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Identify a problem in our natural world that is the result of overuse or by over mining of one or more natural resources to advance a corporation.
What means does it use to hedge against exchange rate risk? Using this information, what do you think would be effect of increases/decreases in dollar's exchange value on 's profitability? Be sure t
Evaluate the change in consumer demand trends after the crash for each of the tech stock companies you researched. Provide examples with your evaluation and use graphics such as charts, when applic
What would be the no-arbitrage risk free rate if with a probability of 50% the price increases and with a probability of 50% it decreases, keeping all other values constant? Explain
If new silver mines open and flood the market with silver, the two metals will circulate as before in the US since citizens could exchange their gold currency for silver currency at any time.
You purchase 200 shares of XYZ on margin at $80 per share. You also short sell 100 shares of ABC at $30 per share. With an initial margin requirement of 70%, find your original equity
Make a choice between the projects and the tax-refund alternative. Why did you choose the alternative you did?
Briefly describe Modigliani and Miller Proposition I and discuss the important conditions that are required to prove it to be true. Are they realistic?
Preston Industries has a WACC of 12.38 percent. The capital structure consists of 61.3 percent equity and 36.3 percent debt. The aftertax cost of debt is 6.8 percent and the cost of equity is 15.50
Under the terms of the deal, a company, whose brands include well known brands, said it was offering $51.75 in cash and 0.1822 of a share in company (70,951,932 commom stock) for each share in anot
Explain the appropriate use of short-term debt (such as notes payable) and of spontaneously generated capital (such as accruals and accounts payable) for determining the company's capital structure.
Oil Well Supply offers 7.5 percent coupon bonds with semiannual payments and a yield to maturity of 7.68 percent. The bonds mature in 6 years. What is the market price per bond if the face value is
The bonds issued by Stainless Tubs bear an 8 percent coupon, payable semiannually. The bonds mature in 11 years and have a $1,000 face value. Currently, the bonds sell for $952. What is the yield to
Three years ago in 2005 an investor purchased a 10.7 semi-annual coupon bond at part value. THe bond will mature in 2025. What is the YTM at the time of purchase?
The common stock currently sells for $64 per share and has a beta of 1.2 , the preferred stock currently sells for $108 per share and bonds have 15 year to maturity and sell for 96 % of par. Market
Electronics, Inc. common stock returned a nifty 23.5 percent rate of return last year. The dividend amount was $0.25 a share which equated to a dividend yield of 0.95 percent. What was the rate of p
What is the internal rate of return of a project that has an initial net outflow of 100, a t=1 cash flow of +250, and a t=2 cash flow of -156?
Research the pros and cons of the traditional NYSE trading and the electronic trading (like NASDAQ or ECNs) then pick one of the sides and argue why the NYSE should either maintain its tradition and
Some corporations debt-equity targets are expressed not as a debt ratio but as a target debt rating on the firm's outstanding bonds. What are the pros and cons of setting a target rating rather than
In the context of analyzing dissertation topic about "hedging financial risk via derivatives", is case study research method suitable to analyze the above topic or is there a better more suitable re
You have been following the shares of Alcoa, a major aluminum producer. It is currently the beginning of December and three weeks before an anticipated strike in the aluminum industry.
What is the company's pretax cost of debt? If the tax rate is 35 percent, what is the aftertax cost of debt?
As the head of Human Resources at Harris Light & Magic Corporation, Renée is determined to increase the wealth of the company. She was approached by Segler Executive Management Retreats
If the target company has 20 million shares outstanding and you want to purchase 100% of the shares, what is the maximum price per share you would be willing to pay? Why? Would you try to negotiate
Present value of an annuity. Lease payments of $3,895.50 for a 10 year period. starting at the end of this year. If the firm uses a 9 percent discount rate, what is the present value of this annuity