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Finance Questions and Answers May 2, 2016

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o Question 12 Which is the following is most correct? were to form a portfolio by randomly selecting stocks, that portfolio's beta would be around 0. Onet portale for a stock to have a negative beta. Bolond by calculating the slope of a plot of historical stock returns vs. historical market returns. O Athensweare correct. The more to you add to a
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Need help with the Excel Output function in the following question: Question 10 Directions: Select a year 2019 expenses: The fact pattern to the right shows Revenue, Expenses and Profit from 2015-2023. In cell D9, write a formula using the OFFSET function that will output expenses for whichever year is selected in the dropdown in cell D7. When
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1) Suppose a security has a current price of $15.00, and Investor A expects the security price to increase by 10% in one year with 60% probability or decrease by 5% in one year with 40% probability. Investor B agrees with Investor As values of the future prices but feels that the likelihood of either future price occurring is 50%. Assuming a 3%

Question 12 a) A variable annuity, payable annually in arrears for n years, is such that the payment at the end of the year t is t. Show that the present value of this annuity can be expressed as: 2(lam-a-nv7+1 1-V [5] b) A pension fund has a liability to pay 100,000 at the end of one year, 105,000 at the end of two years, and so on, the amount
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Telex Ltd is an all-equity financed firm and is considering the following projects: Project Beta Expected Return 0.40 9% 0.95 11% 1.06 15% D 2.20 19% B The company has a 13% cost of capital. Assume a risk-free rate of 6% and an expected return on the market equal to 13%. a. Making use of the security market line identify which projects should be
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SECTION A"- ANSWER ANY EOUR QUESTIONS: EACH QUESTION 20 Marks Question 1 (20 marks) 1.1) You have estimated spot rates as follows r,-5.00%, = 5.40%, n . 5.7096, ra = 5.90%, rs _ 6.00%. where n is the discount rate for year i. a) What are the discount factors for each date (that is, the present value of $1 paid in year (i.e. consider cash flow of
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Consider an investor who, on January 1, 2019, purchases a TIPS bond with an original principal of $107,000, an 8 percent annual for 4 percent semiannual) coupon rate, and 15 years to maturity. a. If the semiannual inflation rate during the first six months is 0.3 percent, calculate the principal amount used to determine the first coupon payment
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D | Question 9 5 pts Sapp Trucking s balance sheet shows a total of non-callable 45 on long-term debt with a coupon rate of 7% and a yield to maturity of 6%. This debt currently has a market value of $50 nlilion. The balance sheet also shows thot the company has 10 million shares of common stock, and the book value of the common equity 13.3%, and
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Financial Report Financial Report LIABILITIES Short-term Accounts Payable Long-tern Bank Loan Long-tern Bond Payable TOTAL LIABILITIES $ 20,000,000 55,000,000 30,000,000 105,000,000 $ $ EQUITY Common Stocks Preferred Stocks Retained Earnings TOTAL EQUITY $ $ $ 45,000,000 30,000,000 25,000,000 100,000,000 TOTAL LIABILITIES AND EQUITY $ 205,000,000
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Hello, I need a little help figuring out the answer to this homework problem. Can someone help me? The Template Corporation is considering a project that provides a $0 annual cash inflow for the first five years and then provides $900,000 per year for the subsequent five years. The project requires an initial investment of $1.8 million. If the
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estion 20 ABC company has the following account balances in 2020: (Amounts are in OMR) yet vered 51210 Other current ked out of Sales 34782 Assets Flag question 29880 Cost of sale /COGS Fixed Assets 440977 22334 Net profit/income Net worth 150168 Inventory 8878 Debt 59227 26290 Current liabilities Other assets 3000 Sales Return 4788 Discount on
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A bond with 12 years to maturity has a 7 percent semiannual coupon and a face value of $1,000 (that is, the bond pays a $35 coupon every six months). The bond currently sells for $1,000. What should be the price of a bond with the same risk and maturity that pays a 7 percent annual coupon and has a face value of $1,000? a. $1,002.29 b. $996.50 c.

. World Travel leases airplanes to airline companies around the world. World Travel is contemplating buying 25 additional airplanes for its fleet. It is confident that this purchase will not affect the risk of its business in the future. Here's what's known: The airplanes depreciate straight-line over six years to zero book value. . These
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Calculate the price on its issue date of $100,000 face value, 90-day commercial paper issued by GE Capital Canada if the prevailing market rate of return is 3.932%. Select one: a. 99903 b. 99000 c. 91162 d. 99400 e 99040 a
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Super urgent Revisit Question Text Green bonds are bonds issued by a company to fund renewable energy projects. Kuzlon India was trying to raise financing for investing in wind power projects by issuing green bonds. The green bonds were semi-annual bonds with a coupon rate of 8% pa. compounded semi-annually AAA rated. The Face value of the bonds
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Your broker requires an initial margin of $900 per future contract on wheat and a maintenance margin of $650 per contract. Wheat futures contract are based on 5,000 bushels and quoted in cents per bushel. You sold 6 wheat future contracts at a price quote of 673 cents per bushel. Today, the settlement quote is 681 cents per bushel.Will you receive

Using the following financial statements (next page) for Firm ABC, what is the sustainable growth rate for 2021? Assets Current Assets Cash A/R Inventory Total Current Fixed Assets TOTAL ASSETS Firm ABC Income Statement For the Year ending Dec. 31, 2021 Sales 456,000 COGS 209,000 Depreciation 54,900 EBIT 192,100 Interest 45,000 Taxable Income
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Senate committee backs APRA, Treasury on depositor protection James Eyers Australian Financial Review August 25, 2020 The Senate's legislation committee has rejected a bill proposed by One Nation Senator Malcolm Roberts that would have explicitly stated that bank deposits cannot be subjected to a "bail-in" during a financial crisis (Note of the

needed answers for questions of case study 3 Case Study A company is thinking of investing money in a project. The project will cost them 36411 in set-up costs, and is expected to last for three years. At the end of the project, they will be able to regain 464 of the set-up costs. In the first year of the project, the company expects to get an
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Chapter 7 - End of Chapter Questions and Problems - Question 15 $97.97 O $118.49 $129.32 $130.45 $143.94 LO 1 15. Nonconstant Growth Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next 9 years because the firm needs to plow back its earnings to fuel growth. The company will then pay a
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Scenario Indicator Type Monetary Policy Type Over 4 months, oil prices decrease by 11% Over 4 months, the Producer Price Index increases by 4% Over 4 months, national income increases by 4% Over 4 months, Gross Domestic Product decreases by 6% The following graph shows the real GDP and manufacturing and trade sales over time, in a hypothetical
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Stock X and Stock Y sell at the same price. Stock X has a required return of 12%. Stock Y has a required return of 10%. Stock Xs dividend is expected to grow at a constant rate of 6% a year, while Stock Ys dividend is expected to grow at a constant rate of 4%. Assume that the market is in equilibrium and What is the expected return? What is the

Question 1. Calculate the Cash-on-Cash Return (Show your work): Multi-Unit Information Insurance: $2,500 New Taxes: $31,200 Gardener: $900 Unit Type 1 Information Unit Key Numeric: 11059825 Listing Key Numeric: 368196585 Total # of Baths: 4 Total # of Beds: 4 Furnished: Unfurnished Attached Garage: Yes # of Garage Spaces: 1 Total # of Units: 1
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(ASAP please): For typical commercial invoices used in supporting Letters of Credit which of the following is not true? a. Must indicate name of carrier and be signed by an authorized party b. Must be in the same currency as the credit c. Must indicate "All risk" regardless of any risk to be excluded d. Must indicate that even when partial

Suppose you manage a $4.955 million fund that consists of four stocks with the following investments: Stock Investment Beta A $280,000 1.50 B 475,000 -0.50 1,500,000 1.25 D 2,700,000 0.75 If the market's required rate of return is 9% and the risk-free rate is 6%, what is the fund's required rate of return? Do not round intermediate calculations.
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In Lecture 13 we introduced the Sharpe Ratio as the "gold standard" for investment performance measurement, defined as S=(f - rp/o, where F is an estimate of the true expected return f, and o is an estimate of the true standard deviation. Consider the table of historical annual percentage returns for the Nasdaq-100 stock index (N100) and the
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Ohio Valley Homecare Suppliers, Incorporated (OVHS) had $ 20 million in sales in 2015. Its cost of goods sold was $ 8.0 million, and its average inventory balance was $ 1.6 million. a. Calculate the number of inventory days outstanding for OVHS. The number of inventory days is ____days.(Round to the nearest integer.) b. The average number of

Consider the following three investors, and all investors hold CP: (1) Series A: $6M APP or converts to 10M shares. (2) Series B: $12M APP or converts to 10M shares. (3) Series C: $10M APP or converts to 10M shares. In addition to these investors, the founders hold 10M shares of common stock. Suppose total vfuation is $50M, and venture capital
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In December 2018, Apple had cash of $86.71 billion, current assets of $141.07 billion, and current liabilities of $108.27 billion. It also had inventories of $4.99 billion a. What was Apple's current ratio? b. What was Apple's quick ratio? C. In January 2019, Hewlett-Packard had a quick ratio of 0.55 and a current ratio of 0.78. What can you say
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11) Which methodology is used to capture the value of a company beyond ti projection period? A. Long-term value B. Long-term adjusted value C. Terminal value D. Projected value
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Herky Foods is considering acquisition of a new wrapping machine. By purchasing the machine, Herky will save money on packaging in each of the next 5 years, producing the series of cash inflows shown in the following table: Year Cash inflow 1 $438,400 2 $411,000 3 $328,800 4 $383,600 5 $219,200 The initial investment is estimated at $1.37 million.

Suppose a ten-year, $1,000 bond with an 8.0% coupon rate and semiannual coupons is trading for $1,034.74. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 9.0% APR what will be the bond's price? a. What is the bond's yield to maturity (expressed as an APR with
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What is the present value of $2,700 due in 17 years at a 7 percent interest rate and 13 percent interest rate? Do not round intermediate calculations. Round your answers to the nearest cent. Present value at 7%: $ ____ Present value at 13%: $____ Explain why the present value is lower when the interest rate is higher. The less interest you can

Just Show calculation using any equation The Project will entail an Engineering Economy study of evaluating whether to buy a house in your local area or rent an apartment. You are to research and identify a house in the local area of your choice. You will also research a similar-sized apartment in the same general area. Plan on living in the house
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Stock splitsPersonal Finance ProblemNathan Detroit owns 400 shares of Monster Beverage Corp., which he purchased for $122 per share. Nathan read that thecompany's board of directors voted to split the stock 4-for-1. Just before the stock split, Monster Beverage shares were trading for $128.64. Answer the following questions about the impact of the