• Q : Why a company would consider going public....
    Finance Basics :

    Why a company would consider going public? What are some of the advantages and disadvantages?

  • Q : Cardholders in debt for a long time....
    Finance Basics :

    How might credit card companies keep their cardholders in debt for a long time? What payment do the credit card companies expect your friend to make so that he never pays down the debt?

  • Q : Set for the service to break even....
    Finance Basics :

    What per visit price must be set for the service to break even? To earn an annual profit of $100,000?

  • Q : Account at the end of that time period....
    Finance Basics :

    You are going to save money for your daughter's education. You decide to place $4,252 every half year into savings account earnings 5.10 percent per year, compounded semiannually for the next 12 yea

  • Q : Present value of the car payments....
    Finance Basics :

    The car dealership offers you no money down on a new car. You may pay for the car in 6 equal annual end-of-the year payments of $7,648 each with the first payments to be made one year from today. I

  • Q : What is the present value of investment....
    Finance Basics :

    What is the present value of this investment if 4.07 percent per year is the appropriate discount rate?? Round 2 decimal places

  • Q : Calculate the conversion price in dollars....
    Finance Basics :

    The conversion rate is 12.8793 shares per $1000 bond. Calculate the conversion price in dollars and the premium as a percentage. Then discuss reasons to explain the size of the premium. Also explain

  • Q : Option of stefanic and associates....
    Finance Basics :

    We buy a put option of Stefanic and associates. Its premium is $1 and the strike price is $34. The current market price is $40. If the price drops to $20, shall we exercise the put option?

  • Q : Compute the book value-liquidation value....
    Finance Basics :

    We know the following about Radice. Total assets are $120m, D is $40m, E is $60m, preferred stock of $20m, cash is $10m and the # of shares is 1m. We estimate that the market value of equity is 3 ti

  • Q : Derive the annual ror we attain....
    Finance Basics :

    We buy a stock for $10. We receive $2 dividends annually for the next 6 years. Moreover, we reinvest those dividends at a rate of return of 5% annually. Derive the annual ROR we attain.

  • Q : What are the ytm and yield to call....
    Finance Basics :

    What are the YTM and yield to call on Eades Corp. Bonds? If the interest rates are expected to remain constant, what is the best estimate of the remaining life left for Eades Corp?

  • Q : Expected capital gains yield....
    Finance Basics :

    What is the expected capital gains yield over the next year for Bond Y? explain in detail and also provide all calculation.

  • Q : Exchange rate between the rupee and pound....
    Finance Basics :

    What is the exchange rate between the Rupee and pound? Please show your all workings and formulas.

  • Q : Yield to maturity for the bond issued by xenon....
    Finance Basics :

    In order to calculat the number of years until maturity, assume that it is now January 15, 2013. The coupon rate for Xenon, Inc. is 6.70, the maturity date is January 15, 2033, that last price is 94

  • Q : What coupon rate would the bonds have....
    Finance Basics :

    Chapman has a coupon rate of 9.63 it maturity 01/01/2042 Last price was $95.09 Lasst yield is 10.15% ESt spread is 7.15 UST is 30 years Est Volume is 65,275. If chapman wants to issue new 30 year bo

  • Q : What is the monthly payment....
    Finance Basics :

    Al's Autos has a 12% APR 84 monthly payment financing option on new $22,494 Jeep Wrangler. What is the monthly payment? Please describe in detail.

  • Q : Estimate of the corporate bond default risk premium....
    Finance Basics :

    What is your estimate of the corporate bond's default risk premium? Explain in detail.

  • Q : Decision of where to produce the different components....
    Finance Basics :

    Question 1: What criteria drove Amazon's decision of where to produce the different components that go into the kindle? Were these the right criteria?

  • Q : Equivalent value of the car....
    Finance Basics :

    Suppose you are making a monthly payment of $397.08 for your car loan of 84 months. If your discount rate is 18% APR (based on monthly pay Bank financing), how much is the equivalent value of the ca

  • Q : Lifetime annuity to retiring professors....
    Finance Basics :

    Professor's Annuity Corp. offers a lifetime annuity to retiring professors. For a payment of $70,000 ("present value") at age 65, the firm will pay the retiring professor $350 a month until death.

  • Q : Monthly rate on annuity....
    Finance Basics :

    What is the (implied) monthly rate on this annuity? Please explain in detail and also provide all workings.

  • Q : Modified internal rate of return for the project....
    Finance Basics :

    What is the modified internal rate of return for the project? Please explain in detail and also provide all workings.

  • Q : Calculate the price of a share of the company....
    Finance Basics :

    You are given the following information: Stockholders' equity = $3.75 billion, price/earnings ratio = 15.5, common shares outstanding = 12 million, and market/book ratio = 2. Calculate the price of

  • Q : Investment in the stock of firm....
    Finance Basics :

    Consider two firms A and B that are identical in all respects except capital structure. Firm A has $100 million in equity outstanding and $40 million in bonds outstanding. Firm B has $140 million in

  • Q : What is the current yield....
    Finance Basics :

    PK Software has 8.3 percent coupon bonds on the market with 22 years to maturity. The bonds make semiannual payments and currently sell for 110.00 percent of par.

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