Finance Questions and Answers May 28, 2022

T&Co entered a cross currency swap four years ago and the swap has exactly one year to run. Under the swap T&Co pays a bank 4.7% p.a. fixed on USD 7 million and receives 7.4% p.a. fixed on AUD 10 million. The next and final swap payment is due in one years' time. One-year zero coupon yields are 5% p.a. (c.c.) in the US and 9% p.a. (c.c.) in

Teresa needs to buy some furniture for the new home. Harvey Normal Furniture has approved the maximum payment credit for the furniture she can buy of $250 a month for 60 months. The commercial lending rate is supposed at 5.7% pa. How much furniture can she afford to purchase using the credit offered by the store?

You invested $20,000 5 years ago into an account. The amount in the account is now $45,000. a. What was your annual return each year if compounding occurred annually? b. What was your annual return each year if compounding occurred quarterly? c. What was your annual return each year if compounding occurred monthly? You have $10,000 to

A replay attack is an attack where the attacker intercepts messages sent over the network and resends it to the receiver to fool the receiver into doing what the attacker wants. Describe a scenario where a replay attack will result in undesirable consequences. Examine two (2) countermeasures that will thwart the replay attack.

Your clients Jack Jill expect to spend 100,000 per year (in todays dollars) in a typical year in retirement from their saved capital. If the following is true how much should they likely have saved when they retire assuming the following . They plan to retire in 10 years . They (and you) expect they may likely need income in retirement for 35

Assume my current retirement account has $100,000 invested in the the S&P500. You are my Financial advisor and I need you to provide me with a plausible range for my investment by the end of my working life (say 30 years from now). What is the chance I will outperform a Fixed income investment with a yield of 2% per year?

Gold has served as a medium of exchange and a store of value. The increase in trade led each country to set a par value for its currency in terms of gold. The gold standard as an international monetary system gained acceptance in Western Europe in the 1980s. The U.S. adopted the gold standard in 1879. Under the gold standard, each country set the

Emily is considering purchasing a new home for $400,000. She intends to put 20% down and finance $320,000. Fixed rate mortgage over 30 years at 4% interest, plus two discount points. What serial payment should Robin make at the end of the second year?

In the following circuit, let V1 9 V, R1 2.0 kQ2, R2 2.5 kQ2, R3 1 KQ, R4 6 KQ. Find the constant A, such that the decay constant of Capacitor 2 (Tdecay) is 2 milliseconds. V1 R1 1 mF www R2 ww Vci(t) t0 Vez(t) 1 F R3 . 2x4 R4 ww Ax 1

A trader is considering purchasing several ArrowDebreu securities which all have the same maturity time, but provide a payoff of 1 at all possible states of the maturity time. The trader thinks that this is a very clever investment plan, and is possibly an arbitrage opportunity because it ensures there is always a payoff of 1. Here we investigate

The annual return distributions (distribution, mean and variance) for stocks X and Y are specified as rx~N(0.10, 0.04) ry~N(0.15, 0.09) With the bare minimum of calculations, outline which stock will have the lower 1-year value-at-risk (VaR) at the 95% and 99% levels.

A columnist made the following comment in an online article: "In any case, the Q-factor approach, unlike consumption CAPM, explains where the anomalies come from (and why they might end). Consumption CAPM is sadly quite deficient when it comes to explaining cross-sectional variation in returns across stocks. Most generally, this "investment CAPM"

The below data is for an ASX listed company, Metacash. Calculate cost of equity using both CAPM and Fama French methods. Premiums Market risk premium Size risk premium Market to book risk premium Risk Free Rate Coefficients b S h CAPM beta 7.00 2.55 3.81 4.30 1.4450 0.998 1.2232 1.5000 5 Marks Discuss step by step the implications of calculating

Carlo Elise bought a stock namely Joy and Empoy Corp. whose market price is Php102.50 and Php220.00 respectively. On March 26 he sold half of his portfolio for Joy Corp. and Empoy Corp at a market price of Php105.75 and Php248.50 respectively. On July 07 he sold the remaining shares of 50 for Joy Corp. and 500 shares for Empoy Corp at Php101.50

Which company is most likely to have the highest share of systematic risk out of its total risk Standard error AAA BBB CCC DDD Beta 1.93 1.19 1.19 1.06 R2 0.47 0.23 0.94 0.22 1.45 1.27 1.46 1.19

A new project is expected to have annual costs as below: Year Cost 1 1,687 2 803 The discount rate is 10%. What are the Equivalent Annual Costs of this project?

17 months ago you borrowed $14,500 to purchase a used Rolls. The annual interest rate is 7.3% and the loan is to be repaid with monthly payments over 5 years. You have just remitted your 17th payment. What is the total interest-to date you have paid?

A one year consumer loan of $250,000 has a note rate of 5% and is valued at par on the balance sheet. The terms of the loan agreement are that in 6 months, the borrower must repay accrued interest to that point plus one-half of the principal. At the end of 12 months, the borrower repays remaining principal and accrued interest on the remaining

CBA Company has the following details for the 2-year period, 2021 and 2020. 2021 2020 Cash 350,000 150,000 Accounts Receivable 840,000 580,000 Merchandise Inventory 660,000 420,000 Prepaid Expenses 50,000 100,000 Long term Investment 220,000 200,000 Property, Plant and Equipment 1,130,000 600,000

Assume that you are looking to purchase and finance a $5,461,540 stand-alone retail building with Walgreens as a tenant. The building is 14,820 square feet with a lot size of 1.16 acres. It was built in 2008. It is priced at $369 per square foot of building space, with an annual NOI of $355,000 and a 6.50% cap rate. It has over 10 years remaining

Carla purchased a home for $375,000. She will have a mortgage of $340,000 at 5.25% which has monthly principal and interest payments of $1,877.49. The annual property tax bill is $4,687.50. The homeowners insurance costs $1,462.50 per year. The annual private mortgage insurance premium $1,870. Including the required escrow payments, what will be

Anita is an Executive V.P. with ABC Life of Canada earning a gross salary of $90,000 per year. She also received $10,000 per year from a trust fund set up by her grandparents when she was a child. Anita decides to purchase an individual disability policy that will provide her with 60% benefit should she become disabled. What is the maximum benefit

As a financial institution, analyze with context and nuance the cybertgreats your organization is exposed to, and possible threat actors. As a financial institution, analyze your organization's critical systems, networks, and data that are at risk of being attacked. As a financial institution, analyze your organization's corporate governance

Suppose a copper fabricator knows it will need 100,000 pounds of copper on May 15. The futures price for May delivery is 320 cents per pound. The fabricator can hedge its position by taking a long position in four futures contracts traded by the CME Group and closing its position on May 15. Each contract is for the delivery of 25,000 pounds of

You just got a new part-time job and you need to buy a new car for your job. Suppose you have enough savings to pay the downpayment and you can only afford to pay $400 a month starting one month from now. Suppose your car dealer offers you a car loan with an annual interest rate of 6 %, how much will you be able to borrow for the new car today if

WindMill Ltd. is a Spanish transportation and distribution company focused on the transportation of food to supermarkets.Calefull, a supermarket company, is one of WindMill's largest customers and has proposed a new contract to the company.The contract means that WindMill will be Calefull's partner for the transport of the new supermarkets located

Let's say you have entered into a swap agreement with a face value of $100 million under which every 6 months you agree to pay LIBOR and receive a fixed 4%.On the date you signed the contract, the LIBOR rate is 3%.Six months later, LIBOR is 3.5%.Your actual net payment of what you receive on the first payment date is equal to (negative sign means

The table contains information on the price per month and the monthly demand and supply of online music streaming subscriptions. Price Quantity demanded (thousands) 10.60 260 10.80 220 11.00 170 11.20 90 What is the quantity demanded at 11.00 What is the quantity supplied at 11.00 At what price is the quantity supplied equal to 190,000 Quantity

After an item of property, plant and equipment has been initially recognised at cost it may be measured using which measurement method A) liquidation value. B) revaluation. C) accrual. D) net realisable value.

At the beginning of the year, Snaplt had 10,000 of inventory. During the year, Snaplt purchased 35,000 of merchandise and sold 30,000 of merchandise. A physical count of inventory at yearend shows 11,000 of inventory exists. Prepare the entry to record inventory shrinkage.

12 Fin 1 1 ,Determine the deflection (mm) at the center C of the beam if the beam AE is an 5200 X 27.4 Rolled shape (I 23.9 100 mm), P17.5 kN, L2.5 m, a 0.8 m, and E200 GPa. Hint consider portion ABC only (0

A few years ago, Mark learned the same valuation methods that we studied in this unit. He decided to put his knowledge in practice and used the constant growth dividend discount model to value one company. Mark concluded that the company was undervalued and bought shares of the company. After a while, the companys price did not move toward the

Your counterparts on the management team are concerned about the recent economic volatility and its impact on the performance of the business given its inherent business risk and fixed financing costs. Given these concerns and the data below, address the issues of business risk and financial risk . [Note that this discussion should include the

Identify whether the situations described in the following table are examples of uneven cash flows or annuity payments Description Debbie has been donating 10 of her salary at the end of every year to charity for the last three years. Her salary increased by 15 every year in the last three years. You deposit a certain equal amount of money every

You have just received an order for 36 Huon pine beer can holders. Huon pine can be difficult to work with, and historically 8% of the holders that you make develop cracks and are unsellable. Consequently, you decide to make 38 in the hope that you will be able to satisfy this order. A. What distribution could be used to model the number of

Assume Jeff and Linda have been making fortnightly payments of $814.02 on a 25 year mortgage of $400,000 at a fixed interest rate of 2.35% p.a. for a two-year term for the past two years. The principal owing at the expiration of the two-year term is $375,920.22 and the mortgage now has a remaining term of 23 years. Calculate the new fortnightly

After much searching, you have found your 'forever' house in Goose Creek. Priced at $500,000, the seller has insisted that serious buyers have to have 10% of the purchase price as a cash-in-hand down payment. You have shopped around for mortgages and have found one that charges a 2.75% nominal rate for 30 years. What will be your monthly mortgage

Your uncle's company is considering financing for its new office building. He has asked you to help him select the bank, based on the terms they are offering. Bank A has offered to lend the required funds on a loan where interest must be paid quarterly, with a quoted rate of 6%. Bank B insists on monthly payments, also with a quoted rate of 6%.

Your corporation just won a lawsuit and was awarded $15,000. The judge has asked your attorneys whether they would accept six equal yearly payments, beginning at the end of the year. Your corporation's opportunity cost of capital is 6 percent. What would be the difference in the value of the settlement if your attorneys could convince the judge to

You invested 240,000 in the following stocks Stock Amount Beta ABC 67,200 0.93 DEF 67,200 1.33 74,400 1.48 31,200 1.28 GHI JKL If the riskfree rate is 6.3 percent and the market risk premium is 9.3 percent, what is the expected return on your portfolio (Round intermediate calculations to 4 decimal places, e.g. 0.3612 and the final answer to 2

Q1 a) Find the Present Values of the following Ordinary Annuities 800 per year for 10 years at 10 400 per year for 5 years at 5 500 per year for 6 years at 8 i. ii. iii. b) Find the Present Values of the following Annuities Due 400 per year for 10 years at 10 200 per year for 5 years at 5 500 per year for 6 years at 8 i. ii. iii. Depreciation

Show the amount of the risk adjusted excess return, alpha, for each security. Which security would you select to buy? Why? Which security has more systematic risk? Why? What are the required rates of return for each of these securities when the average riskless rate is 3.5% and average return on the market is 8.5%?

Security Beta Implied Rate of Return 1.5 10 .80 8 A 100 B

Find the payback with the given information

year O 1 2 3 4 cash flow i7 (6,700) 2,800 3,200 2,200 1,400

What is the IRR (percentage terms. i.e. 12.3 is 12.3),Required return is 11 year 0 1 2 3 cash flow (168,500) 86,000 91,000 53,000

Consider the following two mutually exclusive projects: What is the NPV of the project you should choose?

year 0 1 2 3 4 cash flow(A) (150,000) 68,600 76,800 71,300 40,500 cash flow(B) i15 (372,000) 32,000 30,100 29,500 27,300

IM DZ Chocolate Factory has just completed a 2 year $1.2 million market study related to the introduction of a new gourmet chocolate bar. Based on the results of the marketing survey, the company will be able to sell $382.4M in product. The increased variable costs are estimated at $320.0M and fixed costs are estimated to be an additional $28.4

Modigliani-Miller argued that a firm's decisions to retain casher distribute it to shareholders, or to distribute it via dividend payment or share repurchase, would not affect the value of the firm. Describe the conditions under which this theory holds and the mechanism by which it works.

How do you determine the correct order here? Borrow, Sell, Invest, Buy as opposed to borrow, buy, invest, sell? And is the borrowed currency determined by lower interest rate?

. (1) Borrow A1,176,471 and repay A1,225,883 in one year. (2) Sell spot A1,176,471 for 1,000,000. (3) Invest 1,000,000 in the US. The maturity value will be 1,035,000. (4) Buy A1,225,883 forward for 992,965. Arbitrage profit 1,035,000 992,965 42,035.

Denkel is a global company active in segments such as home care, personal care and adhesives. Since its revenues and profits have stagnated in recent years, the board of the directors hired a new CEO Russell Risklove to bring Denkel back on the growth path. As Russell lacks in-depth understanding of finance, he decided to make you the assistant to

Years 2012 2013 2014 2015 2016 2017 2018 2019 2020 Returns AdTec AG Prime Consumer Index (Market) 4 6 3 9 15 4 12 15 22 2 3 5 9 7 5 6 4 7

Consider the following scenario analysis Scenario Recession Normal economy Boom Probability 0.20 0.50 0.30 Rate of Return Stocks 6 20 29 Bonds 17 8 6,b. Calculate the expected rate of return and standard deviation for each investment. (Do not round intermediate calculations. Enter your answers as a percent rounded to 1 decimal place.) Stocks Bonds

Consider the two savings plans below. Compare the balances in each plan after 15 years. Which person deposited more money in the plan? Which of the two investment strategies is better? Yolanda deposits $200 per month in an account with an APR of 6%, while Zach deposits $2000 at the end of each year in an account with an APR of 6.5%. The balance in

Andrea works for Short Line Limited as an engineer. She has 2020 taxable income of 100,000, which is 100 employment income. The maximum CPP and El was withheld from her paycheque during the year, plus 12000 in federal income taxes. Her common law partner, Jamie, has a net income of 4000. Andrea is also a volunteer firefighter and volunteered for

You hold many stocks in oil producing companies. You are afraid that the oil price will get lower and the price of the oil companies stocks will collapse. You know that when the price of oil collapses, shipping companies make huge profits (since oil is stored in their cargos, waiting for the price to increase). Under these assumptions, discuss

Describe what each of this ratios means for the company? You can also refer to chemical Industry companies in India to know the Industry standards from Internet.

Particulars Profitability Ratio Liquidity Ratio Turnover Ratios or Activity Ratios Solvency Ratio Formula Return on SalesNINet Sales Return on EquityNIEquity Return on AsestNITotal Asset Operating profit margin EBITSales Current Ratio CACL Quick Ratio CashInventoriesCL Asset Turnover Net SalesTA Inventory Turnover Receivables turnover

What is the total settlement value of the open interest in the May coffee futures?

Mar07 May Coffee (CSCE) 37,500 lbs cents per lb. Lifetime High Low Open 83.00 61.35 69.00 82.00 65.90 70.50 High 69.45 71.00 Low 68.00 69.10 Settle Open Chg Int 67.85 1.65 5344 69.25 1.55 2407

The following is simplified data from the 2019 annual report of Oaks United Bank. In this question, you will calculate various data using maturity buckets and repricing gaps. The following are the facts about the banks assets and liabilities The bank has vault cash and noninterestbearing federal reserve holdings of 172M. The banks trading

Due to the naturally unreliable tax receipts, The State of Wakanda has 200M of excess cash. The state will not require these funds for the next 25 days, at which time the company will use the cash to make interest payments. In the meantime, the state wishes to invest these monies in a repo (or reverse repo) agreement to earn some money while

Assume the date is 25 February 2021. The Korean Composite Stock Price Index, or KOSPI, closed at 3100. The one-year risk-free rate for the Korean won is 0.8025%. KOSPI is expected to pay a dividend yield of 2% and the ex-dividend date is the 18 August 2021. The volatility of KOSPI on the same day is 27.92%. The head of structuring asks for your

BSKY has irredeemable debt in issue which pays 6% interest on nominal value. Its market price is 90 ex interest per 100 nominal. What is the cost of debt given a corporation tax rate of 25% and no time delay tax relief?

Consider the following data as a sample, and calculate the variance to three decimal places. 15, 33, 30, 50, 0

During the 2020 year, Ricky has net employment income of 52000 and interest income of 6000. Capital gains for the year total 38400, while capital losses are realized in the amount of 8528. He has deductible child care costs of 1200 and he is able to make a 5000 deductible RRSP contribution. He also has a business loss of 171000 Required Calculate

Answer to each questions about Telstra company, Australia. Chief Executive Officer - Dominating CEO? Who is the CEO of the company? How much did the CEO make over the last 5 years? Are these payments consistent with the firm performance (accounting and stock prices) CALPERS tests - Independent BOD? Are a majority of the directors outside

A company needs to decide whether to buy or lease new equipment. The company can buy the equipment for $1,800,000. If leased, the company will be required to pay maintenance costs annually. Consider the following: Present Value of Lease Payments Before-tax = $1,100,000; Present Value of Lease Payments Tax Shield = $220,000; PVCCATS = $350,000;

Andre and Melissa had long ago set their sights on owning and managing their own business. The most natural fit for the Barmores was the hotel industry where they could leverage their combined work experience. By early November the Barmores had finished re - fitting the hotel's common areas with customized lighting. One of the few remaining

Suppose that the price of a share of stock in a company is trading and $30/share. Consider building a portfolio with the following option positions: A. Buy a put option with a stroke price of $40 for a 2.5 premium B. Sell two put options each with a strike price $24 for a $1 premium each

How much will you owe, in total, if you take out a 500 loan for 3 months from a bank, with an APR of 12 Include the cents Recall Principal how much your borrow Annual Rate your APR Compound Daily (always) Time in years if it were a 6 month loan, t would be 612.5. If it were a 9 month loan, t912.75.

Consider the following two mutually exclusive projects Cash Flow (B) 15,410 Year 0 1 2 3 4 Cash Flow (A) 262,863 28,100 60,000 50,000 381,000 4,702 8,531 13,330 9,885 Whichever project you choose, if any, you require a 6 percent return on your investmen Required (a) What is the payback period for Project A (Click to select) (b) What is the payback

A bank is interested in buying a floor on interest rates to protect against falling interest rates. The floor they are looking at is an option that expires in 3 years. It can only be exercised at the end of 3 years - that is, it is European style. The underlying rate that it is based upon in the 10-year Treasury rate. Its strike is 1.5%. So for

1. Consider the following closedloop architecture r(t) e(t) y(t) Controller Ge (1) G (s) u(t) where Gp(s) denotes the process transfer function, and Ge(s) denotes the controller transfer function. For the following cases, compute the closedloop transfer function M(s), solve for its poles, and use the poles to determine the stability property of

Below are the actual returns of the TSX 60 composite index as provided by Yahoo Finance. (All rates in this question are expressed in annual compunding.) Year Return 2008 26.85 2009 10.82 2010 57.23 2011 14.64 2012 1.48 2013 17.36 2014 25.08 2015 1.14 2016 11.12 2017 31.94 2018 2019 4.69 17.52 As you can see, the past decade saw quite a bit of

Consider the following information Project Co A B C Cash Flows () C2 1,100 800 1,500 C1 5,100 1,100 900 0 4,900 3,700 C3 2,900 2,100 600 C4 0 3,100 100 a. What is the payback period on each of the above projects (Round your answers to 2 decimal places.)

Ghana has continually seen an increase in its public debt stock from one government to another. Discuss four (4) factors in your personal estimation that have accounted for this phenomenon and what four (4) practical interventions should the government undertake to reduce its public debt stock significantly?

This task has the CFO asking your team to look at how the market value of BEB is compared to the industry. You need to come up with a justification for the capital investments being made. Your team discusses this and has determined EVA (Economic Value Added), as well as MVA (Market Value Added) concepts, need to be established for the corporation.

Use the following table as a guide Choose sidebar display Industry Average Competitor 1 BEB Shares Outstanding Stock Price 25,000,000 20,000,000 15,000,000 27.75 36.20 29.15 Market Capitalization Debt Equity 2021 675,000,000 695,455,000 321,500,000 WACC 13 15 12 EBIT Net Earnings 17,975,000 15,000,000 18,255,000 15,000,000 10,742,000

An online retailing company (Nozoma) is considering adding a fulfillment center in the Twin Cities. Currently, the company operates two other fulfillment centers in the Upper Midwest: Wisconsin and Iowa. It sends all packages by United State Postal Service, so that mailing cost is the same for all packages, but some customers have been complaining

The average total assets of Party Favors, Inc. amount to $110,000. The firm's total receivables are $7,000, representing 25 days' sales. The firm's profit margin is 8 percent. Use a 365-day year and round your answers to two decimals. What is Party Favor's asset turnover ratio? What is its ROA?

Bernie Inc purchased Nvidia for $54.20 per share, a total valuation of $44 billion. Prior to the acquisition, investors were anticipating a dividend of $0.375 per share in 2023 which would double to $0.75 per share in 2024, and double again to $1.50 in 2025. Thereafter, investors expected perpetual dividend growth of 5% per year. If the investors

You are considering investing in a project with the following cash flows: C 0 C 1 C 2 C 3 $ -15,000 $7,700 $10,000 $9,500 Input you answers with two decimal points when applicable. 1. If your opportunity cost of capital is 10%, would be the NPV of this project? 2. What would be the IRR of this project? 3. Based on the IRR, would you invest in this

A firm has operating profit of 210,000 after deducting fixed lease payments of 30,000. The fixed interest expense is 50,000. What is the firm fixed charge coverage ratio Fixed Charge Coverage

Using graphical analysis, show the effects of implementing a universal basic income (UBI) program providing $700 per month for a low-income individual. a. show the effects of the UBI using budget constraints and indifference curves, analyze the tradeoff between consumption of goods (like food) and leisure(less leisure means working more hours).

The Wagner company's stock is listed on NASDAQ. The current stock price is $50. The next dividend will be $5 per share. If Wagner reinvests a constant 40% of its earnings, and the rate of return on reinvested funds is a constant 12%, what must be the discount rate? Hint: calculate the growth rate to start with.

What rate of nominal growth is expected in sales if they are currently $1,000,000 and are expected to reach $1,600,000 in 5 years? Assume an inflation rate of 3.5%. 3.20% 9.86% 12.00% 26.49%

Suppose another investor purchases one April put option contract with a strike price of 17.50 at the total cost of 50. The investor would obtain the right sell 100 Intel shares for 17.50 per share prior to April 21, 2021. Assume that the price of an Intel share is 30 on April 21, 2021. What is the payoff of the put option at maturity

A company will be paying a dividend of $4.46 next. If the cost of equity is 11%, what would be the approximate price of the stock today if the company is expected to grow at 4% for the foreseeable future?

Company STS will pay a dividend of $5.55 next. The company expected to grow at 12% for the first two years and then grow at 6% for the foreseeable future after the second year if cost of equity is 15% what should the price of SDS stock be today?

For 2020 current assets for ABC company was 25,000 and current liabilities were 30,000 for 2021 and the current assets are projected to be 40,000 and the current liabilities to be 30,000 for 2021. You also project EBIT to be 120,000 depreciation to be 10,000 and capital expenditures to be 30,000. If the current tax bracket for ABC company is 20%

Seventy-seven million people were born between 1946 and 1964. The U.S. census classifies this group of individuals as baby boomers. it is said that today and every day for the next 18 years, 10,000 baby boomers will reach 65. 1/4 of the 65 and older age group uses email, 1/5 obtains the news from the internet, and 1/6 searches the internet. Find

Fill in the following tables. a Future Values FVPV (1r) Present Value 400.00 17.411.00 Future Value 900.00 80,000.00 b. Present ValuesFV 1(1r) Present Value 500,00 17,335.36 Interest Rate 5.0 6.0 Present Value Interest Rate 5.0 6.0 800.00 17,843.09 c. Interest rate or discount rate. Fill in the interest rate for the following table Using the

Suppose you just became a freshman student and decided to open a new coffee shop on the NSU Campus selling coffee and cookies (open every morning and weekends only) for the next for years until you graduate. I can get a loan for your new coffee shop from a local bank with an annual interest of 8 percent (8% per year). Your total loan amount to

Suppose you need to pay $1M to finance a project in 3 months. Bank ABC will provide a one year loan with the amount of $1M in 3 months and bank XYZ offers a 3mth 15mth FRA with notional value of $1M and forward rate r 0, 3mth, 15mth = 10% (simple interest rate). What should you do to fully hedge your borrowing cost (against uncertain spot

Portfolio manager J Corleone has generated the following returns for 4 quarters q1 14, q2 8, q3 6, q415. The geometric average of the quarterly returns is

A hypothetical consumer spends all their income on Ramen Noodles (N) and Wild Rice (W). N is the Quantity of Noodles; W is the Quantity of Wild Rice. Their income is $1,600 per month. The price of Noodles is $2 per package and the price of Wild Rice is $20 per pound. The Utility function is U=sqrt(N*W). The MRS = - N/W. The budget constraint

Jack and Diane are a married couple in their late 40s. After discussing their financial situation with their accountant, financial planner and life insurance agent they have decided that should Jack die. Diane would continue to work until she retires. Diane would also like to have half of their combined income so that she could maintain her

Consider the following cash flows of two mutually exclusive projects for AZMotorcars. Assume the discount rate for both projects is 10 percent. Year 0 1 2 3 AZM MiniSUV 675,000 403,000 274,000 238,000 AZF FullSUV 930,000 415,000 467,000 319,000 a. Based on the payback period, which project should be accepted b. Based on the NPV, which project

James and Martha are both in their fifties. They spend about five months in the year in Florida in a house James inherited from his father. In their wills, the house will go to the surviving spouse and then subsequently to the couples children. The house is currently valued at over 1,000,000. The taxes on capital gains are estimated at over

Adam and Eve have been in a commonlaw relationship for six years and recently have a baby boy. Their insurance agent suggests that Adam purchase individual life insurance. Adam informs him that he is covered by his companys group life insurance, which is convertible for the full coverage amount if the plan was to be terminated or if he left his

Michael participates in the group insurance plan offered by his employer. He contributes 162 through payroll deduction. His tax rate is 45. The annual premium for 45,000 of life insurance is 540, of which the employer pays 70 ( i.e... 378). The employer adds a taxable benefit to Michaels annual income. On his death, what amount will Michaels

Mr. Prakash buys a motorcycle with a bank loan of 60,000. an instalment of 3000 is payable to the bank for each of 24 months towards the re- payment of loan with interest. what interest rate does the bank charges?

Meriton Ltd borrows $ 100,000 at an interest rate of 11.5% per annum, repayable by equal monthly instalments over 20 years. Calculate the principal and interest components of the first and last repayments. Solve step by step with the formula.

Sarah Jones figured that gold prices are about to fall from todays price. On March 1, she shorted 10 futures contracts on December gold for F 1 = 1,900. Each contract is for 100 ounces. Nervously, she watched the gold price rising. Sarah decided to close out her position on April 30 th Futures contract for December gold was trading at F 2 = 1940.

Sales, as a profession, is generally perceived to include many dishonest people. Understanding the sales process can help you better determine the honesty of those with whom you work. Include your thoughts about the following statements. Do you agree or disagree, and why? 1. Salespeople are generally dishonest. 2. Only certain personality types