• Q : Background of behavioral finance....
    Finance Basics :

    What is the background of behavioral finance and why attention has been increased toward it during the last three decades? Who were the main contributors in this field?

  • Q : Determining obligation by using money market hedge....
    Finance Basics :

    The annual interest rate is 3 percent in Japan and 6 percent in the United States. XYZ can also buy a one-year call option on yen at the strike price of $0.0086 per yen for a premium of 0.012 cent p

  • Q : Contribution margin for community center mental health....
    Finance Basics :

    Compute the contribution margin for the Community Center Mental Health Program. What does the result tell you about the program?

  • Q : Standard deviation of return on investment....
    Finance Basics :

    What is the standard deviation of the return on Barbara's investment? (Round intermediate calculations and answer to 5 decimal places, e.g. 0.07680.)

  • Q : After-tax rates of return on securities....
    Finance Basics :

    State of Florida muni bonds, which yield 5% (but are not taxable), and AT&T preferred stock, with a dividend yield of 6%. Shrives corporate tax rate is 35%, and 70% of the dividends received are

  • Q : Relationship between bond prices-interest rates....
    Finance Basics :

    Describe the relationship between bond prices and interest rates, and explain why it is important for investors to understand this relationship.

  • Q : Concept of interest rates fundamentals....
    Finance Basics :

    How does the concept of interest rates fundamentals, term structure and risk premiums come into play in the real world?

  • Q : Forward price of contract-annual compounding....
    Finance Basics :

    You enter into a forward contract to buy a 13-year, zero coupon bond that will be issued in one year. The face value of the bond is $1,000, and the 1-year and 14-year spot interest rates are 5.2 per

  • Q : Ratio analysis-liquidity-asset management....
    Finance Basics :

    Find two publicly traded companies and compare and contrast them financially. Your comparison should include a brief ratio analysis-liquidity, asset management, financial leverage, profitability, a

  • Q : Maturity risk premium on two year treasury security....
    Finance Basics :

    A 2-year Treasury security currently earns 1.94 percent. Over the next two years, the real interest rate is expected to be 1.00 percent per year and the inflation premium is expected to be 0.50 perc

  • Q : Computing bond default risk premium....
    Finance Basics :

    The security's liquidity risk premium is 0.25 percent and maturity risk premium is 0.85 percent. The security has no special covenants. Calculate the bond's default risk premium. (Round your answer

  • Q : Best-case and worst-case npv figures....
    Finance Basics :

    Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within ±10 percent. Calculate the best-case and worst-case NPV figures

  • Q : Different categories of financial ratio analyses....
    Finance Basics :

    What are the different categories of financial ratio analyses? What are they designed to monitor? Explain why a single ratio is not sufficient to assess a company.

  • Q : Foreign currency gain or loss for us mnc translating....
    Finance Basics :

    Find the foreign currency gain or loss for this U.S. MNC translating the balance sheet and income statement of a French subsidiary, which keeps its books in euro, but that is translated into U.S.

  • Q : Taxable equivalent yield on municipal bond....
    Finance Basics :

    What's the taxable equivalent yield on a municipal bond with a yield to maturity of 3.5 percent for an investor in the 33 percent marginal tax bracket?

  • Q : Three bond quotes....
    Finance Basics :

    Consider the following three bond quotes: a Treasury note quoted at 97:27, a corporate bond quoted at 103.25, and a municipal bond quoted at 101.90.

  • Q : Names of wal-mart reportable business segments....
    Finance Basics :

    What are the names of Wal-Mart's reportable business segments? Who are the executive officers elected by the Board of Directors of Wal-Mart Stores, Inc.? Who are the members of its Board of Directors

  • Q : Value of option assuming no possibility of default....
    Finance Basics :

    What is the value of the option assuming no possibility of a default? What is the value of the option to the buyer if there is a 2% chance that the option seller will default at maturity?

  • Q : Inclusion of income from illegal sources....
    Finance Basics :

    Gross income is defined as "all income from whatever source derived." (Pope, I:3-4) Why do we exclude unrealized gains, such as the increased value in your home before it sold, in gross income? Also

  • Q : Cash conversion cycle and net working capital....
    Finance Basics :

    Explain the cash conversion cycle (CCC) and net working capital. Why is this important to the contemporary business leader? How do business decisions regarding CCC and net working capital affect the

  • Q : Dupont analysis of two companies....
    Finance Basics :

    Compare Dupont analysis of two companies.. Using a search engine, find one large corporation included in the S&P 500. Then, find one of its largest competitors. Go to the investor relations port

  • Q : Determining the cost of common equity....
    Finance Basics :

    Salte Corporation is issuing new common stock at a market price of $26.69. Dividends last year were $1.44 and are expected to grow at an annual rate of 5.4% forever. What is Salte's cost of common e

  • Q : Cash flows of the project-project payback period....
    Finance Basics :

    Draw a time line to show the cash flows of the project. Compute the project's payback period, net present value (NPV), profitability index (PI), and internal rate of return (IRR). Discuss whether the

  • Q : Terms of optimal debt-to-equity ratio....
    Finance Basics :

    Given these data, how would you classify the following firms in terms of their optimal debt-to-equity ratio (high, medium, or low)?  

  • Q : Incentives of rating agencies....
    Finance Basics :

    Proponents of this argument suggest that rating agencies rated companies too harshly at the low end of the rating scale, denying investment grade status to some deserving companies. What are propone

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