• Q : History of the european union....
    Finance Basics :

    Explain the history of the European Union by emphasizing on the most important dates. Discuss why those dates are so influential. What was its purpose? What has it achieved to do?

  • Q : Calculating market value ratios....
    Finance Basics :

    What are earnings per share? Book value per share? If the stock currently sells for $70 per share, what is the market-to-book ratio? The price-earnings ratio?

  • Q : After tax rates of return on municipal and corporate bond....
    Finance Basics :

    An investor purchases one municipal and one corporate bond that pay rates of return of 8.3% and 2% respectively. If the investor is in the 18.37% tax bracket, his after tax rates of return on the mu

  • Q : Interest rate futures and interest rate swaps....
    Finance Basics :

    Your firm is faced with paying a variable rate debt obligation with the expectation that interest rates are likely to go up. Using interest rate futures and interest rate swaps, identify two strateg

  • Q : Determining current dividend of a company....
    Finance Basics :

    You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. If it's the company's policy to always maintain a constant growth rate in its

  • Q : Determining geometric average return....
    Finance Basics :

    Over the last four years, the stock of Stephensen's Motors has had an arithmetic average return of 8.5 percent. Three of those four years produced returns of 8 percent, 19 percent, and 13 percent. W

  • Q : Draw the market demand and supply of wine....
    Finance Basics :

    Draw the market demand and supply of wine, and label the curves to show why the market out¬put is the efficient output. b. Suppose that the wine industry is consolidated into one large monopoly

  • Q : Determining coupon rate of bond....
    Finance Basics :

    Large Industries annual bonds are selling at 99 (i.e., the price is $990 for the $1,000 bond). There are 8 years remaining until maturity on the bonds and the yield to maturity is 7.75%. Find the co

  • Q : Liquidation value per share of common stock....
    Finance Basics :

    Total liabilities, including preferred stock, equal PhP270,000. The firm has 15,000 shares of common stock outstanding. What is the liquidation value per share of common stock?  

  • Q : Annual holding period return over first two years....
    Finance Basics :

    After two years, yields to maturity on identical securities are 8.00% per annum, compounded half yearly. What is the price of this Forest Investors bond in the market? Calculate your annual holding

  • Q : Principal goal of financial management....
    Finance Basics :

    Give an example of a situation where the management of a firm is acting in a manner that is contrary to the principal goal of financial management.

  • Q : Valuing stock options....
    Finance Basics :

    Consider an option on a nondividend paying stock when the stock price is $25, the exercise price is $29, the risk free interest rate is 5% per annum, the volatility is 25% per annum, and time to mat

  • Q : Determining investment payback period....
    Finance Basics :

    Management expects productivity gains and cost savings over the next several years. If, as a result of this investment, the firm is expected to generate additional cash flows of $688,682, $862,209,

  • Q : Best cost producer....
    Finance Basics :

    Discuss the 'best cost producer'strategy as compared to the strategies you have considered for your company. Does the Best Cost Producer Strategy make sense for your company?

  • Q : Properties of options....
    Finance Basics :

    What is the lower bound for the price of this call? Assume that the call is currently selling for $3. Describe in detail with which strategy you can gain an arbitrage profit and how much this profit

  • Q : Estimating market value of debt....
    Finance Basics :

    Estimating market value of debt is next to impossible as most debts are not actively traded in the market. Furthermore, you know that some bonds are likely to get downgraded, others default, and rec

  • Q : Present value of the cash flow stream....
    Finance Basics :

    A large networking company wants to incorporate your software into their systems and is offering to pay you $489,000 today, plus $489,000 at the end of each of the following six years for permission

  • Q : Future value of investment cash flows six years....
    Finance Basics :

    If the appropriate interest rate is 8.72 percent, what is the future value of these investment cash flows six years from today?

  • Q : What is the total price....
    Finance Basics :

    What is the Total Price? This is what you would charge the customer so that you can have your profit markup of 20% over all of your costs. To calculate this, first figure out your cost per each sess

  • Q : Determining interest rate on debt....
    Finance Basics :

    Due to the increased risk, shareholders now expect a return of 17%. Assuming there are no taxes and Hubbard's debt is risk free, what is the interest rate on the debt?

  • Q : Lower bound for the price of call....
    Finance Basics :

    What is the lower bound for the price of this call? Assume that the call is currently selling for $3. Describe in detail with which strategy you can gain an arbitrage profit and how much this profit

  • Q : Tax deduction and a tax credit....
    Finance Basics :

    A tax client wants to know the difference between getting a tax deduction and a tax credit. Compare and contrast the two concepts.

  • Q : Analysis of purchasing power parity....
    Finance Basics :

    The assignment is base on IBM Corporation this portion will be on PPP analysis Purchasing Power Parity. Needed to be 1 pg in length with valid recommendation to the PPP analysis.

  • Q : Free cash flows and interest tax savings....
    Finance Basics :

    Sally's pre-merger beta is 2.0 and its post merger tax rate would be 34%. The risk free rate is 8% and the market risk premium is 4%. What is the appropriate rate for use in discounting the free cas

  • Q : Present value of a share for company....
    Finance Basics :

    After 15 years, you expect to sell the stock for 32.25. What is the present value of a share for this company if you want a 10% return?

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