Draw three lines under each letter that should be capitalized. If a sentence is correct, write C in the blank to the left of the sentence./ _____returning the leaves to the soil changes a liability to an asset.

What is the number one way to market to mobile users?

A company has $\$ 200,000$ to distribute in dividends. There are 20,000 shares preferred stock that earn dividends at $\$0.50$ per share and $80.000$ shares of common stock.

How much per share does a common stockholder receive in dividends to the nearest cent?

Fran bought shares in a supermarket chain in early 2016 for $21.11 per share. She sold them later in that same year for$20 per share. Express her loss as a percent of the purchase price. Round to the nearest percent.

You are attempting to formulate an investment strategy. On the one hand, you think there is great upward potential in the stock market and would like to participate in the upward move if it materializes. However, you are not able to afford substantial stock market losses and so cannot run the risk of a stock market collapse, which you also think is a possibility. Your investment adviser suggests a protective put position: Buy shares in a market index stock fund and put options on those shares with three-months until expiration and exercise price of 1,040 dollars. The stock index is currently at 1,200 dollars. However, your uncle suggests you instead buy a three-month call option on the index fund with exercise price 1,120 dollars and buy three-month T-bills with face value 1,120 dollars.

a. On the same graph, draw the payoffs to each of these strategies as a function of the stock fund value in three months. (Hint: Think of the options as being on one "share" of the stock index fund, with the current price of each share of the index equal to S1.200.)

b. Which portfolio must require a greater initial outlay to establish? (Hint: Does either portfolio provide a final payoff that is always at least as great as the payoff of the other portfolio?)

c. Suppose the market prices of the securities are as follows.

Make a table of profits realized for each portfolio for the following values of the stock price in three months: ST= 0 dollars, 1,040 dollars, 1,120 dollars,1,200 dollars, and 1,280 dollars. Graph the profits to each portfolio as a function of ST on a single graph.

d. Which strategy is riskier? Which should have a higher beta?

What is the security market line? What does it represent?

Bristol Plc. has just paid a dividend of $1.5 per share per year. If the growth rate of dividends is 5 percent, calculate the value of one share if a company of this risk class is required to return 14 percent per year.

You are attempting to formulate an investment strategy. On the one hand, you think there is great upward potential in the stock market and would like to participate in the upward move if it materializes. However, you are not able to afford substantial stock market losses and so cannot run the risk of a stock market collapse, which you recognize is also possible. Your investment adviser suggests a protective put position: Buy shares in a market-index stock fund and put options on those shares with threemonths until expiration and exercise price of $1,560. The stock index is currently at$1,800. However, your uncle suggests you instead buy a three-month call option on the index fund with exercise price $1,680 and buy three-month T-bills with face value$1,680. a. On the same graph, draw the payoffs to each of these strategies as a function of the stock fund value in three months. (Hint: Think of the options as being on one “share” of the stock index fund, with the current price of each share of the index equal to $1,800.) b. Which portfolio must require a greater initial outlay to establish? (Hint: Does either portfolio provide a final payoff that is always at least as great as the payoff of the other portfolio?) c. Suppose the market prices of the securities are as follows:$

$$\begin{matrix} \text{Stock fund} & \text{\$1,800}\\ \text{T-bill (face value \$1,680)} & \text{1,620}\\ \text{Call (exercise price \$1,680)} & \text{240}\\ \text{Put (exercise price \$1,560)} & \text{12}\\ \end{matrix}$$

$Make a table of profits realized for each portfolio for the following values of the stock price in three months: ST =$0, $1,400,$1,600, $1,800, and$1,920. Graph the profits to each portfolio as a function of ST on a single graph. d. Which strategy is riskier? Which should have a higher beta?

Lexington Garden Supply pays $280,000 for a group purchase of land, building, and equipment. At the time of acquisition, the land has a current market value of$124,000, the building’s current market value is $31,000, and the equipment’s current market value is$155,000. Prepare a schedule allocating the purchase price of $280,000 to each of the individual assets purchased based on their relative market values, then journalize the lump-sum purchase of the three assets. The business signs a note payable for the purchase price.

Fill in the blanks accordingly.
This add-on, known as the ______ share hospital (DSH) adjustment, provides for a percentage ________ in Medicare payment for hospitals that ________ under either of two statutory formulas designed to identify hospitals that serve a disproportionate share of low-income patients.

Suppose you bought $\mathrm{XYZ}$ stock $1$ year ago for $\$ 46.00$ per share and sell it at $\$ 8.25$. You also pay a commission of $\$ 0.25$ per share on your sale. What is the total return on your investment?

You are attempting to formulate an investment strategy. On the one hand, you think there is great upward potential in the stock market and would like to participate in the upward move if it materializes. However, you are not able to afford substantial stock market losses and so cannot run the risk of a stock market collapse, which you recognize is also possible. Your investment adviser suggests a protective put position: Buy shares in a market-index stock fund and put options on those shares with three months until expiration and exercise price of $1,040. The stock index is currently at$1,200. However, your uncle suggests you instead buy a three-month call option on the index fund with exercise price $1,120 and buy three-month T-bills with face value$1,120.

a. On the same graph, draw the payoffs to each of these strategies as a function of the stock fund value in three months. ( Hint: Think of the options as being on one “share” of the stock index fund, with the current price of each share of the index equal to $1,200.)

b. Which portfolio must require a greater initial outlay to establish? ( Hint: Does either portfolio provide a final payoff that is always at least as great as the payoff of the other portfolio?)

c. Suppose the market prices of the securities are as follows:

$$\begin{array}{lr} \hline \text { Stock fund } & \$ 1,200 \\ \text { T-bill (face value } \$ 1,120) & 1,080 \\ \text { Call (exercise price } \$ 1,120) & 160 \\ \text { Put (exercise price } \$ 1,040 \text { ) } & 8 \\ \hline \end{array}$$

Make a table of profits realized for each portfolio for the following values of the stock price in three months: $S_T=\$ 0, \$ 1,040, \$ 1,120, \$ 1,200$, and $\$ 1,280$. Graph the profits to each portfolio as a function of $S_T$ on a single graph.

d. Which strategy is riskier? Which should have a higher beta?

Islands Realty estimates that $5 \%$ of the families who inquire about time-share villas will purchase one. If this is true, what is the probability that no more than $20$ of $500$ families who inquire about time-share villas will make a purchase?

Consider the following limit order book for a share of stock. The last trade in the stock occurred at a price of $\$50$.

$$\begin{array}{|c|c|c|c|} \hline \textbf{Price} & \textbf{Shares} &\textbf{Price} & \textbf{Shares} \\ \hline \$49.75 & 500 & \$50.25 & 100 \\ \hline 49.50 & 800 & 51.50 & 100 \\ \hline 49.25 & 500 & 54.75 & 300 \\ \hline 49.00 & 200 & 58.25 & 100 \\ \hline 48.50 & 600 & & \\ \hline \end{array}$$

a. If a market buy order for 100 shares comes in, at what price will it be filled?

b. At what price would the next market buy order be filled?

c. If you were a security dealer, would you want to increase or decrease your inventory of this stock?