Finance Questions and Answers December 23, 2021

3 An insurance company produces the following summary of claim amounts and number of car insurance policies sold in four cities of the UK. Claims (1000s) Edinburgh Dundee Manchester London Policies Edinburgh Dundee Manchester London i) ii) iii) 2016 745.28 164.94 1,204.09 615.06 2016 1726 556 2743 790 2017 629.78 213.26 1,244.51 607.62 2017 1569

You manage a job shop creating custom banners for small businesses. You have a single machine that produces all the banners. When an order arrives from a customer, you check over the file for consistency, make adjustments so that the electronic instruction file for the production machine is correct, and then you send it to the machine for

The total amount of money (in cents) in x nickels, (x+3) dimes, and 2x quarters. (hint: the value of a nickel is 5 cents, the value of a dime is 10 cents, and the value of a quarter is 25 cents) The "hint" baffles me Why is the value of coins important in this equation?

To make ends meet, Mrs. Farnsby works three jobs. Her total income last year was $48,000. Her income from teaching her was only $6,000 more than her income from painting houses. Her royalties from the sales of her textbooks were one seventh of the total money she received from teaching and painting houses. How much did she earn from each source

Evaluate the double integral from 0 to 1 and x^2 to 1 of (x^3)(sin(y^3)) dy dx by reversing the order of integration.

The Horace Corporations inventory at December 31, 2017, was 330,000 based on a physical count priced at cost, and before any necessary adjustment for the following Merchandise costing 38,000 was shipped to a customer F.o.b. destination on December 28, 2017 arrived at the customers location on January 6, 2018. Merchandise costing 30,000, shipped

Foxworthy Corporation's most recent balance sheet appears below: Comparative Balance Balance final Opening balance Assets: Cash and cash equivalents $36 $35 accounts receivable 71 63 Inventory 63 64 plant equipment 552 500 Less accumulated depreciation 336 319 Total assets..................................... $386 $343 Liabilities and

Maddy agrees to pay Millie the sum of 100,000 at the end of 25 years in return for a yearly payment for 25 years of 2401.20, the first payment being due in 12 months. Immediately after the 8th payment, Millie decides she cannot continue in full and suggests that either (i) payments by Millie should cease and Maddy should be liable to pay 35,000 at

There is a firm whose ROE and BVPS are 0.08 and $9 respectively. Next year if the P/E is 12 times what is the price of the company next year?

The following table compares MS-DRG family percent of total volume for Community Hospital, the state, and the nation. Which MS-DRG(s) should Community Hospital consider for further analysis?

MSDRG 385 386 387 MSDRG RW Community Hospital State of Total of Total Volume Volume 1.6103 0.9852 0.7007 21 21 58 27 51 22 Nation of Total Volume 25 50 25

Love Canal General Hospital wants to purchase a new blood analyzing device today. Its local bank is willing to lend it the money to buy the analyzer at a 2 percent monthly rate. The loan payments will start at the end of the month and will be 1,700 per month for the next 18 months. What is the purchase price of the device General Hospital wants to

Suppose we have a project with the following cash flows You need to use the functions built-in in excel to answer the question. Manually filling in the answer will receive 0 point Year CFs 0 -110,000 1 13,000 2 17,050 3 20,000 4 29,010 5 30,000 6 27,800 7 17,040 8 22,080 9 12,100 a) What is the net present value of this project, assuming the

2. Pick any stock and look up the current option prices. Pay particular attention to the implied volatility, the volatility which, if plugged into the BlackScholes pricing formula along with the other known parameters, would yield the price of the option. (a) Choose an expiry date and report the prices for the call option at five different strike

Suppose that a $1,000 bond when newly issued paid a fixed $40 per year and interest. Suppose further, that after several years, the market price of that bond his fallen to $900. What is that bonds current yield percentage? ________ 20. A $1,000 bond that is trading at 86% of par is selling for a price = _______ 22. given a federal tax rate = 30%,

Ups and downs inc., a 4,000 employee organization, has a serious turnover problem, and management has decided to estimate its annual cost to the company. An HR specialist collected the following information. Exit interviews take about 45 minutes (plus 15 minutes preparation0; the interviewer, and HR specialist, is paid an average of $33 per hour

Use the following information to answer questions 1-2 The Federal Tax Credit is 18.97%; the Provincial Tax Credit is 6.7%; Dividends must first be grossed up by 45%. 1- An Ontario resident earned $1,545 in dividends in 2009. His regular income was $176,000 and the Ontario dividend tax credit is 6.7%. Calculate the following: the dollar amount of

Federal Tax Rates Taxable income 037,178 37,179 74,357 74,358 120,887 120,888 and over Tax Rate 15.0 22.0 26.0 29.0 Ontario Taxable Income 035,488 35,489 70,976 70,977 and over Tax Rate 6.05 9.15 11.16

Xian has won the lottery. He has the option of the following two payouts: (a) A lump sum of 1,000,000. (b) A level perpetuity-due with annual payments of 47,619.05. (c) An annuity with 20 payments at the beginning of each year for 20 years. The first payment is P, with each subsequent payment being 10% greater than the previous payment. All

A firm is selline 2 millions shares of bonds with warrants package. Someone buying 1 packace would receive a 6% coupon interest rate, 20-year bond plus 10 warrants. Each warrant is with $30 strike price and 10 years maturity. How much cash will the firm receive when all warrants are exercised?

Celine's, a hair-dressing salon has an average of 313 customers per week. Each customer spends on average $62.01 per visit. The fixed costs for the salon are $4979 per week and the average cost for each customer, which includes materials and labour, is $22.85. How many customers do they have to service to break-even? Round to two decimal places.

1.) Find the demand equation using the given information. (Let x be the number of items.) A company finds that it can sell 50 items at a price of $90 each and sell 100 items at a price of $60 each. 2.) Find the demand equation using the given information. (Let x be the number of items.) A company finds that at a price of $130 each it can sell 70

Compute the future value and present value of Cash Flows You need to use the functions built in in excel to answer the question. Manually fill in the answer will receive 0 point a) What is the future value of these cash flows at the end of year 9 (Assume CFs occur at the end of each year)? Year CF 1 15,000 2 17,000 3 21,040 4 22,987 5 24,000 6

Assume the firm has no debt, the total value of the firm is $900 million. However, its managers know the market has overestimated the future free cash flows and that the true firm value is only $700 million. Suppose the company raises $300 million of new equity and invests in proiects with a present value of $300 million. What is the stock value

1-An investor earned an arithmetic average return over 4 years of 12.8%. The first year's return was 13.3%, the second year's return was -4.40%, the third year's return was 22.9%. What was the fourth year's return? 2- An investor earned a geometric average return over 4 years of 14.00%. The first year's return was 14.50%, the second year's return

Consider the following selected financial information for Britvic plc, the British soft drinks company (and constituent of the FTSE250 index). Cash generated from operations is 232.3m (Annual Report, 2021). The cost of investment is 56.4m. The number of outstanding shares is 266.8m. The estimated cost of capital is 9.8% (derived in Assignment

Consider an investor in Europe that observes the spot price for the US dollar as currently 1.4544 /$. A nine-month futures contract on the dollar is quoted in the market as 1.4052 /$. If the American and European nine-month interest rates are 3.5% and 6.5 % p.a. respectively, determine if there is an arbitrage opportunity and if any, describe a

1. Third Internet Bank of America, an online-only bank, finances 65% of its assets from savings deposits that now pay 3.5%. Typical Community Bank finances 65% of its assets from small-denomination savings accounts that now pay 0.4%. If market interest rates suddenly fall by 100 basis points, which bank will likely experience the bigger decline in

What are the x-and y-Intercepts for a Line with one point at (2,1) and another at (6,3) ?

What would you multiply each term by to clear the decimals in the following equation: 0.005y=0.07=0.009

Let V (v1,..., Vn) be a family of vectors in R Furthermore, (,) denotes that canonical dot product. Then the elements gij of the Grams matrix G are by means Bij (vi, vj) Are defined. The determinant of this matrix is called Grams determinant. a) Assume that the vectors vi are pairwise orthogonal and calculate for this situation the Grams

Compute and mark on the complex plane 7p the roots of p(z) 242 302 42 29, knowing that p(j) 0 11 3p solutions of the equation 23

Find all values of A such that the following system of equations is consistent. 2x 4y 4z 4 2r (x4)y 4z 5 x2y2z(A1)(A2)

Find the slope and yintercept. Express the intercept as an ordered pair. Simplify your answer k (x)

Given the following factored polynomial, p(x)x(2x)(x2)5 Perform the Multiplicity Test by answering the following The zero x 2 has multiplicity A The zero x 0 has multiplicity The zero x 2 has multiplicity A Therefore the graph of p(x) will (choose crosstouch) A at x 2 A at x 0 A at x 2,Question 2 (2 points) Given the following polynomial, p(x)

Given the following equation of a linear function, 211 4 answer the questions below. All numerical values are integers (do not use decimals). Only show the sign if negative. ANSWER WITHOUT ANY SPACES and use brackets and commas where appropriate (if a coordinate point is requested, you must answer in the format (1,2) with no spaces). slope

Compute the remaining book value (RBV) of an equipment at end of year 5. The equipment costs $6,000,000 today. The equipment is considered for tax purposes as a 7-year MACRS class. The MACRS table is provided in excel in this problem 7-year MACRS class 0.1428 0.2449 0.1749 0.1250 0.0893

Suppose that BRW corporation is borrowing F = $300M at a floating rate equaling (6 months) LIBOR plus a spread s = 3.00% for T = 5 years. (Interest payments are made semi-annually.) To better manage its cashflows, BRW simultaneously enters a 5-year swap as fixed payer on N1 = $180M; the swap rate is c = 0.0220. Finally, BRW purchases an interest

You learn that an investor has unexpectedly decided to make the following GIFT to your venture: At the end of five years (from today), you receive a $925,000 gift Suppose the interest rate that applies to your investments is 4%. You include the present value of the gift in a presentation of your financials. How do you represent its value in your

You invest $10,000 in January 1 of 2020 into a project that you expected to yield an annualized return of 5%. First question: According to your original expectations, what would the future value of the investment be 5 years later ? Second question: Due to unforeseen circumstances, your project yields an annualized return of negative 30%. What is

Based on the recent increase in residential property prices in Dublin a company has decided to diverse its investment portfolio and invest in property. The company is considering purchasing a newly constructed apartment block at an initial cost of 10 million plus a further payment of 3million in six months time. Rents will be received annually in

(a) Jones invests 100,000 in a 180day short term guaranteed investment certificate at a bank, based on simple interest at annual rate 7.5. After 120 days, interest rates have risen to 9 and Jones would like to redeem the certificate early and reinvest in a 60day certificate at the higher rate. In order for there to be no advantage in redeeming

Assume the stock price of a company follows the Geometric Brownian Motion (refer to the formula sheet for the equation of Geometric Brownian Motion), with expected stock return 12 and volatility of stock return at o25, The current stock price is 34. a) About such stock price S in general, show that Geometric Brownian Motion for S implies that S

Suppose that there are three equalsized groups of voters in a community trying to select the amount of educational expenses per student. The alternatives are to spend either 3000, 5000, or 7000 per student. The positions of the three voting groups are shown below Table 1.1 Benefit Matrix Group Most Preferred Second Choice 1 II III 3000 5000 7000

The table below shows basic information about five corporate bonds (F J). Using the information given, calculate the bonds yield-to-maturity based on the Current Market Price. NOTE: be sure to state the yield-to-maturity in annual terms. NOTE: Assume that all bonds make coupon payments semiannually . Coupon Years to Current Bond Par Value

Compute and report the discounted payback period of the following FCF. The term of the project is 4 years. The initial outlay is $24 million (period 0). FCF in period 1 is $8 million. It grows at 20% for the following 3 years. The required rate of return is 12%. The terminal value is $5 million.

Compute the change (investment) in net working capital for year 2024 using the following information for Great Trees Corp. Discount rate 10% Tax rate 20% 2020 2021 2022 2023 2024 2025 Sales Estimated sales after adjusting erosion/synergies $30000 $33400 $36200 $38400 $40200 Current assets as % of sales 9% 8% 10% 17% 11% Current liabilities as % of

Five lifeguard towers are lined up along a beach. The leftmost is Tower 1 and the rightmost is Tower 5. Two vendors, A and B, each have an ice cream stand that can be located at one of five towers (which they place simultaneously and independently). There are 20 people located near each tower, and each person will purchase ice cream from the stand

You unexpectedly earn $1,200. Instead of blowing through the money, you decide to invest it in a mutual fund which earns 4.0% compounded annually. You would like to know how long you will need to keep the money invested for your investment to grow to $66,000. What would you need to enter in Excel to help you answer this question? =NPER(4.0%,

Suppose that Company ABC will borrow $50 million for 5 years at a rate of SOFR 0.10%. It would like to transform this loan into a fixed-rate loan. A financial institution is ready to enter into an interest-rate swap with Company ABC. The bid rate on the swap is 2.45% while the ask rate is 2.5%. a) Design the interest-rate swap that Company ABC

1. Let RA be simple return on asset A, Rg be simple return on asset B and Wo be initial wealth. Assume Riid N(,, o), i A.B cov (RA, RB) OAB, Corr(RA, RB) PAB. where A B and A OB. Consider the Portolio Return Rp CARA B RB, with A B 1. Let q is a quantile of Z N(0, 1). (a) Find the expression for the mean of the portfolio return p var (Rp).

20.82 Harrison Ave. 19.55 19.65 19.76 . 21.11 19.87 Design a VCP gravity flow sewer main along Pierce Street to serve the mains from the cross streets starting at the intersection with Madison Avenue and ending at Harrison Avenue. Prepare a sewer design table similar to that shown in Example 192. Use the following assumptions minimum invert depth

David owns a two-stock portfolio that invests in Falcon Freight Company (FF) and Pheasant Pharmaceuticals (PP). Three-quarters of Davids portfolio value consists of FFs shares, and the balance consists of PPs shares. Each stocks expected return for the next year will depend on forecasted market conditions. The expected returns from the stocks in

Gifts For All has projected sales for next year of: Q1 Q2 Q3 Q4 Sales $ 25,200 $ 27,400 $ 33,700 $ 41,700 Purchases are equal to 70 percent of next quarter's sales. Each month has 30 days, the accounts receivable period is 41 days, and the accounts payable period is 44 days. How much will the company pay suppliers in the third quarter?

You are given the following information for Wine and Cork Enterprises (WCE): r RF = 4%; r M = 9%; RP M = 5%, and beta = 1.1 What is WCE's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. If inflation increases by 2% but there is no change in investors' risk aversion, what is WCE's required

Nelson wants to open a small boutique hotel in 5 years time. The building he wants to buy for this project is worth $22,000,000. He knows that hell need a 15% down payment for the building, and hes budgeting an additional $3,000,000 for renovations and decor. 1. If Nelson can secure a high-yield investment that earns 11.7% compounded monthly, what

Dillingham, Inc., has a 60-day collection period. The projected sales for each quarter next year are shown below. What are collections for the third quarter? Q1 Q2 Q3 Q4 Sales $ 3720 $ 4320 $ 4725 $ 5220

The covariance of the two securities is 0.022. If the correlation coefficient is 0.52 and the standard deviation of one is 15%, what should be the standard deviation of the other security?

Network Communications has total assets of $1,870,000 and current assets of $667,000. Rotate your fixed assets once a year. He has $335,000 in debt. Your return on sales is 5 percent. What is your return on equity? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.)

If your taxable income is $190,000 and the marginal tax bracket between $157,500 and $200,000 is 32%, what would be the tax due on earnings above $157,500?

Stock A has a beta of 1.2 and Stock B has a beta of 0.8. The expected return of Stock A is 11.1% and the expected return of Stock B is 7.85%. The risk-free interest rate is 2% and the market premium is 7.2%. Are the stocks priced correctly? Which one is more expensive than the other?

Suppose the spot rate for the British pound is $1.4248 and $1.4179, respectively. Suppose the sterling futures is sold at a discount of 1.94% per year, what is the number of days of the futures contract?

Suppose one-year interest rates will be 5%, 6%, 7%, 8% and 9% over the next five years. There are 0%, 0.25%, 0.5%, 0.75% and 1.0% liquidity premiums for bonds lasting one to five years, respectively, in the short-term bond holding preferences of investors. What is the interest rate on a two-year bond and a five-year bond?

ABC Company has issued a 12% coupon bond with a maturity of 4 years with a nominal value of 2,000,000.The bonds were sold at a discount of 10%, and the public offering expenses amounted to 8% of the total nominal value.The corporate tax rate is 20%.Calculate the cost of this bond issue when the principal is paid a) At maturity, b) in equal

You just won $150,000,000 worth of Lottery. You learn that you have two options: Option A: Get $35 million in cash value today (excluding taxes) Option B: Winner is guaranteed 30 incremental payouts over 29 years; First payment made today. These payments will increase by 5% each year until the final payment. The first payment received today equals

How much interest is owed on a $2,100 debt borrowed at 5.25% for 90 days? Calculate.

Julie inherited 500,000 from a relative that is payable to her when she turns 21, which is 11 years from now Your bank has agreed to buy the inheritance and give her the cash now, and uses a 12 discount rate for the transaction, compounded quarterly. How much will Julie get now for this transaction (4 points)

Draiman Guitars is offering 70,000 shares of stock in an IPO by a general cash offer. The offer price is $31 per share and the underwriter's spread is 9 percent. The administrative costs are $310,000. What are the net proceeds to the company?

You estimate you will need $30,000 for a down payment on the 40 acres you plan to purchase in 5 years. How much would you have to put away today (in a lump sum) if you can earn 5% annual compound interest? 1.b. Suppose you plan to save the same amount (found above) each year for the next five years at 5% interest. How much will you need to save

1. An electric utility company is considering the purchase of a hillside ranch to site a future wind farm. The owner of the 500acre ranch will sell for 3K per acre if the company will pay her in three equal payments the first payment now and the other two at the end of years 1 and 2. If the transaction interest rate is 8 per year, what is the

Your Grandmother invests 2,500 into a project that is expected to earn 15 APR compounded monthly. If she gives this to you on your 18th birthday for college, how much will you have

Youve collected the following information for the most recent financial year of Ontario Iron . Cash 25 million Inventory 42 million Total assets 280 million Fraction of sales on credit 100 Average collection period 50 days Payables period 43 days . Current ratio 1.2 . (Total) asset turnover 4 Inventory turnover 9 Total debt ratio (total

You have an opportunity to invest in a business that will pay $200,000 in one year, $400,000 in two years, $600,000 in three years and $800,000 in four years. You can earn 12% per year compounded annually on a mutual fund that has similar risk. If it costs $1.2 million to start this business, should you invest?

You are considering a new preferred stock issue. The preferred stock will pay a $16.00 annual dividend, but will not begin paying dividend until 10 years from today. If your required return is 12%, what is the most you would be willing to pay for this preferred stock?

Corporation has three product lines with limited demand. The firm has NO fixed costs. Below are some facts about the firm. Oh! No! Way! Monthly demand (units) 100 120 140 Machine hours per unit 3 6 8 Price per unit $70 $75 $80 Variable costs per unit $60 $62 $60 The firm can only supply 1,780 hours of machine time per month between the three

Calculate the standard deviation for Stocks A and B.

State of Economy Recession Normal Boom Probability of State of Economy .16 .61 .23 Rate of Return if State Occurs Stock A .04 .08 .15 Stock B .20 .09 .26

Consider a 30-year, traditional mortgage on a $220,000 property. With 30% down payment and a 3% APR. Mortgage payments are made monthly. What is the 216th payment? Note: Show your answer in units of dollars, use plain numbers with at least two digits after the decimal (e.g., for $12,345.67, type 12345.67).

Assume that you wish to invest 17,000 in the following two stocks and create a marketvalueweighted portfolio. How many shares of Stock 1 should you buy Stock Stock 2 1 of Outstanding 15.000 20.000 Shares Current Stock Price 40 20 Round your answer to the nearest whole number.

31. What would be the expected rate of return for Elaine Josephson Architecture LLC(EJA) Comme Stock if EJA has a beta of 3.52 the expected return for the Stock Market as a whole (or the avapital stock) is 15.75 and the U.S. Treasury Bond rate is expected to average 4.375 Use the Capital Asset Pricing Model to calculate the estimated return for

A zero-coupon bond matures in 20 years. At its current YTM, it will sell for $4000 in 5 years. Today, it sells for $270. What is its capital gain yield? (Assume annual compounding.)

Suppose a Google.com bond will pay $4,500 ten years from now. If the current interest rate on the safe 10-year bond is 4.25%, how much is the bond worth today?

With an Initial Investment of a Semi Truck for 185,000 and Cash Flows for 7 Years and an expected residual value of the Semi Truck of 25,000 after the 7 years, What is the NPV for this Semi Truck assuming a 9 discount rate What would be the IRR (HINT 7th year cash flows will be cash residual value) Initial Investment 185,000.00 Discount Rate 9

Gerald Kiraly sold 8 Romond Corporation bonds with a coupon rate of 8.375 and a current market price of 95.25. The commission charge is 10 per bond. The date of the transaction is 72 days since the last interest payment. What were the proceeds of the sale

Capital expenditure 250,000 125,000 75,000 Cash dividends 140,000 140,000 140,000 Cash flow from operations before interest expense 750,000 780,000 800,000 5. What are debt service requirements at year 2 [hint: annual debt services = P + I + cash dividend)?

Hassims Fireworks & Cycles had free cash flow of R129 550 this year, and expects this to grow by 3% each year for the foreseeable future. The company has a weighted average cost of capital of 8%. What is the value of the company today?

John Cromwell is the 54-year-old CEO of Safe Air, Inc., a U.S. corporation that sells compressed air tanks with face masks to U.S. fire departments. Safe Airs masks are the best available, and Cromwell has often stated that Safe Air has no expertise in manufacturing air tanks. It consequently has always purchased tanks from an external supplier.

Bjorn incorporation has a total debt ratio of 50 percent. bjorn incorporation has sales 1.200.000 total assets of 600.000 and a profit margin of 10 percent. what is the return on equity ?

Air Atlantic (AA) has been offered a 3-year-old_ jet airliner under a 12-year lease arrangement. The lease requires AA to make annual lease payments of $500,000 at the beginning of each of the next 12 years. Determine the present value of the lease payments if the opportunity cost of funds is 14 percent. Please show all work and formula.

Endicott Enterprises Incorporated has issued thirty-year semiannual bonds with a face value of $1,000. If the annual coupon rate is 14% and the current YTM is 8%, what is the firm's current price per bond? Please show the formula and working not the financial calculator

Dina Naples is saving money at the IBM Credit Union for a down payment on a house. How much does she have to save at the end of every month in order to accumulate a total of $12,000 at the end of five years if the money is invested at 0.5% per month? Please show formula not the financial calculator

AllEquity Limited an all equity firm, pays no corporate taxes. It has 1,000,000 shares outstanding which are trading at 100 each. Mr. NoMoney and Ms. MoneyTree are shareholders of AllEquityLimited. AllEquity, NoMoney and MoneyTree can borrow and lend money at 6. NoMoney has a personal tax rate of 30 and MoneyTree of 25 on both equity income and

United Kingdom. Sales are currently 2,300,000 units per year at the pound equivalent of $152 each. The current exchange rate is $1.2184/ but the dollar is expected to appreciate next week by 15.18% after which it will remain unchanged for at least ten years. Accepting this forecast, Atlas Corp. faces a pricing decision in anticipation of the

do&co company has following information: cost of good sold=$792,700; sales=1,100,000; interest=61,300; depreciation=96,000; dividend payment= 400,000; tax rate=20%. what is the addition to retained earning for Do&co for the year

The risk-free interest rate is the same as the data in Problem 4.5. What is the value of the FRA that begins after a year when it pays LIBOR for three months on a principal of 1,000,000 months of holders and receives a 4.5% (quarterly compounded) interest rate? The forward LIBOR interest rate for three months is 5% (quarter compounded).

Problem 4.5 i. Suppose that riskfree zero interest rates with continuous compounding are as follows Maturity (months) 3 6 9 12 15 18 Rate ( per annum) 3.0 3.2 3.4 3.5 3.6 3.7

3. Consider the following two investments, each of which has an original cost of 20,000. Net revenues () year 1 2 3 4 5 6 1 2 3 Investment A 5,000 5,000 5,000 4 5 6 5,000 5.000 5,000 Here is a table of discount factors (e.g. Present Value of 1.00) for different interest rates Year 4 0.962 0.925 0.889 0.855 0.822 0.790 Investment B 1,000 4,000

2. Which would you prefer to receive, if you can invest the funds at a 5 annual return Find the present value for each option. a) 1,000 a year for 10 years, or b) 800 a year for 15 years at 5 interest What if the interest rate is 15 Find the present values again. a) b) Why should you use present value to compare these options instead of future

Wowzer Inc. had the following stock returns between 2018 and 2021. Stock Return Year 2021 2020 2019 2018 What was the stocks standard deviation over this fouryear period 9 12 11 17

(Payables) Suppose Boeing imported a RollsRoyce jet engine for 2 million payable in one year The U.S. interest rate 5.00 per annum The U.K. interest rate 6.50 per annum The spot exchange rate 1.325 The forward exchange rate 1.375 (1year maturity) Call option premium 0.02, Strike price 1.35. If the future spot price is expected to be 1.425E and

Peter and Blair recently reviewed their future retirement income and expense projections. They hope to retire in 25 years and anticipate they will need funding for an additional 14 years. They determined that they would have a retirement income of 47,000.00 in todays dollars but that they would actually need 66,956.00 in retirement income (in

Table 14.1 Principal and interest payments for a Treasury Inflation Protected Security Inflation in Year Time Just Ended O 1 Return to Table 14.1, showing the cash flows for TIPS bonds. a. What is the nominal rate of return on the bond in year 2 b. What is the real rate of return in year 2 c. What is the nominal rate of return on the bond in

Consider the following security Brous Metalworks Earnings Per Share, Time 0 Dividend Payout Rate Return on Equity Market Capitalization Rate Required Using the information in the tables above, please calculate the sustainable growth rate, dividends per share, and intrinsic value per share. Then solve for the present value of growth opportunities.

( a ) Distinguish between re - financing risk and re - investment risk. Give examples of each. ( 8 marks ) ( b ) Consider the following extracts from the balance sheet of Bancomutual ( values in fmillions and duration in years ) : Calculate the duration gap for Bancomutual. ( 5 marks ) ( c ) Explain the relationship between the market value of