[ad_1]
Get college assignment help at uniessay writers 8An investor is more likely to prefer a high dividend payout if a firm: Ahas high flotation costs. B. has few, if any, positive net present value projects. C. has lower tax rates than the investor. D.has a stock price that is increasing rapidly E. offers substantial gains on its equities, which are taxed at a favorable rate.
Projekt Input Data Investment in capital equipment (in € thousand)initil inray 2.300 Useful life of the equipment (in years) Residual value of the equipment at the end of year 5 (in € thousand) Investment in raw, auxiliary and operating materials (in € thousand) Estimated sales volume in year 1 (in thousand) Estimated sales volume in years 2 to 5 (in thousand) Sales price per unit (E/unit) Variable costs per unit (E/unit) Fixed costs excluding depreciation (in € thousand) Depreciation, linear over useful life (in €thousand) Required rate of return (% p.a.) Tax rate (%) 300 300 500 600 8,00 5,00 800 400 12% 40%
(Max Marks: 15) Q.2 The following table lists the lease payments, years remaining until the lease expires, and the discount rates: Lease payments $40,000 Lease Remaining term 12 years Discount rate A 10% 120,000 9,000 12 B C 18 14 D 16,000 3 9 E 47,000 20 11 Required: Assuming that the lease payments are made at the beginning of each year, calculate (marks: 10) a. the present value of each lease. Calculate the amount interest paid during the remaining term of each lease b. (marks: 5) Please show your calculations clearly בLנ
Consider the following two LPs. r2 min < 2 22 232 43 <1 min r23 23 2 2 x 43 < 1 ,2,30 Pick exactly of the following options (Eaplain your answer) one 1. z w' w 2. 3. Not enough information to compare 2* and и*.
CASH FLOW FORECAST Happy Manufacturing had sales of $65,000 in March and $75,000 in April. Forecast sales for May, June and July are $85,000, $95,000, and $120,000, respectively Given the following data, calculate monthly net cash flow for the months of May, June, and July (1) The firm makes 20% of sales for cash; 30 % are collected in the next month, and the remaining 50% are collected in the second month following the sale. The firm receives other income of $2,500 per month (2) $55,000 $95,000, and $85,000 for the months of May through July, respectively (3) The firm’s actual or expected purchases, all made for cash, are Rent is $10,000 per month (4) Wages and salaries are 10% of the previous month’s sales (5) Cash dividends of $40,000 will be paid in June. (6) Payment of principal and interest of $15,000 is due in June. (7) A cash purchase of equipment costing $30,000 is scheduled in July (8) Taxes of $10,000 are due in June. (9) The format shown below may help you organize your analysis. April July March May June $65,000 $75,000 $85,000 $95,000 $120,000 Total Sales Receipts Collection fom Current Month Sales Collection from 1 Month Ago Sales Collection from 2 Months Ago Sales Other income Total cash receipts July May June Disbursements Purchases Rent Wages
Pro Forma Income Statement Percent of Sales Method IN-CLASS PROBLEM Pro Forma HISTORICAL DATA 2013 2014 2015 3 Yr Avg 2016 2017 2018 % Sales % Sales %Sales %Sales Sales Revenue 1.800 1,900 1,500 1,600 1,700 2,000 1.000 1,125 1,200 Less: COGS Gross Profit 500 475 500 Less: Operating Expenses 160 172 185 Operating Profits Less Interest Expense Net Profits Before Taxes 315 340 03 20 20 20 283 295 320 Less Taxes 42 45 48 Net Profits After Taxes 278 238 247
8. Write codes to create a 100-by-100 matrix to list integers from 1 to 10000, following a left-to-right top-to-bottom order. (15′)
12. Consider an insurance company that issues a guaranteed investment contract, called ABC, for $1,000. ABC has a three-year maturity and a guaranteed interest rate of 6%. The market interest rate is 6% for all maturities. Assume the payment is compounded annually a) Calculate the amount the insurance company promises to pay in three years (3 marks) b) Suppose that the insurance company funds this obligation with a two-year zero coupon bond and a bonds to construct a portfolio with a duration of three years. four-year zero coupon bond using $1,000. Show how to use these two (3 marks) assume all market interest rates increase to 7% and stay unchanged for c) Following b), the next three years. Calculate the portfolio value in three years. (6 marks) d) Following b), assume all market interest rates decrease to 5% and stay unchanged for the next three years. Calculate the portfolio value in three years. (5 marks) e) Explain why this portfolio could immunize the interest rate risk of ABC (3 marks)
Th Compangs bete is 1.2 ad the expectl isk for the market pertlolia ist S pren um What equilibci rsk premiun fo the coapas is inplidd byCpitel Assef Pii stack model? 6.8 a b. C 8.2 7 9.0/ e C 3-056123 00 106t
Which of the following about yield to maturity is incorrect? a. Yield to maturity is the interest rate that makes the present value of a bond’s payments equal to its price b. There is an inverse relationship between bond price and yield to maturity. c. Yield to maturity equals holding period return if the bond is held to maturity and all coupon payments are reinvested at a rate of return above yield to maturity d. For a premium bond, coupon rate is higher than its yield to maturity. There is a convex relationship between bond price and yield to maturity 3. e. (3 marks) 4. Which of the following about conventional finance and behavioural finance is incorrect? Conventional finance argues that investors can process information correctly and make rational decisions b. Behavior finance claims that price can deviate from fundament value but will not last for an extended period. Convention finance believes prices a. are correct and equal to intrinsic value. C. d. Behavior finance believes the financial market is not efficient. Behavior finance believes fundamental analysis or technical analysis could be used to earn abnormal returns e. (3 marks) 5 Which of the following about hedge fund and mutual fund is incorrect? a. Mutual funds are required to disclose their strategies and portfolio compositions. b. Hedge funds traditionally have no more than 100 “sophisticated” investors. c. Mutual funds often impose lock-up periods d. The investment strategies of mutual funds are predictable and stated in their prospectus. e. Mutual funds charge fees equal to a fixed percentage of asset. (3 marks)
Get college assignment help at uniessay writers Which of the followings is not the real reason of M
7. The business risk of a firm: A. depends on the firm’s level of unsystematic risk. B. is inversely related to the required return on the firm’s assets. C. is dependent upon the relative weights of the debt and equity used to finance the firm.X D.has a positive relationship with the firm’s cost of equity. E.has no relationship with the required return on a firm’s assets according to M
18. Employee stock options are primarily designed to do which one of the following? A. provide employees with put options on their shares of company stock B. provide an immediately vested benefit to key employees C. influence the actions and priorities of employees D. distribute excess cash to key employees to avoid corporate taxation E. provide an immediate capital gain to certain employees
Intro A stock just paid an annual dividend of $2.6. The dividend is expected to grow by 6% per year for the next 4 years. The growth rate of dividends will then fall steadily by 0.25% per year, from 6% in year 4 to 5 % in year 8 and stay at that level forever The required rate of return is 12%. Attempt 1/5 for 10 pts B Part 1 What is the expected dividend in 8 years? 2 decimals Submit Attempt 1/5 for 10 pts. Part 2 What is the expected stock price in 8 years? No decimals Submit Attempt 1/5 for 10 pts. OB Part 3 What should be the current stock price? 1 decimals Submit
2. Using the Yahoo! Finance Web Site. Visit the Yahoo! Finance web site and describe the material contained in the Education section. To complete this activity, follow these steps: (Obj. a. Go to finance.yahoo.com b. Click on the section titled “Education.” Click on the section titled “Investing 101. C. d. Click on one of the articless that are listed. Then, in a one-page report, describe how the information in the ar ticle could help you establish an investment program.
Intro You find the following quotation for a stock: Stock PE High Low Volume Last Change Div Yld% (ticker) (ttm) (ttm) (ttm) (100) 1.56 18.17 206.89 176.6332,207192.96 AAPL 2.92 4.85 Attempt 1/5 for 8 pts. Part 1 What was the most recent stock price? No decimals Submit Attempt 1/5 for 8 pts. Part 2 What was the close price on the day before the one reported in the table? No decimals ourselD-579
18 A group of individual investors is in the process of acquiring all of the publicly-traded shares of OM Outfitters. Once the shares are acquired, they will no longer be publicly traded. Which of the following terms applies to this process? A. tender offer B. proxy contest X C. going-private transaction D. leveraged buyout E. consolidation.
Exercise Alfred and Bernard seek cheap funding The following interest rate structure is available AlHred Bernard Cost of fixed 10% 13 rate borrowing Cost of floating LIBOR 0,5% |LIBOR 1% rate borrow g What are the maximum savings? Deseribe a transaction that would generate maximum savings divided equally between the two parties
Exercise 1 You decided to create a structure note buying a call and a T- bill. Parameters for call and for T-bill are as follows: – 3M Call 100000 USD @ 4 PLN/USD, premium 0,10 PLN -3M PLN bill @10% p.a. The market 3M offer interest rate is 12% p.a. What is your profit/loss profile? How many bills should You buy to create a really free (zero cost) structured note?
Exercise 1 Using the simple one-period binomial option pricing model, find the value of a call option with an exercise price of 90 PLN when the underlying security price is currently trading at 97 PLN and has the same chance to rise to 115 PLN or fall to 85 PLN. The riskless rate is 10 per cent. pe-P p. X 50-3 60 1AR 50 X (Ar 21-P 0 5 0-Ph 39
DELTA Exercise delta neutral hedging Polish company exports electronic equipment to Switzerland. How to protect against the currency risk if the Swiss counterparty has to pay the amount of 3 min CHF? Spot 2,65 PLN/CHF Call CHF@2,63 PLN; premium 0,03 PLN; delta 0,5 Put CHF@2,63 PLN; premium 0,06 PLN; delta -0,4 Polish company manager is afraid that the rate will change during this period to 2,60 PLN/CHF What should be the reaction if deltas change to-0,4 and 0,5 atfer the exchange rate change? 3M 40.geg PN 03000
The post Question: I Think B Is Answer. Is It Right? But I Dont Know Whyㅜㅜ appeared first on uniessay writers.
[ad_2]
Source link