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State which currency appreciated and which depreciated over the last month, and then calculate both the percentage appreciation of the currency that rose in value and the percentage depreciation of
The common stock of Air United, Inc., had annual returns of 15.6 percent, 2.4 percent, -11.8 percent, and 32.9 percent over the last four years, respectively. What is the standard deviation of these
In addition, Project S can be repeated at the end of Year 2 with no changes in its cash flows. Project L has an expected life of 4 years with after-tax cash inflows of $5,200 at the end of each of t
Bell Curve, Inc., estimates the expected value and standard deviation of its total liability losses for the forthcoming year as $10 million and $3 million respectively.
Scholarships, for which no services were required, amounted to $2,500,000. Graduate assistantships, for which services were required, amounted to $2,300,000. The amount to be reported by the college
Assume a government is a special-purpose government engaged in only one governmental activity. Which financial statements would be required?
Beta Corp has an ROE of 15%; has just paid a divident of $1.50 and pays 10% of its earnings out in dividends, and the appropriate discount rate is 20%; what is the current stock price?
If Purcell increased its debt ratio, which the firm's treasurer thinks is feasible, by how much could the dividend payout ratio be increased, holding other things constant?
Compute IRR, NPV, and payback for both projects. Show all calculations. Based on your analysis, would you recommend the management to go ahead with Project A? Why or why not?
The primary objective of corporate finance is widely believed to be the maximization of shareholders wealth. Discuss
You are the head of Investment Banking for Goldman Sachs. Comcast comes to you because they want to buy the Disney Corporation today, feeling the stock is undervalued, and want to buy it today, and
All sales and receivables are recorded net of discounts, regardless of whether or not discounts are actually taken. What is the firm's accounts receivable balance?
If the interest rate on debt is 7 percent and 9 percent for the 30 percent and the 50 percent debt ratios, respectively, the amount of interest on the debt under each of the capital structures being
All else constant, which one of the following will increase a firm's cost of equity if the firm computes that cost using the security market line approach? Assume the firm currently pays an annual d
Discuss a violation of the Efficient Market Hypothesis and identify which level of efficiency (weak, semi-strong, or strong) would be violated and why. In your discussion, also indicate whether this
Calculate the present value of purchasing the option now and compare it with the present value of purchasing the land outright later on. Which is the better alternative? Why?
Find a real world example of a supply or demand shock. Was it a common shock to the economy as a whole, or more specific to a certain industry or sector? Briefly explain how it affected one specific
Albatross Airlines is evaluating the acquisition of a new aeroplane. Its price is $40,000, it qualifies for a 6% investment tax credit and it will be in CCA class 9 (25%).
If the bond were not convertible, it would be priced to yield 6 percent. The conversion ratio on the bond is 15 and the stock is currently selling for $54 per share. What is the minimum value of thi
Consider a bond with a 5.2 percent coupon rate and a yield to call of 6.1 percent. The bond currently sells for $1,086. If the bond is callable in 5 years, what is the call premium of the bond?
You have $100,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expected return of 18.5 percent.
Axis Corp. is considering investment in the best of two mutually exclusive projects. Project Kelvin involves an overhaul of the existing system; it will cost $45,000 and generate cash inflows of $20
Pick an industry. Describe conditions in the industry related to Porter's industry structure:
Pick an industry. Briefly, explain whether or not this industry has highly cyclical profits. Explain whether the cyclicality is due to cyclicality of sales/revenues, operating leverage, financial le
Determine the portfolio mix of bonds, stocks, and mutual funds for someone with a high-investment-risk tolerance; low-investment-risk tolerance. Include your rationale.