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ANSWER THE FOLLOWING MCQ'S
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- (1) three year ago , meghan bought stock in GE for $25.69 per share . the stock is now worth $145.85 per share. there were no stock split. calculate the compaund annual growth rate for her investment (a) 178.4% (b) 76.3% (c) 82.99% (d) 78.39% (e) 43.9%Google Jnc. went public on August 20, 2004. The initial public offering price was $108 per share. If the stock traded al $490.92 on August 19, 2011. what would the compound annual return on investment be for the investors who purchased the stock and held it for eight years? (a) 354%(b)44.31%(c) 20.89%(d) 71 %10 Rate of Interest (%) 2 8 00 9 0 100 200 Amount of Money Demanded ($B) D1 OS D₁ D3 + D2 10 Rate of Interest (%) N 8 6 0 D2 11 100 200 300 400 Amount of Money Demanded ($B) 10 Rate of Interest (%) 2 8 9 Which one of the lines represents the asset demand for money? 0 S D3 100 200 300 400 500600 Amount of Money Demanded ($B)
- 1.24 Bucknell, Inc. uses the calendar year as its fiscal year. Determine the total net cash flow recorded at the end of the fiscal year. Receipts, $1000 Hiv Month Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec 300 950 200 120 600 900 800 900 900 500 400 1800 Disbursements, $1000 500 500 400 400 500 600 300 300 200 400 400 700K L Q MPL APL (Q/L) VML (MPL*P) FC VC (L*150) TC 5 0 0 0 0 5 1 50 50 50 50 25 150 175 5 2 125 75 62.5 150 25 300 325 5 3 225 100 75 200 25 450 475 5 4 375 150 93.7 300 25 600 625 5 5 450 75 90 150 25 750 775 5 6 450 0 75 0 25 900 925 5 7 400 -50 57.14 -100 25 1050 1075 5 8 425 -75 53.12 -150 25 1200 1225 5 9 450 -25 50 -50 25 1350 1375 5 10 500 -50 50 -100 25 1500 1525 5 11 525 25 47.7 50 25 1650 1675 Define the Firm’s Variable Costs. Next, what is the VC in the Table above?(23) John's firm has a capital stock of $20 million at the beginning of this period. Suppose depreciation rate is 10%. Gross investment is $3 million in this period. How much is net investment in this period? (A) $0 million (B) $1 million (C) $2 million (D) $3 million
- Suppose that instead Einar short sells 200 shares of German Power Weak Inc. at $40 each. NASDUCK now sets a margin requirement of 30%.(e) How much cash does Einar need to invest?(f) Calculate the margin call of NASDUCK if the price increases to $44.(g) Suppose the price falls to $25. How much cash can Einar take out from his margin account?(h) Suppose he takes out 50% of the amount in part (g). At what price threshold will Einar face a margin call by NASDUCK?A new factory in a small town has an annual payroll of $6 million. It is expected that 60% of this moneywill be spend on the town will by factory personnel. The people in the town who receive this money areexpected to spend 60% of what they receive in the town, and so on.(a) What is the total of all this spending (called the “total economic impact”) of the factory on the towneach year?(b) How much additional spending will be generated by a 10 million dollar tax rebate if 60% of allincome is spent?A bank with 100 million in deposits 15 million of cash in the bank,10 million in deposit with central bank,15 million in government securities in it vault .It total reserves equals? (a).10 (b).15 (c)25 (d)40
- 1. Using LCM Method (Unequal Lives) solve the problem: Two location alternatives A and B, where one can lease either of the two. Which option is preferable? Present Cost (PC) Annual Lease Cost (AL) Deposit Return (DR) Lease Term (n) Interest Rate (i) LOCATION A $ 15,000 $3,500 $1,000 6 years 15% LOCATION B $18,000 $3,100 $2,000 9 years 15%1. Which of the following statements is incorrect?(a) Economic decisions are time invariant.(b) Time and risk arc are the most important factors in any investment evaluation.(c) For a large-scale engineering project, engineers must consider the impact of the project on the company’s financial statements.(d) One of the primary roles of engineers is to make capital expenditure decisions. 2 When evaluating a large-scale engineering project, which of the following items is important?(a) Expected profitability(b) Timing of cash nows(c) Degree of financial risk(d) All of the above 3. Which of the following statements defines the discipline of engineering economics most closely?(a) Economic decisions made by engineers.(b) Economic decisions related to financial assets.(c) Economic decisions primarily for real assets and service from engineering projects.(d) Any economic decision related to the time value of money. 4.Which of the following statements is not one of the four fundamental…(c) In leasing, the servicing and maintenance are done by the landlord even if the tenant rents the property. List any five (5) factors in the lease which affect the value and performance in leasing land and buildings.