• Q : Calculating current and future stock price....
    Finance Basics :

    The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.60 per share on its stock. The dividends are expected to grow at a constant rate of 6 percent per year indefinitely.

  • Q : Set of ethical standards for business....
    Finance Basics :

    Do you feel that it is possible to develop a universal set of ethical standards for business, or do you believe that cultural differences make universal standards impractical and/or impossible?

  • Q : Calculation of forward rate....
    Finance Basics :

    If you were to purchase 10 Sept 2011 Euribor futures at 99.35 and sell them at 99.40 three days later, how much money would you have made or lost? Each future has a tick value of €25

  • Q : Analyzing business strategies and disclosure policies....
    Finance Basics :

    What tools or techniques would you use in analyzing business strategies, financial reporting and disclosure policies, financial performance, forecasts and fundamental values?

  • Q : Computation of nominal cash flow....
    Finance Basics :

    Etonic Inc. is considering an investment of $365,000 in an asset with an economic life of five years. The firm estimates that the nominal annual cash revenues and expenses at the end of the first year

  • Q : Hedge a long position in the underlying asset....
    Finance Basics :

    Using the option prices given below, give an example of a zero cost collar and explain how it could be used to hedge a long position in the underlying asset.

  • Q : Calculating coupon rates....
    Finance Basics :

    Backwater Corp. has 6 percent coupon bonds making annual payments with a YTM of 5.5 percent. The current yield on these bonds is 5.85 percent. How many years do these bonds have left until they mature

  • Q : Finding the stock price....
    Finance Basics :

    Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of $2.85 next year. The growth rate in dividends for all three companies is 5 percent.

  • Q : Computing the approximate total amount....
    Finance Basics :

    XYZ Motors just issued 225,000 zero coupon bonds. These bonds mature in 20 years, have a par value of $1,000, and have a yield to maturity of 7.45 per cent.

  • Q : Explain the role of the u.s. federal reserve....
    Finance Basics :

    Explain the role of the U.S. Federal Reserve, the Federal Reserve Chairman, and Board, indicating its effectiveness in today's economic environment. Provide support for rationale.

  • Q : Calculating break-even....
    Finance Basics :

    Answer in Excel. NPV versus IRR: Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation (BRC)

  • Q : Computation of standard deviation of returns....
    Finance Basics :

    You are considering an investment in either individual stocks or a portfolio of stocks. The two stocks you are researching, stocks A and B, have the following historical returns:

  • Q : Compute after-tax cost of debt financing....
    Finance Basics :

    Komishito has 100,000 bonds and 5,000,000 shares outstanding. The bonds have a 9% annual coupon (paid semi-annually), $1,000 face value, $1,100 market value and 10 year maturity.

  • Q : Calculation of average accounting return....
    Finance Basics :

    Colin's Haberdashery Products is considering a project that would have an initial cost of $285,000 and a 4-year life. The project's assets will be depreciated using straight-line depreciation to a zer

  • Q : Portfolio diversification....
    Finance Basics :

    Enron employees were heavily invested in Enron stock through their 401(k) plans. While companies frequently provide a match in the form of company stock, employees are typically free to move the money

  • Q : Computing present value of the technology....
    Finance Basics :

    Mark Weinstein has been working on an advanced technology in laser eye surgery. His technology will be available in the near term. He anticipates his first annual cash flow from the technology to be $

  • Q : Find value of the missing cash flow....
    Finance Basics :

    The present value of the following cash flow stream is $5,744 when discounted at 12 percent annually. The value of the missing cash flow

  • Q : Computing current price of bonds....
    Finance Basics :

    The Morgan Corporation has two different bonds currently outstanding. Bond M has a face value of $27,500 and matures in 17 years. The bond makes no payments for the first 7 years,

  • Q : Pv of multiple cash flows....
    Finance Basics :

    PV of multiple cash flows: Jack Stuart has loaned money to his brother at an interest rate of 5.75 percent. He expects to receive $625, $650, $700, and $800 at the end of the next four years as comple

  • Q : Importance of - ipps, opps, mpfs and dmepos....
    Finance Basics :

    Research and discuss the differences and importance of : IPPS, OPPS, MPFS and DMEPOS. Which provider type is paid by which method? What are the payment expectations for each type

  • Q : Using capm to compute expected return....
    Finance Basics :

    Please find an estimate of beta for British Petroleum. Please consider examining or using an industry average beta, especially if the reported beta you find seems unrealistic or inappropriate.

  • Q : Compare long-term instruments and short-term risks....
    Finance Basics :

    Compare long-term instruments and short-term risks, in terms of the various types of risk to which investors are exposed. Explain your answers.

  • Q : Calculate adjusted present value....
    Finance Basics :

    Assume that a company is planning to undertake a project costing $2,000,000. This amount will be depreciated using straight line depreciation over 5 years. The project will result in increased sales o

  • Q : Advantages and disadvantages of starting operations....
    Finance Basics :

    As part of its international expansion program, Acme, a U.S. multinational enterprise (MNE), is currently in the planning stages of establishing a Greenfield production facility overseas.

  • Q : Find the present bond price....
    Finance Basics :

    Consider a bond paying a coupon rate of 10% per year semiannually when the market interest rate is only 4% per half year. The bond has three year until maturity.

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