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Finance Questions and Answers May 13, 2023

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cordo books had sold a callaboe bond. It is a thirty-year quarterly bond with an annual coupon rate of 5% and $1000 par value. the issuer however can call the bond starting at the end of 8 years. if the yield to call on this bond is 12% and the call requires Corso books to pay one year of additional interest at the call (4 coupon payments), what

You disagree with Ed "Shifty" Smith, a car salesperson, on the price of an open-end lease. He says the depreciation charge is only $6,000. What is the actual depreciation charge for a car now worth $23,000 that is expected to drop in value to $15,000 in two years?

Your mutual fund has varying asset allocations of stocks, bonds, and short-term reserves. If it allocates 30% to stocks and 30% to bonds, what percentage of the mutual fund is comprised of short-term reserves?

You have $17,281 in the bank today and you need that money to grow into $45,628 in 10 years. What interest rate, in percent, do you need to earn to reach your goal?

The table below contains data on Fincorp Incorporated. The balance sheet items correspond to values at year-end 2021 and 2022 , while the income statement items correspond to revenues or expenses during the year ended 2021 and 2022 . All values are in thousands of dollars. * Taxes are paid in their entirety in the year that the tax obligation is
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The following are the percentage returns on Apple stock and Sony stock. What is the monthly standard deviation of the return for Apple? (smaple answer format: 12.25%) A B C 1 Month Apple Sony 2 January 10 9 3 February 5 4 4 March 5 20 5 April 7 13 6 May -4 2 7 June 5 5 8 July -2 -3 9 August -10 -2

Does a country's Institutional and legal system play a major role in corporate financing decisions? If so how?

1) A person invests $100 today and $200 ten years later. Interest is credited at a nominal discount rate of 5% compounded weekly for the first 15 years, and then interest is credited at a nominal discount rate of d(12) compounded monthly. Find d12) if the account has $2.000 at the end of 40 years
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Changes in Growth and Stock Valuation Consider a firm that had been priced using a 9 percent growth rate and a 12 percent required rate. The firm recently paid a $1.70 dividend. The firm has just announced that because of a new joint venture, it will likely grow at a 11 percent rate. How much should the stock price change (in dollars and

WACC. Grey's Pharmaceuticals has a new project that will require funding of $8.4 million. The company has decided to pursue an all-debt scenario. Grey's has made agreements with four lenders for the needed financing. These lenders will advance the following amounts at the interest rates shown: Lender Amount Interest Rate Steven $3,033,876 14% Yang

a) Mr James Lucky, A British investor, is considering investing into American and Chinese stocks. The world market risk premium is 10%. The currency risk premium 2.5% on USD and 3.5% on CNY. The one-year risk free interest rate in the United Kingdom is 5%. Mr Lucky was also able to obtain the following estimates based on International Capital
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Kevin has $10,000 to invest. He is considering investing in two companies: Fisher & Paykel and Star Bank. Based on past research Kevin knows that the returns of these companies are uncorrelated. The current market price of each share and Kevins assessment of the expected return and risk for each share are provided below: (i) Kevin decides to
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Under the gald standard ot curranoy ehange tiat aisted from eT to 1914. an ounce of gold Cost 525.87 in US doiorond Li24 4in BmIh poinda. Themfare she mxchunge rata of poundis per dolar under this xoa erhangreginis Selest one a to 5650/S Cc.always changing belcn the ae dwd vechon a unknown becouse there i ot ehoighirto ronwei bor

You win a lottery and they offer you a choice of a lump sum of $ 1 0 5 , 0 0 0 in 1 2 years or $ 4 7 , 0 0 0 today. a . If money is discounted at 8 percent, which should you choose? b . If money is still discounted at 8 percent, but your choice is between $ 1 0 5 , 0 0 0 in 9 years or $ 4 7 , 0 0 0 today, which should you choose? c . What does

to what amount will the following investment accu To what amount will the following investment accumulate? $21,625, invested today for 38 years at 15.85 percent, compounded monthly. Round the answer to two decimal places
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Beta 08 Consider the following information for three stocks, Stockt A, B, and C. The retyres on the three stocks are positively correlated, but they are not perfectly correlated. (That is, each of the correlation coefficients in between 0 and 1.) Stock Expected Return Standard Deviation 3.72% 15% 10.53 15 12.44 15 1.6 Fund P has one-third of its
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You are choosing between two projects. The cash flows for the projects are given in the following table (\$ million): a. What are the IRRs of the two projects? b. If your discount rate is 5.0%, what are the NPVs of the two projects? c. Why do IRR and NPV rank the two projects differently? a. What are the IRRs of the two projects? The IRR for The
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Give clear definitions of the nominal and real interest rates on one-year debt contracts then briefly explain why it is that, other things equal a) savers respond most often positively to a rise in the real rather than the nominal interest rate, b) investment generally responds negatively to a rise in the real rather than the nominal, interest

Jane has a credit card balance of $13,500. She plans to begin making payments of $400/month at the end of this month and vows to not use her card for any future purchases. Her card has an annual interest rate of 24%. How many months will it take for Jane to pay off the card? Enter your answer below to two decimal places; do not include the dollar

Intro The projects of a firm will pay $60 with certainty. The firm has debt with a face value of $80. Ignore the time value of moeny. | Attempt 3/3 for 6 pts. Part 1 What is the value of equity? 0+ decimals Submit Part 2 - Attempt 1/3 for 10 pts. A new project costs $22 and will generate $0 with a probability of 50% and $50 otherwise. What is the
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please help me with this. 1 Mirza won the lottery and will receive $2,000,000 at the end of each year for the next 20 years. Assuming a discount rate of 6%, what lump sum could Mirza receive today instead? What type of problem is this? FV PV 1 N PMT 2 Taylor was injured by a bus called "The Straight Talking Express". She won a lawsuit and will
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You have just started working and you've been assigned to lead a team that makes recommendations to the CFO on capital expenditures for the coming year. Your capital expenditure budget is $100 million you estimate the cost of capital is 10% and that investments will produce the following after tax cash flows in millions of dollars Year Project A
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Question 21 (2 points) Company JC Electronics had a net income of $1,000,000 this year. Next year's total capital budget is $2,600,000. If the target capital structure is 49% debt and the rest equity, what will be this year's dividend payout ratio? Note: keep 2 decimal points to your answer. +
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The Chip Dip Company has 685,500 shares of stock outstanding, grants one vote per share, and uses straight voting. How many shares must you control to guarantee that you will be elected to the firm's board of directors if there are five open seats? A. 342,751 shares B. 345,876 shares C. 335,167 shares D. 345,134 shares E. 337,134 shares

Q.1 (a) As an example, consider an investor who bought 500 shares of stock in company Atlas Honda at 5 per share. Suppose that the shares rally to RS 7 each. If the investor sells the shares at market value, then what will be capital gain of the investor? (b) The investor who bought ABC company 500 shares of stock at 5 per share for RS 2,500

Wh at is the most efficient way to transfer funds from savers to users? O Direct transfer Indirect transfer inverse transfer e Backward transfer of the period is an An annuity in which payments start at the A. end; ordinary lump sum B. end; ordinary annuity O C. beginning; annuity due D. beginning: lump sum due Only A and D C Only B and C
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Prahm Corp. wants to raise $3.9 million via a rights offering. The company currently has 540,000 shares of common stock outstanding that sell for $35 per share. Its underwriter has set a subscription price of $25 per share and will charge the company a 7 percent spread. If you currently own 7,000 shares of stock in the company and decide not to

Suppose that in addition to $20,05 million of taxable income, Texas Taco, Incorporated, received $1,600,000 of interest on stateissued bonds and $350,000 of dividends on common stock it owns in Arizona Taco, Incorporated. (Use corporate tax rate of 21 percent for your calculations.) a. Calculate Texas Taco's income tax llability Note: Enter your
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I accepted my first job with a $93000 salary, and is already looking forward to retirement in 40 years. I need 85 percent of my current net income (in today's dollars) each year to live after retirement. My expected tax rate after retirement is 10 percent. The inflation is expected to be 3% annually. What is my before-tax annual income I need for
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Page Next Page Pag Question 25 (1 point) The current dividend yield on CJ's common stock is 1.89 percent. The company just paid a $1.23 annual dividend and announced plans to pay $1.27 next year The dividend growth rate is expected to remain constant at the current level. What is the required rate of return on this stock? 5.14 percent 5.82 percent
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Question 15 (8 points) You're thinking about borrowing a $4000 personal loan. The interest rate on the loan is 11% with quarterly compounding. You believe you can make a quarterly payment of $500. How many years will it take you to pay off the loan? Your
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Klingon Enterprises is considering opening a retail store selling classic weapons from history. Gowron, the CEO of the company has estimated it will cost $500K today to open the store today, and the best guess is after-tax cash flows will be $95K next year, and this is expected to grow each year after. The store has a lease of 7 years. a) If the

Use the Monthly Mortgage Payment Calculator to determine the difference between the monthly payments and the total cost of payments made on a $ 3 2 5 0 0 0 mortgage at a rate of 5 . 5 % for twenty years to the same mortgage taken out over 3 0 years. \ table [ [ \ table [ [ INTEREST ] , [ RATE ] ] , \ table [ [ MONTHLYPAYMENT ] , [ PERTHOUSAND
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Roman is 48 years old. After graduating from high school (in 1982), he served 20 years in the Air Force. He then went to college for five years, graduating with a degree in engineering. For the next four years, he was employed by his wife in her business. For the past year, he has worked for an engineering firm. Is Roman fully insured? Yes, he

The table below gives todays prices of one-year European call options written on a share of stock XYZ at different strike prices. Strike price and call price respectively X= 55, 9 Y =60, 4.5 Z= 65 , 1 In each of the following strategies provide a table showing the relationship between profit and stock price at maturity as well as the range of

A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a rate of 6%. The probability distribution of the risky funds is as follows: Stock fund (S) Bond fund (3) Expected Return 210 13 Standard
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In September 2008, Dells shares traded at $20.50 each. In its last annual report, Dell had reported book value of $3,735 million with 2,060 million shares outstanding. Analysts were forecasting earnings per share of $1.47 for fiscal year 2009 and $1.77 for 2010. Dell pays no dividends. Given the analysts forecasts, what was the markets forecast of

0 of 2 pts 10 of complete HW Score: 10.71%, 6 of 56 Oon Hoe 5-52 (similar to) eftum Porn Singh has 55.500 tone. He investment at who buy at pays not worth 4.0 Waleger of the ther timent work, term wow 0.9% win woment should the maio, and why maths com FIN 21mmer 2021 camryn behner & 06/07/21 Homework: Chapter 5-2 Score: 0 of 2 pts 10 of 18
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1. One orange juice futures contract is on 15,000 pounds of frozen concentrate. Suppose that in September 2016 you sell a March 2018 orange juice futures contract for 120 cents per pound. The futures price is 140 cents in December 2016 and 110 cents in December 2017. You close out the position at 125 cents per pound in February 2018. A. What is
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Case 14-63 Drop a Product Line (LO 14.4, 14-5) 7 Alberta Gauge Company, Ltd., a small manufacturing company in Calgary, Alberta, manufactures three types of electrical gauges used in a variety of machinery. For many years the company has been profitable and has operated at capacity. However, in the last two years, prices on all gauges were reduced
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What are the three functions performed by money? a. Medium of exchange, barter, and purchasing power b. Store of value, standard of value, and liquidity c. Medium of exchange, store of value, and standard of value d. Store of value, standard of value, and individual net worth

HW o X det er Aneta Arrage 13. Problem 10.13 (Cost of Commity with min) PrabhWule Them They come to come 19.75 per here. The company do and the experimenty T 10.01. Mother De onderdeel Grade It Now Save & Continue Cowo : 1 C CENGAGE MINOTAP o HW Back to see Tools 1.1. Problem 10.1 Cost of Cantonity wah Fotion) an HP Wah annon These theme and the
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3 Assignment details. From April 21, 2022, to April 29, 2022, Observe the daily closing value of KSE-100 INDEX and the closing share price of the company assigned to you. From the data collected, Calculate the BETA of your company and explain the riskiness of your share relevant to the market. Please answer properly and complete. ( Name of company

1. It is Jan 1 today, you just obtained a 30-year amortized mortgage loan for $250,000 at a nominal annual rate of 7.0%, with 360 end-of-month payments. The firm can deduct the interest paid for tax purposes. What will the total interest tax deduction be for the first year of the loan? (How much will you pay in total interest during your first 12

Josh Williamson set up an annuity for his retirement. Josh plans to have $300 added to his account biweekly (n = 26), where the interest is 7.875% (yearly). He plans to save for the next 25 years. (a) Find the future value of Joshs account. (b) Find Joshs total contribution. (How much did Josh pay in total?) C. How much did Josh earn in interest

No change in net operating working capital (NOWC) would be required for the project. This is just one of many projects for the firm, so any losses on this project can be used to offset gains on other firm projects. What is the project's expected NPV? Do not round the intermediate calculations and round the final answer to the nearest whole number.

A due on sale clause requires a homeowner to get the lender's permission prior to selling. True False

Based on the chart below, which is the correct order in terms of volatility of returns? Rank from most volatile to least. Series Average Return Standard Deviation Frequency Distribution Lorge-company stocks 12.1% 19.8% L. Small.company stocks 163 31.5 Long-term corporate bonds 64 8,5 60 9.8 Long-term government bonds ul 52 5.6 Intermediate term
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The current S&R index futures price is 1100. You have purchased 8 contracts on margin. The initial margin is 10%. The size of each futures contract is $250 times index level. Suppose you can earn an effective interest rate of 0.1% per week in the margin account. Your profit/loss is marked to market weekly. The maintenance margin is 80% of the

49) Zippo Mutual Fund is one of your best performers. It just announced a year-end distribution of $2.50 per share in capital gains and $4.25 in dividends. Assuming the NAV Increased from $31.50 to $43.75, calculate your total annual return. A) 24.53% B) 60.32% C) 46.87% D) 26.95% - and 50) Burt Reynolds has changed jobs. His last retirement
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You are considering investing in a bank account that pays a nominal annual rate of 7%, compounded monthly. If you invest $3,000 at the end of each month, how many months will take for your account to grow to $310,000? 95.70 90.84 72.18 81.11 93.27
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Given the cross-exchange rate table above, please find HKD/AUD. (Please round up to 4 decimals.) USD CAD AUD NZD HKD U.S. 0.96175 Canada 0.70850 Australia New Zealand 1.2341 Hong Kong 7.7935
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Which of the following statements regarding growing perpetuities is FALSE? To find the value of a growing perpetuity one cash flow at a time would take forever. We assume that r < g for a growing perpetuity. A growing perpetuity is a cash flow stream that occurs at regular intervals and grows at a constant rate forever. PV of a growing perpetuity

4. An owner a video arcade wishes to calculate the return on two of its video machines. A and B. The game machine A was purchased one year ago for $40,000 and currently has a market value of $43,000 During the year, it generated $1,800 of after-tax cash receipts. The game machine B was purchased 3 years ago its value in the year just completed
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Draw pay-off diagrams that show that the delta of the following activity is neutral: At time zero you do the following: - Write a call option on 50 BHP.L shares - Buy a put option on 50 BHP.L shares - Purchase 50 BHP.L shares Your put and call options have the same strike price and maturity and can only be exercised on the maturity date.

TASK 1 As part of the Wellness Centre Project, the plan is to build a small gym on the rooftop of the hotel. You have been appointed to help the Sales and Marketing manager to make decision whether to rent or buy specific equipment items. The required items are included in Appendix 1 together with costing information. The budget for the required
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Describe how the proposal below will decrease the risk of the company (Chipotle). Proposal This proposal provides a convenient and easy meal-time solution. This option offers customers the ability to purchase a customized D.I.Y. food kit with a great selection of ingredients. Chipotles research and development expenses for D.I.Y. food kits will be

You are evaluating the balance sheet for SophieLexs Corporation. From the balance sheet you find the following balances: cash and marketable securities = $410,000; accounts receivable = $1,180,000; inventory = $2,080,000; accrued wages and taxes = $490,000; accounts payable = $790,000; and notes payable = $580,000. Calculate SophieLexs current

A borrower takes out a loan of 5000 at an annual effective interest rate of 5%. Starting at the end of the third year, the loan is repaid by annual payments, each of which equals 400 except for a final balloon payment X. Calculate X
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If inflation is increasing at 1.2 percent per year, and your salary increases at the same rate, how long will it take your salary to double?

Old MathJax webview jason wants to buy a car. He can pay $3,300 every six months for 4 years. Assuming an interest rate of 2.1% compounded semi-annually, how much interest does Sam pay over the term of the loan? Round your answer to 2 jason wants to buy a car. He can pay $3,300 every six months for 4 years. Assuming an interest rate of 2.1%

Your mother invested 2,000,000 in mutual funds. He has AED3,000,000 in her checking account and decide to buy the mutual funds by writing a check. What is the effect of her investment on M1 and M2? Explain your answer.

MintCorp expects to pay the following dividends on its stock: $2.00 in year 1, $3.50 in year 2, zero dividends in year 3, and $5.00 in year 4. The company expects that dividends will grow at 5.5% annually thereafter. What will you pay for a share of MintCorp stock if your required rate of return is 10%?

A company has decided to retain more of its earnings to help finance its growth. It will reduce its annual dividend by 20 percent a year for the next three years. After that it will maintain a constant dividend of $1.60 a share. Last year, the annual dividend was $2.60 a share. What is the market value of this stock if the required rate of return

Jane Doe is changing jobs on her 45th birthday. At this point, her retirement account has already accumulated $85,500. She plans to work until her 60th birthday. Her new job allows her to set aside $15,000/year into the same retirement account that make 3.5% interest per year. Compute the totoal amount that will be accumulated into this account on
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Jose ust borrowed $3.500 to buy a used car payments. (End of Peniod) His loan is for 4 years with monthly payments The interest rate on the loan is 8% APR Calculate his monthly loan OA. S99 2 O B. S8545 O C. $72 92 O D. $84.88
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Please wirte in detail how to get the correct answer You Answered Correct Answers A 10% corporate bond matures in exactly 10 years. You bought it today when it was trading to yield at 11.335%. Find the price you paid for the bond. Express your answer as a percentage of the face value with THREE digits after the decimal point but omit the % sign.
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A limited is considering making a tender offer for B Ltd. The merger would result in economies of scale (Benefit of synergy) of Rs.27 lakh. The relevant financial information for B Ltd. is as follows: Number of shares outstanding 2,00,000 Earnings per share Rs.12 Market price per share Rs.76 A Limited intends to make a two-tier tender offer

Cathy would like to retire in 10 years when she turns 62. She wants to have enough money to replace 60% of her current income less what she expects to receive from Social Security at the beginning of each year. She expects to receive $10,000 per year from Social Security in today's dollars. Cathy is conservative and wants to assume an 8% annual
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7. Rank the following bonds in order of descending duration. (4 points) Bond Rating Aaa Aaa Baa Baa Bond Time to Maturity 20 years 15 years 15 years 15 years Coupon 890 8% 8% 7% (hint: Bonds with higher credit ratings have lower yields)
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11. IRR rule Mr. Cyrus Clops, the president of Giant Enterprises, has to make a choice between two possible investments: Cash flows ($ thousands) Project CoC C IRR(%) A -400 +250 +300 23 B -200 +140 +179 .36 The opportunity cost of capital is 9%. Mr. Clops is tempted to take B, which has the higher IRR. a. Explain to Mr. Clops why this is not the
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Suppose News Corporation shares have a beta of 1.7, whereas CBA shares have a beta of 0.83. If the risk-free interest rate is 3.3% and the expected return of the market portfolio is 10.1%, according to the CAPM, a. what is the expected return of News Corp shares? b. what is the expected return of CBA shares? c. what is the beta of a portfolio that
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Which letter best describes futures contracts? Counterparty credit risk? Settlement? Custom tailored? a) Daily (mark-to- market) No No b) Daily (mark-to-market) No Yes c) End of contract Yes No d) End of contract Yes Yes e) Daily (mark-to-market) Yes No f) Daily (mark-to-market) Yes Yes End of contract No No h) End of contract No Yes
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ABC company is considering purchasing a new rubber extrusion line that produces rolling bands, flanks, and other products used in the process of tire manufacturing. This line will replace the existing one, which was purchased 3 years ago for $200,000, at an installation cost of $50,000; it was depreciated under straight-line amortization, and with
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Lease versus Buy Big Sky Mining Company must install $1.5 million of new machinery in its Nevada mine. It can obtain a bank loan for 100% of the purchase price, or it can lease the machinery. Assume that the following facts apply: 1. The machinery falls into the MACRS 3-year class. (The depreciation rates for Year 1 through Year 4 are equal to
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Tomaso Aviation Corp. is considering a project that requires an initial investment of $1 million. The project generates an annual cash inflow of $0 for the first ten years and $750,000 per year in Year 11 through Year 15. The firm's required return for this project is 10%. What is the net present value (NPV)? 4196,554 B. $96,134 c $123,556 D.
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A portfolio has 50% of its funds invested in stock A and 50% of its funds invested in stock B. Stock A's variance is 36. Stock B's variance is 144. The correlation between A and B is 0.5. How much is the portfolio variance? PLEASE DO NOT USE EXCEL. SHOW WORK PLEASE

_______ measures the change in NPV that results from given change in an input variable Select one: a. none of the answers are correct b. monte carlo simulation c. decision tree analysis d. scenario analysis

The TVOM functions are under the Fx button in Excel. The Fx Function is located just above the actual number section of your spreadsheet, right above the C or D column in most blank spreadsheets. Click on the Fx button and search for the specific function (present value, future value, Rate, payment, etc., whatever you are trying to calculate). 1.

An insurance company collected $4.6 million in premiums and disbursed $2.16 million in losses. Loss adjustment expenses amounted to 7.2 percent and dividends paid to policyholders totaled 1.4 percent. The total income generated from their investments was $220,000 after all expenses were paid. What is the net profitability in dollars? (Enter your

If everything else is set equal, a firms equity beta will ___ with leverage because stockholders have a residual claim on the companys cash flows. A Increase B. WIll not Change C Decrease

A 20-year security has a price of $966.53. The security pays $50 at the end of each of the next 5 years, $100 at the end of years 6-10, and then it pays a different fixed cash flow amount at the end of each of the following 5 years (i.e., years 11-15). Finally, in years 16-20 it again pays $100 per year at year end. Interest rates are 6.0%. What

The cost of warehouse space is allocated to three inventories: raw materials, work - in - process, and finished goods. The inventories use the warehouse space in the ratio of 1 / 9 to 1 / 5 to 2 / 5 respectively. If the total warehouse space is 8 . 1 million square metres, at a cost of $ 1 1 . 0 1 4 4 million , how much of the cost should be

Two finance honour students are currently having a heated argument over dividend imputation. To stop their heated argument, decide whether their statements are true or false: True False a) 'Company's taxes are prepaid by shareholders up to the company marginal tax rate.' b) 'When the company tax rate exceeds the shareholders' personal tax rate,

Assume that you hold the following portfolio of European options on the same stock: Long one put with strike price of $40; Long two calls with strike price of $40; All options expire in 6 months. Assume that the stock price today is $35 and that the stock volatility is 32%. The continuously compounded risk-free interest rate is 5%. Finally, assume

You have just passed ACST1001 and started a summer internship at Harrison Bank, with Peter as your supervisor. As your first task, Peter has given you some client accounts and asked you to verify some of the details. The first file is for a client named Mary, who has a mortgage with the bank. You go through the file and note the following

Termination dates are a feature of: Closed ends funds Unit investment trusts The Net Asset Value is fixed at $1.00 in the case of: Money mkt mutual funds Unit investment trust

Bull Bond Sam and Bond Dave have 8 percent coupons, make semiannual payments and are priced at par value. Bond Sam has 2 years to maturity, whereas Bond Dave has 17 years to maturity. If Interest rates suddenly rise by 4 percent what is the percentage change in the price of Bond Sam
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Thank you for your help. :) You bought a house worth $315,000. You paid 25% of the purchase price in cash and arranged a twenty-year mortgage with a rate of 4.0% compounded semi-annually for the remaining balance. The mortgage has an amortization period of 20 years. How much interest will you pay in the first 10 years (assuming that the first
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6. Future value of annuities There are two categories of cash flows: single cash flows, referred to as "lump sums," and annuities. Based on your understanding of annuities, answer the following questions Which of the following statements about annuities are true? Check all that apply When equal payments are made at the beginning of each period for
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any help is appreciated!! 1 Part 2 contains 3 Decision making recomnjendations that are independent of each other. Covers material in Module 17 Make sure you show your work. Decision Making #1 Juice company processes raw material X into joint products Y and Z matenial X costs It costs 56 per lber $100 to convert these 100 lters int 40 Liters of z
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Income Statements - In Dollars and Common Size ter Company A Company B Company C in 99 gal $1,000 Revenue 100% $5,000 100% $5,000 100% COGS 400 40% Le 01 92,500 10 50% (2,000 40% Gross profit 600 60% 2,500 50% 3,000 60% SODI 15 SG&A 150 2010 201 15% 750 Sun 15% 750 15% Production R&D a b 100x9 10%. 250 oni 15% bin 500 du 10% bobius mom 1900 TS
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Controls should target reduction of 5 0 % or more of risk. True or False

The following table gives Foust Company's earnings per share for the last 10 years. The common stock, 6.6 million shares outstanding, is now (1/1/20) selling for $65.00 per share. The expected dividend at the end of the current year (12/31/20) is 65% of the 2019 EPS. Because investors expect past trends to continue, g may be based on the
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6. Use binomial option pricing model for this question. Suppose the current spot rate for USD/CHF is 0.7000. You need to find the one-year call option price of USD/CHF with the exercise price of 0.6800 USD/CHF. Assume that our future states will be either 0.7739 USD/CHF or 0.6332 USD/CHF. 1) what are the payoffs of the call option (for both

What is an important economic role of capital markets? Give an example of a capital market instrument and explain how it works. Who are the main participants in the capital market?

The stock of Lead Zeppelin , a metal manufacturer , currently sells for $ 65 and has a volatility of 46 percent . The risk free rate is 4.6 percent What is the value of a European put option with a strike price of and 37 days to expiration ( Use 365 days in a year . Do not round intermediate calculations . Round your answer to 2 decimal places )
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1. (45 Points) The balance sheets for Kraft Heinz appears below. The firm paid dividends of $1,960 to its shareholders during the fiscal year covered by the balance sheet. The Long Term Investment account represents ownership shares in start up vegan and vegetarian food companies. Kraft Heinz Balance Sheet for the Year Ended June 30, 2020 2021
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Jane believes that by calculating a companys ratios from their past financial statements, she can deduce whether the companys stock price is cheap or expensive. Does Jane believe the market is efficient? Responses She thinks the markets are strongly efficient since ratios are public information. Yes, because it is efficient for her to find the

Allen Corp. manufactures computer desks in its Pheonix, Arizona, plant. The company uses activity-based costing to allocate all manufacturing conversion costs (direct labor and manufacturing overhead). Its activities and related data follow. Allen Corp. manufactures computer desks in its Pheonix, Arizona, plant. The company uses activity-based
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