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Offer three reasons with full explanation for why it is important for companies to keep a fair portion of their overall asset balance in liquid assets.
At the end of 15 years, the factory will be torn down at an estimated TCF of -$900 million. Calculate the projects expected NPV using a discount rate of 12%.
After that time, the dividends will be held constant at $1.60 per share. What is this stock worth today at a 9 percent discount rate?
A T-bill with face value $10,000 and 80 days to maturity is selling at a bank discount ask yield of 2.7%.
Medco Corporation can sell preferred stock for $106 with an estimated flotation cost of $2. It is anticipated that the preferred stock will pay $6 per share in dividends.
Telecom Systems can issue debt yielding 12 percent. The company is in a 30 percent bracket. What is its aftertax cost of debt?
What is the difference between the present value of the settlement at 5 percent and 11 percent? Compute each one separately. Use Appendix D.
Compute the weighted average cost of capital. (Round your intermediate and final answers to 1 decimal place. Omit the "%" sign in your response.)
An investment of $20000 will create a perpetual after-tax cash flow of $2000. The required rate of return is 8%. What is the investment's profitability index?
The cost to set up the design for printing is $315. The holding cost is estimated at 2 cents per bag per year.
Zip Games purchases blank DVD disks onto which it copies its software for sale through its mail order operation. A disk costs Zip $.25. Processing an order for more disks cost $16. Zip uses 62,000 d
he tax rate is 34 percent, what is the annual OCF for the project?
Which investment has the least amount of risk?
A company whose charter autorizes 10 million shares, has sold 6 million to the public. Of these, 5 million are in the hands of investors today.
Today stock is selling at $29.5 per share and bond is quoted as 99.2. What is the holding period return for your portfolio?
A final suggestion is a make a 10% across-the-board price reduction. By how much would dollar sales have to increase to maintain Alliance's current contribution.
A 10-year corporate bond has a yield of 9%. Assume that the liquidity premium on the corporate bond is 0.7%. What is the default risk premium on the corporate bond? Round your answer to two decimal
using the proceeds to purchase another stock with a beta of 1.35. What will the portfolio's new beta be after these transactions? Round your answer to two decimal places.
What is the value of a put option written on the stock with the same exercise price and expiration date as the call option? Round your answer to the nearest cent.
An airline tracks data on its flight arrivals. Over the past six months, 25 flights on one route arrived early, 150 arrived on time, 45 were late, and 30 were cancelled.
A bank offers two 30 year, fixed rate, fully amortizing LPMs: an 85% LTV loan at 6%, and an 80% LTV loan at 5.5%. What is the marginal cost of borrowing if the loan is going to be held for 10 years?
If the home appreciates at 1%, how old will you be before your loan balance exceeds the value of the home?
choose three different occupations that you want to know more about and research them online.
if the required rate of return in the market is 5% per annum and the bonds have 15 years left to maturity. Assume a face value (maturity value) of $1,000.