Finance Archive: Questions from February 12, 2020

You loaned $100 to a friend for one year at a nominal rate of interest of 5 percent. Inflation during that year was 8 percent. How much did the purchasing power of your money change (an increase is po1 answer

Problem 5. The BlackScholes formula is derived using C=e C(T)) = eTEP [(S(T) – K)+), that is, as the discounted expected call option payoff in the riskneutral world. a) Derive the formula for the
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Determine the accumulated value of monthly deposits of $94 each after 14 years if the deposits earn 7.2%/year compounded monthly. Assume the deposits are made at the end of each month.1 answer

What quarterly deposits should be made into a savings account paying interest at 7.7%/year compounded quarterly in order to accumulate $160000 at the end of 20 years?1 answer

Determine the accumulated value of quarterly deposits of $59 each after 15 years if the deposits earned 9.0% per annum compounded quarterly for the first 4 years and 9.1% per year compounded quarterly1 answer

Diane has an insurance policy with a cash value at age 65 that will provide upon retirement monthly payments of $500 for 24 years, first payment one month after reaching 65. If the insurance company p1 answer

Determine the present value of quarterly deposits of $620 that are expected to be made for 14 years if the deposits earn 6.7% per annum compounded quarterly for the first 7 years and 8.3% per year com1 answer

Some companies list their shares in more than one stock exchange. For example, “ESSA Pharma Inc.” (EPIX) trades on both the Toronto Stock Exchange (TSE) and on Nasdaq. Assume that there are no dif1 answer

Please answer all parts A, B, and C. Please show all work! If you use Excel to solve this problem please make clear the calculations you made.a. Calculate the monthly interest and principal cash flow for a fixed rate self amortizing mortgage with an initial balance of $350,000, a contract rate of 3.75%, and a maturity of two years. b. If th1 answer

As a company who rely on its exports for revenues, what strategy should you adopt if the country you export goods to is experiencing currency depreciation?1 answer

. NEED ANSWER ASAP / ANSWER NEVER USED BEFORE a.) NPV A project has an initial cost of $60,000, expected net cash inflows of $11,000 per year for 9 years, and a cost of capital of 10%. What is the pro1 answer

Seven years ago, ABC issued a 10% coupon bond that paid semiannual coupons. The YTM on the bond when issued was 7.5%. That YTM stayed constant until yesterday it dropped to 6.5% suddenly. Which of th1 answer

QUESTION Mr JABARI is the DirectorGeneral of WBG Ltd an investment private company with 100 shareholders. Last week Mr Jabari met with his old friend Mr Jongo who is the CEO of ABC company listed at0 answers

. NEED ANSWER ASAP / ANSWER NEVER USED BEFORE a.) Project Cash Flow The financial staff of Cairn Communications has identified the following information for the first year of the rollout of its new p1 answer

. NEED ANSWER ASAP / ANSWER NEVER USED BEFORE a.)Capital Budgeting Methods Project S has a cost of $10,000 and is expected to produce benefits (cash flows) of $3,000 per year for 5 years. Project L costs $25,000 and is expected to produce cash flows1 answer

. . NEED ANSWER ASAP / ANSWER NEVER USED BEFORE a.) Project Cash Flow The financial staff of Cairn Communications has identified the following information for the first year of the rollout of its new1 answer

Explain why multinational capital budgeting is more complex than in a purely domestic capital budgeting project1 answer

If you conduct an internet search using the terms “Facebook” and “international,” you will find plenty of articles about Facebook’s strategy for international growth. Explain why Facebook se1 answer

NEED ANSWER ASAP / ANSWER NEVER USED BEFORE some considerations should be taken into account when doing capital budgeting: incremental earnings, interest expenses, taxes, opportunity costs, externalit1 answer

Evaluate whether you think the claimed conclusion of the following scenario is true or false: A friend of yours has discovered a striking predictability pattern in stock returns: stocks that recently1 answer

Am I supposed to find the risk premium? And what numbers do I plugin? I’m very confused about how to answer this. Thank you in advance.2. A financial analyst measures the monthly returns of two stocks (A and B) over a twenty year period. Over that time period, stock A had an average return of 11% (per year) with a standard deviation1 answer

1. FESTO manufactures solenoids widely used in automation equipment. In order to set up the manufacturing plant, the company estimated the monthly fixed costs due to capital recovery and machinery to
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You are looking at a long position in three wheat contracts of 5,000 bushels. Each contract is worth $2.00 per bushel today. Each contract requires an initial margin of $150 and a maintenance margin o1 answer

1044.89=100/1+i + 100/(1+i)2 + 1000/(1+i)2 Can someone provide me the solution for this the answer is 7.5 % I don’t know how they got this1 answer

The price of a zerocoupon bond with $100 face value maturing in three years is $92.83. The price of a zerocoupon bond with $100 face value maturing in five years is $86.63. What is the continuously1 answer

In February of 2018 you entered into a forward rate agreement. According to the forward rate agreement, you will borrow $2 million at a continuouslycompounded interest rate of 3.45%, with the loan to1 answer

Explain the primary drivers behind crossborder acquisitions1 answer

From a financial point of view, explain why Facebook seeks to grow internationally, its strategy for such growth, and the risks Facebook faces with this strategy.1 answer

Explain diversification and benefit of a diversified portfolio.1 answer

Shareholders require a 15% return on their shares and a company has just paid a dividend of €0.80 per share. Over the past four years, the company has paid dividends of €0.68, €0.73, €0.74, an1 answer

Your project is WeWork, an American commercial real estate company that recently postponed its IPO, fired its CEO, and sold to SoftBank at a large loss. WeWork has recently laid off 20% of its workfor1 answer

Q. Sarah and Joshua each use their credit cards to buy holiday packages to Adelaide. The cost of the package is $1700 for each person. a) The charge on Sarah’s credit card is 0.9% compound interest1 answer

Hello, i don’t know how to do these questions, so can you cpmpute these question in detailed steps ? Thank you for your help!10. A financial planner wants to design a portfolio of investments for a client. The client has $300,000 to invest and the planner has identified four investment options for the money. The following r0 answers

Kenneth Clark is 30 years and wants to retire when he is 65. So far he has saved (1) $5,750 in an IRA account in which his money is earning 8.3 percent annually and (2) $5,130 in a money market accoun1 answer

– + Fit to page D Page vie Determining the Cost of Capital Hubbardton Iron Works The Hubbardton Iron Works Corporation (HIWC), a Boston based company was established in 2000. Harold Tugman, IV founded0 answers

Why might a country want to intervene (manipulate) in the currency markets for its home currency? How could a government intervene? Are there any countries that are currently manipulating their curren1 answer

What are (a) pass through expenses, (b) recoverable expenses, and (c) common area expenses? Give an example of each.1 answer

n February of 2018 you entered into a forward rate agreement. According to the forward rate agreement, you will borrow $2 million at a continuouslycompounded interest rate of 3.45%, with the loan to1 answer

Consider two projects, A and B. Project A’s first cash flow is $10,200 and is received three years from today. Future cash flows for Project A grow by 3 percent in perpetuity. Project B’s first cash f1 answer

What important factors should guide you while selecting the investment choices given the fact that the funds are available only for a short period.As a CFO investing surplus cash is very important to1 answer

XYZ stock price and dividend history are as follows: Year BeginningofYear Price Dividend Paid at YearEnd 2015 $ 125 $ 2 2016 141 2 2017 120 2 2018 125 2 An in1 answer

disscuss one of the financial analyses thay are available to be perfomed by the financial managrr in order to determine risk of investment. what is it, how is it used, what does it determine ?1 answer

1) Describe the objective and risk profile of a “classic stockbond” or balanced fund portfolio. 2)Appraise the Treasuries bond and note market and the main risks attached to them 3)Indicate the c1 answer

With an interestonly loan the principal is: Multiple Choice Ο forgiven over the loan period; thus it does not have to be repaid. Ο repaid in decreasing increments and included in each loan payment.1 answer

Simon recently received a credit card with a 12% nominal interest rate. With the card, he purchased an Apple iPhone 7 for $373.92. The minimum payment on the card is only $10 per month. If Simon mak1 answer

show work pleasePar You observe following information of bonds A, B, and C. Assume semiannual coupon payment and semiannual compounding. Bond Maturity Annual Price Coupon Rate A 6 month $1000 0% $950 B 12 month $100 answers

At the beginning of the year, you invested $7,500 in a noload mutual fund with a NAV of $30.00. At the end of the year, the fund distributed $1.05 per share in shortterm earnings and $3.00 per share1 answer

Alex and Betty have agreed to form a cashbasis general partnership As of January 1, 20X4, Alex contributed $175,000 cash and an apartment complex valued at $2,578,000. Alex purchased the complex on AEXHIBIT 8.9 MACRS StraightLine Depreciation for Real Property Assuming Mid Month Convention For Property Placed in Service after December 31, 1986: 27.5Year Residential Real Property Recovery The A0 answers

– 10.0 2. Consider the two assets A and B for which returns (%) under different conditions of economy are given as below. Find the expected return and risk (as measured by standard deviation of return
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Time Value of Money: Buy versus Rent Based on the case study. Sean Cleary and Stephen Foerster, Ivey Publications, August 11, 2014 Question (4) Principal Outstanding0 answers

principles of finance1 answer

…l du LTE 6:11 PM 42% E Notes Û Done What will happen to bond prices if terrorism ended and the world’s nations unilaterally disarmed and adopted free trade policies? Why? Ag © © © X ніт Не
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P147 (similar to) Alternative dividend policies Over the last 10 years, a firm has had the earnings per share shown in the following table: a. If the firm’s dividend policy were based on a constant p1 answer

A company has been in business for over 50 years, newly developed products pushed the firm’s yearoveryear growth rate to 35% during the last three years. The firm is proud of its history of paying1 answer

Based off the Tables. What information can be taken away regarding Financial Distress, if any.Exhibit 1 Grand Metropolitan, Guinness and Diageo Financial Statements, (£ Millions). FY 98 FY 99 FY 00 Grand Met Guinness FY 97 PF CY 97 PF CY 97 PF 8,045 4,539 12,985 6,978 3,584 10,982 153 11,8701 answer

P147 (similar to) Alternative dividend policies Over the last 10 years, a firm has had the earnings per share shown in the following table: a. If the firm’s dividend policy were based on a constant p1 answer

From Chapter 1 1. List financial institutions 2. List the commercial banks in KSA 3. What is meant by: (a) Bank; (b) Interest; (c) Interest rate; (d) Bonds; (e) Se (1) Financial market; (i) Foreign e
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Campbell Auto Repair, Inc. is evaluating a project to purchase equipment that will not only expand the company’s capacity but also improve the quality of its repair services. The board of directors0 answers

What are the primary ways to finance a new business? How would you expect to finance your business in the first few years? What are 23 principles you will keep in mind as you go about securing the ne1 answer

Over the last 10 years, a firm has had the earnings per share shown in the following table: a. If the firm’s dividend policy were based on a constant payout ratio of 40% for all ye1 answer

10. Consider two companies, A and B, which are equivalent except for their capital structure. Both have $10000 of assets and earn a rate of return of 14 percent on those assets. Company A has $3000 of1 answer

Please explain clearly in excel sheet. thank you so much!!The Procter & Gamble Company (PG): NYSE Date Open High Low Close Adj Close Volume 1/27/20 124.75 126.39 124.75 125.69 125.69 1/28/20 125.93 126.98 125.72 126.03 126.03 1/29/20! 125.91 126.07 125.03 120 answers

11. Consider a firm that would have a cost of equity of 12 percent if it were an allequity firm. The firm has $4 million of assets at market value. Suppose that it has $2 million of debt outstanding1 answer

Explain why “a building up of official reserves measures a BOP surplus, while a drawing down of official reserves measures a nation’s BOP deficit.”1 answer

Use the Excel exhibit supplement provided to extend the Exhibit 7 forecast for eight years. What do you believe the implied value of Whole Foods’ shares to be, based on this basecase forecast? ForReview View Help Home Tell me what you want to do . Insert Page Layout Formulas Data X Cut Times New Roma – 12AA C) Copy Format Painter B IU. . . A. Clipboard Font Wrap Test Merge & Center . General0 answers

There are only two risky assets (stocks) A and B in the market. Asset A: Mean = 20% Standard Deviation = 10% Asset B: Mean = 10% Standard Deviation = 5% Returns on Assets have zero correlation. A.Assu1 answer

Risky Assets are A and B. Mean return for A = 20%, Standard Deviation A = 10% Mean Return for B = 10%, Standard Deviation for B = 5% B.Now assume that there is a risk free asset. The riskfree rate (f0 answers

You are thinking about buying Supper Corps common stock. You will hold it for 2 years and then sell it. You expect to get a dividend of $1.50 one year from today and a dividend of $1.75 two years from1 answer

Compute the 2019 standard deduction for the following taxpayers. a. Ellie is 15 and claimed as a dependent by her parents. She reports $800 in dividends income and $1,400 in wages from a parttime job1 answer

Assume that the assumptions of the CAPM hold. The expected return and the standard deviation of the market portfolio are 7% and 14%, respectively. There are two individual stocks A and B: Mean Return1 answer

sold @ discount Problem 2 On December 31, 2017, Yale Corp. purchased 10year, 6% Princeton Corp. bonds with a face value of $400,000; the bonds were purchased at a price to yield an effective rate of0 answers

There are many risky traded stocks, and a single riskfree asset. In January, the riskfree rate is 4% (for borrowing, and lending). In February, the riskfree rate dropped to 2% (for borrowing, and l1 answer

HNL is looking for new wholesale distributors of living room accent chairs, similar to the one pictured on the right. This chair is a popular item and they can sell it for around $250 each. Below is t
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Alice Werd is a new project analyst; he is working on capital budgeting analysis of two mutually exclusive projects. The followings are the cash flow forecasts for both the projects years Project A E1 answer

Cash versus stock dividend Milwaukee Tool has the followingstockholders’ equity account. The firm’s common stock currently sells for $3.57 per share. Preferred stock$ 94,000 Commo1 answer

– Higher courts are reluctant to review a lower court’s factual findings. Should thi be so? Would appeals be fairer if appellate courts reviewed everything?
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Alice Werd is a new project analyst; he is working on capital budgeting analysis of two mutually exclusive projects. The followings are the cash flow forecasts for both the projects years Project A Ex
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I need to create a common size Income Statement (vertical analysis) using the following information which must include net sales, gross profit and net income. Yum Brands, Inc. Net Sales: Revenue for t1 answer

The following financial data on the Bond Recording Company areavailable Earnings available for common stockholders $600,000 Number of shares of common stock outstanding: $300,000 Earnings per shar1 answer

Victoria owns land worth $500 in which she has a basis of $125. The land is subject to a mortgage of $100 which Victoria took out several years ago in order to buy the land. She transfers the land to0 answers

Chartworth Associates’ financial statements indicated that the company had EBITDA of $3,145,903. It had depreciation of $633,000, and its interest rate on debt of $1.25 million was 7.5 percent. Calcul1 answer

Calculate assessed value, given a property tax of $6,100 and 26 mills tax rate. (Round your answer to the nearest cent.) Assessed value
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Required Information [The following information applies to the questions displayed below.] Part 1 of 2 This year, Randy paid $28,750 of Interest on his residence. (Randy borrowed $540,000 to buy his r1 answer

How can i calculate the cost of equity using Security Market Line and Dividend Discount Model (DDM), the cost of debt, the market value weights, and the WACC to use your answer from Security Market LiPhillips Pharmaceuticals Limited (PPL) shares are publicly traded on the Toronto Stock Exchange. The common shares currently trade at a market price of $30.00 per share. PPL recently paid a dividend o1 answer

so i need help on q number (5) : 5 Using the yield curves you have found, estimate the value of an annuity that pays $1000 every 5 years over the next 25 years (i.e., five total payments) paid by eit0 answers

Need help on these 4 multiple choice questions please!2 Marks and has only one correct answer. 1. Which of the following is NOT an advantage of investing in an openend mutual fund A. Professional management B. Daily liquidity C. You can buy units of the1 answer

Matt recently deposited $30,750 In a savings account paying a guaranteed Interest rate of 5 percent for the next 10 years. Required: a. If Matt expects his marginal tax rate to be 22.00 percent for th1 answer

Need help on these 4 multiple choice questions please!es. With this type of 5. A company provides a Defined Contribution pension plan for its employees. With this pension plan the receives all the benefits and the bears all the funding risk A. Employee;1 answer

Need help on these 4 multiple choice questions please!9. Which of the following is an important investmen ***Partners Healthcare” portfolio that we discussed in class is an important investment objective for an endowment fund such as the ents are long B1 answer

Need help on these 4 multiple choice questions please!ach to asset allocation? 13. Which of the following is NOT a characteristic of the new approach to asset allo A. Considers risk factors rather than asset classes B. Considers macroeconomic factors and1 answer

17. Which of the following statements is true about “Smart Beta” strategies A. They are an important component of modern portfolio theory (MPT) B. Investors who use smart beta strategics do who use sm
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Need help on these 4 multiple choice questions please!21. You purchased 100 shares of IBM common stock on margin at $153 per share. Assume the margin is 50%, and the maintenance margin is 30%. Below what stock price level would you a margin call? A $102.1 answer

Need help on these 4 multiple choice questions please!25. Which of the following statements about Defined Benefit pension pl IL The employer is responsible for the investment choices. Employers who sponsor a defined b e loway be required to provide cash1 answer

Need help on these 4 multiple choice questions please!28. Which of the following statements about the S&P/TSX Index is TRUE? A Financials and information technology have a large weight in the S&P/TSX Index. B. Materials have a lower weight in the S&P/TSX1 answer

Need help on these 4 multiple choice questions please!Use the following information to answer Questions 3235 below. You sold short 1.000 shares of Loser Ca p rice of 565 per share. Many man your view of the company, Shares of Loser Co are the largest sh1 answer

Need help on question 1 please!Part B: SHORT ANSWER QUE QUESTION I (8 marks) You are an investment analyst working in the finance department of a manufacturing company with headquarters in Kansas City, Missouri. The company’s opera1 answer

Need help on all parts of question 2 please!QUESTION 2 (Total of 8 marks) (a) (2 marks) What is the difference between strategic and tactical asset allocation? (0) (2 marks) What would cause a change in the strategic asset allocation (c) (2 mar1 answer

You plan to retire from American Widgets Incorporated at age65, and you want to have enough money in your savings account to withdraw $40,000 every year for 20 years after that. If your account1 answer

You set up a college fund in which you pay $3500 each year at the beginning of the year. How much money (in $) will you have accumulated in the fund after 30 years, if your fund earns 8% compounded an1 answer

Need help on question 3 parts a and b please!QUESTION 3 (Total of 6 marks) (a) (3 marks) The P/E multiple of the S&P500 index would be CPE multiple of the S&P500 index would be expected to increase during a prolonged period of high inflation. Is1 answer