• Q : Estimate weighted average cost of capital....
    Finance Basics :

    Please calculate the weights (proportions) of debt and equity for British Petroleum (BP). For equity you can use the market value of stock (number of shares times the current stock price).

  • Q : Calculation of market price of the bond....
    Finance Basics :

    A tax-exempt bond was recently issued at an annual 12 percent coupon rate and matures 20 years from today. The par value of the bond is $1,000.

  • Q : Computation of yield to maturity....
    Finance Basics :

    Currently, Boston Common Community Hospital's tax-exempt bond is selling for $626.53 per bond and has a remaining maturity of twenty years.

  • Q : Identify success factors in mergers and acquisitions....
    Finance Basics :

    Think about the Textron Company and the possibility of it merging with Boeing Company. Write a two to three page paper answering the following questions:

  • Q : Determine financial break-even level....
    Finance Basics :

    You are considering investing in a company that cultivates abalone for sale to local restaurants. Use the following information:

  • Q : Compute the current price and required return....
    Finance Basics :

    The Boulder Company just paid a dividend of $2.15 per share on its stock. The dividends are expected to grow at a constant rate of 5 percent per year, indefinitely.

  • Q : Determine shareholder rights plan....
    Finance Basics :

    Apple Inc. is one of the best-known global technology companies. Who are Apple's primary customers? Current and potential competitors? Suppliers?

  • Q : Bond terminology....
    Finance Basics :

    DNA Corporation issued $4,000,000 in 8 percent, 10-year bonds on February 1, 2010, at 115. Semiannual interest payment dates are January 31 and July 31. Use the straight-line method and ignore year-en

  • Q : Compute the dividend yield....
    Finance Basics :

    Johnson Catering Corporation will pay a $2.65 per share dividend next year. The company pledges to increase its dividend by 4.75 percent per year, indefinitely.

  • Q : Calculation of returns and variability....
    Finance Basics :

    You've observed the following returns on Mary An Data Corporation's stock over the past five years: 27 percent, 13 percent, 18 percent, -14 percent, and 9 percent.

  • Q : Calculating arithmetic average return....
    Finance Basics :

    You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 11 percent, -11 percent, 18 percent, 23 percent, and 10 percent.

  • Q : Compute standard deviation of the stock return....
    Finance Basics :

    You find a certain stock that had returns of 16 percent, -9 percent, 23 percent, and 24 percent for four of the last five years. The average return of the stock over this period was 14.40 percent.

  • Q : Calculating invested amount....
    Finance Basics :

    You have $22,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 11 percent and Stock Y with an expected return of 13.0 percent.

  • Q : Determine accounting break-even point is units....
    Finance Basics :

    We are evaluating a project that costs $750,000, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project.

  • Q : Computing the npv....
    Finance Basics :

    Ang Electronics, Inc., has developed a new DVDR. If the DVDR is successful, the present value of the payoff is $21.2 million. If the DVDR fails, the present value of the payoff is $9.1 million.

  • Q : Trade-off theory and pecking-order theory....
    Finance Basics :

    Describe a specific business that seems to follow trade-off theory and another that follows pecking-order theory. Compare and contrast trade-off theory and pecking-order theory.

  • Q : Calculate the percent change in price....
    Finance Basics :

    Market, Inc. has a 7-year, 6 percent annual coupon bond outstanding with a $1,000 par value. The bond has a yield to maturity of 5.5 percent.

  • Q : Find present value of all shop future profits....
    Finance Basics :

    A 10-year bond paying 8% annual coupons pays $1000 at maturity. If the required rate of return on the bond is 7%, then today the bond will sell for

  • Q : Estimate expected return on a portfolio....
    Finance Basics :

    A stock has a beta of 1.20 and an expected return of 14 percent. A risk-free asset currently earns 3.0 percent. What is the expected return on a portfolio that is equally invested in the two assets?

  • Q : Contractual hedge against foreign exchange....
    Finance Basics :

    Plains States Manufacturing has just signed a contract to sell agricultural equipment to Boschin, a German firm, for >1,250,000. The sale was made in June with payment due six months later in Decem

  • Q : Determine the closing market price of common shares....
    Finance Basics :

    Using one of the financial websites, look up the five following stocks: Coca-Cola, General Electric, Exxon Mobil, Humana, and Home Depot. 

  • Q : Compute the certainty-equivalent cash flow....
    Finance Basics :

    A project has a forecasted cash flow of $110 in year 1 and $121 in year 2. The interest rate is 5%, the estimated risk premium on the market is 10%, and the project has a beta of .5.

  • Q : Contrast the use of calls and puts....
    Finance Basics :

    Contrast the use of calls and puts and determine which scenarios would be better suited to one over the other. Provide examples of each in the context of an MNE.

  • Q : Computing rates of return....
    Finance Basics :

    I found the expected rate of return for stock A and B, which is 8% and 10% respectively. I need to find the standard deviation of both A and B as well.

  • Q : Identify three factors for any valuation model....
    Finance Basics :

    The value of an asset is the present value of the expected returns from the asset during the holding period. An investment will provide a stream of returns during this period,

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