John

A riskfree security pays a 6% rate of return. A risk averse investor invest ______

in a risky portfolio that pays 12% with a probability of 40% or 2% with a probability of

60% because ______

A. might; she is rewarded a risk premium

B. would not; she is not rewarded any risk premium

C. would not; the risk premium is small

D. cannot be determined

A maker of computer games expects to sell 550000 at a price of 49 per game. These units cost 13 to produce. Selling, general, and administrative expenses are 1.2 million and depreciation is 290000. What is the EBIT break-even point for the number of games sold in this case?

from its nickel/lead has risen by 15%. Which of the following is LEAST likely consequence of such an announcement

A. The price of the stock would rise due to increase pressure to buy

B. Investors would determine that the estimates of the firms value on the date prior to the announcement were too high.

C. Investors would increase their forecast of future cash flows in that firm.

D. Investors would revise their estimates of NPV of the firm?.

If you could explain why I would appreciate it.

Next 3 years respectively. The other is a payment of a lump sum today. What is the minimum offer you would accept today for the lump sum? The discount Rate is 8 percent.

What is the difference in present value if you receive these payments at the beginning of the year instead of at the end??

The discount Rate is 8 percent.

What is the difference in present value if you receive these payments at the beginning of the year instead of at the end?? The discount rate is 7 percent.

Next 3 years respectively. The other is a payment of a lump sum today. What is the minimum offer you would accept today for the lump sum? The discount Rate is 8 percent.

Future value of these cash flows at the end of year 5 if the interest rate is 7 percent

What is the difference in present value if you receive these payments at the beginning of the year instead of at the end??

and mail it in?

no effect (NE) on revenues, expenses, net income, assets, liabilities, and equity

h. Land is acquired by giving shares of stock to the owner of the land

DL Consulting, which began operations on February 1, 2012, offers tax consulting services to its clients. DL Consulting

recorded the following transactions during March, 2012:

(1) On March 1, DL Consulting borrowed $100,000 from the bank on a 20-month note payable.

(2) On March 5, DL Consulting received $5,000 contributions from each of the five different owners of the company in

exchange for shares of common stock.

(3) On March 6, DL Consulting purchased an office building for $200,000 cash.

(4) On March 8, DL Consulting received $45,000 for services performed in February.

(5) On March 10, DL Consulting purchased 10 computers for $1,200 each. DL paid one-half of the bill on

March 10 and agreed to pay the other one-half within thirty days.

(6) On March 15, DL Consulting sent bills to clients totaling $120,000, all relating to services DL

performed in March.

(7) On March 18, DL Consulting paid $2,000 to the local cable station for a 30-second ad that would

run during the evening news that night.

(8) On March 25, DL Consulting declared and paid dividends to its stockholders totaling $4,000.

(9) On March 30, DL Consulting received the electric, gas, and water bills for the month of March.

The bills totaled $3,500. DL Consulting did not make a payment at this date.

(10) On March 30, DL Consulting paid wages to its employees for the month of March totaling $24,000.

(11) On March 31, DL Consulting received $3,000 in interest from its bank accounts for the month of March.

Information related to DL Consulting's account balances at March 1, 2012 appears below:

a. The retained earnings account had a $60,000 debit balance

b. The cash account had a $250,000 debit balance

c. The accounts receivable account had a $140,000 debit balance

d. The building account had a zero balance

e. The equipment account had a $15,000 debit balance

Calculate DL Consulting's retained earnings balance at March 31, 2012.

At June 1, Mega Company had total assets of $53,000. During June, the company reported the following transactions:

1. collected accounts receivable of $8,700

2. earned revenue of $25,000, of which 40% was received in cash

3. incurred expenses of $18,000, of which 60% were paid in cash

Calculate the total assets of Mega Company after these transactions have been recorded. Do not use decimals in your answer.

At June 1, Mega Company had total assets of $53,000. During June, the company reported the following transactions:

1. collected accounts receivable of $8,700

2. earned revenue of $25,000, of which 40% was received in cash

3. incurred expenses of $18,000, of which 60% were paid in cash

Calculate the total assets of Mega Company after these transactions have been recorded. Do not use decimals in your answer.