Recently, you discovered a putable income bond that is convertible. If you purchase this
bond, you will have the right to do which of the following?
I. force the issuer to repurchase the bond prior to maturity
II. choose when you wish to receive interest payments
III. convert the bond into a TIPS
IV. convert the bond into equity shares
A. I and III only
B. I and IV only
C. II and III only
D. III and IV only
E. I, II, and IV only
Miller Mfg. is analyzing a proposed project. The company expects to sell 8,000 units,
plus or minus 2 percent. The expected variable cost per unit is $11 and the expected
fixed costs are $287,000. The fixed and variable cost estimates are considered accurate
within a plus or minus 5 percent range. The depreciation expense is $68,000. The tax
rate is 32 percent. The sales price is estimated at $64 a unit, give or take 3 percent.
What is the net income under the worst case scenario?
Your grandmother has promised to give you $5,000 when you graduate from college.
She is expecting you to graduate two years from now. What happens to the present
value of this gift if you delay your graduation by one year and graduate three years
A. remains constant
D. becomes negative
E. cannot be determined from the information provided