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Your investment club has only two stocks in its portfolio, $20,000 is invested stock with a beta of 0.7 and $35,000 is invested in a stock with a beta of 1.3. What is the portfolio's beta?
Choose and discuss two projects that require an investment for your firm, H20 Innovations. One should be a 'current project' and the other long-term investment project.
Assets and costs are presumed to be proportional to Sales. Debt and Equity are not. Current dividends of $ 2,300 were paid; and the company's dividend policy is to maintain a constant payout ratio. Ne
The margin required to hold a futures contract is not a down payment but a form of security bond. If the market goes against the trader's position, he may lose some, all, or possibly more than the mar
A project costs $19,000 and promises the followig cash flows: Year 1 $12,500 Year 2 $6,000 and year 3 $3,000. The appropriate discount rate is %15 per annum.
Apple's current share price is $491. The exercise price of your stock option is $520. The value of the stock option is equal to the difference between Apple's stock price and the exercise price of $52
Just looking for your thoughts - Multiple bullet points would be acceptable. Minimum of five bullet on each question with explanation where necessary
Three years ago, ABC AG arranged a five-year fixed borrowing facility at 5%. At that time the company correctly predicted that interest rates were about to fall, and decided to receive fixed on a five
All profit-sharing plans must have a formula under which contributions are allocated to participants' accounts. Elliott Knitwear Co. has a profit-sharing plan for its 10 employees.
Ross Corporation is a 3-year old company with a relatively young staff of 12 employees, of whom two are highly compensated. The company wants to establish a Section 401(k) plan.
Alright Printing Company employs five individuals: Karl who earns $70,000 this year, Rachal who earns $50,000, and three sales representatives who each earn $40,000.
Mr. Fossett has a Section 401(k) plan account to which salary and matching contributions have been made for a number of years. He has had unexpected financial obligations in the current year and would
Black, Inc. is an ESOP-owned company with three employees: Kermit, age 62, who has participated in the plan for 21 years; Isaac, age 38, who has participated in the plan for eight years; and Nathan, a
Randy, age 63, is a participant in the stock bonus plan of XYZ, Inc., a closely held corporation. Randy received contributions in shares of XYZ stock to the stock bonus plan and XYZ, Inc. had the foll
Marcus, age 61, is a participant in a stock bonus plan. The value of the employer stock contributions to the plan over the course of his participation totaled $165,000.
The Metallica Heavy Metal Mining (MHMM) Corporation wants to diversify its operations. Some recent financial information for the company is shown below:
Briarcrest Condiments is a spice-making firm. Recently, it developed a new process for producing spices. The process requires new machinery that would cost $2,313,519 and have a life of five years and
Chip's Home Brew Whiskey management forecasts that if the firm sells each bottle of Snake-Bite for $20, then the demand for the product will be 15,000 bottles per year, whereas sales will be 87 percen
Capital Co. has a capital structure, based on current market values, that consists of 34 percent debt, 12 percent preferred stock, and 54 percent common stock
Newspaper vending machines are designed so that once you have paid for one paper; you have access to all the papers in the machine and could take multiple papers at a time.
Bell Mountain Vineyards is considering updating its current manual accounting system with a high-end electronic system. While the new accounting system would save the company money, the cost of the sy
Would you value a privately-owned company where there is no market value different than a publicly owned company where there is a market price every day?
Choose an area where someone would have insurance. Now use your knowledge of the problems associated with asymmetric information to explain why the insurance companies might include deductibles as par
Mary Francis has just returned to her office after attending preliminary discussions with investment bankers. Her last meeting regarding the intended capital structure of Apex went well, and she calls
If a manager receives part of their salary based on how the portfolios they manage are performing then the manager would want to see his or her portfolio have a high return.