yilunzhao/KnowledgeMath huggingface dataset:
Topic: Accounting

From the data provided in Exhibit 4, what's the nearest quick ratio for the Oracle Corporation as of December 31, 2009? Exhibit 4. Oracle Corporation Consolidated Statements of Financial Position (Excerpt: Current Assets Detail)(In millions of €)

|                      | as of 31 December |       |
|----------------------|-------------------|-------|
| Assets               | 2009              | 2008  |
| Cash and cash equivalents     | 1,884             | 1,280 |
| Other financial assets        | 486               | 588   |
| Trade and other receivables   | 2,546             | 3,178 |
| Other non-financial assets    | 147               | 126   |
| Tax assets                    | 192               | 399   |
| Total  current assets         | 5,255             | 5,571 |

|                         | as of 31 December |
|------------------------ |---------- |---------- |
| Assets                  | 2009      | 2008      |
| Total non-current assets| 8,119     | 3,329     |
| Total assets            | 13,374    | 13,900    |
| Equity and Liabilities  |           |           |
| Total current liabilities| 3,416     | 5,824     |
| Total non-current liabilities| 1,467 | 905       |
| Total liabilities       | 4,883     | 6,729     |
| Total equity            | 8,491     | 7,171     |
| Equity and liabilities  | 13,374    | 13,900    |
Topic: Market Analysis & Economics

Using the two-period binomial model, Matt estimates the value of a two-year American-style call option on Alpha Corporation's common shares. The parameters are as follows: the present stock price sits at 96, while the call option's exercise price is 70. The up factor (u) equates to 1.20, with the down factor (d) at 0.83. The risk-free rate of return, calculated with continuous compounding, is 4%. How much is the option worth?
Topic: Asset Classes & Derivatives

The head credit analyst of Vigilant Consultants recently stated that the five-year bond of Atlas Co. is currently yielding 7% and a similar CDS contract has a credit spread of 4.25%. Given that the MRR is 2.5%, Lopez advised performing a basis trade to exploit the pricing of Atlas Co.'s bonds and CDS. The basis trade would involve buying both the bond and the CDS contract. Considering the basis trade for Atlas Co., what will be the gain if convergence happens in the bond and CDS markets?
Topic: Asset Classes & Derivatives

A task has been assigned to Jack, a consultant for a global investment firm, to evaluate the worth of an advanced technology enterprise. The collected information about the enterprise is as follows: It has 500 million ordinary shares in circulation. It has a current share price of $7. The enterprise has a declared debt of $3500 million, and its market value equals this figure. The enterprise has reported a cash holding of $1500 million. Furthermore, it has $50 million in preferred equity and $100 million in short-term investments. For this year, its reported net sales are $3000 million. With regard to the information provided, what is the enterprise EV to sales ratio?
Topic: Asset Classes & Derivatives

John acknowledges that this specific US Treasury bond might not be the best choice for investors seeking zero reinvestment risk. He proposes a different vehicle, namely a US Treasury zero-coupon note. This note is fresh off the press, has a term of five years, and is valued at $71.30 (with a face value of $100.00) to yield 7.00% at maturity. John explains that some investors might choose to buy this Treasury zero-coupon note now and keep it until it matures in five years. He also mentions that there are investors who might buy this Treasury zero-coupon note in two years and then keep it for three years until it matures. John requests that Bird calculate the forward rate that would make investors indifferent to either acquiring the Treasury zero-coupon note now or buying it two years down the line. Current spot rates and extrapolated one year forward rates are available in Exhibit 1. Using the data in Exhibit 1, what forward rate would make an

| Year | Spot Rate | Forward Rate |
|------|-----------|--------------|
| 1    | 3.00%     |              |
| 2    | 4.00%     | 5.01%        |
| 3    | 5.00%     | 7.03%        |
| 4    | 6.00%     | 9.06%        |
| 5    | 7.00%     | 11.10%       |
Topic: Asset Classes & Derivatives

If a researcher predicts that the market worth of the corporation's investment securities is 115% of their recorded value, what is the corporation's price to adjusted book value ratio, taking into account the corporation's market data and balance sheet details at the close of the fiscal year 2012?

|                         |          |                       |         |
|-------------------------|----------|-----------------------|---------|
|Price per Share and Shares Outstanding|        ||             |
|Current market price per share  | $15.0  |    |            |
|Number of shares outstanding(millions)  | 1.0 |    |            |
|Balance Sheet Data As of 2012 ($ millions)   |     |            ||
|Cash and cash equivalents | 0.4 | Current liabilities    | 1.0       |
|Accounts receivable | 1.2 | Long-term liabilities | 61.0   |
|Inventories | 40.0 |  |  |
|Investment securities |   6.0 |Common shareholders' equity | 15.6 |
|Property, plant, and equipment | 30.0 | | |
|Total assets  |  77.6 |Total liabilities and equity | 77.6 |
Topic: Asset Classes & Derivatives

The Sakamoto Company has recently distributed a dividend of ¥450 for each share. It is anticipated that the annual dividends will rise at a rate of 4 percent yearly for the forthcoming four years. By the conclusion of these four years, the Sakamoto Company's shares are predicted to have a selling price of ¥9000. If a 12 percent return rate is necessary, what would be the fundamental value of a share of Sakamoto Company?
Topic: Quantitative Analysis & Valuation

A fund manager employs a valuation model to calculate the worth of a bond portfolio at USD 125.00 million when the term structure is level. With the same model, the fund manager anticipates that the portfolio's value would surge to USD 127.70 million if all interest rates reduce by 20 bps and would drop to USD 122.20 million if all interest rates increase by 20 bps. Given these assumptions, what is the effective duration of the bond portfolio?
Topic: Quantitative Analysis & Valuation

As an owner of a supermarket, David is keen on using mathematical models to tackle various issues. Lately, he wishes to examine the correlation between the quantity of product demand (V), product pricing (P), and customer earning levels (I). The quantity of product demand acts as the dependent variable while the other two serve as independent variables. After conducting a multiple regression analysis, he obtained the following results: What is the upper confidence interval of the regression coefficient for the customer's earning level at 0.1 level?

|             | Coefficient | Std. Error | t-Statistic |
|-------------|-------------|------------|-------------|
| Sample Size | 150         |            |             |
| Intercept   | 4990.519    | 2280.093   | 2.189       |
| P           | -35.666     | 17.871     | -1.996      |
| 1           | 6.193       | 1.652      | 3.749       |
Topic: Asset Classes & Derivatives

Based on the given data about the ZX bond, if ZX bond is identified as a callable-putable convertible bond, what would be the arbitrage-free value of this ZX bond?

|                               |        |
|-------------------------------|--------|
| Straight bond value           | £ 978  |
| Value of embedded issuer call option | £ 43   |
| Value of embedded investor put option | £ 26   |
| Value of embedded call option on issuer's stock | £ 147 |
| Conversion price              | £ 12.50|
| Current common stock share price | £ 11.75|
Topic: Quantitative Analysis & Valuation

What is the approximate value of the first quintile, considering the volatility of a chain of funds that are part of the same group, arranged in rising order?

|       | Volatility (%) |        | Volatility (%) |
|-------|--------------|--------|--------------|
| Fund 1 | 9.81         | Fund 8  | 13.99        |
| Fund 2 | 10.12       | Fund 9  | 14.47        |
| Fund 3 | 10.84       | Fund 10 | 14.85        |
| Fund 4 | 11.33       | Fund 11 | 15.00        |
| Fund 5 | 12.25       | Fund 12 | 17.36        |
| Fund 6 | 13.39       | Fund 13 | 17.98        |
| Fund 7 | 13.42       |         |              |
Topic: Market Analysis & Economics

Reviewing the RiteVal data from Exhibit 1, and adopting the two-factor model preferred by Cortez, where global equity and global bonds are the two primary drivers of return for all asset classes, what is the standard deviation of U.S. real estate?

| Asset Class             | Global Equity | Global Bonds | Residual Risk (%) |
|-------------------------|---------------|--------------|-------------------|
| U.S. real estate equities | 0.60          | 0.15         | 4.4               |
| Global timber equities  | 0.45          | 0.20         | 3.9               |

Additional Information

| Variances             | 0.025  | 0.0014 |       |
|-----------------------|--------|--------|-------|

Correlation between global equities and global bonds:  0.33
Topic: Portfolio Management & Strategy

What would be the required 2012 return to get a trailing five-year geometric mean annualized return of 5% by the end of 2012, assuming a wealth management company has the following yearly returns in their US large-cap equity portfolio?

| Year | Net Return (%) |
|------|----------------|
| 2008 | -34.8          |
| 2009 | 32.2           |
| 2010 | 11.1           |
| 2011 | -1.4           |
Topic: Asset Classes & Derivatives

A bond that has 5 years left before maturity is presently being sold for 101 for every 100 of par value. This bond provides a 6% coupon rate, with interest paid twice a year. What is the bond's yearly yield-to-maturity, bearing in mind the bond can first be redeemed after 3 years, with further redemptions possible based on the successive coupon dates, according to the schedule provided?

| End of Year | Call Price |
|-------------|------------|
| 3           | 102        |
| 4           | 101        |
| 5           | 100        |
Topic: Accounting

Management at S&Q Enterprises is given the option to receive options on common stocks. The options necessitate a service period of 4 years post the grant date for vesting. S&Q follows a financial year-end of December 31. The enterprise on July 1, 2014, gave out 61,600 options. The market price of the options on the date of grant was £0.5. What is the chunk of the compensation expense associated with the stock option granted in 2014?
Topic: Accounting

What is the income tax expense (in thousands) in 2013 for the corporation, based on the provided data about the corporation?

| ($ thousands) | 2013 | 2012 |
|---|---|---|
|Deferred tax assets| 200 | 160 |
|Deferred tax liabilities| -450 | -360 |
|Net deferred tax liabilities| -250 | -200 |
|Earnings before taxes| 4,000 | 3,800 |
|Income taxes at the statutory rate| 1,200 | 1,140 |
|Income tax payable (Current income tax expense)| 1,000 | 900 |
Topic: Quantitative Analysis & Valuation

The accompanying display presents the yearly returns for Investment Pool X. What is the geometric mean return for Investment Pool X?

|       | Fund Y(%) |
|-------|-----------|
| Year 1|   19.5    |
| Year 2|   -1.9    |
| Year 3|   19.7    |
| Year 4|   35.0    |
| Year 5|   5.7     |
Topic: Asset Classes & Derivatives

Based on the financial report, what is the FCFE for Company P?

|                         | $ millions |
|-------------------------|-----------|
| Net Income              | 485       |
| Depreciation expense    | 270       |
| Increase in accounts receivable | 59        |
| Increase in accounts payable | 33        |
| Purchase of fixed assets | 523       |
| Increase in notes payable | 15        |
| Increase in long-term debt | 60        |
Topic: Accounting

On the 1st of January 2019, ABC corporation purchased a 20% stake with voting rights in XYZ Ltd. for $400 million. ABC corporation has a seat on XYZ's board of directors and has a say in their policymaking. An analyst named Anne collects specific financial data for XYZ in 2019. The plant and equipment are depreciated on a linear basis and have a remaining lifespan of 10 years. From the Exhibit mentioned, what is the goodwill included in ABC’s acquisition of XYZ?

|                      | Book value | Fair value |
|----------------------|------------|------------|
| Plant & equipment    | 2500       | 2800       |
| Total assets         | 2950       | 3250       |
| Liabilities          | 1550       | 1550       |
| Net assets           | 1400       | 1700       |
Topic: Quantitative Analysis & Valuation

According to the table illustrating data about three semiannual coupon payment bonds, what is the discount factor for d(0.5)?

| Maturity | Coupon | Price |
|----------|--------|-------|
| 6 months | 4.5%   | 101.47 |
| 1 year   | 6.0%   | 102.75 |
| 2 years  | 7%     | 100.32 |
Topic: Accounting

The following table outlines details from the financial reports of BC Enterprises as of December 31, 20X8. Using this data, can you determine the sustainable growth rate of BC Enterprises? The figures are as follows: revenue: $800,000, dividend paid: $80,000, total asset turnover: 0.58, financial leverage: 1.7, sales to net income: 6.5, tax rate: 20%.
Topic: Accounting

A researcher has gathered the following data about Smithson Enterprises. No distributions have been made to the owners. What would most probably be the researcher's estimate of the total assets at the end of the year?

| Liabilities at  year-end | £ 1,000 |
|-------------------------|---------|
| Contributed capital at year-end | £ 500 |
| Beginning retained earnings | £ 600 |
| Revenue during the year | £ 5,000 |
| Expenses during the year | £ 4,300 |
Topic: Accounting

Miller is a tax consultant who gives tax awareness counsel to individual clients. Miller's client is Jane who currently has $10 million invested in a tax-deferred account earning 8% annually. Jane intends to liquidate the investment after five years, accrue the sale proceeds in a lump sum (which are taxed at a 20% rate), and utilize the proceeds to buy a mansion. Jane requested Miller to determine the leftover after-tax wealth after five years. What will be the after-tax wealth in Jane's tax-deferred account at the conclusion of the five years?
Topic: Asset Classes & Derivatives

John, a beginner analyst, oversees a portfolio X. The portfolio is completely committed to US Treasuries. John aims to fully safeguard this bond portfolio against any increase in interest rates. Exhibit 1 discloses certain information regarding Portfolio X, along with the related Treasury futures contract, and the cheapest-to-deliver (CTD) bond. Considering the data in Exhibit 1, how many Treasury futures contracts does John need to sell to fully protect Portfolio X?

|                          | Portfolio W       | Futures Contract and CTD Bond |
| ------------------------ | --------------- | ----------------------------- |
| Market value            | $120,349,000      | Price                         | 143.20                      |
| Modified duration       | 9.30             | Modified duration             | 9.00                         |
| Basis point value       | $111,924.57      | Basis point value             | 128.88                       |
|                          |                   | Conversion factor             | 0.75                         |
|                          |                   | Contract size                 | $100,000                     |
Topic: Corporate & Securities Issuance

The current status of the PlayPoint Resort Company is that it has 1.2 million outstanding common shares with a beta of 2.2. Also, it has bonds of a face value of $10 million that will mature in five years and these bonds have an 8% coupon with payments every 6 months, and are calculated to yield 13.65 percent. If PlayPoint decides to issue new bonds up to $2.5 million, the bonds will be priced at par value and will yield 13.65 percent. However, if the company decides to issue bonds beyond $2.5 million, the expected yield on the entire issuance will be 16 percent. PlayPoint recently determined that they can issue new common stock at $10 per share. The present risk-free interest rate is at 3 percent while the expected market return is 10 percent. PlayPoint's marginal tax rate is at 30 percent. What is the weighted average cost of capital if PlayPoint ac
Topic: Market Analysis & Economics

According to Exhibit 1, what is the projected semi-deviation for the investment portfolio?

|                               |         |
|-------------------------------|---------|
|Exhibit 1 10-Year Trailing Risk-Adjusted Performance| |
| Average annual return        | 8.20%   |
| Minimum acceptable return (MAR) | 5.00%   |
| Sharpe ratio                 | 0.95    |
| Sortino ratio                | 0.87    |
| Upside capture               | 0.66    |
| Downside capture             | 0.50    |
| Maximum drawdown             | -24.00% |
| Drawdown duration            | 4 months|
Topic: Accounting

Based on the given data, how much money was paid to the vendor?

| ($ millions) | 2016 | 2017 |
| --- | --- | --- |
| Revenue | 50 | 45 |
| Cost of goods sold | 17 | 20 |
| Inventory | 24 | 20 |
| Accounts receivable | 20 | 17 |
| Accounts payable | 30 | 33 |
Topic: Market Analysis & Economics

What will the trade balance be for a theoretical economy given the following international trade data if the value of the ZRB depreciates by 12%?

| | Exports | Imports |
|---|---|---|
| Initial Value (DCU) | 4,800 | 6,500 |
| Demand elasticity | 0.70 | 0.55 |
| **Note:** DCU:  domestic currency units | | |
Topic: Risk Management

A portfolio manager possesses a portfolio of options on a non-dividend paying stock named LYR. The portfolio includes 10,000 deep in-the-money call options on LYR and 50,000 deep out-of-the money call options on LYR. Along with this, there are 20,000 forward contracts on LYR. The current trading price of LYR is USD 100. Given 252 trading days in a year and 30 percent per-year volatility of LYR, what would be the 1-day VaR of the portfolio at the 95 percent confidence level?
Topic: Asset Classes & Derivatives

Recently, the total return of a market-capitalization-weighted index made up of securities D, E, F, has been compiled by Stacy, a research analyst from a financial investment firm. What is the total return of the index?

| Security | Beginning of Period Price($) | End of Period Price ($) | Dividends per Share ($) | Shares Outstanding |
|---|---|---|---|---|
| D | 3,400 | 3,600 | 120 | 1,500 |
| E | 4,600 | 3,500 | 150 | 1,100 |
| F | 1,200 | 1,300 | 180 | 5,000 |
Topic: Accounting

The subsequent balance sheet belongs to Omega Firm and includes chosen data at the year's conclusion: The investment in Alpha Firm was $130,000 and is categorised as FVOCI. By the year's end, what is the total owners' equity for Omega Firm?

| Fair value of investment in Gama Company | $ 150,000 |
| --- | --- |
| Retained earning | $ 782,000 |
| Common stock, $1 par value | $ 560,000 |
| Preferred stock, $100 par value | $ 126,000 |
| Deferred taxes | $ 75,000 |
| Accumulated OCI | $ 35,000 |
Topic: Quantitative Analysis & Valuation

Suppose a company's share is expected to move as displayed below in the next two periods. The starting price for the share is $100. Considering the odds of an increase in any given period as 40% and the chance of a decrease is 60%, what is the likelihood of the share's price reaching $101.20 after two periods, using the binomial model?

| Time=0 | Time=1 | Time=2 |
|---|---|---|
| SO=100 | Su=110 | Suu=121 |
|   | Sd=92 | Sud/du=101.20 |
|   |   | Sdd=84.64 |
Topic: Accounting

Under the present LTIP, the Board awards options on common shares to the management team. These options necessitate a 6-year service period after the date they are granted before they vest. This information about the stock options granted this year under the LTIP is reviewed by Morrison as shown in Exhibit 2. The financial statements of Clarion are prepared in line with International Financial Reporting Standards (IFRS) and their year-end is December 31. All the options in 2014 were granted on July 1, 2014. Given the market price of shares and the fair value of stock options at crucial dates throughout the year as shown in Exhibit 3, what is the chunk of the compensation expense related to the stock option of the LTIP granted in 2014?

|  | Number of Options | Weighted Average | Exercise Price |
| --- | --- | --- | --- |
| Balance, start of year | 3,666,500 | £3.06 | |
| Granted  during the  year | 872,000 | £3.30 | |
| Exercised during the year | -278,400 | £2.88 | |
| Forfeited during the year | -123,700 | £2.96 | |
| Balance, end of year | 4,136,400 | £3.13 | |
| Exercisable at end of the year | 827,280 | £2.90 | |

|               | Share Price | Option Fair Value |
|---------------|-------------|-------------------|
| January 1,2014  | £2.85       | £0.370            |
| July 1, 2014    | £3.00       | £0.390            |
| December 31, 2014 | £3.06     | £0.400            |
| Average for 2014 | £2.97      | £0.386            |
Topic: Asset Classes & Derivatives

The yield for a one-year zero-coupon bond is 4.0%. The yields for zero-coupon bonds for the second and third years are 5.0% and 6.0% respectively. The spot rate for a five-year bond is not provided; however, the future price for a two-year zero-coupon bond starting in three years is 0.8479. What is today's price for a five-year zero-coupon bond?
Topic: Asset Classes & Derivatives

Based on the results presented for the BETA model (Exhibit 1) along with its relevant documentation, what is the model's precision? The model was confirmed by Thompson to have accurately forecasted a default in 5,290 cases from the model prediction set after the data was fully processed. This is from a sample of loans taken from the BETA model where anticipated and actual defaults were compared for the previous 12 months.

| Name National Annual ID Salary Number | Loan Amount | | Model Prediction | Actual Result | Prediction Result | Type 1 Error | Type 2 Error |
|---|---|---|---|---|---|---|---|
| Garcia XXX 099 $105,000 | $25,000 | | Default | Default | 1 | 0 | 0 |
| Rodriquez XXX 810 $58,000 | $10,000 | | No Default | No Default | 1 | 0 | 0 |
| Brown XXX 129 $75,000 | $15,000 | | Default | No Default | 0 | 1 | 0 |
| Anderson XXX 193 $43,000 | $7,500 | | No Default | No Default | 1 | 0 | 0 |
| Lewis XXX 122 $64,500 | $42,000 | | No Default | Default | 0 | 0 | 1 |
| Number and use of client records | | | | | | | |
| Total # of historical records | | | | 10,014 | | | |
| Records removed in data cleansing | | | | 2,996 | | | |
| Records modeled with correct predictions and errors | | | | 7,018 | 5,851 | 273 | 894 |

Note: 1 in Prediction Result column is a correct prediction; 0 is an incorrect prediction.
Topic: Asset Classes & Derivatives

Display 1. Tri-Factor Model of Term Structure Note: The entries show how the yields would alter for a one standard deviation boost in a factor. How much would you expect the yield on the 20-year bond to change due to an increase in the steepness factor by two standard deviations?

| Factor    | Time to Maturity (years) - 5 | Time to Maturity (years) - 20 |
| --------- | ---------------------------- | ----------------------------- |
| Level     | -0.4352%                     | -0.5128%                      |
| Steepness | -0.0515%                     | -0.3015%                      |
| Curvature | 0.3963%                      | 0.5227%                       |