According to the elaboration likelihood model (ELM), if consumers find that an incoming message is particularly relevant to their situation, the central route to persuasion is activated.
The 2011 income statement for Duffy's Pest Control shows that depreciation expense is $180 million, EBIT is $420 million, EBT is $240 million, and the tax rate is 30 percent. At the beginning of the year, the balance of gross fixed assets was $1,500 million and net operating working capital was $500 million. At the end of the year gross fixed assets was $1,803 million. Duffy's free cash flow for the year was $425 million. Calculate the end of year balance for net operating working capital.
Assume you write a futures contract on corn at $3.74 per bushel. Over the next 5 days the contract settles at $3.68, $3.71, $3.67, $3.64, and $3.61. Before you can reverse your position in the futures market you are notified to complete delivery on Day 5. What will you receive on delivery per bushel and what is the net amount per bushel you receive in total?
The risk caused by variations in income before taxes over time because fixed interest expenses do not change when operating income rises or falls is called:
Consider the following three bond quotes; a Treasury note quoted at 87.25, and a corporate bond quoted at 102.42, and a municipal bond quoted at 101.45. If the Treasury and corporate bonds have a par value of $1,000 and the municipal bond has a par value of $5,000, what is the price of these three bonds in dollars?
Peter hesitates when it comes to picking an individual stock to purchase as he feels that he will later realize that a different stock would have been a better investment. Peter is suffering from:
An investor longs a $65 strike call at $1.20, and shorts a $65 strike put at $0.90. If at expiration of the options, the investor wishes to own the security, what is the net cost of the position?
Consider a firm that had been priced using a 10 percent growth rate and a 14 percent required rate. The firm recently paid a $1.00 dividend. The firm has just announced that because of a new joint venture, it will likely grow at a 12 percent rate. How much should the stock price change (in dollars and percentage)?
Which of the following statements about state insurance guaranty funds is (are) true? I. They limit the amount that policyholders can collect if an insurer becomes insolvent. II. They are usually funded by general revenues of the states
A 6%, 30-year corporate bond was recently being priced to yield 8%. The Macaulay duration for the bond is 8.4 years. Given this information, the bond's modified duration would be
For a bond put option, the ________ the exercise price, the greater the cost of the put, and for a bond call option, the ________ the exercise price, the higher the cost of the call option.