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Examine how each of the three major dimensions of international finance can affect possible venture of MNC in chosen new international market.
A traded option is available with delta of 0.6, gamma of 1.5, and vega of 0.8. What position in traded option and in sterling would make portfolio both vega neutral and delta neutral?
The current price of non-dividend-paying biotech stock is $140 with volatility of 25%. Find the probability of down movement in risk-neutral world?
Consider the option on non-dividend-paying stock when stock price is $30, exercise price is $29. Find the price of the option if it is a European call?
Bill purchased the house for $70,000. He put $25,000 down and agreed to pay rest off over next 15 years. How much will 15 equal payments be?
If average dividend paid on stocks in index is 4% of the value of index at the beginning of year, find the rate of return earned on S&P index?
If the risk free rate on interest were 4.5% and market risk premium were 7.5%, what rate of return would you expect to earn from portfolio?
Management anticipates an increased working capital need of $3,000 for year. Find the effect of price increase on firm's FCF for year?
15 percent for debt, preferred stock, and common stock, respectively, find Capital's after-tax WACC? Suppose that firm's marginal tax rate is 40 percent.
Briarcrest Condiments is spice-making firm. Recently, it developed new process for producing spices. Find the NPV if discount rate is 16.75 percent?
If you wanted to have $1,000,000 in savings at retirement, how much would you require to save each and every year over the next 30 years if you could earn 5% annually on your savings?
Businesses have to make several financial decisions which have direct impact on operations and ability to successfully compete in marketplace.
Describe pros and cons of each approach. Relate the discussion to efficient market hypothesis and its implications.
Describe rationale of suggested investment strategy (assume CAPM is benchmark model). Describe multifactor APT model which incorporates size.
Compare money market hedge and option hedge. Ensure to indicate value of NZ$ at which U.S. exporter will be indifferent between two hedging strategies as part of answer.
Find terminal cash flow in year 10(that is, annual after tax cash flow in year 10 plus any additional cash flows related with termination of this project.
Rank projects using payback period. Which looks best and why? If company uses 9.8% discount rate to examine projects. What is company's payback period for project.
How many bonds will they have to issue to raise needed funds. Find the firms after-tax cost of debt if firms tax rate is 34%
TM, Inc. is issuing $1000 par value bond which pays 7.7% annual interest rate and matures in 15 years. Calculate market value of bond. how many bonds will they have to issue to raise needed fund
Use simplified straight line method over 5 years. Find out the free cash flows related with the project.
Select any one business organisation of the choice and explain how it has been affected by forces of both globalisation of markets and production.
Write the main hardware and software facilities needed at the homes of Sales personnel so that they could remotely access information held at company?
Assume that for each new unit it sells, firm also sells $100 worth of applications on which firm has a 35% profit margin
If sales increase by 30% , % change in earnings before interest and taxes equals____% , % change in net income equals____%.
Currently bonds with the similar credit rating and maturity as firm's outstanding debt are selling to yield 7.12%. The after tax cost of debt for firm is?