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Finance Questions and Answers September 9, 2016

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An investor obtains the following beta values for a set of stocks: Davies: 2.2; Harris: -0.2; Jones: 1.7; Roberts: 2.6. What is the beta value for portfolio I that consists of: Davies (1,500), Harris (2,400), Jones (700) and Roberts (400). A 1.20 B 1.06 C) None of the answers 1.01
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Question 23 A trader holds a portfolio with a delta of 0 and a gamma of -5000. Which of the following is true? a. The portfolio is short stock only, no option holding b. The portfolio is short options only, no stock holding c. The portfolio is short options, long underlying stock d. The portfolio is long options, short underlying stock Question 23
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consider a capital expenditure project to purchase and install new equipment with an initial cash outlay of 1 7 0 0 0 . The project is expected to generate net after tax cash flow each year of 2 9 0 0 for 9 years, and at the end of the project, a one time after tax cash flow of 1 6 0 0 is expected. the firm has a weighted average cost of capital

A manufacturer holds an average of 30 days of inventory. The manufacturer pays its suppliers in 41 days on average. The manufacturer collects payments from its customers in 22 days on average. What is the cash conversion cycle (in days) for this manufacturer? 93 days 11 days 49 days 33 days
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Spacefood Products will pay a dividend of $ 2 . 1 5 per share this year. It is expected that this dividend will grow by 7 % per year each year in the future. What will be the current value of a single share of Spacefood's stock if the firm's equity cost of capital is 1 3 % ? A . $ 3 2 . 2 5 B . $ 2 5 . 0 8 C . $ 3 5 . 8 3 D . $ 2 3 . 2 9
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Denver, Inc. is taking a project that will result in initial aftertax cash savings of $1.79 million at the end of the first year, and these savings will grow at a rate of 3 percent per year indefinitely. The firm has a target debt-equity ratio of .85, a cost of equity of 11.9 percent, and an aftertax cost of debt of 4.7 percent. The cost-saving

Choose a set of 5 US stocks and download two months of daily data (you can use the STOCKHISTORY function in Excel or you can also download data from Yahoo Finance or from the Bloomberg Terminal). 2. Calculate the daily returns of each stock by taking the difference between the daily closing price and the closing price of the previous day, divided

What is the taxable dividend if the Dividend Income is $ 3 , 0 0 0 , dividend gross up of 3 8 % , and dividend tax credit of 1 5 % . Step by step solution

please help me answer Compute a three-period moving average forecast given demand for shopping carts for the last five periods. (Round oll your answers to two decimal points.) If actual demand in period 6 turns out to be 58 , the moving average forecast for period 7 would be Given the following demand data, a. Compute a weighted average forecast
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Complete the following table to summarize your results from the previous two graphs. Based on your analysis, as a result of the tariff, Honduras's consumer surplus by , and producer surplus by . Taking into account how much revenue the tariff generates for the government, the net welfare effect is a of Continue without saving Complete the
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Asset X has a standard deviation of 7.2% and asset Ys standard deviation is 5.4%. The risk free rate is 3% and the market risk premium is 8%. If Xs expected return is 18% and Ys is 12%, (a) calculate the beta for both of them. (b) Considering both return and risk, if you were to chose one of them, which one would that be and why?

can i get help with this please? What is the present value of the following set of cash flows, discounted at 14.5% per year? You have an investment opportunity that requires an initial investment of $3,200 today and will pay $4,500 in one year, What is the rafe of return of this opportunity? The rate of return for this opportunity is \%. (Round to
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Suppose you observe the following quotes from two different dealers for a corporate bond issued by Campbell's Soup. If you buy $2,500,000 face value worth of bonds on 11/17/2020, what is the cheapest clean price you could pay for the bonds? Enter your answer without a "$." Date Issuer Maturity Coupon Bid Price Asked Price 11/17/2020 Campbell's

The price of a non - dividend paying stock is $ 1 9 and the price of a three - month European call option on the stock with a strike price of $ 2 0 is $ 1 . The risk - free interest rate is 4 % per annum. The price of a three - month put option is $ 3 . Both put and call have same strike price. Is there an arbitrage opportunity? If yes, what are

Salsacorporatehas the following capital structure.Its corporate tax rate is 30%. What is its Weighted Average Cost of Capital (WACC)? Make sure you show all the workingsto score all the step marks. Pleaseutilize the WACC table to calculatethe overall WACC forthe company \begin{tabular}{|l|l|l|} \hline Security & Market Value & Cost of Capital \\
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The supplier of Ndoungue Memorial Hospital offers terms of 2 1 0 , net 5 0 . What is the approximate cost ( to the nearest hundredth of a percent ) of not taking the discount if Ndoungue Memorial Hospital stretches payment and typically pays at Day 6 0 ? Assume a year has 3 6 0 days. Express your answer as in percentage term without entering the
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\begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{\begin{tabular}{l} Sheridan Company \\ Income Statement \\ For the Year Ended December 31, 2022 \end{tabular}} \\ \hline Sales revenue & & $363,000 \\ \hline Cost of goods sold & & 262,500 \\ \hline Gross profit & & 100,500 \\ \hline Selling expenses & $27,000 & \\ \hline Administrative expenses
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The real risk - free rate is 4 % . Inflation is expected to be 3 % this year, 5 % next year, and then 5 . 5 % thereafter. The maturity risk premium is estimated to be 0 . 0 0 0 5 \ times ( t - 1 ) , where t = number of years to maturity. What is the nominal interest rate on a 7 - year Treasury security? Do not round intermediate calculations.

( Cost of debt ) Temple - Midland, Inc. is issuing a $ 1 , 0 0 0 par value bond that pays 7 . 3 percent annual interest and matures in 1 5 years. Investors are willing to pay $ 9 4 5 for the bond and Temple faces a tax rate of 2 0 percent. What is Temple's after - tax cost of debt on the bond?

Moorman Corporation reports the following information: Correction of understatement of depreciation expense in prior years, net of tax $ 430,000 Dividends declared 320,000 Net income 1,000,000 Retained earnings, 1/1/10, as reported 2,000,000 Moorman should report retained earnings, 31/12/10, as adjusted at Select one: a. $3,110,000 b. $2,250,000

Problem 1 Hologram Corporation is a holding company with four main subsidiaries. The percentage of its business coming from each of the subsidiaries, and their respective betas, are as follows: Subsidiary Percentage of Business Beta Water Company 45% .70 Cable Company 20% .90 Real estate 15% 1.30 Technology companies 20% 1.50 What is the companys

Sloth Corp.'s most recent bond issue has a coupon rate of 4.02% and is currently priced at par. The estimated risk premium between the company's debt and equity is 3.16%. The estimated cost of equity, Re, is Margin of error for correct responses: +/-.05%. Rounding and Formatting instructions: Do not enter dollar signs, percent signs, or commas in
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L 8 9 Profitability index. Given the discount rate and the future cash flow of each project listed in the following? table, use the PI to determine which projects the company should accept. What is the PI of project A and project B and which should they accept?
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Please show all work. Thanks! Mr. and Mrs. Tran are expecting a baby girl in a few days. They want to put away money for her college education now. How much money should they deposit as a lump sum into an account with 10.2% interest compounded semiannually so they will have $100,000 in 18 years to pay for their daughter's educational expenses?
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Compiling pro forma income statements for a project can allow the financial managers of a firm to see: the dollar changes in the sales revenue over a period of time. the effect that depreciation has on the net income for each time period. the difference between EBIT and net income. a comparison of fixed versus variable costs. a. I and III only b.

Mitra Corporation is currently all equity financed and has a value of $50 million. Investors currently require a return of 12.8 percent on common stock. Mitra has a marginal tax rate of 15 percent. Mitra plans to issue $10 million of debt with a return of 5.1 percent and use the proceeds to repurchase common stock. The value of the firm after the

A fully amortizing loan has the following terms and conditions: Interest Rate: 6 % per annum Term: 20 years Original Loan Amount: $395,000 1) If the lender expects the loan to be paid over the entire 20-year term, how many points (in dollars and in percentage terms) would the lender have to charge to achieve a 6.5% yield on this loan? 2) If the

Suppose ABC is considering the possibility of opening a luxury department store in New York on 5th avenue. It plans to finance this new project with 1/3 of debt and 2/3 of equity. The cost of the debt for the new project is 8%. ABC Corporation's CFO asked an analyst to provide some financial information. Here is some of the information the CFO has
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Consider the following option strategy: Short 1 put with K = 6 for $ 6 Long 1 put with K = 1 2 for $ 4 Short 1 put with K = 1 5 for $ 2 . What is the maximum profit of the strategy? a . $ 6 b . $ 4 c . $ 1 d . $ 1 2
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Question #1. (10 marks) Current salary $80,000 Years until retirement 3 Annual compensation increases 5% Discount rate 8% Benefit 2% Required: Construct the pension table (8 marks) Pension Table Year Salary EPS Contribution at full salary EPS Contribution at 15,000 ceiling 1 80,000 6,664 15,000 2 84,000 6,997 15,000 3 88,200 7,347 15,000 Compute

3. Uneven cash flows A series of cash flows may not always necessarily be an annuity. Cash flows can also be uneven and variable in amount, but the concept of the time value of money will continue to apply. Consider the following case: The Purple Lion Beverage Company expects the following cash flows from its manufacturing plant in Palau over the
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A retailer is looking to expand operations at all of their stores for an initial investment of $ 8 4 0 . This investment will be depreciated on a straight line basis over the project's 1 0 year life. The expansion is expected to produce annual cash inflows of $ 5 7 0 in consecutive years over the life of the project beginning one year from today,

Problem 1 0 - 2 8 Equivalent Annual Cost [ LO 4 ] Light emitting diodes ( LED ) light bulbs have become required in recent years, but do they make financial sense? Suppose a typical 6 0 - watt incandescent light bulb costs $ . 4 3 and lasts 1 , 0 0 0 hours. A 1 5 - watt L . ED , which provides the same light, costs $ 3 . 3 0 and lasts for 1 2 , 0
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10. Differenced equation with three time periods Consider the following general fixed effects model for use with a panel data set with three time periods (T -3): where, for t 1, 2, 3, and time period 1 is the base year: itvalue of dependent variable y for i, in year t, in pounds d2binary variable equal to 1 otherwise dbinary variable equal to 1 in
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XYZ Corp. has identified an investment project with the following cash flows Year Cash Flow $ 850 2 1,190 1450 4 1,600 a) if the discount rate is 7%, what is the present value of these cash flows? b) what is the present value at 16%? c) what is the present value at 3096
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Suppose two factors are identified for the U.S. economy: the growth rate of industrial production, IP. and the inflation rate. IR IP is expected to be 3% and IR 6%. A stock with a beta of 1 on IP and 0.6 on IR currently is expected to provide a rate of return of 11%. If industrial production actually grows by 4%, while the inflation rate turns out
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Zayas, LLC, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 $ 63,000 $ 63,000 1 39,000 25,700 2 33,000 29,700 3 22,500 35,000 4 14,600 24,700 a. What is the IRR for each of these projects? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g.,

AA Corporation's stock has a beta of 1.1. The risk-free rate is 2%, and the expected return on the market is 9%. What is the required rate of return on AA's stock? Do not round intermediate calculations. Round your answer to one decimal place.

Which of the following statements about financial statements is true? A. Adjustments are made to reflect the effect of inflation on the financial results. B. Financial statements do not reflect information that cannot be expressed in monetary terms. C. Some values that are reflected depend on the estimates of management and but will be reported in
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(3) My credit card is currently charging me an interest rate of 15.9% compounded in continuously on any continuing balance. At Christmas time, the credit card company makes an offer that would allow a delay of any payments for twelve months (even though interest is still being accrued). I have a balance of $1200 on this card. How much interest
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The future value of an investment is Multiple Choice the amount it is worth today. the accumulated interest. the amount an investment is worth after one or more periods. None of the above.

You have $58,000. You put 21% of your money in a stock with an expected retum of 14%,$33,000 in a stock with an expected return of 13%. and the rest in a stock with an expected return of 22%. What is the expected return of your porttolio? You have $58,000. You put 21% of your money in a stock with an expected retum of 14%,$33,000 in a stock with
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You are looking to buy a car and can afford to pay $210 per month. If the interest rate on a car loan is 0.75% per month for a 60-month loan, what is the most expensive car you can afford to buy? The most expensive car you can afford to buy is $ (Round to the nearest cent.) You are looking to buy a car and can afford to pay $210 per month. If the
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answer question in attachement Year Calculate the cross-over rate for the previous question. Then calculate NPV for 2 rates higher than the cross-over rate and 2 rates lower than the cross-over rate. Cash inflows Project A Project B $55,000 $95,000 $55,000 $70,000 $55,000 $40,000 $55,000 $40,000 $55,000 $20,000 $55,000 $20,000 1 2 3 4 5 6 What can
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You just won $50,000 on a scratch-off lottery ticket. You plan to save the money in a retirement account expected to return 6% per year. If you int to retire in 45 years, how much are these lottery winnings expected to be worth when you retire? $1,260,147 O $2,234,431 O $2,345,879 $688,231 $4,788,067 If you find an account that pays 7% annual
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8. During October 2016, Mark's Auto limited sells a car for $90000 The cost of this car is $35000 resulting in gross profit of $55000. the $90000 sales are to be paid in four equal instalments on October 31 each year from 2017 to 2020. Indicate the amount of reserve for each year
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QUESTION 1 Q1(a) You are considering investing in the stock market. There are only two stocks: Stock A and Stock B. You know that the economy can either go in recession or it will boom (grow strongly). Being an optimistic investor, you believe the likelihood of a boom is two times as high as the likelihood of a recession. You also know the
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20-1) please see attached Enigma has the following financial information: No changes were made in interest payable of taxes payable. Based on the information in Table 3-2, what is Enigma's free cash flow? +$35,000 +$195,000 -$5,000 +$75,000
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Two investment proposals have been made and the following data thereon are given: Project X Project Y Investment 213,71400 175, 394.00 Deprecable assets included in the investment figure given 80,000.00 82,000.00 Economic Life 8year 12 years Annual sales Revenue 85,000.00 88,000.00 Annuelout of the pochet cost 55,000.00 32,500.00 Income tax rate
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Required: Suppose you conduct currency carry trade by borrowing $ 1 million at the start of each year and investing in the New Zealand dollar for one year. One - year interest rates and the exchange rate between the U . S . dollar ( $ ) and New Zealand dollar ( NZ$ ) are provided below for the period 2 0 0 0 - 2 0 0 9 . Note that interest rates
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Suppose you just had your first child and you want to begin immediately putting away for his/her college tuition. Assume that college will cost a total of $160,000 for all 4 year combined and that your child will begin college at age 18. 1. How much will you need to put away each month at a rate of 4% in order to achieve that goal? 2. How much
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Derek has the opportunity to buy a money machine today. The money machine will pay Derek $44,083.00 exactly 4.00 years from today. Assuming that Derek believes the appropriate discount rate is 7.00%, how much is he willing to pay for this money machine? mie
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Purple Feet Wine, Inc., receives an average of $13,500 in checks per day. The delay in clearing is typically two days. The current interest rate is .016 percent per day. a. What is the company's float? b. What is the most the company should be willing to pay today to eliminate its float entirely? c. What is the highest daily fee the company should
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Required: Suppose you conduct currency carry trade by borrowing $ 1 million at the start of each year and investing in the New Zealand dollar for one year. One - year interest rates and the exchange rate between the U . S . dollar ( $ ) and New Zealand dollar ( NZ$ ) are provided below for the period 2 0 0 0 - 2 0 0 9 . Note that interest rates
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The CAPM approach can be used to determine the cost of common stock debt preferred stock bank loans Question 2 5 2 . 5 p t s When calculating the cost of common stock using the CAPM, the risk - free rate of return can be estimated as the rate of return on corporate bonds US Treasury bonds the S&P 5 0 0 commercial loans
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he spot rate of the British pound to the dollar is 1.61 ( $ per ). The 180 day forward rate is $1.80, the annualized forward premium is: ote: Use 360 days a year for calculations. Round your answer to 3 decimal places. Multiple Choice 23.602% 25.102% 22602% 26.102%
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You are a financial consultant who provide financial advices on a fee basis. A client comes to your office to get an appraisal of his financial situation. The client details are extracted and summarised in the application card as follow: You are requested to conduct a Needs Analysis for Mr. Steve Rogers based on the information given. Use the
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Paulette, a trial attorney for a corporation, was forced to leave the field due to an injury to her vocal chords. She switched careers and became a lower-paying author. Fortunately, she had three disability policies. Policy A had an own occupation definition that was paid for by her employer and was for $20,000 per year. Policy B, which she paid
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Kindly answer questions 14-18 14. Debt which is due within one year of a business is considered as? A) Current Liabilities B) Long-Term Liabilities C) Preferred D) Convertible E) Current Assets 15. Money received from customers for products to be delivered in the future is recorded as: A) Revenue and an asset B) An asset and a liability C) Revenue
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Problem 2 30 year T-bond contract quote sheet on the CBOT website in May 2018 was The contract size is for $100,000 face value T-bonds Prev Last Change Settle Open HighLow Close 12112 001 12110 12108 12114 12105 121'4 119'30 +002 11925 11920 11925 11910 119'30 Jun Sep The risk manager at IDF Bank expects interest rates to increase, would he go
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If a tobacco selling firm like Tobacco Supreme, Inc., is hit with a lawsuit it is an example of: Question 3 0 options: market risk systematic risk total risk diversifiable risk

Mountain Products has decided to raise $8.4 million in additional funding via a rights offering. The firm will issue one right for each share of stock outstanding and it will take 4 rights to purchase one new share. The offering consists of a total of 210,000 new shares. The current market price of the stock is $45.60. What is the value of one

1.7 If two stocks' returns are compared, which of the following concepts is a better measurement of the relative volatility? A) Variance B) Mean Covariance D) Coefficient of Variation

1 5 . The US equity markets, i . e . , the S&P 5 0 0 and the Dow - Jones Indices are at or near record highs. How should these record levels influence the investments made by investors from outside the United States?

Assume that the yield curve is flat and one-month risk free rate is 4% per annum. Assume that St = 40 USD, and Sr = St exp :((-; -5) (7 1) +0V(T - 1) for T >t with (annualized) o = -20% 1. Price an down-and-in put option expiring in 1 month with a strike price of 40 and a barrier of 35. 2. Price an down-and-in put option expiring in 1 month with a
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finance help please ! thumbs up for all correct answers 7-4. (Bond valuation) Calculate the value of a bond that will mature in 14 years and has a $1,000 face value. The annual coupon interest rate is 5 percent, and the investor's required rate of return is 7 percent. 7-5. (Bond valuation) At the beginning of the year, you bought a $1,000 par
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Investment B will return : $ 1 6 0 0 0 in year 1 , $ 1 5 0 0 0 in year 2 , $ 1 2 0 0 0 in year 3 & $ 1 0 0 0 0 in year 4 . I pay $ 2 6 5 0 0 . What is the rate of return? 2 6 3 5 1 4 1 2 3 0 1 6 3 9 2 3 4 8

Sensitivity analysis is the most commonly used type of risk analysis, and scenario analysis helps assign probabilities to different scenarios. This project provides you with an opportunity to use these types of risk analysis to make decisions on a given project. Please note that this project is a group project. So, each group will submit only one

In Roman law the instrument used to secure a loan was called a fiducia, which means: Question 3 options: 1) public 2) trust 3) finance 4) secrecy

Statistics problems Check Your Understanding Consider the following returns data for the market and XYZ, Inc. What was the average market return over this period? _ What was XYZ's average return? _ Because the data only covers four years of market and stock returns, the _ standard deviation is the appropriate measure of dispersion to use. XYZ's
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What should you do when you receive a phone call claiming to be from your bank? Multiple choice question. Give your personal information over the phone, talk with the person, and visit your bank the next day Hang up , call your local bank, ask if there is something wrong with your account ( s ) , and go to the bank the next day to verify your

Libati Ltd., an unlevered firm, has perpetual expected earnings before interest and taxes of $4.5 million per year, a tax rate of 34.00% and a beta of 1.45. The risk free rate is 3.00% and the market risk-premium is 8.00%. Management is considering buying some of its stock back through an issue of debt. The firm will be issuing 3,215 bonds at a

Last year Carson Industries issued a 10-year, 15% semiannual coupon bond at its par value of $1,000. Currently, the bond can be called in 6 years at a price of $1,075 and it sells for $1,270. 1. What are the bond's nominal yield to maturity and its nominal yield to call? Do not round intermediate calculations. Round your answers to two decimal

SA Logistix is a transport company that operates across South Africa. The company has a fleet of specialised vehicles to transport a wide range of products such as fresh foodstuffs, chemicals, and hazardous products. The company is preparing for the annual insurance review. The Board of SA Logistix has instructed the Chief Financial Officer (CFO)

if the inventory of a firm is written down. That would: Select one: a. Decrease the quick ratio b. Increase the current ratio c. Increase the quick ratio d. Not effect the quick ratio the best sentence reflect the increase in trade receivables balance at the end of the year : Select one: a. decrease the current ratio b. decrease the quick ratio.

Calculate the following time value of money problem using Microsoft Excel Please show your work in the cells. Use Excel formulas instead of writing the values/answers directly in the cell. 1) If we place $8,592.00 in a savings account paying 7.5 percent interest compounded annually, how much will our account accrue to in 9.5 years? FV = PV (1 + i)

Question 4 True or False: The National Association of Insurance Commissioners (NAIC) is the primary regulator of the U.S. insurance industry. True False Question 3 True or False: Managing general agents (MGAs) take on the underwriting risk associated with the policies they underwrite. True False

What is the difference between pledging accounts receivable to secure a loan and factoring accounts receivable? Question content area bottom Part 1 ( Select the best choice below. ) A . Both short - term financing alternatives are the same. The only different is that pledging accounts receivable to secure a loan is less expensive than factoring

Suppose the nominal one - year interest rate in Japan and the US are 0 % and 5 % , respectively. The spot exchange rate between Japanese Yen ( JPY ) and US Dollar ( USD $ ) is 0 . 0 0 6 8 $ / . What is the one - year forward exchange rate implied by the covered interest rate parity?

insurance company issued a $94 million one-year, zero-coupon note at 9 percent add-on annual interest (paying one coupon at the end of the year) and used the proceeds plus $14 million in equity to fund a $108 million face value, two-year commercial loan at 11 percent annual interest. Immediately after these transactions were (simultaneously)

A college student securities Apple and Coca-Cola Apple has an expected retum of 15 percent with standard deviation of the return being 11 percent. Coca Cola has an expected ram of 12t, and a standard deviation of percent. The correlation of returns between Apple and Coca-Cola If the portfolio of 6.00 (6096) in Coca-Cola and $4.000 (40%) in Apple
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A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term bond fund, and the third is a money market fund that provides a safe return of 5%. The characteristics of the risky funds are as follows: Expected Return Standard Deviation Stock fund (S) 19% 32% Bond fund (B) 12 15 The correlation

Problem 7-13 Nonconstant Growth Stock Valuation Simpkins Corporation does not pay any dividends because it is expanding rapidly and needs to retain all of its earnings. However, investors expect Simpkins to begin paying dividends, with the first dividend of $1.75 coming 3 years from today. The dividend should grow rapidly - at a rate of 75% per

Question 41 (1 point) Listed below are the end-of-year total returns of GSU Company for the last four years: Year TR 2016 24.69% 2017 25.56% 2018 6.41% 2019 46.12% Given the total return series, calculate the expected return (arithmetic average return) None of the answers is correct 20.79% 19.79% 25.70% 24.91%
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This Question: 1 pt 31 of 50 (14 complete) TI Net present value. Quark Industries has a project with the following projected cash flows: Initial cost: $260,000 Cash flow year one: $23,000 Cash flow year two: $71,000 Cash flow year three: $150,000 Cash flow year four: $150,000 a. Using a discount rate of 12% for this project and the NPV model,
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Assume a corporation has earnings before depreciation and taxes of $ 1 2 6 , 0 0 0 , depreciation of $ 4 2 , 0 0 0 , and that it has a 3 5 percent tax bracket. a . Compute its cash flow using the following format. b . How much would cash flow be if there were only $ 1 6 , 0 0 0 in depreciation? All other factors are the same. c . How much cash
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Prepare consolidation spreadsheet for intercompany sale of equipment - Equity method Assume that a parent company acquired its subsidiary on January 1 , 2 0 1 2 , at a purchase price that was $ 3 0 0 , 0 0 0 in excess of the book value of the subsidiary's Stockholders' Equity on the acquisition date. O that excess, $ 2 0 0 , 0 0 0 was assigned to
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In order to accurately assess the capital structure of a firm, it is necessary to convert its balance sheet figures from historical book values to market values. KJM Corporation's balance sheet (book values) as of today is as follows: The bonds have a 8.3% coupon rate, payable semiannually, and a par value of $1,000. They mature exactly 10 years

AllCity, Inc., is financed 44% with debt, 10%. with prefetted stock, and 46% with common stock. Its cost of debt is 6.3%, its preferred stock pays an annual dividend of $2.46 and is priced at $29. It has an equity bata of 1.15. Assure the risk-free rate is 1.7% the market risk premium is 7.1% and AllCity's tax rate is 35% What is its after-tax
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Question 27 (1 point) Southern Corporation is expected to pay $2.50 dividends per share next year (D1). The dividend of this company grows at a steady rate of 3% per year. Based on this information, what will the dividend payment be in four years? None of the answers is correct $2.89 $2.81 $2.73 $2.38
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B) Cash Flow: Evaluate the Statement of Cash Flows and answer the following questions: Was cash generated from operations? . What conclusions do you reach from the sources and uses of cash? Compare the net income from Q1 to Q2. What does the change indicate? Is this good or bad and why? What recommendations do you have for managing working capital
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A. Describe the products or services offered by Heineken company and its success (or lack of it) in its principal markets. B. Describe the Heineken companys CSR program in detail. Answer the following questions in your description: i) What are the most effective elements of the program? ii) Is it perceived (by others) as effective? Why or why not?

The intrinsic value of a call option is defined as: Select one: O a. E - So O b. max [So - E, 0] O c. min [So - E, 0] O d. max [So + E, 0] The intrinsic value of a call option is defined as: Select one: a. ES0 b. max[S0E,0] C. min[S0E,0] d. max[S0+E1,0]
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PRO FORMA INCOME STATEMENT ($millions) Total operating revenues 78 Less Expenses 57 Less Depreciation 9 Earnings before interest and taxes 12 Less Interest 2 Net income before taxes 10 Less taxes @ 10% 1 Net income 9 PRO FORMA BALANCE SHEET Assets: Cash 9 Other current assets 18 Net Fixed Assets 40 Total Assets 67 Liabilities and Equities:

"Underwriting" stock usually refers to: Making long - term investments in a stock with client's money Arbitrage trading in a stock based on price differences in different markets Providing liquidity through both buying and selling a stock and profiting from the bid - ask spread Arranging for the issue of new shares of stock
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Which of the following are secure practices when working with Confidential information at home? Select ALL that apply. Only print Confidential documents when it's absolutely necessary and is permitted by the client (where relevant). You can send work documents to your personal email account, if you need to work on them on your personal laptop. If
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You could join a business venture which intends to invest in an African Nation. To join this venture, you will need to have saved $50,000 in 18 months. The plan to achieve this is by making regular monthly deposits of the same size into a savings account, starting in one months time. The savings account pays interest j 12 = 7.50% p.a. Determine

EJH has a beta of 1.3, CSH has a beta of 0.7, and KMS has a beta of 1.1. If you put 29% of your money in EJH, 21% in CSH, and 50% in KMS, what is the beta of your portfolio? The beta of your portfolio is (Round to two decimal places.)
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An investor purchases a mutual fund for \$75. The fund pays dividends of $1.80, distributes a capital gain of $3, and charges a fee of \$3 when the fund is sold one year later for $8220. What is the net rate of return from this investment? (Enter your answer to the neorest whole number.)
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Preston industries has two separate divisions: Division A and Division B . Division A is the largest division and represents 6 5 % of the companys overall sales. Division A and Division B have the same level of risk, which is similar to the risk of the overall firm. When management is deciding which of the various divisional projects to fund, it

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