• Q : Determining the standard deviation on portfolio....
    Finance Basics :

    Suppose you have $20,000 total. If you put $14,000 in Stock A and the remainder in Stock B, what will be the expected return on your portfolio? What will be the standard deviation on your portfolio?

  • Q : Cost of borrowing by using debt for current company....
    Finance Basics :

    Based on the above information, calculate the cost of borrowing using debt for the current company.

  • Q : Bond current market price of callaghan motors....
    Finance Basics :

    Callaghan Motors' bonds have 10 years remaining to maturity. Interest is paid annually, they have a $1,000 par value, the coupon interest rate is 8%, and the yield to maturity is 9%. What is the bon

  • Q : Values of roe and payout ratio....
    Finance Basics :

    Build an Excel spreadsheet to show how book value per share, earning per share and dividends per share change over years. Change the values of ROE and payout ratio and illustrate how the stock price r

  • Q : Differences in the two coporations....
    Finance Basics :

    Using the most recent income statments (annual) for the two corporations (Walmart & Target) from Part 1 of the assignment, calculate a common size analysis using a spreadsheet. Discuss the diffe

  • Q : Net benefit of trade to manufacturer....
    Finance Basics :

    A manufacturer will deliver 14 Caterpillar D9 tractors, with a value of $350,000 per tractor, and receive 45,000 barrels of oil, valued at $115 per barrel. What is the net benefit of this trade to t

  • Q : Procedure of loan amortization and capital recovery....
    Finance Basics :

    How much should the company invest in a sinking fund earning 12% in order to be able to repay debentures? Show the procedure of loan amortization and capital recovery through an example.

  • Q : Assess the risk of the asset and wants....
    Finance Basics :

    Determine what is the most Laura should pay for he asset if it is classified(1) low risk, (2) average risk, and (3) high risk. Suppose Laura is unable to assess the risk of the asset and wants gto be

  • Q : Computing dirty price of transaction....
    Finance Basics :

    On October 5, 2013, you purchase a $12,000 T-note that matures on August 15, 2024 (settlement occurs two days after purchase, so you receive actual ownership of the bond on October 7, 2013).  C

  • Q : Trends which prevailed in international business....
    Finance Basics :

    What are the major trends that have prevailed in the international business arena in the last two decades?

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

    Discuss the relationship between bond prices and interest rates. What impact do changing interest rates have on the price of long-term bonds versus short-term bonds?

  • Q : Pros and cons of using major tool of monetary policy....
    Finance Basics :

    Discuss the pros and cons of using each major tool of monetary policy in achieving and managing this Prime Rate target? What tool(s) do you recommend to Fed Chairperson Yellin?

  • Q : Determining length of firm cash conversion cycle....
    Finance Basics :

    What is the length of the firm's cash conversion cycle? What is the firm's investment in accounts receivable? What is the company's inventory turnover ratio? Identify three ways in which the company c

  • Q : Initial outlay of the project....
    Finance Basics :

    Compute the initial outlay of the project. <-$670,000> Compute the operating cash flows in Years 1 and 2. <$264,995; $304,326> Compute the non-operating cash flow at the end of Year 2. <

  • Q : Managed fund earn-higher fees....
    Finance Basics :

    The actively managed fund has a chance to outperform the market while the index fund will deliver the return of the market (less management and trading costs). What excess return per year must the a

  • Q : Determining the beta of the stock....
    Finance Basics :

    Thomas is considering selling a particular stock to help pay some university expenses. The stock is valued at $100,000, and if he sells it, the portfolio's beta will increase to 1.8. What is the bet

  • Q : Breaking news earn....
    Finance Basics :

    The company follows a constant pay out ratio dividend policy. If the company would like to pay $8 million in dividends next year, how much must Breaking News earn

  • Q : Projected npv according to wacc method....
    Finance Basics :

    Assume that the project will always be backed by debt equal to 60% of the contemporaneous project value. the tax rate is 34%, debt will have required return 6% and equity will have required return 9

  • Q : Determining unlevered cost of capital....
    Finance Basics :

    The required return on the market is 15%. BRR has debt with market value $30 million and equity with market value $6 million. What is BRR's unlevered cost of capital?

  • Q : Proposal appropriateness and economic viability....
    Finance Basics :

    A company wants to invest in a new advertising program. Using the NPV method of capital budgeting, determine the proposal's appropriateness and economic viability with the following information:

  • Q : Value of the unlevered firm....
    Finance Basics :

    Calculate the value of the unlevered firm if the firm has a marginal tax rate of 0%. Calculate the value of the unlevered firm if the firm has a marginal tax rate of 30%.

  • Q : Firm market capitalization....
    Finance Basics :

    Construct the equity accounts for hot shots at the end of its first year in business, and calculate the firm's market capitalization.

  • Q : Interpret the company z score....
    Finance Basics :

    Sosbee Foods has a working capital/total assets ratio of 0.2, a retained earnings/ total assets ratio of 0.1, an earnings before interest and taxes / total assets ratio of 0.25, a market value of eq

  • Q : Determining present value of cash flow stream....
    Finance Basics :

    What is the present (Year 0) value of the cash flow stream if the opportunity cost rate is 10 percent? What is the value of the cash flow stream at the end of Year 5 if the cash flows are invested in

  • Q : Value of the option to wait....
    Finance Basics :

    Hickock Mining is evaluating when to open a gold mine. The mine has 39,200 ounces of gold left that can be mined, and mining operations will produce 5,600 ounces per year. What is the value of the o

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