Cuestionario De Finanzas

Suppose you invest $20,000 by purchasing 200 shares of Abbott Labs (ABT) at $50 per share, 200 shares of Lowes (LOW)
at $30 per share, and 100 shares of Ball Corporation (BLL) at $40 per share.1) The weight on Abbott Labs in your portfolio is:
@ so%
B) 40%
C) 30%
D) 20%

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2) The weight on Lowes in your portfolio is:
A) 40%
B) 20%
,9,_50% (EY30%

3) The weight on Ban -corporation in your portfolio is:
A) 50%
B) 40%
@20% D) 30%
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4)Suppose over the next year Ball has a return of 12.5%, Lowes has a return of 20%, and Abbott Labs has a
return of -10%. The return on your potfoli0 over,the year is;
A) 0%
B) 7.5%
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6) Which of the following industries is likely to have the lowest costsof financial distress?
A) Airlines
B) Computer Software
@Biotechnology
D) Electric Utilities

Big Blue Banana (BBB) is a clothing retailer with a current share price of $10.00 and with 25million shares outstanding. Suppose that Big Blue Banana announces plans to lower its corporate taxes by borrowing $100 million and using the
proceeds to repurchase shares - --····"--
,_--· ·--··8) Assuming perfect capital marke1 s, the 1t are price for BBB after this announcementJ closest to: A) $11.40 .
$10.85
C9 $10.00
D) $8.60

9) Suppose that BBB pays corporate taxes of 35% andthat shareholders expects the change in debt to be permanent. Assuming that capital markets are perfect except for the existence of corporate taxes, the share price for BBB after thisannouncement is closest to:

A) $10.00
B) $10.85
C) $8.60
@ $11.40
10) Suppose that BBB pays corporate taxes of 35% and that shareholders expects the change in debt to be permanent. Assume that...