated corporate
bonds but not to T-bonds. How much higher would the rate of return be on a
10-year A-rated corporate bond than on a 5-year Treasury bond? Here we assume
that the pure expectations theory is NOT valid. Disregard cross-product terms,
i.e., if averaging is required, use the arithmetic average.



A) 1.61%

B) 1.81%

C) 1.52%



D) 1.85%

E) 1.89%



30. O'Brien Ltd.'s outstanding bonds have a $1,000 par
value, and they mature in 25 years. Their nominal annual, not semiannual yield
to maturity is 9.25%, they pay interest semiannually, and they sell at a price
of $1,075. What is the bond's nominal coupon interest rate?

A) 11.93%

B) 9.62%



C) 10.63%

D) 9.12%



E) 10.02%











31.
What is the meaning of a upward sloping
yield curve?



A)
Inflation
rates are less than nominal rates.

B)
Short-term
interest rates are equal to long-term rates.

C)
Short-term
interest rates are greater than long-term rates.



D)
Short-term
interest rates are less than long-term rates



32.
You
must estimate the intrinsic value of Mega Dynamics stock in our universe. Mega
Dynamics’ current free cash flow is $25 billion, and it is expected to grow at
a constant annual rate of 8.5%. The company’s WACC is



11%. Mega Dynamics has $200 billion of long-term
debt and preferred stock, and there are 30 billion shares of common stock
outstanding. What is Mega Dynamics’ estimated intrinsic value per share of
common stock?



A)
$26.67


B)
$29.50




C)
$22.67


D)
$28.00




E)
$24.00




33.
A
20-year, $1,000 par value bond has a 9% annual coupon. The bond currently sells
for $925. If the yield to maturity remains at its current rate, what will the
price be 5 years from now?

A)
$941.86


B)
$978.40




C)
$951.87




D)
$965.84




E)
$933.09




34.
Tucker
Corporation is planning to issue new 20-year bonds. The current plan is to make
the bonds non-callable, but this may be changed. If the bonds are made callable
after 5 years at a 5% call premium, how would this affect their required rate
of return

A)
There
is no reason to expect a change in the required rate of return.



B)
Because
of the call premium, the required rate of return would decline.



C)
It
is impossible to say without more information.



D)
The
required rate of return would increase because the bond would then be more
risky to a bondholder.



E)
The
required rate of return would decline because the bond would then be less risky
to a bondholder.



35.
Goode
Inc.'s stock has a required rate of return of 11.50%, and it sells for $18.00
per share. Goode's dividend is expected to grow at a constant rate of 7.00%.
What was the last dividend, D ?

A)
$0.77


B)
$0.76




C)
$0.57




D)
$0.62




E)
$0.92




36.
MeFirst
Corporation has a cumulative preferred share issue that is suppose to pay a
quarterly dividend of $2. MeFirst failed to pay 3 consecutive dividends to
investors and then managed to pay a common share dividend the very next
quarter. How much cash must MeFirst have paid to each preferred share holder at
that time?









A)
$2
per share

B)
$8
per share



C)
$6
per share

D)
$10
per share



37.
Keenan
Industries has a bond outstanding with 15 years to maturity, an 8.25% nominal
coupon, semiannual payments, and a $1,000 par value. The bond has a 6.50%
nominal yield to maturity, but it can be called in 6 years at a price of
$1,150. What is the bond’s nominal yield to call?

A)
6.54%


B)
6.75%




C)
6.89%


D)
6.61%




E)
8.54%




38.
Quickee-Mart
sold an issue of 20-year $1,000 par value bonds to the public that carry a 8.5%
coupon rate, payable semi-annually. It is now 10 years later and the current
yield to maturity is 9.00%. If interest rates remain at 9.00% until
Quickee-Mart’s bonds mature, what will happen to the value of the bonds over
time?

A)
The
bonds will sell at a premium and decline in value until maturity.



B)
The
bonds will sell at a premium and rise in value until maturity.



C)
The
bonds will sell at a discount and fall in value until maturity.



D)
The
bonds will sell at a discount and rise in value until maturity.



39.
MAD
Inc.'s bond rating is downgraded by Standard and Poor's from AAA to BBB. Which
of the following would occur in light of this news?



A)
MAD
Inc.'s bond price would fall.

B)
MAD
Inc.'s bond price would increase.



C)
MAD
Inc.'s bond price would remain the same.



D)
MAD
Inc.’s default risk premium would increase.



E)
Both
A and D would occur.



40.
Which
of the following is an example of a capital market instrument?



A)
Commercial
paper.



B)
Preferred
stock.

C)
Banker's
acceptances.



D)
U.S.
Treasury bills.



E)
Money
market mutual funds.