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

At what level of default in par value would Bond Class A suffer a loss, if issued by a special purpose entity as part of asset-backed securities structure?

| Bond Class      | Par Value (毛 millions) |
| ----------- | ----------- |
| A (senior)      | 200       |
| B (subordinated)   | 20        |
| C (subordinated)   | 5        |
Topic: Accounting

During the year, the following events happened: At the start of the year, an organization had total equity from shareholders comprising of ¥200 million in common share capital and ¥50 million in preserved profits. What is the total equity from shareholders (in ¥ millions) at the conclusion of the year?

|                                                    | ¥millions |
|----------------------------------------------------|-----------|
| Net income reported                                | 42        |
| Dividends paid                                     | 7         |
| Unrealized loss on investments carried at fair value through other comprehensive income | 3         |
| Repurchase of company stock, to be held as Treasury stock | 6         |
Topic: Quantitative Analysis & Valuation

The three-asset portfolio designed by Sophia Milligan is outlined below. Milligan estimated the portfolio return to be 6.3%. What is the standard deviation of the portfolio?

|                  | Asset 1 | Asset 2 | Asset 3 |
|------------------|---------|---------|---------|
| Expected return  | 5%      | 6%      | 7%      |
| Portfolio weight | 0.20    | 0.30    | 0.50    |
|                  | Asset 1 | Asset 2 | Asset 3 |
| Asset 1          | 196     | 105     | 140     |
| Asset 2          | 105     | 225     | 150     |
| Asset 3          | 140     | 150     | 400     |
Topic: Corporate & Securities Issuance

What is the degree of financial leverage (DFL) accessible for a company?

| Income Statement       | Millions ($) |
|-----------------------|--------------|
| Revenues              | 10.2         |
| Variable operating costs | 4.6       |
| Fixed operating costs    | 2.0       |
| Operating income        | 3.6        |
| Interest                | 1.2        |
| Taxable income          | 2.4        |
| Tax                     | 1.0        |
| Net income              | 1.4        |
Topic: Quantitative Analysis & Valuation

Taking into account the given portfolio of bonds (par amounts listed in millions of USD). What is the value of the portfolio's DV01 (dollar value of 1 basis point)?

| Bond | Price | Par Amount Held | Modified Duration |
|------|-------|-----------------|-------------------|
| A    | 101.43| 3               | 2.36              |
| B    | 84.89 | 5               | 4.13              |
| C    | 121.87| 8               | 6.27              |
Topic: Asset Classes & Derivatives

The bond purchased by Brian has some detailed information summarized below. What is the price of this bond?

|   |   |
|---|---|
| Coupon rate  | 5%  |
| Interest paid  | semiannually  |
| Mature time  | 2 years  |
| Required rate of return  | 6%  |
| Par value of the bond  | 100 |
Topic: Asset Classes & Derivatives

BTB Bank is a top-tier corporate and institutional bank that runs a client-facing credit default swap (CDS) desk. Steve McQueen is a CDS client strategist. Paul Starr is BTB's chief CDS trader. McQueen and Starr are setting up a meeting with Adam Lopez, a portfolio manager for AEB Fund, to explore investment and trading techniques concerning bonds, CDSs, and equities. Lopez kick-starts the conversation by requesting a recap on fundamental CDS principles and parameters. McQueen responds by explaining that a CDS comprises both a premium leg and a payment leg and that anticipated loss forms one of the elements that impact its valuation. McQueen provides data for a bond issued by Zeus Corporation. According to the facts presented in Exhibit 1, what is the forecasted loss for the Zeus Corporation bond?

| Amount | $1,000.00 |
| ------- | ------------ |
| Coupon | 5.00% |
| Maturity | 3 years |
| Probability of Default | Year 1: 2.0%. Year 2: 2.5%. Year 3: 3.0% |
| Recovery Rate | 40% |
Topic: Accounting

Based on the chosen details, what is the projected net income (in $ thousands) for the corporation next year?

|      | Current Year ($ thousands) | Projection for Next Year ($ thousands) |
|------|---------------------------|---------------------------------------|
| Sales | 2,200 | 2,500 |
| Variable operating costs (% of sales) | 28% | 30% |
| Fixed operating costs | 1,400 | 1,400 |
| Tax rate | 25% | 25% |
| Dividends paid | 55 | 60 |
| Interest bearing debt at 5% | 500 | 500 |
Topic: Accounting

The floral products seller, Lavender Bloom Corp., announced a yearly cost of goods sold amounting to $75 million. There was an increase in total assets by $55 million, though there was a decrease in inventory by $6 million. Meanwhile, total liabilities escalated by $45 million and there was a surge in accounts payable by $2 million. What would be the probable total of cash that the company paid to its vendors?
Topic: Asset Classes & Derivatives

What is the per share value of the common stock a stockholder has collected data on for possible investment in a business?

| Current year's earnings per share | $2.50 |
|---|---|
| Dividend payout ratio | 60% |
| Dividend growth rate expected during Year 1 and 2 | 25% |
| Dividend growth rate expected after Year 2 | 5% |
| Investors' required rate of return | 12% |
Topic: Accounting

Recently, Bob Inc. acquired a production equipment for $60,000, which is anticipated to produce an annual cash inflow of $25,000 for a duration of six years. The company plans to depreciate the equipment over six years for accounting reasons. Nonetheless, the tax department approximates the useful life of the equipment to be 5 years. Assuming a tax rate of 40% and the equipment has no residual value. What would be the tax payable by Bob Inc. in the 6th year if they use the straight-line depreciation method?
Topic: Asset Classes & Derivatives

Johnson inquires from Smith about the most frequently utilized financial ratios for assessing private real estate investments, such as commercial property. Based on the data in Exhibit 1, what is the cash-on-cash return for the property that Smith requires analysis for?

|                            |                |
|----------------------------|----------------|
| Exhibit 1 Commercial Property Information |       |
| Net operating income       | $700,000       |
| Mortgage on property       | $9,000,000     |
| Debt service               | $600,000       |
| Market value of property   | $10,000,000    |
Topic: Quantitative Analysis & Valuation

Using the given extract from the cumulative distribution function for the standard normal random variable table: Cumulative Probabilities for a Standard Normal DistributionP(Z ≤ x) = N(x) for x ≥ 0 or P(Z ≤ z) = N(z) for z ≥ 0, If a variable follows a normal distribution with an average of 2.00 and a variance of 16.00, what's the likelihood of getting a value that is 7.40 or lower?

| xor z 0 |     | 0.01 0.02 0.03 0.04 0.05 0.06 0.07                                   | 0.08 | 0.09 |
| 0.10 |     | 0.5398 0.5438 0.5478 0.5517 0.5557 0.5596 0.5636 0.5675 0.5714 0.5753 |     |     |
| 0.20 |     | 0.5793 0.5832 0.5871 0.5910 0.5948 0.5987 0.6026 0.6064 0.6103 0.6141 |     |     |
| 0.30 |     | 0.6179 0.6217 0.6255 0.6293 0.6331 0.6368 0.6406 0.6443 0.6480 0.6517 |     |     |
| 0.40 |     | 0.6554 0.6591 0.6628 0.6664 0.6700 0.6736 0.6772 0.6808 0.6844 0.6879 |     |     |
| 1.10 |     | 0.8643 0.8665 0.8686 0.8708 0.8729 0.8749 0.8770 0.8790 0.8810 0.883  |     |     |
| 1.20 | 0.8849 0.8869 0.8888 0.8907 0.8925 0.8944 0.8962 0.8980 0.8997 0.9015 |      |     |
| 1.30 | 0.9032 0.9049 0.9066 0.9082 0.9099 0.9115 0.9131 0.9147 0.9162 0.9177 |      |     |
| 1.
Topic: Quantitative Analysis & Valuation

What is the relative frequency of the height range "170 ~175" in the student height distribution for the class?

| Height interval | Absolute Frequency |
|----------------|---------------------|
| 155~160         | 10                       |
| 160~165         | 20                       |
| 165~170         | 30                       |
| 170~175         | 24                       |
| 175~180         | 10                       |
| 180~185         | 6                         |
Topic: Market Analysis & Economics

According to a study carried out by a broker, what is the predicted increase (%) in value of the Canadian dollar (CAD) compared to the British pound (GBP)?

|        | Spot Rate | Expected Spot Rate in One Year |
|--------|-----------|------------------------|
| USD/EUR| 1.3960    | 1.3860                 |
| USD/CAD| 1.0110    | 1.0300                 |
| EUR/GBP| 1.2850    | 1.2790                 |
Topic: Asset Classes & Derivatives

Considering two bonds that pay interest annually, what is the price difference between Bond 1 and Bond 2 per 100 of par value at a market discount rate of 4%?

| Bond | Coupon Rate | Time-to-Maturity |
|------|-------------|------------------|
| A    | 5%          | 2 years          |
| B    | 3%          | 2 years          |
Topic: Asset Classes & Derivatives

Taking into account the data on three securities: Security X, Security Y, and Security Z. A dividend income portfolio includes Security X and Security Y. If an additional $10 million is invested into the portfolio to acquire Security Z, what will be the yearly modified duration of the portfolio?

|                     | Bond A       | Bond B       | Bond C       |
|---------------------|--------------|--------------|--------------|
| Time to maturity (years) | 10     | 6     | 4     |
| Par value         | $10,000,000  | $10,000,000  | $10,000,000  |
| Market value      | $9,323,381   | $11,189,092  | $10,000,000  |
| Annualized modified duration  | 7.3105  | 4.6880  | 3.4370  |
Topic: Accounting

A researcher gathered information about a corporation wherein the preferred shares can be transformed into 10,000 ordinary shares and the debt cannot be converted. What is the diluted earnings per share?

|   |   |
|---|---|
| Net income  | \$1,000,000.00  |
| Debt outstanding with a coupon rate of 4%  | \$5,000,000.00  |
| Preferred stocks with dividend rate of 4%  | \$1,000,000.00  |
| Tax rate  | 35%  |
| Average weighted number of shares issued  | 500,000  |
Topic: Asset Classes & Derivatives

John is contemplating incorporating ABC Corp. into his portfolio. The last dividend payment of the company was 1.45 per share. He observes that the company's dividends have experienced an average growth rate of 6 percent. Using the data provided below, could you calculate the stock’s value of ABC Corp.?

| estimated beta of TMT Inc. against the S&P 500 Index | 1.4   |
|------------------------------------------------|-------|
| 10-year Treasury bond yield                             | 3.5% |
| Return on S&P 500 Index used as a proxy for the market | 8%   |
Topic: Risk Management

A financial consultant is studying the potential anticipated returns of a novel fund created to imitate the directional shifts of the China Shanghai Composite Stock Market Index (SHANGHAI), but with double the volatility of the index. SHANGHAI has an anticipated yearly return of 7.6% and a volatility of 14.0%, and the risk-free rate is 3.0% annually. If the correlation between the fund’s returns and the index's returns is 1.0, what would be the projected return of the fund according to the CAPM?
Topic: Accounting

According to the data collected by a researcher, what is the company's cash flow debt coverage ratio for this year?

| | Cdn $ millions |
| --- | --- |
| Cash flow from operating activities | 105.9 |
| Cash flow from investing activities | (11.8) |
| Cash flow from financing activities | 46.5 |
| Net change in cash for the year | 140.6 |
| Interest paid (included in CFO) | 22.4 |
| Taxes paid (tax rate of 30%) | 18.0 |
| Total debt, end of year | 512.8 |
Topic: Quantitative Analysis & Valuation

A freelancer commences a job today which is projected to go on for three years. If he anticipates investing these sums at an annual interest rate of 3%, compounded annually until his retirement a decade from now, what is the worth after 10 years, keeping in mind his payment plan encompasses the following?

| Year | End_of-Year Payment |
|------|---------------------|
| 1    | $ 100,000           |
| 2    | $ 150,000           |
| 3    | $ 200,000           |
Topic: Asset Classes & Derivatives

Based on the data collected by a researcher, what is the monetary duration of the bond position?

| Position (par value) | $100,000,000 |
|---|---|
| Flat price | 97.1251 |
| Accrued interest | 0.4392 |
| Macaulay duration | 8.586 |
| Annual modified duration | 8.450 |
Topic: Asset Classes & Derivatives

Assuming that there is no need for an industry risk adjustment, use the build-up method to determine the equity discount rate for a small business. Here's the information you need:• 5.0 percent is the equity risk premium• The mid-cap equity risk premium is 3.5 percent• A small stock risk premium is 4.2 percent• The income return on long-term bonds is 5.1 percent• The total return on intermediate-term bonds stands at 5.3 percent• 3.0 percent is the company-specific risk premium• As of the valuation date, the 20-year Treasury bond yield is 4.5 percent.
Topic: Quantitative Analysis & Valuation

In an average year, 5% of all enterprise leaders are dismissed due to "performance" issues. Presume that the leader's performance is evaluated on the basis of share performance and that 50% of shares earn above-average returns or showcase "good" performance. From observed data, 30% of all enterprise leaders who were dismissed demonstrated "good" performance. Applying Bayes' theorem, what is the likelihood that an enterprise leader will be dismissed given "good" performance? (Hint, let P(A) be the likelihood of an enterprise leader being dismissed, P(B) be the probability of a "good" performance rating, P(B I A) represent the possibility of a "good" performance rating given that the enterprise leader was dismissed, and P(A I B) signify the probability of the enterprise leader being dismissed given a "good" performance rating.)
Topic: Portfolio Management & Strategy

Based on Exhibit 1, what is the market impact per share relating to Trade 2 if Smith talks about a market buy order for 5,000 shares of an illiquid stock?

| Trade # | Time     | Trade Price | Trade Size | Bid Price | Ask Price |
|---------|----------|-------------|------------|-----------|-----------|
| 1       | 9.45 a.m.| $25.20      | 1,200      | $25.17    | $25.20    |
| 2       | 9.55 a.m.| $25.22      | 1,300      | $25.19    | $25.22    |
| 3       | 11.30 a.m| $25.27      | 2,500      | $25.22    | $25.26    |
Topic: Accounting

Under the accrual basis of accounting, how much net revenue would be reported on the 2009 income statement of a company called Fairplay, considering that it was their initial business year and this is the information they have about the sale of their products?

| Revenue              | $1,000,000 |
|----------------------|------------|
| Returns of goods sold| $100,000   |
| Cash collected       | $800,000   |
| Cost of goods sold   | $700,000   |
Topic: Accounting

What is the price of goods sold in 2015 employing the FIFO technique for a business that usually uses the LIFO strategy, as stated in pounds sterling?

|                  | 2015  | 2014  |
|------------------|-------|-------|
| COGS             |50,800 |48,500 |
| Ending inventories|10,550|10,000 |
| LIFO reserve     |4,320  |2,600  |
Topic: Accounting

Using the direct method, determine the cash received from the client:

|                         |                      |
|-------------------------|----------------------|
| Seagraves Supply Company Operating Cash Flow - Direct Method For the year ended December 31, 20X7 |                      |
| Cash paid to suppliers  | 265,866              |
| Cash paid for operating expenses | 124,784             |
| Cash paid for interest  | 4,326                |
| Cash paid for taxes     | 14,956               |
| Operating cash flow     | $ 20,048             |
Topic: Asset Classes & Derivatives

Recently, an analyst named Benedict from a investment firm collected data for a value-weighted index consisting of securities G,H,I. What was the return of the value-weighted index during this period?

| Security | Beginning($) | End($) | Shares |
|----------|--------------|--------|--------|
| G        | 15.00        | 17.00  | 500    |
| H        | 35.00        | 33.00  | 300    |
| 1        | 37.00        | 40.00  | 200    |
Topic: Accounting

What is the corporation's debt-to-assets ratio based on the data compiled by an analyst reviewing the corporation's solvency?

|     | $ Millions |
| --- | --- |
| Short-term interest-bearing debt | 1,258 |
| Long-term interest-bearing debt | 321 |
| Total shareholder's equity | 4,285 |
| Total assets | 8,750 |
| EBIT | 2,504 |
| Interest payments | 52 |
Topic: Asset Classes & Derivatives

A financier collects the same information to calculate the intrinsic worth of a corporation’s stock using the justified forward P/E method. What is the intrinsic value per share?

| Next year's earnings per share | $3.00 |
|---------------------------|-------|
| Return on equity         | 12.5% |
| Dividend payout ratio    | 60%   |
| Required return on shares| 10%   |
Topic: Quantitative Analysis & Valuation

A fund manager wants to understand the systematic risk of a stock portfolio and thus estimates the following linear regression: RPt−RF=αP+βP[RMt−RF]+εPtRPt​−RF​=αP​+βP​[RMt​−RF​]+εPt​, where RPtRPt​ represents the return of the portfolio at time t, RMtRMt​ represents the return of the market portfolio at time t, and RFRFRF​ is the risk-free rate, remaining constant throughout. Consider that α is 0.008, β is 0.977, σ(RP)\sigma{(R_P)}σ(RP​) is 0.167, and σ(RM)\sigma{(R_M)}σ(RM​) is 0.156. What is the likely coefficient of determination in this regression?
Topic: Accounting

Alexander Boone, a senior portfolio manager, collaborates with Rachel Stevens, a junior analyst. They are assessing the financial records of Corporation ABC (ABC), focusing on post-employment rewards. Stevens modifies the balance sheet and cash flow statement details presented in Exhibit 2 to more accurately represent the financial aspect of certain pension plan related items. Finally, Stevens scrutinizes the details present in Exhibit 3 and determines the effect of a 100-basis-point hike in health care inflation on ABC's debt-to-equity ratio. Considering Exhibits 2 and 3, alongside Boone's projection about future health care inflation, what should the debt-to-equity ratio computed by Stevens for ABC be?

| Item | Current Period |
| --- | --- |
| Total assets | 24,130 |
| Total liabilities | 17,560 |
| Total equity | 6,570 |
| Total pension cost | 96 |
| Pension contribution | 66 |
| Financing cash flow | 2,323 |
| Operating cash flow | -1,087 |
| Effective tax rate | 30% |

|   Item                    | 100-bp Increase | 100-bp Decrease |
|---------------------------|-----------------|-----------------|
| Benefit obligation change | $93             | -$76            |
| Benefit expense change    | $12             | -$10            |
Topic: Asset Classes & Derivatives

Given the financial documents in Exhibits 1 and 2, Barnes' fiscal year concludes on December 31st. If the 2012 FCFF is equal to $500 million, what would be Barnes' FCFE ($ millions) for 2012, based on the information found in Exhibits 1 and 2?

| For Year Ending 31 December | 2012         |
|----------------------------|------------|
| Revenues                   | $6,456     |
| Earnings before interest, taxes, depreciation, and amortization (EBITDA)   | 1,349     |
| Depreciation expense       | 243        |
| Operating income           | 1,106      |
| Interest expense           | 186        |
| Pretax income              | 920        |
| Income tax (32%)           | 294        |
| Net income                 | $626       |
|                            |            |
| Number of outstanding shares (millions) | 411     |
| 2012 earnings per share    | $1.52      |
| 2012 dividends paid (millions) | 148     |
| 2012 dividends per share   | 0.36       |
| 2012 fixed capital investment (millions) | 535  |
|                            |            |
| Cost of equity             | 12.0%      |
| Weighted average cost of capital (WACC) | 9.0%  |

|                                             | 2012  |       | 2011  |
|---------------------------------------------|-------|-------|-------|
| **Assets**                                  |       |       |       |
| Cash and cash equivalents                   | $32   |       | $21   |
| Accounts receivable                         | 413   |       | 417   |
| Inventories                                 | 709   |       | 638   |
| Other current assets                        | 136   |       | 123   |
| Total current assets                        | $1,290|       | $1,199|
|                                             |       |       |       |
| **Liabilities and Stockholders' Equity**   |       |       |       |
| Current liabilities                         | $2,783|       | $2,678|
| Long-term debt                              | 2,249 |       | 2,449 |
| Common stockholders' equity                 | 1,072 |       | 594   |
| Total liabilities and stockholders' equity  | $6,104|       | $5,721|
Topic: Market Analysis & Economics

If the real interest rate in a basic economy with no foreign trade stands at 3% and there's an upsurge in state expenditure to 2,000, what will be the surge in overall earnings?

| | |
| --- | --- |
| Consumption function | C = 2,500+0.80*(Y-T) |
| Investment function | l= 500+0.30*Y-25*r |
| Government spending | G = 1,000 |
| Tax function | T=-250+0.30*Y |
| *Y* : Aggregate income *r*:Real interest rate | |
Topic: Market Analysis & Economics

The following day, Morris instructs Blue to go over their analysis on XYZ Corporation. Blue’s evaluation leads her to believe that the company's shares are undervalued. She shares her discoveries with Morris, who then directs her at 10 a.m. to purchase 120,000 shares at a price of $40.00 through a limit order of $42.00. The buy-side trader proceeds with the market execution when the cost is at $40.50. The sole charge is a commission of $0.02 per share. By the time the market closes, 90,000 shares from the order were bought, with XYZ Corporation closing at $42.50. The transaction was carried out at an average cost of $41.42, with detailed information about the executed trades in Exhibit 1. Based on the details in Exhibit 1, what is the execution cost for buying the 90,000 shares of XYZ Corporation?

| 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     |