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

Grand Rapids Titanium Corp (GRTC) sustains an 80 percent dividend payout ratio due to its restricted growth possibilities. The company's return on equity stands at 15 percent. The obligatory return rate on GRTC's equity is 12 percent, while its anticipated long-term growth rate is 3 percent. Can you determine the justified P/B using the projected fundamentals, in accordance with the residual income model and under the assumption of a constant growth rate?
Topic: Accounting

In the latest financial year, Farrow Inc. had average days of sales outstanding of 19 days. Farrow is aiming to enhance its credit policies and collection methodologies and reduce its collection phase in the forthcoming financial year to align with the market average of 15 days. The credit sales in the latest fiscal year were $300 million, and they are estimated to rise to $390 million in the next fiscal year. What should be the alteration in the average accounts receivable balance to accomplish Farrow's objective of decreasing the collection period?
Topic: Quantitative Analysis & Valuation

In a set of mortgages, 50% are deemed as subprime. The principal balance of 50% of these subprime mortgages and 25% of the non-subprime mortgages are higher than the value of the property used as collateral. If you randomly pick a mortgage from this set for inspection and its principal balance is more than the value of the collateral, what is the likelihood that it is a subprime mortgage?
Topic: Asset Classes & Derivatives

What is the value per 100 of par value for a two-year, 3.5% coupon bond, where interest payments are disbursed once a year, considering all rates mentioned are annual rates with a periodicity of one (effective annual rates)?

| Time Period | Forward Rate |
|-------------|--------------|
| 0y1y        | 0.80%        |
| 1y1y        | 1.12%        |
| Z           | 3.94%        |
| 3y1y        | 3.28%        |
| 4y1y        | 3.14%        |
Topic: Quantitative Analysis & Valuation

Based on the provided data chart, what is the standard deviation of X?

|  X  | Y=5 | Y=2 | Y=-3 |
| --- | --- | --- | ---- |
| -2  | 0.2 | 0   | 0    |
|  1  | 0   | 0.6 | 0    |
|  4  | 0   | 0   | 0.2  |
Topic: Quantitative Analysis & Valuation

What is the chance of a profit between $1 and $4, as depicted by the following table displaying the discrete uniform probability distribution of gross profits from buying an option?

| Profit | Cumulative  Distribution  Function |
|--------|-----------------------------------|
| $0     | 0.2                               |
| $1     | 0.4                               |
| $2     | 0.6                               |
| $3     | 0.8                               |
| $4     | 1.0                               |
Topic: Accounting

In the year 2018, a firm that utilized US GAAP did cash disbursements of $6 million for employee wages, $2 million for interest liabilities, and $4 million for income tax obligations. Based solely on the data provided in the chart, what is the firm's cash flow from operations for 2018?

| ($ millions)          | 2017 | 2018 |
|-----------------------|------|------|
| Revenue               | 42   | 37   |
| Cost of goods sold    | 18   | 16   |
| Inventory             | 36   | 40   |
| Accounts receivable   | 22   | 19   |
| Accounts payable      | 14   | 12   |
Topic: Accounting

The XY corporation is an American business that follows US GAAP. It also owns two European subsidiary companies: FS financial service and FC financial consultant. John, a CFA, has compiled a forecast of XY's 2018 financial statement. If XY chooses the current rate method to convert the data of FS into US dollars and the temporal method for converting the data of FC into US dollars, what will the total assets be on 31 December 2018 when XY translates FS's results into US dollars?

|                           |         |
|---------------------------|---------|
| Forecasted Balance Sheet Data for LI at 31 December 2018    |         |
| Cash                      | 120     |
| Accounts receivable       | 30      |
| Inventory                 | 450     |
| Fixed assets              | 800     |
| Total assets              | 1,400   |
| Liabilities               | 320     |
| Common stock              | 780     |
| Retained earnings         | 300     |

|                            | Exchange rates ($/€) |
|----------------------------|----------------------|
| when fixed assets were acquired | 1.55                 |
| 31 December 2018           | 1.77                 |
| 2018 average               | 1.68                 |
Topic: Asset Classes & Derivatives

Basing on the information provided in Exhibit 1, what would be the most suitable price-to-earnings ratio to apply in the assessment of value for the soft drink manufacturing and distribution company, Delite Beverage, especially considering their recent acquisition of a large water bottling firm?

|                         | Delite Beverage |
|------------------------ |-----------------|
| 2010 Earnings per share (EPS) | $3.44         |
| 2011 estimated EPS      | $3.50          |
| Book value per share end of year | $62.05    |
| Current share price     | $65.50         |
| Sales (billions)        | $32.13         |
| Free cash flow per share| $2.68          |
| Shares outstanding end of year | 2,322,034,000 |
Topic: Risk Management

The following data is provided for the returns on shares X and shares Y: the return variance for shares X is 100; the return variance for shares Y is 225, and the covariance between the returns on shares X and Y is 53.2. At the conclusion of 1999, you have USD 4 million in shares X. It's under consideration to move USD 1 million to shares Y while preserving USD 3 million in shares X. What is the risk reduction percentage, denoted by return standard deviation, that can be achieved with this strategy?
Topic: Quantitative Analysis & Valuation

Based on the provided table, what is the value of F(4)?

| 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 |
Topic: Market Analysis & Economics

In order to make use of the cash position of assets under management, an investment strategist decides to engage in a long futures position on the S&P 500 index with a multiplier of 250. The cash position stands at $15 million and given the existing futures value of 1,000, requires the strategist to hold 60 contracts long. Given that the present initial margin is $12,500 per contract and the maintenance margin stands at $10,000 per contract, what amount of variation margin is required by the investment strategist if the value of the futures contract drops to 995 on the closing day of the position being initiated?
Topic: Quantitative Analysis & Valuation

Based on the provided frequency distribution table, can you compute the sample size?

| Return, R     | Frequency |
| ------------- |:---------:|
| -5% up to 0%  | 1         |
| 0% up to 5%   | 6         |
| 5% up to 10%  | 4         |
| 10% up to 15% | 3         |
Topic: Asset Classes & Derivatives

An executive initiates a one-year currency swap which involves receiving RMB fixed and paying USD fixed. She utilizes the following data to determine the annualized fixed swap rate for USD: The annualized fixed swap rate for USD is:

| Days to maturity | RMB Spot Interest Rates | USD Spot Interest Rates |
|-----------------|------------------------|------------------------|
| 90              | 1%                     | 0.4%                   |
| 180             | 1.5%                   | 0.6%                   |
| 270             | 2.0%                   | 0.8%                   |
| 360             | 2.5%                   | 1.0%                   |
Topic: Market Analysis & Economics

After the financial crises starting in 2008, the squad deliberates on the potential long-term growth trajectory for the U.S. GDP in the wake of external shocks. Reports from several external sources are scrutinized and an agreed perception of the next decade's annual growth projections for the objects in Exhibit 1 is formed. Using the data from Exhibit 1 and adopting the simplest method to review the total trend growth for the U.S. GDP, the most probable projection for the GDP annual growth over the next decade (in %) would be:

|                                             |      |                                        |      |
|---------------------------------------------|------|----------------------------------------|------|
| **Exhibit 1 U.S.  Macroeconomic  Data**        |      |                                        |      |
| Growth in real consumer spending           | 3.1% | Yield on  10-yr. U.S. Treasury bonds   | 2.7% |
| Growth in potential labor force            | 1.9% | Growth in real investment spending     | 3.1% |
| Growth in labor force participation        | -0.3%| Growth in total factor productivity    | 0.5% |
| Growth in labor productivity               | 1.4% | Change in trade deficit                | -0.5%|
Topic: Asset Classes & Derivatives

What should the coupon rate be for the interest payment made on December 15 if Beta Co. issued a five-year semi-annual floating rate bond where the coupon rate is the six-month MRR plus 100 bps, with interest payments made every 15 June and 15 December, and which has a six-month MRR of 3% on June 15 and 3.2% on December 15?
Topic: Market Analysis & Economics

On the following day, Thompson asks Green to go over their study on ABC Corp again. Green's study leads her to think that its stocks are underpriced. She gives her study findings to Thompson, and at 10 o'clock in the morning, he tells her to buy 120,000 shares at a price of $40.00 each using a limit order of $42.00. When the price is $40.50, the buy-side trader submits the order for market execution. The only cost involved is a share commission of $0.02. By the day's end, 90,000 shares of the order have been acquired, and ABC Corp concludes at $42.50. The trade was completed at an estimate price of $41.42. Exhibit 1 gives additional details about the completed trades. The arrival cost for buying the 90,000 shares of ABC Corp is:

| Trades | Execution Price | Shares Executed |
|--------|-----------------|-----------------|
| Trade 1 | $40.75 | 10,000 |
| Trade 2 | $41.25 | 30,000 |
| Trade 3 | $41.50 | 20,000 |
| Trade 4 | $41.75 | 30,000 |
| Total | | 90,000 |
Topic: Asset Classes & Derivatives

A researcher collects the following data for an equal-weighted index made up of assets X, Y, and Z: What is the price return of the index?

| Security | Beginning of Period Price(E) | End of Period Price(E) | Total Dividends(E) |
|----------|------------------------------|------------------------|---------------------|
| Able     | 10.00                        | 12.00                  | 0.75                |
| Baker    | 20.00                        | 19.00                  | 1.00                |
| Charlie  | 30.00                        | 30.00                  | 2.00                |
Topic: Asset Classes & Derivatives

Sam, a market analyst at an investment bank, is conducting research on companies operating in the housing market sector. The leading company in this sector, named LoveYourHome, has recently released its annual financial report, revealing a basic EPS of $56, and a diluted EPS of $52. After examining the footnotes in LoveYourHome's financial report, Sam identifies a nonrecurring profit of $2 per share and a one-time restructuring cost of $3 per share, stemming from an acquisition in the previous year. Utilising a top-down analysis approach, Sam projects that LoveYourHome's basic EPS will rise to 76 in the upcoming year. The company's current share price is $72. Sam is keen to assess the relative worth within the housing sector using the trailing P/E ratio. Given the information provided, what is LoveYourHome's trailing Price/Earnings (P/E) ratio?
Topic: Accounting

A business aiming to increase profits expended $1,000,000 on equipment with two crucial parts, as shown in the table. The equipment is projected to be functional for a total of 10 years, and the business applies the straight-line depreciation approach.

| Component | Cost      | Useful Life |
|-----------|-----------|-------------|
| A         | $500,000  | 10 years    |
| B         | $500,000  | 5 years     |
Topic: Market Analysis & Economics

Compute GDP using the income approach based on the information in the given table

| Compensation of employees | 1,044,005 |
|---------------------------|-----------|
| Gross operating surplus | 518,979 |
| Gross mixed income | 241,415 |
| Net mixed income | 180,653 |
| taxes less subsidies on production | 90,507 |
| taxes less subsidies on products and imports | 139,443 |
| Statistical discrepancy | 1,157 |
| Net property income | 136,011 |
Topic: Asset Classes & Derivatives

The fee structure of Cedar Ridge Associates, a fund of hedge funds, is as follows: 2/20 underlying fund fees with independently calculated incentive fees, Cedar Ridge's fees are calculated net of all underlying fund fees, a 1% management fee (based on year-end market value), a 10% incentive fee calculated net of the management fee, and there are no hurdle rate or high-water mark fee conditions for the fund and all underlying funds. In the most recent year, Cedar Ridge’s fund value increased from $100 million to $133 million before any deductions for the fund's management and incentive fees or any underlying funds. Given this information, what is the cumulative fee earned by all the funds?
Topic: Accounting

The subsequent data is derived from the financial statements of Sugarfall Corporation. How much cash did Sugarfall Corp. pay to its suppliers?

|                    | Income Statement |         | Balance Sheet Changes |      |
|--------------------|-----------------:|---------|-----------------------|-----:|
| Revenue            |         $ 56,800 | Decrease in accounts receivable | $1,324 |
|                    |                  |         |                       |       |
| Cost of goods sold |           27,264 | Decrease in inventory          |   501 |
| Other operating expense           |   562 | Increase in prepaid expense   |     6 |
| Depreciation expense          |  2,500 | Increase in accounts payable   | 1,063 |
Topic: Asset Classes & Derivatives

According to the Exhibit 1 Option Contract Pricing Details, what is the break-even price for an at-the-money (ATM) protective put strategy for Dropqik Corporation, where Justine Fisher, a client of Erica Taylor, holds a significant position and which is currently trading at $30.50 per share?

|                       | 40 | 35 | 30 | 25 | 20 |
|-----------------------|----|----|----|----|----|
| 3-month call option price | 0.56 | 1.45 | 4.05 | 10.30 | 12.42 |
| 3-month put option price | 9.56 | 5.20 | 2.78 | 1.56 | 0.72 |
Topic: Market Analysis & Economics

If a manufacturing company examines its cost structure, and the detailed data is provided in the accompanying table, what is the marginal cost if the production units are elevated from 3 to 4?

| Quantity (unit) | Total Fixed Cost ($) | Total Variable Cost ($) |
| --- | --- | --- |
| 0 | 400 | 0 |
| 1 | 400 | 100 |
| 2 | 400 | 190 |
| 3 | 400 | 275 |
| 4 | 400 | 360 |
Topic: Asset Classes & Derivatives

Using the provided data, determine the equity value using the CCM.

|   |   |
|---|---|
| FCFE0  | $10 million  |
| Growth rate of FCFE  | 2%  |
| Risk free rate | 2.5%  |
| Equity Risk Premium  | 4%  |
| Size Premium  | 1.5%  |
| Market value of debt | $4 million |
Topic: Asset Classes & Derivatives

Let's say the present value (S0) of a stock that does not pay dividends is 100, and a put option for this stock has a strike price (X) of $95 with one year left until expiration. Now, a trader thinks that the share price will either rise by 10% or fall by 20%. Which of the subsequent computations of the worth of a put option is correct, presuming a 4% risk-free rate?
Topic: Quantitative Analysis & Valuation

Based on the regression output shown in the Exhibit, what is the predicted quarterly sales value for March 2016 if John is developing a model to predict future quarterly sales, and he starts by running this regression: ln Salest – ln Salest–1 = b0 + b1(ln Salest–1 – ln Salest–2) + b2(ln Salest–4 – ln Salest–5)+εt?

|     |     | Coefficient |    | Standard Error | t-Statistic |
|-----|-----|-------------|----|----------------|-------------|
|     | Intercept | 0.0092 |    | 0.0087 | 1.0582 |
|     | In Salest-1-In Salest-2 | -0.1279 |    | 0.1137 | -1.1252 |
|     | In Salest-4-In Salest-5 | 0.7239 |    | 0.1093 | 6.6209 |
|     | Most Recent Quarterly Sales Data (in billions) |  |    |  |  |
|     | Dec 2015 (Salest-1) | $3.868 |    |  |  |
|     | Sept 2015 (Salest-2) | $3.780 |    |  |  |
|     | June 2015 (Salest-3) | $3.692 |    |  |  |
|     | Mar 2015 (Salest-4) | $3.836 |    |  |  |
|     | Dec 2014 (Salest-5) | $3.418 |    |  |  |
Topic: Accounting

In 2009, Pinnacle Parcel sold items online on behalf of individuals under a consignment deal. Pinnacle would receive the goods from the owner, list them for online sale, and earn a 25 percent commission from any sold items. Pinnacle was responsible for collecting the full payment from the purchaser and would then pay the owner the remaining balance after deducting their commissions. If the items did not sell within 90 days, they would be returned to the owner. Throughout 2009, Pinnacle had the following records: The total sales price of items sold on consignment was €2,000,000. Pinnacle's commission on these items was €500,000 during 2009. What should Pinnacle declare as revenue in its 2009 income statement?
Topic: Corporate & Securities Issuance

What is the percentage cost of equity for the organization using the CAPM approach and the collected data?

|                                 |     |         |
|---------------------------------|-----|---------|
| Rate of return on 3-month Treasury bills  |     | 3.0%    |
| Rate of return on 10-year Treasury bonds |     | 3.5%    |
| Market risk premium                      |     | 6.0%    |
| The company's equity beta               |     | 1.6     |
| Dividend growth rate                    |     | 8.0%    |
| Corporate tax rate                      |     | 35%     |
Topic: Quantitative Analysis & Valuation

The annual return for a fund purchased by John is illustrated below: What will be the geometric mean of the fund?

| Year | The return of this fund(%) |
| ---- |------------------------ |
| 2015 | 4.5                    |
| 2014 | 3                      |
| 2013 | 16                     |
| 2012 | 20.1                   |
| 2011 | -1                     |
Topic: Quantitative Analysis & Valuation

Considering a security's anticipated price fluctuation for the next two durations as follows: The starting price of the security is $80. There's a 75% chance of a rise in any given duration and a 25% chance of a decline in any given duration. Employing the binomial model, what are the chances that the security's value will stand at $79.20 after two durations?

| Time | Value |
| --- | --- |
| Time=0 | SO=80 |
| Time=1 | Su=88 |
| Time=1 | Sd=72 |
| Time=2 | Suu=96.80 |
| Time=2 | Sud,du=79.20 |
| Time=2 | Sdd=64.80 |
Topic: Asset Classes & Derivatives

An investment firm possesses the subsequent fee structure: 2% Annual management fee dependent on year-end AUM, 20% Incentive fee, and a 4% Hurdle rate prior to starting incentive fee collection. The current high-water mark is at $610 million. The firm's value was $583.1 million at start of the year and reached $642 million before the fees deduction after a year. What would be the net return to an investor for this year?
Topic: Accounting

What does the exhibit indicate as the return for the fourth quintile for the MSCI World Index over a span of 10 years?

| Year 1 | 15.25% | Year 6 | 30.79% |
|--------|--------|--------|--------|
| Year 2 | -10.02% | Year 7 | 12.34% |
| Year 3 | 20.65% | Year 8 | -5.02% |
| Year 4 | 9.57% | Year 9 | 16.54% |
| Year 5 | -40.33% | Year 10 | 27.37% |
Topic: Market Analysis & Economics

Over the past month, a food corporation based in the US had these transactions: How much is the US current account expected to increase by due to these transactions?

| Transaction  Amount | (US$ millions) |
|---------------------|----------------|
| Bought raw material from Indonesia | 50.0 |
| Sold food products to France | 65.0 |
| Received royalty fees from its branch in the United Kingdom | 0.5 |
| Donated to a charitable institution in Africa | 0.1 |
| Borrowed from a bank in Singapore | 2.0 |
| Paid legal fees to its German legal consultant company | 1.2 |
| Received interest coupon from its investment in Eurobonds issued in Luxembourg | 0.8 |
Topic: Accounting

What is the debt-to-capital ratio of the firm as per the latest balance sheet showcasing the following values (NZ$ thousands)?

| Accounts payable | 3,800 |
|------------------|-------|
| Long-term debt | 5,590 |
| Other long-term liabilities | 800 |
| Common stock | 1,200 |
| Retained earnings | 1,810 |
Topic: Quantitative Analysis & Valuation

Assume you simulate the price path of stock ZYX using a geometric Brownian motion model with drift μ = 0, volatility σ = 0.14, and time step Δ = 0.01. Let StS_t St​ be the price of the stock at time t. If S0S_0S0​ = 100, and the first two simulated (randomly chosen) standard normal variables are ε1 \varepsilon_1 ε1​ = 0.263 and ε2 \varepsilon_2 ε2​= -0.475, what is the simulated stock price after the second step?
Topic: Market Analysis & Economics

What is the output, in units, that maximizes profit for this organization, based on the developed equations provided for the business?

|                          |                       |
|--------------------------|-----------------------|
| Demand curve             | P = 150-5xQ           |
| Total revenue curve      | TR =150xQ-5xQ2        |
| Marginal revenue curve   | MR =150-10xQ          |
| Total cost curve         | TC = Q^3-10xQ^2+73xQ+120 |
| Average cost curve       | AC = Q-10xQ +73 +120/Q  |
| Marginal cost curve      | MC=3xQ^2-20xQ+73      |
|                          | P: price per unit Q: cost per unit    |
Topic: Quantitative Analysis & Valuation

Based on the provided chart, what is the variance of Y?

|  X  | Y=5 | Y=2 | Y=-3 |
|-----|-----|-----|------|
| -2  | 0.2 |  0  |   0   |
|  1  |  0  | 0.6 |   0   |
|  4  |  0  |  0  |  0.2  |
Topic: Quantitative Analysis & Valuation

Referring to the table with pertinent data about four bonds in a portfolio, what is the price fluctuation for the bond with an 8% interest rate using effective duration, if its YTM drops by 10 basis points?

| Par Value         | Bond Price | Coupon | Modified Duration | Effective Duration | Convexity |
|-------------------|------------|--------|-------------------|--------------------|-----------|
| $25million        | 105        | 8%     | 7.9               | 8                  | 122       |
| $25million        | 100        | 7%     | 8.5               | 8.5                | 154       |
| $20million        | 95         | 5%     | 6.3               | 2                  | 87        |
| $30million        | 87         | 0%     | 10.2              | 10.2               | 32        |
Topic: Market Analysis & Economics

The American company named BBQ Company has exported steel to an English firm and is expected to receive payment of 3,600,000 GBP in six months, which the firm will then convert into dollars. To protect against currency risk, BBQ Company decided to enter into a 6 month forward contract to sell GBP at 1.5512USD/GBP. After three months have passed, now, the spot exchange market rate is 1.5500 USD/GBP for bid and 1.5505 for ask. Given the information on the spot exchange market rate, forward rates, and the 90-Day Libor, what is the mark-to-market value for BBQ Company's forward position?

|            |                |
|------------|----------------|
| Table1: Forward Rates | |
| Maturity   | Forward Points |
| Three months | 5.3/6.1        |
| Six months | 7.8/8.9        |
| 90-Day Libor | |
| Currency   | Annualized Rate|
| GBP        | 0.60%          |
| USD        | 0.45%          |