Lanari

coincident indicators - are collected and analyzed as economic shifts happen and include GDP and personal income. flat yield curve: - results when both short-term and long-term bonds have the same interest rate, indicating that the economy is in a transitional state. In what way are coincident indicators useful? - They are analyzed during economic shifts to provide information about the current state of the economy. Correct: coincident indicators help analysts see the big picture of econom...

A large corporation is looking to merge with another large corporation. Which financial institution can help them do this? - Investment bank A specialist - provides liquidity and lowers the cost of trading stocks between sellers and buyers About a year ago, the short-term Treasury bill had 1.54% interest and the long-term Treasury note had 2.54% interest. This week, the 1-year Treasury bill has an interest rate of 3.13%, while the 10-year Treasury note has an interest rate of 2.28%. What do...

A company is trying to finance a project with a mortgage loan from a bank. The company's assessment of the project indicates that the company may experience several years of loss until the project becomes profitable. This means that the company might lose its ability to pay back the loan and the interest on the mortgage. What action might the bank take to protect its interest? - Set a strict covenant that the company cannot easily achieve. bondholders - are more interested in projects that...

Ethics - Accepted standards of conduct that guide a person's behavior Morals - Reflect one's beliefs about right and wrong Legal - Following laws/rules set by and authority Which term reflects a person's beliefs about right and wrong, good and bad, or just and unjust? - Moral What characterizes an ethical action? - An ethical action is based on accepted standards of conduct. Lucas is a financial advisor working for Bullzai, Inc. He is faced with a dilemma. Bullzai has started changin...

3 components of interest rate, or required rate - opportunity cost, risk, and inflation 3 different names used for interest rate - discount rate, required rate, cost 9f capital compound interest - interest earned on both the principal amount and any interest already earned Inflation - is the rate at which the average price level of goods and services increases Interest rate is also called - required rate of return when it refers to the compensation that an investor or lender will accept for...

=FV(rate,nper,pmt,[pv],[type]) - Returns the future value, or the cash balance you want to attain after the last payment is made =IRR(values,[guess]) - Returns the internal rate of return of a series of future payments =NPER(rate,pmt,pv,[fv],[type]) - Returns the number of payment periods in an annuity =NPV(rate,value1,[value2],...) - Returns the net present value of a series of future payments with a given rate =PMT(rate,nper,pv,[fv],[type]) - Returns the payment made each period (this ha...

=FV(rate,nper,pmt,[pv],[type]) - Future Value Function, or the cash balance you want toattain after the last payment is made =IRR(values,[guess]) - internal rate of return of a series of future payments =NPER(RATE, PMT, PV, [FV], [type]) - Returns the number of payment periods in an annuity =NPV(rate,value1,[value2],...) - Returns the net present value of a series of future payments with a given rate =PMT(rate,nper,pv,[fv],[type]) - Returns the payment made each period (this has to be an a...

return the money gained or lost on an investment over a certain period of time. holding period return the return over the entire period that an investor owns a financial security. expected return a hypothesized estimate of future prices or returns under different scenarios based on expectational data. real return found by subtracting the inflation rate, and are useful for comparing returns over different time periods as inflation rates vary over time. Which statement correctly contextu...

D076 Module 6 pre-test 100% - A company that produces soap, shampoo, lotion, and other personal care products has recently taken a hit due to a competitor's new product line. The company decides to reduce wages for its labor force to save money while the company focuses on building up its reputation again, but the company's labor force goes on strike to protest the pay cuts. What type of risk does the strike represent? - Idiosyncratic risk Different types of risks - interest rate risk...

5 major types of financial ratios - liquidity, activity, leverage, profitability, and market A firm has paid off its short-term loans more quickly in the past couple of years. What might this trend indicate about the firm's financial ratios? - Its liquidity ratio is increasing. Accounts Receivable turnover, average collection period, inventory turnover, total asset turnover, and operating income return on investment. - Activity ratios Activity Ratios - measure how well a company uses its a...