yilunzhao/KnowledgeMath huggingface dataset:
Topic: Corporate & Securities Issuance

A researcher collected the subsequent data pertaining to a business's capital structure and pre-tax component costs. What would be the weighted average cost of capital (WACC) of the business, given that the marginal tax rate of the business is 40%?

| Capital component | Book Value (000) | Market Value(000) | Component cost |
|------------------|-----------------|-----------------|---------------|
| Debt             | $100            | $80             | 8%            |
| Preferred stock  | $20             | $20             | 10%           |
| Common stock     | $100            | $200            | 12%           |
Topic: Accounting

XYZ Chicago, a home decor shopping company, provides its employees a defined benefit pension plan. Based on the data provided in the next table, could you compute the regular pension expense to be reported in I/S following IFRS?

|                                         |      |
|-----------------------------------------|------|
| ABC LA retirement plan information 2018 |      |
| Current service costs                   | 320  |
| Past service costs                      | 150  |
| Employer contributions                  | 1,200|
| Benefit obligation at beginning of year | 45,000|
| Benefit obligation at end of year       | 48,395|
| Plan assets at beginning of year        | 40,800|
| Plan assets at end of year              | 44,300|
| Actuarial loss                          | 350  |
| Actual return on plan assets            | 3,100|
| Discount rate on plan liabilities       | 7.5% |
| Expected rate of return on plan assets  | 8.2% |
Topic: Accounting

Based on the provided data, what is the company's cash flow from operations?

| Net income | $120 |
|---|---|
| Decrease in accounts receivable | 20 |
| Depreciation | 25 |
| Increase in inventory | 10 |
| Increase in accounts payable | 7 |
| Decrease in wages payable | 5 |
| Increase in deferred tax liabilities | 15 |
| Profit from the sale of land | 2 |
Topic: Accounting

What is the amount of money received from clients in the year 2013 based on the chosen data from a corporation's comparative income statement and balance sheet?

|                   | 2013  | 2012  |
|-------------------|-------|-------|
| Sales revenue     | 100,000| 95,000|
| Cost of goods sold| 47,000 | 47,500|
| Depreciation expense | 4,000 | 3,500 |
| Net Income        | 11,122  | 4,556|
|                   |      |     |
| **Selected Balance Sheet Data as of 31 August ($ thousands)** |   
|                   | 2013  | 2012  |
| Current Assets    ||
| Cash and investments | 21,122| 25,000|
| Accounts receivable | 25,000| 13,500|
| Inventories        | 13,000  | 8,500|
| Total current assets | 59,122|47,000|
| Current liabilities |      |     |
| Accounts payable   | 15,000 |15,000|
| Other current liabilities | 7,000 |9,000 |
| Total current liabilities|  22,000|24,000|
Topic: Asset Classes & Derivatives

You choose to short sell 100 shares of Monticello Equestrian Centers when it's at its annual peak of 56. Your broker informs you that your margin requirement is 45% and the commission on the acquisition is $155. During the term you are shorting the stock, Monticello pays a dividend of $2.50 per share. At the conclusion of a year, you purchase 100 shares of Monticello at 45 to settle your position and are hit with a commission of $145. What is your investment's rate of return?
Topic: Accounting

On January 1st, 20X5, Vega Holdings Corporation distributed 55,000 shares to employees as stock options. The exercise price for 24,000 of these shares is $32, while the remaining shares have an exercise price of $35. By the end of 20X5, the company's stock price had reached $42, with 1,800,000 common shares in outstanding circulation overall. The mean stock price for 20X5 was $34. Could you calculate the denominator for the diluted earnings per share?
Topic: Asset Classes & Derivatives

One year ago, a merchant entered into a three-year interest rate swap in which he receives floating payments. Currently, the established fixed swap rate is 1.4853% (a year after the swap was initially made). The starting swap rate was set at 1.82% and the notional principle stands at $100 million. What is the value of this swap?

| Years to maturity | MRR   |
|------------------ |-------|
| 1                 | 1%    |
| 2                 | 1.5%  |
Topic: Asset Classes & Derivatives

What is the conversion price of the bond in Exhibit 3, which was issued by Pro Star as a convertible bond, according to the exhibit below?

| Convertible Bond Issued by Pro Star, Inc |      |
|--------------------------------|------|
| Issue Date                     | 6 December 20X0 |
| Maturity Date                  | 6 December 20X4 |
| Coupon Rate                    | 2%  |
| Issue Price                    | $1,000 |
| Conversion Ratio               | 31   |
Topic: Accounting

Recently, Parker Inc. acquired a production machine for $60,000 that is anticipated to produce an annual cash inflow of $25,000 for six years. The company will depreciate the machine over six years for accounting reasons, but the tax authority assumes a useful lifespan of five years for the machine. If the tax rate is 40% and the machine has no residual value, what would be the taxable income for Parker Inc. in the first year if the straight-line method is applied?
Topic: Accounting

Based on Exhibits 1, what is Applicant B's prediction for selling, general, and administrative costs in 2013, considering that his forecast states the following: net sales will increase at the average yearly growth rate in net sales for the years 2010-2012 and the 2013 SG&A/net sales ratio will remain consistent with the average ratio during 2010-2012?

|                                             | 2010 | 2011 | 2012 |
|---------------------------------------------|------|------|------|
| **Net sales**                               | 46.8 | 50.5 | 53.9 |
| **Cost of sales**                           | 18.2 | 18.4 | 18.8 |
| **Gross profit**                            | 28.6 | 32.1 | 35.1 |
| **Selling, general, and administrative (SG&A) expenses** | 19.3 | 22.5 | 25.1 |
| **Operating income**                        | 9.3  | 9.6  | 10.0 |
| **Interest expense**                        | 0.5  | 0.7  | 0.6  |
| **Income before provision for income tax**  | 8.8  | 8.9  | 9.4  |
| **Provision for income taxes**              | 2.8  | 2.8  | 3.1  |
| **Net income**                              | 6.0  | 6.1  | 6.3  |
Topic: Asset Classes & Derivatives

Based on Exhibit 1, to meet the goal of junior analyst, Benjamin, to lower the modified duration of his fully invested US Treasuries portfolio, Portfolio B, to 3.00, how many Treasury futures contracts does Benjamin need to sell?

|                      | 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: Risk Management

A financial institution has recently received loan applications amounting to $210 million; it plans to acquire $95M in novel Treasury bonds releasing this week and foresees that its top corporate client's credit line withdrawals will reach $115M. The total funds from deposits and other client funds obtained today amount to $210 million, and the expected funds to be garnered next week amounts to an additional $150M. Based on the provided information, what is the discrepancy in available funds?
Topic: Asset Classes & Derivatives

Based on the data provided in the table below, Henry is getting ready to reassess the worth of XYZ Corp. The business anticipates a return on equity (ROE) of 34.5% in 2017, but it's expected to gradually decrease towards the cost of equity afterward. From the start of 2015, utilizing the multi-stage residual income (RI) model, determine the fundamental value of XYZ Corp's equity. Can you calculate the fundamental price per share?

| Book value per share, beginning of 2015 | 5.0 |
| --------------------------------------- | --- |
| Cost of equity                          | 8%  |
| Persistence factor                      | 0.85|

|                       | 2015 | 2016 | 2017 |
|-----------------------|------|------|------|
| Expected earnings per share | 2.0  | 2.2  | 2.45 |
| Expected dividend per share | 1.2  | 0.9  | 1.11 |
Topic: Accounting

What is the income tax expense listed on this year's earnings statement for a corporation for the current fiscal year?

| Accounting profit (earnings before taxes) | $250,000 |
|---|---|
| Taxable income | $215,000 |
| Tax rate | 30% |
| Income taxes paid in year | $61,200 |
| Deferred tax liability, start of year | $82,400 |
| Deferred tax liability, end of year | $90,650 |
Topic: Asset Classes & Derivatives

If she chooses to temporarily hedge the 100,000 shares of Apoth she possesses until the FDA's review concludes, how many option X contracts would Smith need to sell to effectuate the hedge plan, based on the information in Exhibit 2?

| Option        | W     | X     | Y     | z     |
|---------------|-------|-------|-------|-------|
| Type of Option| Call  | Call  | Put   | Put   |
| Exercise Price| $38.00| $46.00| $38.00| $36.00|
| N (d1)        | 0.56  | 0.30  | 0.56  | 0.64  |
| N (d2)        | 0.45  | 0.21  | 0.45  | 0.553 |
Topic: Risk Management

Let's assume there's an $80 million exposure to a certain business partner that's backed by $70 million worth of collateral. This collateral is made up of bonds from a company with an A-level rating. The business partner holds a B+ rating. With a 150% risk weight for the business partner and a 50% risk weight for the collateral, what would the risk-weighted assets be for the exposure using a straightforward approach?
Topic: Asset Classes & Derivatives

If Thompson, a credit analyst, is planning to use the data from a 5-year corporate bond labeled Bond E that is presently yielding a return of 7.5%, with a comparable government bond offering 2.5%, and a suitable CDS contract bearing a credit spread of 4.5% to carry out a basis trade, what will be the accrued profit if there's a convergence in the bond and CDS market?
Topic: Accounting

In her role at the Equity investment company, Fabian, a CFA, is preparing a research report on a company known as PZ, which is listed in HK and follows IFRS 9. She pulled information from PZ's year-end 2019 financial report regarding three fixed income investments (assuming cost equals par value). Had Shoes Corp been classified as a Fair Value through P/L in 2019, what would the earnings before taxes have been?

|       | Classification | Cost   | Market value 2018 | Market value 2019 |
|-------|----------------|--------|-------------------|-------------------|
| Shoes Corp | FVOCI   | 12,000 | 15,000  | 16,000  |
| Angle PD   | Amortized cost  | 35,000 | 32,000  | 33,000  |
| T-vision   | FVPL   | 42,000 | 45,000  | 56,000  |
Topic: Risk Management

A manager of an endowment fund is assessing the market risk of Omega Manufacturing Fund. The fund projects an annual return of 7.1% and a volatility of 7.9%, and it is compared against the Russell 2000 Index. It is assumed by the manager that the anticipated annual return of the Russell 2000 Index is 7.8%, with a yearly volatility of 9.8%. In accordance with the Capital Asset Pricing Model, if the risk-free rate per year is 3.2%, what would be the beta of Omega Manufacturing Fund?
Topic: Asset Classes & Derivatives

What is the likelihood of the firm failing to fulfill its obligations on Bond C, a five-year investment-grade bond, within the initial 4 years, as per the given information?

| Year | Hazard Rate |
|------|-------------|
| 1    | 0.15%       |
| 2    | 0.25%       |
| 3    | 0.35%       |
| 4    | 0.50%       |
| 5    | 0.65%       |
Topic: Market Analysis & Economics

At the beginning of the year, Brighton offset a major exposure to the Australian dollar (AUD) by selling AUD 5 million forward against the US dollar (USD) at the all-in forward price of 0.8940 (USD/AUD). Currently, it's three months away from the settlement date and Sanderson wants to mark the forward position to market. Exhibit 1 provides data on the current rates in foreign exchange markets. What is the mark-to-market value for Brighton's forward position?

| Spot rate (USD/AUD) | 0.9062/0.9066 |
| --- | --- |
| Three-month points | -36.8/-36.4 |
| Three-month Libor (AUD) | 2.88% |
| Three-month Libor (USD) | 0.23% |
Topic: Asset Classes & Derivatives

A buyer acquires a five-year bond with a 4% annual coupon for 104.58 and sells it precisely three years subsequent to the purchase. Right after the bond is bought and prior to receiving the first coupon, interest rates drop to 2.25%, and they stay at this rate for the following three years. Assuming that the coupon payments are collected and re-invested at 2.25%, what is the buyer's actualized horizon yield?
Topic: Asset Classes & Derivatives

Considering the factors below, calculate the accrued interest for every 100 of par value for Bond H on the settlement day of 16 June 2014. The factors are: Annual Coupon - 5%, Coupon Payment Frequency - Semiannual, Interest Payment Dates - 10 April and 10 October, Maturity Date - 10 October 2016, Day Count Convention - 30/360, Annual Yield-to-Maturity - 4%?
Topic: Asset Classes & Derivatives

A financial expert collects the following data for an equal-weighted index made up of assets Alpha, Beta, and Gamma: What is the total return of the index?

| Security | Beginning of Period Price (€) | End of Period Price (£) | Total Dividends (€) |
|----------|-------------------------------|-------------------------|----------------------|
| Able     | 10.00                          | 12.00                   | 0.75                 |
| Baker    | 20.00                          | 19.00                   | 1.00                 |
| Charlie  | 30.00                          | 30.00                   | 2.00                 |
Topic: Market Analysis & Economics

Based on the provided data chart, what is the marginal product when the labor (L) equals 3?

| Labor(L) | Total Product(TP) | Average Product(AP) |
|----------|-------------------|---------------------|
| 1        | 100               | 100                 |
| 2        | 210               | 105                 |
| 3        | 300               | 100                 |
| 4        | 360               | 90                  |
| 5        | 400               | 80                  |
Topic: Market Analysis & Economics

What is the Paasche Index if we utilize the consumption basket for this year alongside the subsequent data from a three-item consumption goods basket, which we use to calculate inflation rate?

|                  |   Prior Year    |        |   Current Year   |        |
|------------------|-----------------|--------|------------------|--------|
|      Goods       |    Quantity     | Price  |    Quantity      | Price  |
| 5 lb.bag sugar   |     150 bags    |  $3.12 |    180 bags      |  $2.92 |
| 5 lb.bag flour   |     800 bags    |  $2.18 |    750 bags      |  $3.12 |
| Frozen pizza(each)|    250          |  $2.90 |    250           |  $3.00 |
Topic: Asset Classes & Derivatives

A researcher collects the following data for an equal-weighted index composed of assets X, Y, and Z: The total return of the index is:

| 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: Accounting

Smith is a tax consultant who offers tax enlightenment counsel to individual customers. One of Smith's client, Rose, is a U.S. citizen and resides in America. Rose recently came into ownership of AAPL shares from a family member who passed on. This departed family member was a resident of the U.S., which applies a "step-up" in basis at death. The deceased family member bought AAPL shares at a cost of $15,000 (inclusive of commissions and other spendings) two decades ago. When the family member passed away, the market value of the AAPL stock owned by them was $220,000, and recently Rose sold these shares for $190,000. Rose's capital gains tax rate sits at 20%. The tax obligation on the sale of the AAPL shares is:
Topic: Quantitative Analysis & Valuation

Using the provided frequency distribution table, can you determine the relative frequency of the third interval?

| Return,R         | Frequency |
| ---------------- | --------- |
| -5% up to 0%    | 1         |
| 0% up to 5%     | 6         |
| 5% up to 10%    | 4         |
| 10% up to 15%   | 3         |
Topic: Accounting

Under American GAAP, what is the cash flow from operations?

| Net income | $55,000 |
|---|---|
| Depreciation | $60,000 |
| Taxes paid | $25,000 |
| Interest received | $5,000 |
| Dividends received | $10,000 |
| Cash received from sale of company's equipment | $40,000 |
| Issuance of preferred stock | $45,000 |
| Repurchase of common stock | $20,000 |
| Purchase of machinery | $20,000 |
| Issuance of bonds | $40,000 |
| Debt retired through issuance of common stock | $45,000 |
| Paid off long-term bank borrowings | $15,000 |
| Profit on sale of building | $15,000 |
Topic: Asset Classes & Derivatives

What is the flat price for Bond H, discussed in the display below, which is scheduled for sale on the settlement date of 16 June 2014? Here are some considerations: The Annual Coupon is 5%, the Coupon Payment Frequency is semi-annually, Interest Payment Dates are 10 April and 10 October, the Maturity Date is 10 October 2016, the Day Count Convention is 30/360, and the Annual Yield-to-Maturity is 4%.
Topic: Market Analysis & Economics

The lending rates for corporation A and corporation B are set as such: corporation A and corporation B borrowed money at their respective preferred borrowing rates before engaging in an interest rate swap. What's the overall savings?

|   | Company | Fixed Rate | Floating Rate |
|---|---------|------------|---------------|
| a | X       | 8%         | LIBOR+150bps  |
| b | Y       | 10%        | LIBOR+200bps  |
Topic: Asset Classes & Derivatives

What is the net-of-fees return earned in Year 3 by a hedge fund that started with $98 million, charges a 2% management fee based on assets under management at year end, a 20% incentive fee calculated separately from the management fee, and has a high-water mark provision? The fund was valued at $112 million at the end of Year 1, $100 million at the end of Year 2, and $116 million at the end of Year 3.
Topic: Accounting

Considering the details provided regarding a newly constructed showroom by a corporation, what is the depreciation expense (in millions) for the showroom in 2014? Here are the specifics: Construction commenced on 1 January 2012, the grand opening took place on 1 January 2014, a loan of €30 million was taken out on 1 January 2012, the interest rate on the loan was 8%, payable annually, repayment of the loan was scheduled as a balloon payment due on 1 January 2017. The total construction expenses during 2012 and 2013 amounted to €38.5 million, the estimated useful life of the showroom was 40 years, the projected residual value of the showroom was €5 million, and the depreciation approach used was straight line.
Topic: Asset Classes & Derivatives

A researcher collects the subsequent data for an equally-weighted index: What is the index's return over the time span?

| Security | Beginning of Period Price(€) | Beginning of Period Shares | End of Period Price(€) | End of Period Shares |
|----------|------------------------------|---------------------------|------------------------|----------------------|
| A        | 20.00                        | 300                       | 22.00                  | 300                  |
| B        | 50.00                        | 300                       | 48.00                  | 300                  |
| C        | 26.00                        | 2,000                     | 30.00                  | 2,000                |
Topic: Risk Management

Based on the aforementioned details, what must be the anticipated liquidity requirement for this financial corporation, given that the administration predicts a worst-case scenario next week involving a $25 million liquidity shortage with just a 15% likelihood? Furthermore, the most favorable scenario involves an $80 million liquidity excess, but this has a 10% likelihood. The most likely situation is a $15 million liquidity excess, which has a 75% probability according to administration estimates.
Topic: Quantitative Analysis & Valuation

Based on the given joint probability table, what is the correlation between X and Y?

|    | Joint probabilities |     |     |
|----|-------------------:|----:|----:|
|  X |                Y=5 | Y=2 | Y=-3|
|X=-2|                 0.2|   0 |    0|
| X=1|                   0| 0.6 |    0|
|X= 4|                   0|   0 |  0.2|
Topic: Market Analysis & Economics

A manager at a snowboarding park is contemplating providing discounts on weekday snowboarding passes. With the regular price being €50 per day, it is anticipated that 300 patrons will purchase passes each weekday. However, if the price is lowered to €40 per day, it is expected that 450 patrons will purchase passes each weekday. What is the marginal revenue per patron gained through providing the discounted price?
Topic: Corporate & Securities Issuance

Given the details about a privately-owned corporation and its competitor in the public market and by applying the pure-play method, what would be the projected equity beta for the privately-owned corporation?

| Comparable Companies | Tax Rate (%) | Debt/Equity | Equity Beta |
|----------------------|--------------|-------------|-------------|
| Private company      | 30           | 1           | N.A.        |
| Public company       | 35           | 0.9         | 1.75        |
Topic: Asset Classes & Derivatives

What is the per share market conversion premium for the DE bond on 17 September 20X5, based on the chosen convertible bond data provided below?

|                  |                  |                                  |
|------------------|------------------|----------------------------------|
| **Issue price**             |                  |  £ 1,000 at par                     |
| **Conversion period**       |                  | 13 September 20X5 to 12 September 20X8 |
| **Initial conversion price**|                  | £ 10.00 per share                  |
| **Threshold dividend**      |                  | £ 0.50 per share                   |
| **Change of control conversion price** |                  | £ 8.00 per share                   |
| **Common stock share price on issue date** |                  | £ 8.70                       |
| **Share price on**          | 17 September 20X5| £ 9.10                       |
| **Convertible bond price on 17 September 20X5**  |                  | £ 1,123                      |
Topic: Market Analysis & Economics

Imagine that in a specific defined benefit scheme, the following situation occurs. Workers serve for 40 years with a wage that grows precisely with inflation rate. Pension equals to 60% of the last salary and grows perfectly with inflation rate. Employees always live for 25 years post-retirement. The money within the retirement plan is invested in bonds that yield an inflation rate. Which is the best approximation of the portion of the worker's income that ought to be put into the retirement plan? (Hint: You should perform all calculations in real and not nominal terms so that the income and pensions stay constant and the interest yield is zero.)