yilunzhao/KnowledgeMath huggingface dataset:
Topic: Asset Classes & Derivatives

With the given US Treasury forward rates, what's the value of a 2.5-year $100 face value Treasury bond with a 5% interest rate?

| Period | Years | Forward Rate |
|--------|-------|--------------|
| 1      | 0.5   | 1.20%        |
| 2      | 1     | 1.80%        |
| 3      | 1.5   | 2.30%        |
| 4      | 2     | 2.70%        |
| 5      | 2.5   | 3.00%        |
Topic: Accounting

Assuming U.S. GAAP is in effect unless stated otherwise, imagine a highly profitable company, Alpha Enterprises, acquired a new asset for $1,000,000 on January 1, 2002. How does the asset acquisition impact Alpha Enterprises' deferred tax liability for 2002 given the following conditions for the asset: for financial statements purposes, straight-line depreciation over 10 years with no salvage value; for tax purposes, the asset is classified under three-year MACRS depreciation with the first year MACRS factor being 0.333, and the tax rate stands at 40%?
Topic: Accounting

Let's consider that U.S. GAAP is applicable unless stated differently. A research analyst has collected this data from a corporation's financial statements for the year 2005 (in millions of dollars): The firm announced and distributed cash dividends worth $10 million in 2005 and accounted for a depreciation cost of $25 million for the same year. What was the corporation's cash flow from operations, in millions, for 2005?

| Balances as of year ended 31 December | 2004 | 2005 |
| ------------------------------------- | ---- | ---- |
| Retained earnings                     | 120  | 145  |
| Accounts receivable                   | 38   | 43   |
| Inventory                             | 45   | 48   |
| Accounts payable                      | 36   | 29   |
Topic: Accounting

What is the quick ratio for Company B as per the common-size balance sheets displayed in Exhibit 1 for Company A, Company B, and the Sector Average?

| ASSETS                         |         | Company A | Company B | Sector Average |
|--------------------------------|---------|-----------|-----------|----------------|
| Current assets                 |         |           |           |                |
| Cash and cash equivalents      |         | 5         | 7         |                |
| Marketable securities          |         | 0         | 2         |                |
| Accounts receivable, net       |         | 15        | 12        |                |
| Inventories                    |         | 20        | 16        |                |
| Prepaid expenses               |         | 15        | 11        |                |
| Total current assets           |         | 55        | 48        |                |
| Property, plant, and equipment | net     | 35        | 37        |                |
| Goodwill                       |         | 0         | 8         |                |
| Other assets                   |         | 10        | 7         |                |
| Total assets                   | 100     | 100       | 100       | 100            |
|--------------------------------|---------|-----------|-----------|----------------|
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | |
| Current liabilities                 |   | | | |
| Accounts payable                    |   | 10 | 10 | 10 |
| Short-term debt                     |   | 25 | 10 | 15 |
| Accrued expenses                    |   | 5  | 3  |    |
| Total current liabilities           |   | 35 | 25 | 28 |
| Long-term debt                      |   | 45 | 20 | 28 |
| Other non-current liabilities       |   | 0  | 10 | 7  |
| Total liabilities                   |   | 80 | 55 | 63 |
| Total shareholders' equity          |   | 20 | 45 | 37 |
| Total liabilities and shareholders' equity | | 100 | 100 | 100 |
Topic: Asset Classes & Derivatives

At the start of the year, the portfolio of Frontier Investment Group, a hedge fund, was valued at $475,000,000. A year later, the value of assets under management has grown to $541,500,000. The hedge fund imposes a 1.5% management fee based on the portfolio value at the end of the year and a 10% incentive fee. If these two fees are calculated separately, what would be the effective return for an investor in this hedge fund?
Topic: Quantitative Analysis & Valuation

A specialist generates the subsequent joint probability function for an international index (FI) and a local index (DI). What is the covariance of returns on the international index and the returns on the local index?

|         | RDI=30% | RDI=25% | RDI=15% |
|---------|---------|---------|---------|
| RFI=25% | 0.25    |         |         |
| RFI=15% |         | 0.5     |         |
| RFI=10% |         |         | 0.25    |
Topic: Accounting

If MARIO S.A., a corporation based in Uruguay, uses the straight-line method, then how much is the depreciation expense on their income statement related to the manufacturing equipment, considering that Carlos Lopez from the company is calculating it for the fiscal year ended 31 December 2009? The equipment was obtained on 1 January 2009, and Lopez has gathered the following data (currency in Uruguayan pesos, UYP).

| Cost of the equipment | UYP 1,200,000       |
|----------------------|---------------------|
| Estimated residual value | UYP 200,000      |
| Expected useful life | 8 years             |
| Total productive capacity| 800,000 units    |
| Production in FY 2009 | 135,000 units      | 
| Expected production for the next 7 years | 95,000 units each |
Topic: Asset Classes & Derivatives

Using the balance sheet as of 31 December 2017, Pierre thinks that an asset-based assessment is suitable for Oak. Based on the extra presumption that other assets and liabilities on the balance sheet, what is the asset-based valuation of Oak?

|                                      |            |
|--------------------------------------|------------|
| **Wood Balance Sheet 2017**          |            |
| **Assets**                           |            |
| Cash                                 | $650,000   |
| Inventory                            | 27,000     |
| Accounts receivable                  | 25,000     |
| Plant and equipment (cost less depreciation) | 300,000 |
| TimberLand                           | 8,086,000  |
| **Total assets**                     | $9,088,000 |
| Accounts payables                    | $ 88,000   |
| Long-term bank loan                  | 2,500,000  |
| Common stock                         | 6,500,000  |
| **Total liabilities and equity**     | $9,088,000 |
| TimberLand (market value)            | 50,000,000 |
Topic: Asset Classes & Derivatives

A bond that has 5 years left until it matures is presently being traded for 101 for every 100 of par value. It provides a coupon rate of 6%, with interest being paid every six months. Considering that the bond can be first called in 3 years, and can be called following that date on interest payment dates per the provided schedule, what is the bond's yearly yield-to-first-call?

| End of Year | Call Price |
|-------------|------------|
| 3           | 102        |
| 4           | 101        |
| 5           | 100        |
Topic: Corporate & Securities Issuance

Peterson Energy Inc, a US-based, publicly traded energy firm, recently stated its plans to acquire Heartland Energy Inc, a smaller energy company based in the US. The offer from Peterson values Heartland at an enterprise worth of USD40.6 billion, which includes USD4.3 billion of existing Heartland debt. In order to finance the consideration of USD55 in cash along with 2.25 Peterson shares for each Heartland share, Peterson intends to issue 104 million new shares and will raise approximately USD26 billion in new debt, with the remaining being funded by cash on hand. Once the deal has closed, Peterson anticipates having an outstanding debt of nearly USD62 billion. Before the acquisition, Peterson had 1.096 billion shares in circulation, each trading at USD125. With the assumption of a constant share price and the book value of debt being equal to its market value, Jackson plans to ascertain the change in the proportions of debt and equity in Peterson’s capital structure following
Topic: Asset Classes & Derivatives

Given the performance metrics for a different investment option: Let's assume that the highest drawdown risk remains constant at 10.2% for every time interval. Also, suppose that the mean drawdown risk is unchanging at 6.8% for every time interval. Based on the data given, compute the Calmar ratio in the usual manner. What is the resulting Calmar ratio?

| 1 Year | 3 Years | 5 Years | Since Inception |
|--------|---------|---------|-----------------|
| 5.3%   | 6.2%    | 4.7%    | 4.4%            |
Topic: Quantitative Analysis & Valuation

Given the above probability matrix, what is the covariance of returns on Portfolio X and Portfolio Y?

| Returns | RB=50% | RB=20% | RB=-30% |
|---------|--------|--------|---------|
| RA=-10% | 0.4    | 0      | 0       |
| RA=10%  | 0      | 0.3    | 0       |
| RA=30%  | 0      | 0      | 0.3     |
Topic: Corporate & Securities Issuance

If Fairfield Inc. intends to borrow sufficient funds to buy back 100,000 stocks, what would be Fairfield’s earnings per share following the repurchase, with the following data related to the share buyback: Shares outstanding before buyback 3.1 million, Earnings per share before buyback US$4.00, Share price at the time of buyback US$50, and After-tax cost of borrowing 6%?
Topic: Asset Classes & Derivatives

Pinho instructs Martins to utilize a valuation metric to facilitate a comprehensive evaluation of the relative share value of the three corporations. The essential financial data for these businesses are shown in Exhibit 1. For Adesivo, Martins examines the base trailing EPS. With a basic trailing EPS of R$0.84, he found a note in the financial reports of Adesivo stating that“On a per share basis, Adesivo incurred in the last four quartersi. from a lawsuit, a non-recurring gain of R$0.04; andii. Based on Exhibit 1 and Adesivo’s financial reports, what is the trailing P/E for Adesivo using the base EPS?

|      | Adesivo | Enviado | Gesticular |
|------|---------|---------|------------|
| Stock's current price | 14.72 | 72.20 | 132.16 |
| Diluted EPS (last four quarters) | 0.81 | 2.92 | -0.05 |
| Diluted EPS (next four quarters) | 0.91 | 3.10 | 2.85 |
| Dividend rate (annualized most recent dividend) | 0.44 | 1.24 | 0.00 |
Topic: Asset Classes & Derivatives

John is assessing the value of Corporation Z using the single-stage residual income model and has compiled pertinent data in the listed table. What is the justified price-to-book ratio for Corporation Z?

|   |   |
|---|---|
| BVPS  | $28.25  |
| ROE  | 14.5%  |
| Constant long-term growth  | 5.5%  |
| Cost of equity  | 10.9%  |
Topic: Asset Classes & Derivatives

An employee at a capital management firm, Jonathan, is given the task to determine the gain in 6 months on a transaction of $2,000,000 vega notional of a one-year variance swap on the S&P 500 at a 20% strike (expressed as annual volatility). After a period of six months, the S&P 500 shows a realized volatility of 16%, while the fair strike of a fresh 6-month variance swap on the S&P 500 is now 18%. The yearly interest rate is 2.00%. What is the updated value of the variance swap?
Topic: Portfolio Management & Strategy

A significant purchase has just been declared, aiming at corporation Y. The proposal from corporation X features an exchange offer with a ratio of 2. Directly following the declaration, corporation X and Y's prices are at $50 and $90, respectively. A hedge fund opts to take a long position in corporation Y, hedged with shares from X. Following the completion of the acquisition, the prices shift to $60 and $120. Therefore, the profit for each share from corporation Y is
Topic: Asset Classes & Derivatives

On today's date, 5 June 2013, a semi-annual bond lasting three years that comes with a coupon rate of 6% just issued its initial coupon payment. The face value stands at 100. The due dates for interest payments are the 5th of April and the 5th of October. The bond's yield-to-maturity is equal to 5%. If the count convention is based on 30/360, figure out the accrued interest on this bond as of 5 June 2013.
Topic: Risk Management

Assuming there are 250 trading days in a year, how would the daily VaR at 99% level change if the financial institution sells $50 worth of asset A and purchases $50 worth of asset B, given that the institution's trading portfolio includes two assets with a Correlation (A, B) = 0.2?

| Asset | Annual Return | Volatility of Annual Return | Value |
|-------|---------------|-----------------------------|-------|
| A     | 10%           | 25%                         | 100   |
| B     | 20%           | 20%                         | 50    |
Topic: Quantitative Analysis & Valuation

According to the chart, what is the worth of a 1.5-year, 6% semiannual coupon, $100 face value bond?

|Maturity(years)|STRIPS Price|Spot Rate|Forward Rate|
|---|---|---|---|
|0.5|98.7654|2.50%|2.50%|
|1.0|97.0662|3.00%|3.50%|
|1.5|95.2652|3.26%|3.78%|
|2.0|93.2775|?.??%|?.??%|
Topic: Asset Classes & Derivatives

The hedge fund known as Sovereign Wealth starts out with an initial capital of $300 million. They levy a 1% management fee anchored on year-end asset value and a 20% incentive fee that applies when returns surpass an 8% hurdle rate. Considering that Sovereign Wealth's first-year appreciation rate stands at 10% and its management fees are predicated on valuation at period's end, what will be the net return for the investor, provided the performance fee is computed after subtracting the management fee?
Topic: Portfolio Management & Strategy

Taking into account the asset class returns for the 2016 financial year, what is the value added or active return for the supervised investment portfolio?

| Asset class | Portfolio Weight(%) | Benchmark Weight(%) | Portfolio Return(%) | Benchmark Return(%) |
| ----------- | ------------------ | ------------------- | ------------------- | ------------------ |
| Domestic equities | 55 | 40 | 10 | 8 |
| International equities | 20 | 30 | 10 | 9 |
| Bonds | 25 | 30 | 5 | 6 |
Topic: Accounting

French indicates that for the recently concluded year (2014), the cost of goods sold by Bridgeport was 30% of sales. When projecting Bridgeport's income statement for 2015, French assumes that all firms in the industry will encounter an inflation rate of 8% on the cost of goods sold. Exhibit 4 presents French’s predictions about Bridgeport’s price and volume variations. According to Exhibit 4, what is Bridgeport’s anticipated gross profit margin for 2015?

| Exhibit 4.Arch way's 2015 Forecasted Price and Volume Changes ||
| --- | --- |
| Average price increase per unit | 5.00% |
| Volume growth | -3.00% |
Topic: Accounting

Assuming a periodic inventory system, what was the cost of sales in 2008 (€ thousands) for Nutmeg Enterprises, which launched in 2007 and employs the weighted average cost method? During its first year, the company bought 45,000 units of inventory for €10 each and sold 40,000 units for €20 each. The following year, it acquired an additional 50,000 units at €11 each and sold 45,000 units for €22 each.
Topic: Quantitative Analysis & Valuation

Based on the given table, what is the key rate duration for a shift of 10 years for a zero-coupon bond?

|                     | Value  |
|---------------------|--------|
| Initial Value       | 87.1876|
| 2-year shift for 1bp| 87.3212|
| 5-year shift for 1bp| 87.2545|
| 10-year shift for 1bp|87.1454|
| 30-year shift for 1bp|87.3454|
Topic: Quantitative Analysis & Valuation

Based on the provided data, what is the value of P(3≤X≤6)?

| X   | 0   | 1   | 2   | 3   | 4   | 5   | 6   | 7   |
|-----|-----|-----|-----|-----|-----|-----|-----|-----|
| P(X)| 0.14| 0.09| 0.19| 0.25| 0.17| 0.06| 0.03| 0.07|

Note: A discrete random variable X follows the probability distribution as given in the table above.
Topic: Asset Classes & Derivatives

Based on the data in Exhibit 1, if Michael is planning to implement a covered call strategy, what would be the breakeven share price for this strategy? Exhibit 1: Share Price and Option Premiums (share prices and option premiums in $)

| company | Share price | Call premium | Strike price |
|---------|-------------|--------------|--------------|
| NZT     | 53.37       | 1.62         | 58           |
Topic: Accounting

If an analyst in the finance team of a French company, PLECCO Inc., calculates the amortization of a client list, an intangible asset, for the fiscal year concluded 31 December 2009 using the straight-line method, what would be the sum of accumulated amortization associated with the client list as of 31 December 2009, based on the data she has collected about the asset?

| Acquisition cost                                       | €2,300,000           |
|-------------------------------------------------------|----------------------|
| Acquisition date                                      | 1 January 2008       |
| Expected residual value at time of acquisition        | €500,000             |
| The customer list is expected to result in extra sales for three years after acquisition. The present value of these expected extra sales exceeds the cost of the list. | |
Topic: Accounting

Can you compute the operational cash flow for the year 2018?

|                   | 2017($) | 2018($) |
|-------------------|---------|---------|
| net income        | 320,000 | 360,000 |
| accounts receivable | 23,000  | 25,000  |
| accounts payable  | 31,000  | 35,000  |
| depreciation      | 7,000   | 7,000   |
Topic: Market Analysis & Economics

If we set the base period for 2010's consumption to be November and the starting price index at 100, what would be the inflation rate after determining the December price index as a Laspeyres index?

|         | November 2010 |       | December 2010 |       |
|---------|---------------|-------|---------------|-------|
| Goods   | Quantity      | Price | Quantity      | Price |
| Sugar   | 70kg          | £0.90/kg  | 120kg         | £1.00/kg  |
| Cotton  | 60kg          | €0.60/kg  | 50kg          | €0.80/kg  |
Topic: Quantitative Analysis & Valuation

John is interested in forecasting the earnings of his manufacturing plant in October 20X9, thus he employs income data from January 20X6 to September 20X9 as samples to create a AR(1) model, achieving the following outcome: Xt=293.5742+0.9387Xt−1X_t=293.5742+0.9387X_{t-1}Xt​=293.5742+0.9387Xt−1​ Can you determine the long-term average?
Topic: Accounting

In 2010, certain incidents took place at a corporation. Given those incidents, what should be the corporation's documented amortization expense in 2011?

|   |   |
|---|---|
| 1. | Purchased a customer list for $100,000, which is expected to provide equal annual benefits for the next 4 years. |
| 2. | Recorded $200,000 of goodwill in the acquisition of a competitor. It is estimated that the acquisition would provide substantial benefits for the company for at least the next 10 years. |
| 3. | Spent $300,000 on media placements announcing the company had donated products and services to the community. The CEO believes the firm's reputation was enhanced substantially and the company will likely benefit from it for the next 5 years. |
Topic: Asset Classes & Derivatives

A financial expert is trying to determine the worth of Sovereign Corporation's shares. The corporation has recently issued a dividend of $0.58 per share. The dividends are projected to increase by 20 percent in the coming year and 15 percent in the following year. From the third year onwards, the dividends are expected to rise at a rate of 5.6 percent per annum perpetually. If the necessary rate of return is 8.3 percent, what is the inherent value of the stock?
Topic: Quantitative Analysis & Valuation

According to the two scenarios proposed by a financial examiner, what is the anticipated recovery value from the principal of defaulted loans amounting to $100,000?

| Scenario | Probability of Scenario (%) | Amount Recovered ($) | Probability of Amount (%) |
|----------|-----------------------------|----------------------|--------------------------|
| 1        | 40                          | 50,000               | 60                       |
| 1        | 40                          | 30,000               | 40                       |
| 2        | 60                          | 80,000               | 90                       |
| 2        | 60                          | 60,000               | 10                       |
Topic: Portfolio Management & Strategy

In regards to the capital asset pricing model, if the anticipated return for Bond 2 is 11.4% and the risk-free rate is 3%, what would be the expected market return?

| Expected Security Standard Deviation (%) | Beta |
|------------------------------------------|------|
| Security 1 25                            | 1.50 |
| Security 2 15                            | 1.40 |
| Security 3 20                            | 1.60 |
Topic: Market Analysis & Economics

Given the factor covariance matrix for global equity and global bonds presented by Schultz in Exhibit 1, along with market factor sensitivities and residual risk displayed in Exhibit 2, what is the covariance between Market 1 and Market 2?

|               | Global Equity | Global Bonds |
|---------------|---------------|--------------|
| Global Equity | 0.0225        | 0.0022       |
| Global Bonds  | 0.0022        | 0.0025       |

|           | Sensitivities |      | Residual Risk |
|-----------|---------------|------|---------------|
|           | Global Equity | Global Bonds |   |
| Market 1  | 1.20          | 0.00 | 12.00%        |
| Market 2  | 0.90          | 0.00 | 7.00%         |
| Market 3  | 0.00          | 0.95 | 1.80%         |
Topic: Market Analysis & Economics

What is the three-firm Herfindahl–Hirschmann Index for the sector, taking into account the market share information collected for a sector consisting of five firms?

| Company | Market Share (%) |
|---------|-----------------|
| Zeta    | 35              |
| Yusef   | 25              |
| Xenon   | 20              |
| Waters  | 10              |
| Vlastos | 10              |
Topic: Accounting

What is the financial leverage ratio for Business B, according to the balance sheet below, as of 31 December 2017?

|            | as of 31 December |    |
|------------|------------------|----|
| Assets     | 2016             | 2017 |
| Cash and cash equivalents | 5 | 15 |
| Short-term marketable securities | 5 | 15 |
| Trade and other receivables | 15 | 5 |
| Other non-financial assets | 5 | 18 |
| Tax assets | 5 | 2 |
| Total current assets | 35 | 55 |

|                       |  as of  31 December  |     |    
| ---------------       | :--------------:     | :-----:|    
|   Assets              | 2016                 |  2017  |      
| Total non-current assets | 65             |  55 |
| Total assets         | 100                 | 110  |  
| Equity and Liabilities |  |  |
| Total current liabilities | 35 | 28 |
| Total non-current liabilities | 45 | 45 |
| Total liabilities | 80 | 73 |
| Total equity | 20 | 37 |
| Equity and liabilities | 100 | 110 |
Topic: Asset Classes & Derivatives

The bonds of a corporation named Whakatane and Co. are scheduled for settlement on 15 July 2014 and have several distinct attributes. Given these details, can you identify the discrepancy between the full and flat prices?

| Par value | $100.00 |
|---|---|
| Annual coupon rate | 8% |
| Coupon payment frequency | Semiannual |
| Coupon payment dates | 15 May and 15 November |
| Maturity date | 15 November 2017 |
| Day count convention | Actual/Actual |
| Annual  yield to maturity | 5.5% |