Finance question and answers for July 11, 2023
- Q discuss the role of each of the following in the financialsystem banks central bank surplus unit deficent unit financialmarkets.
- Q contrast a forward contract with a future contract.In yourdisscussion comment on the historical development of each.Alsopoint out the value of each contract and the obligation of holdersof the contract in...
- Q Assume the following data forTONINO Corp:Expected EBIT = $160 million (in perpetuity)Cost of unlevered equity = 8%Market risk premium = 5%Risk free rate = 4%The corporate tax rate =25%Currently TONINO...
- Q 2. What is a diversified portfolio? What type of risk is reducedthrough diversification? How many securities are necessary toachieve this reduction is risk? What characteristics must thesesecurities are necessary to...
- Q 1 explain the role of risk management in preventingunauthorised, irregular and fruitless and wasteful expenditure.2 discuss the three principles of the King IV report oncorporate governance that pertain to organisational...
- Q Company Y market value of debt is $6 million. Company Y has 300000 shares outstanding and current share price is $22. The cost ofequity is 15%. Company tax rate 35%.a)What...
- Q A company is considering two mutually exclusive expansion plans.Plan A requires a $41 million expenditure on a large-scaleintegrated plant that would provide expected cash flows of $6.55million per year for...
- Q Question 6Consider the following balance sheet of a publicly heldcompany:Cash $760,000 Long Term Debt $7,633,500Receivables $1,250,000 Common Stocks $14,176,500Inventories $2,225,000Net Equipment $17,575,000It is estimated that the yield to maturity on...
- Q The Carla Vista Supply Company reported the followinginformation for 2017. Prepare a common-size income statement forthe year ended June 30, 2017. (Round answers to 1 decimal place,e.g. 52.7%.)Carla Vista Supply...
- Q Consider the following table:Stock FundBond FundScenarioProbabilityRate of ReturnRate of ReturnSevere recession0.05–28%–13%Mild recession0.25–8%19%Normal growth0.4013%12%Boom0.3018%–9%a.Calculate the values of mean return and variancefor the stock fund. (Do not round intermediatecalculations. Round "Mean return"...
- Q T needs you to analyze the impact a new project that will causeits cash flows to increase $8,000 over last year’s, and continue togrow at a constant rate of 10%...
- Q Use the table for the question(s) below . Consider the followingexpected returns, volatilities, and correlations: Stock ExpectedReturn Standard Deviation Correlation with Duke Energy Correlationwith Microsoft Correlation with Wal Mart ?...
- Q Ten Pins Manufacturing has 8.2 million shares of common stockoutstanding. The current share price is $52, and the book value pershare is $3. The company also has two bond issues...
- Q All things equal, diversification of totalrisk is most effective when the ROPCassociated with each security in the portfolio are __________correlated with ________.A: Negatively correlated with the market.B: positively correlated with...
- Q The risk free rate is 4%, and the required return on the marketis 12%.What is the required return on an asset with a beta of1.5?What is the reward/risk ratio given...
- Q Q7. General Electric Corp. (GE) paid cash dividends totaling$0.57 per share in 2000. Over the previous three years, GE'sdividends grew at an annual rate of 15.4 per-cent. Assume that thisgrowth...
- Q Suppose you have been hired as a financial consultant to DefenseElectronics, Inc. (DEI), a large, publicly traded firm that is themarket share leader in radar detection systems (RDSs). The companyis...
- Q Deja Brew Coffee Manufacturing Corporation is expected to paythe following dividends over the next six years: $5, $13, $18, $11,$21 and $3.45. Afterward, the company pledges to maintain aconstant 7...
- Q What has been the average level, trend, and volatility ofprofitability for Disney (DIS)?
- Q Your division is considering two projects with the followingcash flows (in millions):0123Project A-$17$8$8$3Project B-$26$13$10$9What are the projects' NPVs assuming the WACC is 5%? Enter youranswer in millions. For example, an...
- Q An electric utility is considering a new power plant in northernArizona. Power from the plant would be sold in the Phoenix area,where it is badly needed. Because the firm has...
- Q Kim Inc. must install a new air conditioning unit in its mainplant. Kim must install one or the other of the units; otherwise,the highly profitable plant would have to shut...
- Q A woman plans to retire in 40 years, and she expects to live for30 years after that. She wants to spend 10,000 a month after sheretires. To finance her retirement...
- Q You are considering how to invest part of your retirementsavings.You have decided to put $ 100 comma 000 into three? stocks:53 % of the money in GoldFinger? (currently $ 20?/share),...
- Q A 30-year maturity bond making annual coupon payments with acoupon rate of 12% has duration of 11.54 years and convexity of192.4. The bond currently sells at a yield to maturity...
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