Section 6 Study Questions (9.0 points) Answer each question fully. Complete sentences are not necessary. Lesson 1 (3.0 points) 1. What is a pure risk? (0.5 points) A risk of something negative happening‚ with no possibility of profit or gain. 2. Why do people take speculative risks? (0.5 points) Some people want to make money like in the stock market that’s a speculative risk because you never know when the stock market will go up or down. 3. What is meeting the
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Corporate Finance – Chapter 2 – Long Quiz 1 1) Marvelous Entertainment Group‚ Inc. had net income of $32.7 million in 2005. The firm paid no dividends. If there were no further changes to the stockholders ’ equity accounts‚ then _____ by $32.7 million. [ ] common stock must have increased √ [ ] retained earnings must have increased [ ] total stockholders ’ equity must have decreased [ ] capital surplus must have decreased [ ] the market value of the firm ’s stock must have
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present value of annuity + present value of lump sum -Nominal interest rate (Rd) = r* + IP + DRP + LP + MRP r* = real risk free‚ IP = inflation premiums‚ DRP = default risk‚ LP = liquidity‚ MRP = maturity risk -Yield Curve: graph of relationship between yields on securities and securities’ maturities -Normal curve upward sloping‚ however‚ curve can slope downward if inflation rate is expected o decline. Curve can be humped meaning interest rates on medium-term maturities are higher than rates on
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Seminar Three Exercises Due: Monday Points: 25 Do the following exercises from the textbook: Chapter 7 1. Are you considered a default risk? How would a lender evaluate you based on "the five C’s" of character capital‚ collateral‚ and conditions? How could you plan to make yourself more attractive to a lender in the future? I do not believe I would be considered a Default Risk because I have a good credit score and I try to pay off what I spend on my credit cards that same month or fairly
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and one bonus question and is counted out of 40 points. In case your total mark (including the bonus question) exceeds 40 points‚ you will be awarded only 40 points for this exam and no extra credits will be given for the remaining points. Note s to Grader: Please‚ do not double-punish students for the mistake made in earlier parts of the question: do not deduct marks if you are able to determined that later part of the question was done correctly with the only source of incorrect answer is
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market is categorized in which way? (0.5 points) by location and commodity 6. What is a country’s GDP? (0.5 points) gross domestic product Lesson 2 (3.0 points) 1. What is a market economy? (0.5 points) regulated by the interactions between producers and consumers in the market 2. Name at least two features of capitalism. (1.0 points) mostly a free market‚ has some government regulation‚ monopolies are illegal 3. A business that sells watches that are more inexpensive than the
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Thesis statement: why revitalization taking so long and the impact that this revitalization process affect the resident in clinton hill. (Topic sentence and main idea)2nd reasons: the government policy hirachi process 2nd evidence: “It is ironic that after fighting disinvestment and seeking to encourage reinvestment for more than 20 years the revitalization value that PACC was trying to protect – is seriously threatened.”1 “Plans for a pedestrian plaza on Myrtle Avenue have been pushed
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1. What is a pure risk? (0.5 points) 1) A pure risk is a risk of something negative happening‚ with no possibility for profit or gain. Either things will remain the same‚ or something bad will happen. 2. Why do people take speculative risks? (0.5 points) 2) People take speculative risks because it’s usually risks that involved with every day human right‚ or in living in a particular society. 3. What is meeting the deductible? (0.5 points) 3) Meeting the deductible is when you
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1. Describe one short-term goal that you have and at least one thing you will need to do in order to accomplish that goal. (2-4 sentences. 1.0 points) To graduate high school on time and receive my diploma is a short term goal of mine. In order to accomplish this goal my attendance and grades will have to be good. 2. Describe one long-term goal that you have and at least two things you will need to do in order to accomplish that goal. (2-4 sentences. 1.0 points) A long term goal of mine is to
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a: a. tender offer. b. proxy contest. c. merger. D. leveraged buyout. e. consolidation. SECTION: 25.1 TOPIC: LEVERAGED BUYOUT TYPE: DEFINITIONS www.sudanpoint.com/mba 25-2 Chapter 025 Mergers and Acquisitions 7. An agreement between firms to cooperate in pursuit of a joint
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