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The comparative accounts payable and long-term debt balances of a company are provided below.
The following items are reported on a company's balance sheet:
Duration. You have a 9 percent bond with 4 years to maturity paid interest annually. Its YTM is 10 percent and its market value is $968.29 per bond. What is the duration of the bond?
The current stock price is $25. What is the expected dividend yield and expected capital gains yield for the coming year?
The Arbitrage Pricing Model (APM). Suppose a three-factor APM holds and the risk-free rate is 6 percent. Calculate the expected returns on both stocks. Which stock requires a higher return?
Income statement information for Canace Corporation is provided below. Prepare a vertical analysis of the income statement for Canace Corporation.
Rha Company owns 30 percent of the stock in Aju Corporation and receives dividends of $20,000 in a given year. Assume that Rha Company is in the 35 percent tax bracket. What is the company's tax
Suppose that you buy 100 shares, then immediately sell the 100 shares with the bid and ask prices being as above. What is your round-trip transaction cost?
If your homeowner's insurance premium is $1,000 and your deductible is $2000, what could be considered the strike price of the policy if the home has a value of $120,000?
If after 6 months the homeowner experiences a casualty loss valued at $50,000. what is the homeowner's net loss? Assume that the continuously compounded interest rate equals 4.0%.
The effective six-month interest rate is 4.0% and she plans to close her position and sell her corn in 6 months. What is her profit or loss if spot prices are $1.60 per bushel when she closes he
Assume that the effective interest rates for a six month period are 4.0% What is the minimum profit in her strategy?
The following information was taken from Wheat Company's balance sheet:
HAWs share price today is $45.60 and the continuously compounded interest rate is 8.4%. What is the price of a forward contract with delivery immediately after the second dividend?
The S&P 500 Index is priced at $950.46. The annualized dividend yield on the index is 1.40%. What is the price of a 6-month prepaid forward contract on the S & P 500 Index?
The following comparative income statement (in thousands of dollars) for the fiscal years 2008 and 2007 was adapted from the annual report of Speedway Motorsports, Inc., owner and operator of severa
Magic Oaks Realty's net revenue and net income for the following five-year period, using 2010 as the base year, follow:
When you close your position the stock price is $29.87 and you have to pay a commission rate of 0.5%. Calculate your profit or loss on this short investment (assume r = 0)?
At expiration, 3 months later, the asset price is $56.75. All other things being equal and given a continuously compouned annual interest rate of 4.0%, what is the net profit or loss to the inves
Suppose that at time T = 1 the value of the asset S is S(1) = 52. What is the payoff of the portfolio (both the capital gains, and what is traded in the money-market) at time T?
Perform a vertical analysis of Beta's balance sheet for each year.
Assume corn forward prices are $2.10, $2.20, and $2.35 for delivery in 1, 2 and 3 years, respectively. Calculate the prepaid swap price for corn.
What is the prepaid forward price for a 6-month prepaid forward contract, which expires immediately after the second dividend?
A $35.00 strike European call, maturing in 6 months, sells for $3.20. What is the price P of a 6-month, $35.00 strike put option?
Substantiate your answer to part (ii) by demonstrating that using that particular spread one obtains a non-negative profit in all states of the world and strictly positive profit with positive pr