Finance question and answers for September 12, 2023
- Q If the price of your bond is currently worth $1,030, has amaturity of twelve years with semiannual payments, what is the YTMif the coupon rate is 5%?
- Q Q7: Show the Portfolio Standard Deviation (equation).Say for total returns on assets in a stock portfolio. Showequations!--What would LOW covariance between stocks in theportfolio have on the portfolio standard deviation?...
- Q You enter your project team meeting with Mike and Tiffany tohear them discussing the tools that they found to conduct ananalysis of the industry and competitors. “Mike, there are so...
- Q 9Q10: Show an example of a Corporate BalanceSheet:Assets Liabilities-------------------------------------------------------------------------
- Q (IRR calculation​) Determine the IRR on the following​projects:a. An initial outlay of $10,000 resulting in a single free cashflow of $16,863 after 7 yearsb. An initial outlay of ​$10,000 resulting...
- Q Q9: What is the difference between un-systematic andsystematic risk? Show graph! Give Examples.Unsystematic Risk: Systematic Risk:Graph:--What type of risk can be diversified away? How wouldyou do this? What statistical measures...
- Q Q13: Show Calculations/Definitions for the followingFinancial Ratios/Equations: Price-to-Earning (P/E)Ratio:Earnings Per Share (EPS):Weighted Average Cost of Capital (WACC):Capital Asset Pricing Model (CAPM):
- Q Q14: Show Four (4) Intrinsic Valuation Methods for thefollowing (Equations/Definitions): Give and Example!!!Perpetuity Model:Equation:Example:Gordon Growth:Equation:Example:Multiple (P/E) Approach:Equation:Example:
- Q (NPV with varying required rates of return​) Gubanich Sportswearis considering building a new factory to produce aluminum baseballbats. This project would require an initial cash outlay of​$4,000,000 and would generate...
- Q Q6: What is the Correlation Coefficient (Say between twostock returns over time)? How do standard deviations and covarianceinteract in this equation (show equation)? What is the correlationbetween stocks/bond market returns,...
- Q Q5: What is Covariance between variables (say returnbetween stocks over time)? (Show equation) What does this measure?What if you had high, medium or low covariance between stockreturns? What does this...
- Q Negotiable Instruments (NI), and related issue that often affectour lives. Well, well, checks are a great way of paying for goodsand or services. However, these days it seems that checks...
- Q Q4: What is the “Coefficient of Variation?What is the inverse? (Showequations/diagrams)What does it tell you in regards to units of risk andreturn?Why is this important for a risk-averseinvestor?How would you...
- Q A bond has a par value of $1,000, a time to maturity of 10years, and a coupon rate of 8.70% with interest paid annually. Ifthe current market price is $870,...
- Q ​Rally, Inc., is an​ all-equity firm with assets worth $ 24billion and 6 billion shares outstanding. Rally plans to borrow $10 billion and use funds to repurchase shares.​ Rally's corporatetax...
- Q A firm is must choose to buy the GSU-3300 or the UGA-3000. Bothmachines make the firm’s production process more efficient which inturn increases incremental cash flows. The GSU-3300 producesincremental cash...
- Q Considering Purchasing Power Parity and the Law of OnePrice:a. Assume that the current price of a Big Mac in the UnitedStates today is $2.75. Assume also that the current price...
- Q Assume you have a one-year investment horizon and are trying tochoose among three bonds. All have the same degree of default riskand mature in 10 years. The first is a...
- Q inancing DeficitGarlington Technologies Inc.'s 2016 financial statements areshown below:Balance Sheet as of December 31, 2016Cash$Â Â Â 180,000Accounts payable$Â Â Â 360,000Receivables360,000Notes payable156,000Inventories720,000Line of credit0Total current assets$1,260,000Accruals180,000Fixed assets1,440,000Total current liabilities$Â Â Â 696,000Common stock1,800,000Retained earnings204,000Total assets$2,700,000Total liabilities and equity$2,700,000Income...
- Q Assume you have a one-year investment horizon and are trying tochoose among three bonds. All have the same degree of default riskand mature in 10 years. The first is a...
- Q Describe the short-falls, if any, of PPP as a predictor ofcurrency exchange rates?
- Q Suppose that zero interest rates with continuous compoundingare as follows:Maturity( years)Rate (% per annum)14.024.334.544.755.0Calculate forward interest rates for the second,third, fourth, and fifth years.
- Q Consider the following three bonds:BondCoupon RateMaturity (years)PriceA0%1.0$947.5572B7%1.0$1,014.8980C5%1.5$981.4915Assume that coupons are paid every 6 months and the face values ofall the bonds are $1,000.(a) Determine the spot rate curve. (That is,...
- Q Jetson Industries has a share price of $ 21.57 today. If Jetsonis expected to pay a dividend of $ 0.86 this year and its shareprice is expected to grow to...
- Q QUESTION 3One of the benefits of having active financial markets is theinformation we can get from those markets. Questions like what isan appropriate yield to maturity on a bond or...
- Q pton Computers makes bulk purchases of small computers, stocksthem in conveniently located warehouses, ships them to its chain ofretail stores, and has a staff to advise customers and help themset...
- Q Here are some data on DCRB options as of May 14. Current stockprice is $125.94, expirations are May 21, June 18, and July 16, andthe risk-free rates are 0.0447, 0.0446,...
- Q Describe the competitive forces in the Walt Disney companyindustry, provide 2 competitors including the company's relativeadvantages and disadvantages to its competitors, can you provide abuy or sell recommendation and estimated...
- Q A firm with a 14% WACC is evaluating two projects for thisyear's capital budget. After-tax cash flows, includingdepreciation, are as follows: 0 1 2 3 4 5 Project M -$6,000...
- Q The Walt Disney company’s intrinsic value for 2018 using thediscount valuation techniquesCalculate the Intrinsic Value of The Walt Disney Company:You will use the Discounted Cash Flow (DCF) valuation model tocalculate...
- Q Please solve this case problem:SunLife insurance has been trying to penetrate the mass marketand educate them on the benefits and importance of life and otherinvestment insurance. They have used several...
- Q Q: The bond equivalent yield on a T-bill matures in 45 days,priced at $99.00 with a $100 face value, is ____:A: BEY = 1.01% * 8.111 = 8.19%Above is the...
- Q How are \"Interest Rate Swaps\" used by corporations and banks tohedged risks?
- Q Are Swaps optimal for risk transfer for banks and localgovernments Why or Why not?
- Q New-Project AnalysisThe Campbell Company is considering adding a robotic paintsprayer to its production line. The sprayer's base price is$920,000, and it would cost another $19,000 to install it. Themachine falls...
- Q Suppose you opened a new account and invested $10,000 in yourasset in the beginning of 2014, that on June 30, 2016 you investedan additional $5,000, and that on January 31,...
- Q General Electric has just issued a callable​ (at par)​ 10-year,5.7 % coupon bond with annual coupon payments. The bond can becalled at par in one year or anytime thereafter on...
- Q Evaluate the following projects using the payback methodassuming a rule of 3 years for payback.YearProject AProject B0-10,000-10,00014,0004,00024,0003,00034,0002,000401,000,000
- Q What considerations should a firm make when pricing theirgoods/services?
- Q A bond with exactly five years until maturity paying 6% p.a.coupons semi-annually and with a face value of $100 was purchasedat a yield of 6.5% p.a. The bond was sold...
- Q Q1a)Given the following cashflows for Project Omega, what is thepayback period in years assuming the cashflows occur annually?YearCashflows of Project Omega0-90,000120,000225,000350,000440,0005150,000b)Project X and Y. The following are the cash flows...
- Q On September 7​, the billing​ date, Verna had a balance due of​$565.85 on her credit card. Assume that the interest rate is​ 1.1%per month. Suppose that​ Verna's bank uses the...
- Q Upton Computers makes bulk purchases of small computers, stocksthem in conveniently located warehouses, ships them to its chain ofretail stores, and has a staff to advise customers and help themset...
- Q 5.Easton Company prepares annual adjusting entries only.During the third quarter of Fiscal Year 2018, Easton Companyacquired the following trading securities:DateCompany# of SharesPrice per Share8/15X Company1,500$469/25Y Company1,250309/30Z Company1,00022On November 10th, Easton...
- Q Financing DeficitGarlington Technologies Inc.'s 2016 financial statements areshown below:Balance Sheet as of December 31, 2016Cash$Â Â Â 180,000Accounts payable$Â Â Â 360,000Receivables360,000Notes payable156,000Inventories720,000Line of credit0Total current assets$1,260,000Accruals180,000Fixed assets1,440,000Total current liabilities$Â Â Â 696,000Common stock1,800,000Retained earnings204,000Total assets$2,700,000Total liabilities and equity$2,700,000Income...
- Q A real estate investment has the following expected cashflows:                        Year           CashFlows                         1             $9,000                         2              13,000                         3              18,000                         4              25,000The discount rate is 12 percent. What is the investment’s presentvalue? Round your answer to 2 decimal places; for example2345.25.
- Q NPVs and IRRs for Mutually Exclusive ProjectsDavis Industries must choose between a gas-powered and anelectric-powered forklift truck for moving materials in itsfactory. Because both forklifts perform the same function, the...
- Q Micheal wants to have $68,000 in 10 years on a savings plan thatrequires monthly contributions. If he can earn 11 percent APR withmonthly compounding on the savings plan, what is...
- Q 1.A firm is buying a new machine that has the followingcash-flows during its expected life of 4 years: Purchase Price =$250,000, Terminal Value = $100,000, and yearly cash flows of$60,000....
- Q When engaging in capital budgeting projects, what types of riskmay exist? What are some techniques you could use to evaluateand/or mitigate those risks.
- Q You are negotiating to buy a new car with a car salesman at alocal dealer. You have negotiated the price to $31,000. You have$3,000 to put towards the down payment...
- Q Hewlett Packard recently paid a dividend of $2.50 for 2016, andgoing forward, their dividend is expected to grow at 3 percent peryear for the next 5 years, after which the...
- Q In February, Cap Inc. announced that it would split into twoindependent publicly traded companies: one comprised of its OldNavy brand, and the second a yet-to-be-named company that includesits other brands...
- Q (Weighted average cost of capital​) The capital structure forthe Carion Corporation is provided​ here:The company plans tomaintain its debt structure in the future. If the firm has an​after-tax cost of...
- Q Presentation graphics prepare slides and other aids forindividuals making presentations. it estimates it can save $42,000a year in cash operating costs for the next 5 years if it buys aspecial...
- Q ​(Cost of debt​) Sincere Stationery Corporation needs to raise​$750,000 to improve its manufacturing plant. It has decided toissue a ​$1,000 par value bond with an annual coupon rate of 16percent...
- Q 1. Assume you will retire at 67. You decide to open a retirementaccount that earns 8% interest. You will put $125 per month intothis account starting now (age of 38...
- Q Scooby Industries just received a patent on a new cancertreatment. The firm must now decide if it is worthwhile to startmanufacturing the drug. To do this, the firm must buy...
- Q Define Data Mining. Use examples / illustrations to reflect the useof data mining for financial statement analysis (600 words).
- Q NPVs and IRRs for Mutually Exclusive ProjectsDavis Industries must choose between a gas-powered and anelectric-powered forklift truck for moving materials in itsfactory. Because both forklifts perform the same function, the...
- Q The following options prices were observed for calls and puts onLannister Ltd for the trading day of July 6 2019. Use thisinformation in Questions 3-8. The stock was priced at...
- Q What is the difference between the retail or clientmarket and the wholesale or interbank market for foreignexchange?
- Q Required Rate of ReturnSuppose rRF = 5%, rM = 9%, andrA = 15%.Calculate Stock A's beta. Round your answer to two decimalplaces.If Stock A's beta were 1.8, then what would...
- Q Shi Import-Export's balance sheet shows $300 million in debt,$50 million in preferred stock, and $250 million in total commonequity. Shi's tax rate is 30%, rd = 6%, rps =7.9%, and...
- Q 1) An unexpected change in exchange rates impacts a firm'sexpected cash flows at three levels, depending on the time horizonused (Short Run, Medium Run, and Long Run). Describe the threeoperating...
- Q NEW PROJECT ANALYSISYou must evaluate the purchase of a proposed spectrometer forthe R&D department. The base price is $110,000, and it wouldcost another $27,500 to modify the equipment for special...
- Q Your investment club has only two stocks in its portfolio.$30,000 is invested in a stock with a beta of 0.4, and $60,000 isinvested in a stock with a beta of...
- Q Choosing a sales compensation plan is an important decision.However, there is no one size fits all approach. What are some ofthe factors involved in the compensation process? Are there anybest...
- Q 7) A.What is the major difference between \"currency risk\" and\"risk of noncompletion\"? How are these risks handled in a typicalinternational trade transaction? B. Explain what a letter of credit(L/C) is,...
- Q 2) Diversification is possibly the best technique for reducingthe problems associated with international transactions. Provideone example each of international financial diversification andinternational operational diversification and explain how theaction reduces risk.
- Q An asset costs $950,000 and will be depreciated in astraight-line manner over its four-year life. It will have nosalvage value. The corporate tax rate is 22 percent and theappropriate interest...
- Q 5) A.There are potential benefits and risks from raising capitalon global markets. Discuss the pros and cons in terms of risk ofraising capital on global markets. B. List and describe...
- Q Given the following spot rates and assuming the bonds and thetime periods are semi-annual:Time Spot Rate 1 3.00% 2 3.30% 3 3.50% 4 3.90% 5 4.40% 6 4.75% 74.95% 8...
- Q XYZ is now evaluating the purchase of a new machine for $210,000installed with no NWC change. They plan to sell the machine at theend of 3 years for $30,000. MACRS...
- Q OMG Inc. has 6 million shares of common stock outstanding, 5million shares of preferred stock outstanding, and 7,000 bonds.Suppose the common shares sell for $17 per share, the preferredshares sell...
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!