1.An entrepreneur invests in his dream business of selling golf-carts. The initial investment is $275,199.00. The entrepreneur expects to generate an annual after-tax cash flow of $57,342.00 in running this business.

How long before the project will pay back?

2.Consider a sample of year-end prices for Alphabet, Inc. (Google) over a five year period. Google did not pay a dividend over the sample period.

YEARPRICE2012$578.852011$605.752010$527.652009$339.192008$563.342007$509.49

Calculate the holding period return.

3.How do you explain deviations in efficient market hypothesis

4.Old School Corporation stock currently trades at $22.37 in the secondary market. Investors would like a 19.00% return to hold the stock in the upcoming year. If the stock is expected to pay a $1.56 dividend next year, what must the stock sell for in one year to give you the desired return?

5.A stock just paid a dividend this morning of $1.50. Dividends are expected to grow at 11.00% for the next two years. After year 2, dividends are expected to grow at 7.94% for the following three years. At that point, dividends are expected to grow at a rate of 4.00% forever. If investors require a return of 13.00% to own the stock, what is its intrinsic value?

6.Discuss delta hedging

7.What is the better measure of central tendency to forecast volatility historical or standard deviation Explain

8.Discuss the scope of financial valuation

9.A stock is selling at $90. A 3-month call with a strike price of $100 is selling for $3.105 with a delta of 0.329.

How many call contracts are required to perform a hedge on 1,000 shares of this stock? Would they be bought or sold? What happens if the price of the stock falls to $50?

10.A salesperson is paid $380 per week plus a 2.2% commission. What is the person's sales total if the gross pay for a given week is $1,395?