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Finance Questions and Answers August 26, 2017

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You purchase an interest rate futures contract that has an initial margin requirement of 13% and a futures price of $153,022. The contract has a $125,000 underlying par value bond. If the futures price falls to $150,000, you will experience a loss on your money invested. Multiple Choice 5.00% 15.19% 26.19% 38.19% You purchase an interest rate
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But if rates are communicated annually, but compounding frequencies differ, how can we compare interest rates? For example, an annual rate of 8% compounded semi-annually is different than an annual rate of 7.8% compounded monthly. We can use the Effective Annual Rate (EAR) to compare these two scenarios. Take a look at the EAR formula in section
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The capital stock of the Eisley Company consists of 450,000 shares of preferred stock and 4,500,000 shares of common stock. Last year, a dividend of $3.60 a share was declared on preferred stock and four quarterly dividends of $0.35 a share on common stock. How much was the total dividend for the year on each class of stock? Preferred stock $

thin 17 years iftis invested at 5.4% compounded quarterly A newborn child receives a $5,000 gift toward a college education from her grandparents. How much wil the $ It will be worth $ (Round to the nearest cont.)
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A zero-coupon bond has a face value of $1,000, a 30-year maturity and required annual yield of 5%. How much would you expect to pay today to purchase this bond? O 232.17 227.28 1,000 212.17
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Use the following information to calculate the expected return and standard deviation of a portfolio that is 60 percent invested in 3 Doors, Inc., and 40 percent invested in Down Co.: (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Expected return, E(R) Standard deviation, o Correlation 3
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Calculate the grand average for the following: 1 ) 5 , 5 , 6 , 7 , 8 2 ) 3 , 4 , 5 , 7 , 9 3 ) 4 , 6 , 6 , 7 , 9 4 ) 5 , 7 , 8 , 9 , 9 Group of answer choices 6 . 4 5 5 . 0 0 7 . 0 0 4 . 3 5

The current platinum price is $1000 per ounce, and annual effective spot rates for 1-year, 2-year, 3-year and 4-year terms are 2.3%, 2.4%, 2.5% and 2.6%, respectively. A swap contract is set up to exchange the market price per ounce of platinum with a fixed amount P at the end of 2 nd , 3 rd and 4 th years. Calculate P to the nearest $1. Group of

1 pts D Question 10 What is the future value of a five-year ordinary annuity of $1,000 per year if the interest rate is 6.54%? Hint: solve for year 5. Question 11 1 pts What is the present value of a perpetuity that offers to pay $100 next year and every year after the payment grows at 5.7%. Investments with similar risk are offering an 8% annual
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what are duty free zones on countries?

Assume the return on a market index represents the common factor and all stocks in the economy have a beta of 1. Firm-specific returns all have a standard deviation of 41%. Suppose an analyst studies 20 stocks and finds that one-half have an alpha of 4.3%, and one-half have an alpha of 4.3%. The analyst then buys $1.3 million of an equally

Suppose you want to consider 2 projects out of the 4 projects you have shortlisted You have a capital budget of 500 crs The WACC estimated is 15% Estimated WACC of the industry is 18% The market rate is 12% Project 1 and Project 4 are mutually exclusive You want to decide best projects solely based on the profitability index and capital budget
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What type of valuation seems to violate the principle of indemnity, as the insured may effectively profit from the loss?

The following are market spot rates on risk-free debt: OR=.07 OR25.05 OR3=.02 Q 17 (2 points) What do these spot rates suggest about the economy? Select one: O A future increase in inflation. O 'Interest rates will rise in the future. O A future booming economy. O A steady economy. O A future recession. O Ambiguous. It is impossible to say from
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\begin{tabular}{|l|r|r|r|r|r|r|} \hline & \multicolumn{1}{|c|}{2019} & \multicolumn{1}{c|}{2018} & \multicolumn{1}{c|}{2017} & \multicolumn{1}{c|}{2016} & \multicolumn{2}{c|}{2015} \\ \hline \hline Net investment income & 0.98 & 0.85 & 0.84 & 0.75 & \multicolumn{2}{|c|}{0.64} \\ \hline Dividends from net investment income & (0.95) & (0.85) &
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1. Create a retirement plan that answers the following questions based on your current situation: When you would you like to retire? What are vour retirement obiectives? How much money will you need in retirement? How long do you think you will live? Is the money sufficient? What sources of income will you receive in retirement (for example, OAS,

A firm has a profit margin of 2% and an equity multiplier of 2.1. Its sales are $230 million, and it has total assets of $138 million. What is its ROE? Do not round intermediate calculations. Round your answer to two decimal places. %

Asset X has an expected return of 6% and a variance of 0.001. Asset Y has an expected return of 12% and the same variance as X (i.e., 0.001). The returns of assets X and Y are uncorrelated, and the risk-free rate is 3%. Find the variance of the highest Sharpe ratio portfolio that can be formed of the two risky assets X and Y.

All but one of the following mutual funds would be classified as fixed income. Which of the following funds does NOT invest in fixed income securities? O fund investing in Treasury Inflation Adjusted Securities (TIPS) O fund investing in a portfolio of international companies O fund investing in Colorado municipal debt O fund investing in a
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James and Karen have just moved into a new home. Their homeowner's insurance policy is $630 each year. Their insurance company is offering a 6 percent discount if they install dead-bolt locks on all exterior doors. The couple can also receive a 5 percent discount if they install smoke detectors on each floor. They have contacted a local locksmith,
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Job value may include all the following EXCEPT: q , . and / or , or i ( minimum wage ) . Multiple Choice its value in the external market external market rates its relationship to some other set of rates that have been agreed upon through collective bargaining its relationship to government legislation its relationship to a set of rates that have
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QUESTION 48 You have the following rates of return for a risky portfolio for several recent years: 2008: 100% 2009: 100% 2010: 100% 2011: -100% If you invested $100 at the beginning of 2008, your investment at the end of 2011 would be worth O 50 $100 $300 $800
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please put screenshot in answer box. Want all formulas and explanations showed, ty and answers clearly highlighted QUESTION 2: EVEREST LTD Everest Ltd specialises in bridge construction and has one contract in progress from local council since 1 Jan 2019 and it is expected to be completed in three year's time. The contract price was agreed at
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Develop a linear optimization model. Please also post a screenshot of the 'Answer Report' from Excel Solver. 3) A toy manufacturer currently has two warehouses (1 and 2) that are operational and meet the demand of backyard play sets at three retail outlets A, B and C. The supply of the play sets at warehouse 1 and 2 are 500 and 400 units
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What is the Maximin Criterion? Explain.

Question = Calculate the Net Present Value (NPV) for the terminals. Show calculations. Alberto's Pizzeria is considering purchasing six (6) instore terminals that would allow customers to order their pizza digitally rather than queuing to order at the counter. The Manager is excited by this idea as it means lower wait times for customers and a
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When Alfred Nobel died, he left the majority of his estate to fund five prizes, each to be awarded annually in perpetuity starting one year after he died (the sixth one, in economics, was added later). a. If he wanted the cash award of each of the five prizes to be $40,000 and his estate could earn 11% per year, how much would he need to fund his
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Which of the following IS true about an insurance broker? Select one: O a. The broker does not own expirations O b. Technically the broker represents the insurance companies O c. The broker often has binding authority O d. Brokers are especially good at working with commercial clients that have more complex risks According to the YouTube video on
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Leisure, Inc. is evaluating the purchase of a new cruise ship. The ship will cost $504 million, and will operate for 20 years. Leisure expects annual cash flows from operating the ship to be 589.4 million and its cost of capital is 11.8% a. Prepare an NPV profile of the purchase. b. Identify the IRR on the graph. c. Should Leisures Inc. proceed
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A bond has a $1,000 par value, 8 years to maturity, and 3 7% annual coupon and sells for $980 a. What is its yield to maturity CYTH)? Round your answer to two decimal places. b. Assume that the yield to maturity remains constant for the next 3 years. What will the price be 3 years from today? Do not round Intermediate calculations. Hound answer to
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The Raider Company has a beta of 1.1. Today, the risk-free return is 6% including an inflation premium of 4%. The market risk premium is 8%. The Company is expected to pay a dividend of $3.00 in one year. Dividends are expected to grow at a rate of 10%, forever. If beta recalculated tomorrow to be 1.4, by how much will the price of the stock

Company ANZ 2021 has three projects under consideration. The cash flows for each project are shown in the following table 1. The company has a 15% cost of capital. Define capital budgeting, explain why it is important, and state how projects proposal are generally evaluated. (20 marks) Calculate each project's payback period. (10 marks) Calculate
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You are evaluating a project for The Ultimate recreational tennis racket, guaranteed to correct that wimpy backhand. You estimate the sales price of The Ultimate to be $310 per unit and sales volume to be 1,000 units in year 1; 1,250 units in year 2; and 1,325 units in year 3. The project has a 3-year life. Variable costs amount to $180 per unit

You purchase a bond with a coupon rate of 9.8 percent and a clean price of $1.140. If the next semiannual coupon payment is due in four months, what is the invoice price? Assume a par value of $1,000. Multiple Choice $1,120,33 $1,156 33 $1,136.67
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(LO 8.4) To achieve a zero standard deviation for a portfo- lio, calculate the weights of stock A and stock B, assuming the correlation coefficient is-1. 15. State of the Economyof Occurrence High growth Moderate growth Recession Expected Return on Stock A in This State 40% 20% -10% Expected Return on Stock B in This State 55% 25% 20% Probability
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Please show all steps 5. (10 marks) You are to estimate a non-dividend paying stock's annualized volatility using its prices in the past 30 days. Month 1 2 3 4 5 6 7 8 9 10 Stock price (Rand/share) 90 75 80 120 100 105 95 80 90 115 a) Calculate the historical volatility for this stock over the period. (05 marks) b) Calculate the expected return
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5 of 6 ID: FMTH.RR.CRRR.06.0010a The Jupiter superannuation trust manages the following funds, each with a specific objective. Rank these funds in the order of their risk so that 1 is the lowest risk fund and 5 is the highest risk fund Risk ranking Fund objective Fund name aims to provide access to capital growth and dividends through Australian
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on 8 out o The book value of the Equity of Marat Inc. is 150 000 euros. There are 20,000 outstanding shares at a price of 13,9 . The cash balance amounts to 35 000 euros and its financial and bank debt equals 340 000 euros, What is the market capitalization of the company
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On average, the interest rate on mortgage backed securities is Treasury bonds. The interest rate on 3-month treasury bills is interest rates on 10 year Treasury bonds. the interest rates on on average, than the O lower than: lower lower than: higher higher than; higher equal to; lower higher than; lower
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You want to open a sushi bar 3 years from now, and you plan to save $7,000 per year, beginning immediately. You will make 3 deposits in an account that pays 5.2% interest. Under these assumptions, how much will you have 3 years from today?

Jasper Metals is considering installing a new molding machine which is expected to produce operating cash flows of $73,000 per year for 9 years. At the beginning of the project, inventory will decrease by $33,600, accounts receivables will increase by $29,800, and accounts payable will increase by $21,600. At the end of the project, net working

Question 5 4 pts Ruby Inc. wants to offer preferred stock for sale at a price of $60 a share. The company wants its investors to earn a 2.5 percent rate of return. What is the minimum annual dividend the firm will need to pay per share? $1.80 $2.12 $2.33 $1.50
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Fenix Inc. purchased a lot in Atlanta ten years ago at a cost of $790,000. Today, that lot has a market value of $1.2 million. At the time of the purchase, the company spent $100,000 to grade the lot and another $20,000 to build a small garage the lot to house additional equipment. The company now wants to build a new facility on the site. The
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The concept of capitalized cost usually applies to public projects such as airports, bridges, dams, and long-term private projects such as hospitals and private airports Select one: True False ------------------------------- The repair and maintenance cost of a machine is zero at the end of first quarter, $5,000 at the end of second quarter and

You take out an $8,200 car loan that calls for 60 monthly payments starting after 1 month at an APR of 12%. a. What is your monthly payment? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b. What is the effective annual interest rate on the loan? Note: Do not round intermediate calculations. Enter your answer
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Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay $5,520 at the end of each of the next 3 years. The opportunity requires an initial investment of $1,380 plus an additional investment at the end of the second year of $6,900. What is the NPV of this opportunity if the interest rate
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How long will it take for $5,000 to double if it is deposited and earns 6% per year compounded annually? NPER

True or false: The most important characteristic in determining the variance of return of a well-diversified portfolio is the variances of the individual assets in the portfolio. Explain why.

Question 4 (10 points) Which of the following is not a goal of the government, employer or employee in providing employee benefits? O Raise tax revenue Provide security for employees Retain, attract and compensate employees O Encourage savings for retirement
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Spencer Tools would like to offer a special product to its best customers. However, the firm wants to limit its maximum potential loss on this product to the firm's initial investment in the project. The fixed costs are estimated at $32,000, the depreciation expense is $9,700, and the contribution margin per unit is $9.85. What is the minimum

what is the optimal capital structure and at what point does this occur? an all equity firm is subject to a 30% tax rate. its total market value is initially $3.5 Million and there are 175000 shares outstanding. the firm announces a programme to issue $1 million worth of bonds at 10% interest and to use the proceeds to buy back common stock a)

Lockbox system Eagle Industries feels that a lockbox system can shorten its accounts receivable collection period by 4 days. Credit sales are $2,900,000 per year, billed on a continuous basis. The firm has other equally risky investments with a return of 19%. The cost of the lockbox system is $9,000 per year. (Note: Assume a 365-day year.) a. What
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Consumer credit laws have been implemented over the years to protect consumers against creditor abuses. Match the following consumer credit issues with the appropriate consumer credit law: a. Controls debt collection procedures and practice. b. Prohibits credit discrimination because of race, age, or national origin. c. Establishes the APR and

Breakeven comparisons - Algebraic Given the pice and cost data shown in the accompanying table for each of the three firms, F, G, and H iCick on the icon Iocated on the top-right coiner of the data table below in order to copy its contents into a spreadsheet) a. What is the operating breakevon point in wilts for each firm? b. How would you rank
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ASAP :) Will give good rating :) (Constant growth model Hilliard Inc. just paid a $2 annual dividend on its common stock. The dividend is expected to increase 4.6% per year indefinitely, If the required rate of return is 10.4%, the stock's value S (Constant growth model/The current year's dividend (D) for a share of common stock is $2 and the
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please help me understand (Seloct the best choice below) A. Al of the invostments B. T.Bels only C. Corporate Bonds and T-Bils D. Smait Stocks and SkP 500 E. Corporate Bonds and $85500
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Do not use dollar signs or commas in your answer. Provide at least two significant digits beyond the decimal point for answers expressed as currency. Express other answers with at least 3 or 4 significant digits beyond the decimal point. Make sure to express ratios in decimal format and not as a percentage. Therefore, 4.138% should be written
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correct me (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.). Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes These percentages have been rounded to the nearest whole percent to simplify calculations while retaining realism. To calculate the actual
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Parts a and B PLEASEE insla will equal 65% of actourting incorte. sopus table, 2. Calodate the cavh fows in insin rupeet for yearn 2011 through 2013 telow (hound ts the nearest while number) The nel present value en this invecirent bom the propoci vespont is As (Round to the neares wole number) Data table Data table a. Calculate the cash fows in
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If a project has an initial outlay of $41,000 and cash flows of $12,000 per year for the next 5 years, what is the IRR of this project? (Answer to the nearest tenth of a percent, e.g. 12.3).

Which of the following statements is incorrect? Group of answer choices Long call can be used to hedge the risk for a long position in the underlying asset A company with an existing floating rate debt can hedge interest rate risk by entering an interest rate swap as the floating rate receiver Written collar can be used to hedge the risk for a

Microsoft Corporation is expanding rapidly, and it currently needs to retain all of its earnings, hence it does not pay any dividends. However, investors expect Microsoft to begin paying dividends, with the rst dividend of $7.00 coming 2 years from today. The dividend should grow rapidlyat a rate of 50 percent per yearduring Years 3 and 4. After

Fifth Fourth National Bank has a savings program which will guarantee you $15.500 in 13 years if you deposit $80 per month. What APRIS the bank offering you on this savings plan? Multiple Choice 3.61%
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Income Statement Hermann Industries is forecasting the following income statement: Sales $6,000,000 Operating costs excluding depreciation & amortization 3,300,000 EBITDA $2,700,000 Depreciation and amortization 840,000 EBIT $1,860,000 Interest 300,000 EBT $1,560,000 Taxes (40%) 624,000 Net income $936,000 The CEO would like to see higher sales

1a. Prepare Comparative Statements - Balance Sheet and Income Statement, using VERTICAL ANALYSIS for the following data: 1b. From the calculations you have made in 1a, comment on the changes you observe for Equity capital, Land & Buildings, Plant & Equipment, Accounts receivable and Administrative expenses. 2020 (in BHD) 2021 (in BHD) Equity

# Sony stock is currently selling for $18.05. It is expected to have a year-end dividend Of $.16 per share. The dividends are expected to grow at some constant growth rate (g) Throughout the foreseeable future. Sony has a required rate of return of 4,0%. What is the expected growth rate in earnings and dividends? a. 6.11% O b.5.11% O c. 3.11% O d.
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Describe the different types of instruments by which a securitization can be implemented? Briefly explain the pricing of these instruments and also highlight the benefits of securitization to the institution and the investors.

please answer and justify fasle staements 2. Which of these options are true? Justify false statements. i. If a project with conventional cashflows (eash outfow at the star, eash inflows later) has a discounted payback period less than the project's life, the NPV of the project can be either positive, or zero, or negative. ii. If a project with
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Nonot being able to attend cash from a certificate of deposit before the maturity date is what type of risk

On January 20, Metropolitan Inc., sold 10 million shares of stock in an SEO. The market price of Metropolitan at the time was $42.25 per share. Of the 10 million shares sold, 5 million shares were primary shares being sold by the company, and the remaining 5 million shares were being sold by the venture capital investors. Assume the underwriter

Suppose today is January 2,2017, and investors expect the annual risk-free interest rates in 2021 and 2022 to be: 2021 - 4.5% 2022 - 2.3% Currently a four year treasury bond that matures on December 31,2020 has an interest rate equal to 2.5 percent. What is the yield to maturity for treasury bonds that mature at the end of (a) 2021 (a five-year

An investor expects to receive $ 1 , 2 5 0 in one year from an initial investment of $ 1 , 2 0 0 . Calculate the annual percentage return using the following compounding methods:

Question 15 1 pts Using the information in Question 14, what are the interest payment and repayment of the principle for Month 1? $1,214, $1,354 $1,354. $1,214 $1,006, $1,563 $1,563, $1,401 Question 15 1 pts Using the information in Question 14, what are the interest payment and repayment of the principle for Month 1? $1,214, $1,354 $1,354. $1,214
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Aretailer has a beginning monthly inventory valued at $60,000 at retail and $35,000 at cost. Net purchases during the month are $140,000 at retail and $70,000 at cost. Transportation charges are $7,000. Sales are $150,000. Markdowns and discounts equal $20,000.A physical inventory at the end of the month shows merchandise valued at $10,000 (at
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You buy 3000 shares of XYZ for $50 with 60% margin. Three months later the price is $72. What i: the buying power for your investment? Show all work
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Cost Flow Methods The following three identical units of Item LO3V are purchased during April: Item Beta Units Cost April 2 Purchase 1 $84 April 15 Purchase 1 88 April 20 Purchase 1 92 Total 3 $264 Average cost per unit $88 ($264 + 3 units) Assume that one unit is sold on April 27 for $127. Determine the gross profit for April and ending inventory
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QUESTION 35 A currency trader observes the following quotes in the spot market 1 U.S. dollar 1 British pound 1 British pound - 83.0000Japanese yen 2.2500Swiss francs 1.6500U.S. dollars Given this information, how many yen can be purchased for 1 Swiss franc? 61.4753 51.1280 O 57.8233 O 49.3020 60.8667
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You would like to have $1000 in 1.5 years to buy a new wardrobe when you graduate and enter the job market. If you think you can earn 8% on your money, how much must you deposit today? (Hint: Convert to a semi-annual rate for r and use the number of semi-annual periods for t. Semi-annual means two periods per year.) Enter only numbers in your

Greta, an elderly investor, has a degree of risk aversion of A = 3 when applied to return on wealth over a one-year horizon. She is pondering two portfolios, the S&P 500 and a hedge fund, as well as a number of one-year strategies. (All rates are annual and continuously compounded.) The S&P 500 risk premium is estimated at 6.2% per year, with a SD

( Bond valuation ?) Bank of America has bonds that pay a coupon interest rate of 5 percent and mature in 10 years. If an investor has a required rate of return of 7.6 ?percent, what should she be willing to pay for the? bond? What happens if she pays more or? less? a. The price she would be willing to pay for the bond is ?$. ? (Round to the

l got wrong answer from chegg and it's my last chance. please please please give me right answer. Thank you! Crane Lumber, Inc., is considering purchasing a new wood saw that costs $80,000. The saw will generate revenues of $100,000 per year foe five years. The cost of materials and labor needed to generate these revenues will total $60,000 per
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In 2020, Uniontown Books had EBIT equal to 800,000. In 2021, its EBIT was 2,300,000. The company has no debt, and therefore, pays no interest expense. Its corporate tax rate is 25. What was Uniontowns tax liability for 2021 (Assume that the company takes full advantage of the carryforward provision.) Oa. 775,000 b. 50 Oc200,000 d. 375,000 575,000
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Exercise 1: Cost recovery You are a consultant and you have been tasked to reform a road administration. Draft a schematic that summarises a cost recovery process to be introduced in the road administration under reform. With the aid of a spreadsheet, draft a budget based on the above principles. Exercise 1: Cost recovery You are a consultant and
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An American option can be exercised: A) American option has no expiration date B At any time before expiration After expiration D On the day of expiration
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can you explain in details and give the formulas as well? thanks a lot Question 1: shortly explain all the capital structure theories and compare them with your own words (no copy paste from somewhere. Use your own book as reference.) Then randomly choose three companies enlisted in Borsa stanbul and analyze their balance sheet. Write your
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Software Company 1st Quarter working hours and payments Work hours Rates Roles Overtime Regular Overtime Payment Analysis and design Back-end developers U developers HR Accounting Test and Deployment Sales and Marketing Regular 1500 4080 1560 750 2000 2300 2700 400 670 100 50 900 100 50 $ $ $ $ $ $ $ 35.00 50.00 45.00 20.00 22.00 26.00 30.00 Total
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Soru 13 5 Puan Net Income 500.000 Net Sales 2.000.000 Current Assets 5.000.000 Currrent Liabilites 10.000.000 Cost of Goods Sold 1.000.000 Average Inventory 2.000.000 Calculate the profit margin based on the above data. 0,20 2 3 D 4 E 0,25
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(Related to Checkpoint 9.6) (Inflation and interest rates) What would you expect the nominal rate of interest to be if the real rate is 4.2 percent and the expected inflation rate is 6.8 percent? The nominal rate of interest would be \%. (Round to two decimal places.)
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The SML line can change due to expected inflation and risk aversion. If inflation changes, then the SML plotted on a graph will shift up or down parallel to the old SML. If risk aversion changes, then the SML plotted on a graph will rotate up or down becoming more or less steep if investors become more or less risk averse. A firm can influence
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ect Question 35 0/2 pts 35. Tony Robbins' wealth strategy: save $300 per month from age 20 to age 30 (i.e. 10 years), and then you stop making any monthly deposits, and you leave the account alone until you are 65 years old (i.e. leave it alone for 35 years). Question Three: At 65 years old, you have saved up a lot of money. Now, you're retired
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associated witating an investment proposal, which faces uncertainty important variables-original cost, useful life and annual net cash 1) The MC Company is evaluating in flow Annual cash inflows Original cost Value $60000 Useful Life Prob Prob Value 0.4 0,000 0.4 S15000 0.2 20,000 Prob Period 5 years $70,000 0.6 6 years 7 years 0.1 0.3 0.4 0.2
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macaulay

Formulas E(R) on non-benchmark Bonds =r=Ry+RP, PV of Bond =SUM [C/(1+k) + C/(1+4)2 + ... + (C+par)/(1+k)"): DUR=SUM{[Cz(1)/(1+1)] + [C (2)/(1+k) +...+ [C,(n)/(1+k)"]}/SUM{[C/(1+k)] + [Cy(1+k}+...+ [C. (1+0)"): DURDUR /(1+k): PESUM{[(C+Prin)/(1+k)] + [(C+Prin)/(1+k) ++ [(C+Prin)(1+k)")); R=(SP-INV - Loan +D)/INV: R-Profit / Investment A bond with a
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Jump Inc. is adding a new assembly line at a cost of $8.5 million. The firm expects the project to generate cash flows of $2 million, $3 million, $4 million, and $5 million over the next four years. Its cost of capital is 14 percent. What is the net present value of this project? Select the choice that is closest to your answer. Group of answer

A loan is being repaid in equal annual installments at 4% effective per annum. If the principal repaid in the next to the last installment is $100, find the interest contained in the installment due 5 years before the last installment.

Based on your risk assessment, your required rate of return is 9 percent for a bond you own. It has 10 years left to maturity; it is a $1,000 par value zero coupon bond. The market price of the bond is $850. Find the value of the bond to you. O A. $395.60 OB. $422.41 O C.$550.12 O D. $590.90 O E. $605.12
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Horrace Greedly uses the utility function U(C) = 50.2% + 100 to make investment decisions. He is presented the following opportunity: for an initial price of X, > 0, he will have a 64% chance of receiving 200 and a 36% chance of receiving nothing. What is the highest price X, that Horrace would be willing to pay? Give an exact response; decimal
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13. Glenbrook Gallery on December 31, 2019, It had $585,000 as an ending balance for its retained earnings account. During 2019 it declared a $3.50/share of dividends, also in 2020 the Gallery declared a $5.50/share dividend to its stockholders. The Glenbrook Gallery has 50,000 shares of common stock outstanding. When the books were closed for
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Please show the formulas for each step. Consider a bond with a coupon rate of 3%, a YTM of 4%, and a face value of $1000. Coupon payments are made annually. The bond matures in 3 years. Please document the bond value, current yield, and capital gains yield each year for the bond. Explain what is happening to bond value, current yield, and capital

A bank gives you a bid-ask quote on the BGN (Bulgarian lev), of 0.73 - 0.74 USD/BGN. What is the percentage bid-ask spread? Enter anwer in percents, accurate to two decimal places.

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