They Dong (ook Of Emp 5. In the May 29, 1992, Weekly Market Update published by Goldman, Sachs & Co., the following information was reported in an exhibit for high-grade, tax-exempt securities as of the close of business Thursday, May 28, 1992: cause Maturity (years) 1 3 5 10 30 a. What is meant by a tax-exempt security? b. What is meant by high-grade issue? Yield (%) 3.20 4.65 5.10 5.80 6.50 c. Why is the yield on a tax-exempt security less than the yield on a Treasury security of the same maturity? d. What is the equivalent taxable yield? e. Also reported in the same issue of the Goldman, Sachs report is information on intramarket yield spreads. What are these? Yield (%) as a Percentage of Treasury Yield 76.5 80.4 76.4 78.7 82.5

Exercise 1 The he population of Ectenia is 100 people: 40 work full-time, 20 work half-time but would prefer to work full-time, 10 are looking for a job, 10 would like to work but are so discouraged that they have given up looking, 10 are not interested in working because they are full-time students, and 10 are retired. What is the number of unemployed? Using the numbers in the preceding question, what is the size of Ectenia's labor force? (15 marks) (10 marks)

Exercise 2 Carly wants to buy and operate an ice-cream truck but doesn't have the financial resources to start the business. She borrows $20,000 from her friend Freddie, to whom she promises an interest rate of 7 percent, and gets another $30,000 from her friend Sam, to whom she promises a third of her profits. What best describes this situation? A bond tends to pay a high interest rate if it is a. a short-term bond rather than a long-term bond. b. a municipal bond exempt from federal taxation. c. issued by the federal government rather than a corporation. d. issued by a corporation of dubious credit quality. Support your answer using example(s). Discuss and evaluate the main advantage of mutual funds. (10 marks) (8 marks) (7 marks)

4 For the year ended December 31, 2024, Norstar Industries reported net income of $960,000. At January 1, 2024, the company had 1,050,000 common shares outstanding. The following changes in the number of shares occurred during 2024: 1.75 points 02:34:10 eBook Print April 30 Sold 80,000 shares in a public offering May 24 Declared and distributed a 5% stock dividend June 1 Issued 90,000 shares as part of the consideration for the purchase of assets from a subsidiary Required: Compute Norstar's earnings per share for the year ended December 31, 2024. Note: Do not round intermediate calculations. Except for per share amounts, enter your answers in thousands (i.e., 10,000 should be entered as 10). Round "Earnings per share" answer to 2 decimal places. Numerator $ 960,000 + Denominator = 1,211,000 = Earnings per Share $ 0.80

2 Heidi Software Corporation provides a variety of share-based compensation plans to its employees. Under its executive stock option plan, the company granted options on January 1, 2024, that permit executives to acquire 7 million of the company's $1 par common shares within the next five years, but not before December 31, 2025 (the vesting date). 1.75 points 02:35:06 eBook Print ច References • The exercise price is the market price of the shares on the date of grant, $58.00 per share. • The fair value of the 7 million options, estimated by an appropriate option pricing model, is $14 per option. . No forfeitures are anticipated. • Ignore taxes. Required: 1. Determine the total compensation cost pertaining to the options. 2. Prepare the appropriate journal entry to record the award of options on January 1, 2024. 3. Prepare the appropriate journal entry to record compensation expense on December 31, 2024. 4. Prepare the appropriate journal entry to record compensation expense on December 31, 2025. Complete this question by entering your answers in the tabs below. Req 1 Reg 2 to 4 Determine the total compensation cost pertaining to the options. Note: Enter your answer in millions (i.e., 10,000,000 should be entered as 10). Total compensation cost $ 98 million < Req 1 Req 2 to 4 >

Mr Anderson is the Asset Management Vice President. Anderson shows you the table below. Detailed Product Main description asset asset type class Item Ticker # 0 ^DJI 1 TLT 2 NVDA 3 MIGU.SI 4 ZW=F 5 ETH:USD 6 SGD=X Dow Jones Equities Industrial Average X X X X X X X X X X X X US Industrial Index X X X X X X or Money capital? | Cash or future? OTC Exchange- traded? Risk- reward X X X X X X (Low/ or Medium / High) Capital Cash High Exchange- traded Each product is indicated by its Yahoo! finance ticker. The first row (item #0) is a completed illustration for guidance. It need not to be considered in your answers. X X X X X X (a) Describe fully the six (6) products under items #1-6 by completing the yellow-highlighted cells in the table above. (30 marks) The table lists the financial products the firm invested in on 1 July 2021 before selling them on 30 June 2023. Anderson mentions that the firm's policy on investment decisions is to consider only price changes, using the prices at close day. You can disregard the effect of dividends, stock splits, or FX conversion for securities. Currency quotes are closing mid-point. (b) Appraise in less than two hundred and fifty (250) words (including any cited reference)

7. XYZ Inc. is expected to pay no dividends for the next 5 years. However, at the end of the sixth year (at time 6), the company is expected to pay a dividend of $1/share. Dividends are expected to grow at 10% per year for the following 9 years (through the end of the 15th year, i.e., time 15),then to grow at 3% every year thereafter (forever). The company has an equity beta of 1, the risk-free rate is 2% (rf = 2%), and the market risk premium is 4% (rM-rf = 4%). a. What is the required return on XYZ's equity? b. What is the expected value of the stock at time 15 (not including the time 15 dividend)? c. What is the expected value of the stock at time 5? d. What is the value of the stock today?

Exercise 4 The KLM bond has a 8% coupon rate (with interest paid semi-annually), a maturity value of $1,000, and matures in 5 years. If the bond is priced to yield 6%, what is the bond's current price? (25 marks)

Problem #2 Preston Company uses nylon as raw materials to manufacture their products. Preston Company is planning to purchase nylon from Tangsun Company on January 30, 2015 with payment on that date of 1.5 million in Chinese yuan. On November 1, 2014, Preston entered into a 90-day forward contract to buy 1.5million yuan for $0.15 per yuan (the spot rate is $0.17). Preston anticipates significant increases in the USD value per yuan. The forward contract is to be settled net. On December 31, 2014, Preston's year-end, the forward rate for delivery on January 30, 2015 is $0.20 per yuan. The spot and forward rates on January 30, 2015 are $0.22 per yuan. Preston uses a 6% discount rate relating to their hedging activity. Preston purchases 1.5 million yuan on January 30 when the forward contract expires. Monthly effective interest rate = 4.08627% Monthly discount (or interest) rate = 6%/12 months = 0.5% Required: Prepare the necessary journal entries to account for this cash flow hedge and related purchase of nylon by follow the steps below: Step 1. calculate contract discount Step 2. prepare amortization schedule for contract discount Step 3. calculate FV of forward contract Step 4. prepare journal entries 1) On 11/1/14 2) On 12/31/14 3) On 1/30/15

Part 1: Michael F Fall purchased a new $3,200,000 five-year class asset on September 15, 2023. The asset was placed in service for business October 10, 2023. Assume this was the only asset purchased in 2023. Michael elected to take the maximum Section 179 expense deduction allowed but elected NOT to take additional first- year (bonus) depreciation. Michael's taxable income for 2023 before the cost recovery on this asset was $700,000. Be sure to show all of your calculations for each numbered item!! You must complete the assignment on this worksheet! 1. What is the maximum amount of § 179 that Michael can ELECT (not deduct) in 2023?

1 On January 1, 2024, Tru Fashions Corporation awarded restricted stock units (RSUS) representing 5 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within three years. After the recipients of the RSUS satisfy the vesting requirement, the company will distribute the shares. On the grant date, the shares had a market price of $9.00 per share. 1.75 points 8 02:35:29 eBook Print References Required: 1. Determine the total compensation cost pertaining to the RSUS. 2. Prepare the appropriate journal entry to record the award of RSUS on January 1, 2024. 3. Prepare the appropriate journal entry to record compensation expense on December 31, 2024. 4. Prepare the appropriate journal entry to record compensation expense on December 31, 2025. 5. Prepare the appropriate journal entry to record compensation expense on December 31, 2026. 6. Prepare the appropriate journal entry to record the lifting of restrictions on the RSUS and issuing shares at December 31, 2026. Complete this question by entering your answers in the tabs below. Req 1 Req 2 to 6 Determine the total compensation cost pertaining to the RSUS. Note: Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). Total compensation cost $ 45.0 million < Req 1 Req 2 to 6 >