Questions from General Investment

Q: Here is some price information on Marabel, Inc.: /

Here is some price information on Marabel, Inc.: a. You have placed a limit order to sell at $68. What are you telling your broker? b. Given market prices, will your order be executed?

Q: Rank the following bonds in order of descending duration. /

Rank the following bonds in order of descending duration.

Q: a. Which set of conditions will result in a bond with

a. Which set of conditions will result in a bond with the greatest price volatility? high coupon and a short maturity. A high coupon and a long maturity. A low coupon and a short maturity. A low coupo...

Q: A company’s current ratio is 2. If the company uses cash

A company’s current ratio is 2. If the company uses cash to retire notes payable due within one year, would this transaction increase or decrease the current ratio? What about the asset turnover ratio...

Q: Cash flow from investing activities excludes: a. Cash paid

Cash flow from investing activities excludes: a. Cash paid for acquisitions. b. Cash received from the sale of fixed assets. c. Inventory increases due to a new (internally developed) product line....

Q: Cash flow from operating activities includes: a. Inventory increases

Cash flow from operating activities includes: a. Inventory increases resulting from acquisitions. b. Inventory changes due to changing exchange rates. c. Interest paid to bondholders. d. Dividends...

Q: Recently, Galaxy Corporation lowered its allowance for doubtful accounts by reducing

Recently, Galaxy Corporation lowered its allowance for doubtful accounts by reducing bad debt expense from 2% of sales to 1% of sales. Ignoring taxes, what are the immediate effects on (a) operating i...

Q: Hatfield Industries is a large manufacturing conglomerate based in the United States

Hatfield Industries is a large manufacturing conglomerate based in the United States with annual sales in excess of $300 million. Hatfield is currently under investigation by the Securities and Exchan...

Q: We said that options can be used to either scale up or

We said that options can be used to either scale up or reduce overall portfolio risk. What are some examples of risk-increasing and risk-reducing options strategies? Explain each.

Q: An investor purchases a stock for $38 and a put for

An investor purchases a stock for $38 and a put for $0.50 with a strike price of $35. The investor also sells a call for $0.50 with a strike price of $40. a. What are the maximum profit and loss for...