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Consider the following limit order book of a specialist. The last trade in the stock occurred at a price of $40. If a market buy order for 100 shares comes in, at what price will it be filled?
When Google's share price reached $475 per share Google had a P/E ratio of about 68 and an estimated market capitalization rate of 11.5%. Google pays no dividends. What percentage of Google's stock
Assume a U.S. dollar is worth 10.38 Mexican pesos and .64 euro's. Calculate the implied value of a Mexican Peso in terms of a euro.
Exchange rate relationships between the U.S. dollars the euro have been quite volatile. When the euro began trading at the beginning of 1999.
The stock pays a $0.50 per share dividend in one year and then the stock is sold at $23 per share. What was the investor's rate of return?
Next year's earnings are estimated to be $6.00. The company plans to reinvest 33% of its earnings at 12%. If the cost of equity is 8%, what is the present value of growth opportunities?
Assume a tax rate of 35%. The other alternative is to sign two operating leases, one with payments of $2600 for the first 2 years, and the other with payments of $4600 for the last two years.
A one-year U.S. Treasury security has a nominal interest rate of 2.25 percent. If the expected real rate of interest is 1.5 percent what is the expect annual inflation rate?
If a default risk premium of 1.50 percentage points is estimated for the corporate bond, determine the liquidity premium for the corporate bond.
Personal income amounted to $17 million last year. Personal current taxes amounted to $4 million and personal outlays for consumption expenditures, nonmortgage interest, and so forth were $12 millio
Assume Mrs. Pinson buys the bond at its current market value and holds it to maturity, what will her percentage return be?
The free cash flow to the firm is reported as $275 million. The interest expense to the firm is $60 million. If the tax rate is 35% and the net debt of the firm increased by $33, what is the free ca
A $1000 par value bond was issued 25 years ago at a 7 percent coupon rate. It currently has 10 years remaining to maturity. Interest rates on similar debt obligations are now 12 percent.
If 8% is reasonable discount rate, which option is less costly? what discount rate would cause the two alternatives to have the same cost in the present value terms. Please show work.
A comic book I purchased for 10 cents in 1948 is worth $55 dollars today (2012). What has been the average annual compound rate of return on that valuable asset.
Bonds: 12% semiannual coupon with 15 year maturity. Current price is $1153.72, and no flotation cost.
What per-member per-month (PMPM) rate would be required to break even, ignoring any copayments?
One, two and three year maturity, default-free, zero-coupon bonds have yields-to-maturity of 7%, 8% and 9% respectively. What is the implied one-year forward rate, one year from today?
Consider the following Investment: Time Cash Flow 1 $1300 2 $2400 3 $1100 4 $1200 The investment outlay is $6000. The required return is 10.75%. Required payback period is 18 months.
Why does the US government collect data on inventory levels? Why do inventories matter?
A corporation borrows $2 million from a bank at a 6 percent prime rate. If the bank requires the company to hold 15 percent of the amount of the loan on deposit as a compensating balance, what is th
Using the comparable transactions approach, what should Daphne's Toys and Treats value their firm's stock at per share? Use the average of the two available methods.
Using the WACC-DCF approach, how much should Shoes Inc. should be willing to pay per share to acquire Laces Ltd?
Using the information above regarding LevCo and if you discount the interest tax shields at the unlevered cost of equity, what is the value of the enterprise (market value of assets) using the APV m