Calculate the expected return on stock of Gamma Inc.: State of the economy Probability of the states Percentage returns Economic recession 20% -6.3% Steady economic growth 45% 5.0% Boom Please calculate it 10.5%
06 Sep 2020Calculate the expected standard deviation on stock: State of the economy Probability of the states Percentage returns Economic recession 24% -3% Steady economic growth 31% 8% Boom Please calculate it 12%The percentage of return during boom period is missing thats that need calcul...
06 Sep 2020Calculate the expected return on stock of Gamma Inc.: State of the economy Probability of the states Percentage returns Economic recession 25% -7.4% Steady economic growth 36% 3.3% Boom Please calculate it 9.2%
06 Sep 20201- Alpha sold machinery, which it used in its business, to Beta, a related entity, for $40,200. Beta used the machinery in its business. Alpha bought the equipment a few years ago for $49,800 and has claimed $30,200 of depreciation expense. What is the amount and character of Alp...
06 Sep 2020a) Gabriela and her husband file a joint return for 2015. Their standard deduction is $12,600. Their itemized deductions total $10,500, consisting of home mortgage interest expense of $6,000 and property taxes of $4,500. Thus, they would not ordinarily be able to itemize becaus...
06 Sep 20201. Watch an hour of commercial television, but donât leave during the commercials. Any hour of commercial TV will do. Notice:a) How many commercials were in each âpodâ (group)? Did that change during the hour? Why or why not? Write about any patterns you noticed, that you t...
06 Sep 2020Can you please and please answer the questions for me please1A. If the stock price is 44, the exercise price is 40, the put price is 1.54, and the Black-Scholes-Merton price using 0.28 as the volatility is 1.11, the implied volatility will bea. higher than 0.28 b. lower than 0.28...
06 Sep 2020I need to choose four stocks including a specific stock (lets say it is A) assigned to me.1) Choose another stock. Lets say it as B. So, now, you have A & B to construct your two-stock portfolio2) Choose two more stocks, C and D to construct your four-stock portfolio which consis...
06 Sep 2020a) Identify a type of loan that usually has a low interest rate, and explain why it has a low interest rate. (b) Identify a type of investment that usually pays a high rate of return, and explain why it pays a high return. (c) How important is risk in determining interest rates? ...
06 Sep 2020Solution.A U.S. Government T-Bond with a 15-year maturity has a coupon rate of 5%. The bond has a face value of $1,000 and pays its coupons semi-annually. The next coupon is due in six months. The bond trades for $949.38 to yield 5.5%. What are the cash flows from the bond? $750....
06 Sep 2020Microsoft just issued a bond with annual coupons and twenty years to maturity. The bond has a face value of $1,000 and a coupon rate of 10%. If the yield on equivalently risky corporate bonds is currently 10%, then what were the proceeds to Microsoft from the bond issue?
06 Sep 2020Can you please answer all these questions for me please1A. The binomial option pricing model will converge to what value as the number of periods increases?a. a random value b. the Black-Scholes-Merton value of the optionc. the intrinsic volatility of the option d. the true value...
06 Sep 2020Consider a 35 year coupon bond that pays $80 annual coupons (beginning one year from today). What is the future value of the coupons at maturity if you can invest them at 8%?
06 Sep 2020To raise funds for Gravina Island Bridge, the Government of Alaska issued bonds. The bonds, called "Nowhere Bonds" have a face value of $1,000, 15 years to maturity and a 7% coupon rate (annual coupons with the first coupon due in one year). The bonds are priced at $771.82. What ...
06 Sep 2020Q3. Chris is planning for her sonâs university education to begin five years from today. She estimates the yearly tuition, books and living expenses to be $5,000 per year for a four-year degree. Assume that all living expenses are paid in full at the beginning of each year of s...
06 Sep 2020Yest Corporations bonds have a 17-year maturity, a 7% semiannual coupon, and a par value of $1,000. The going interest rate ( â ) is 6%, based on semiannual compounding. What is the bonds price?
06 Sep 2020Real Cost of Hedging Payables. Assume that Suffolk Co. negotiated a forward contract to purchase 200,000 British pounds in 90 days. The 90 day forward rate was $1.40 per British pound. The pounds to be purchased were to be used to purchase British supplies. On the day the pounds ...
06 Sep 2020An investor agrees to purchase 100 shares of ABC Corp. stock in six months. She is worried the stock price will rise significantly over the next six months. The spot price of the stock is $51 and she buys a six-month call with a strike of $60 for $225. At expiration the stock is ...
06 Sep 2020Calculate the value of the stock today, . Proceed by finding the present value of the dividends expected at the end of 2017, 2018, 2019, 2020 and 2021 plus the present value of the stock price that should exist at the end of 2021. The year-end 2021 stock price can be found by usi...
06 Sep 2020A U.S. bank has made Â£10 million worth of loans and Â£9 million worth of deposits in Britain. How will a drop in the value of the pound against the dollar affect the banks balance sheet and firm value? Explain.
06 Sep 2020Suppose a U.S. investor observes the one, two and three year interest rate on Treasury securities to be 3.24, 3.84 and 3.64 percent. What is the one year forward rate for year two?
06 Sep 2020Assume that it is now January 1, 2017. Wayne-Martin Electric Inc. (WME) has just developed a solar panel capable of generating 200% more electricity than any other solar panel currently on the market. As a result, WME is expected to experience a 16% annual growth rate for the nex...
06 Sep 2020Everything else being equal, a ________ bonds price will ________ as the bond approaches maturity. premium; remain the same discount; decrease discount; increase discount; remain the same premium; increase
06 Sep 2020Jetson Spacecraft Corp. shows the following information on its 2011 income statement: sales = $244,000; costs = $144,000; other expenses = $7,900; depreciation expense = $18,000; interest expense = $13,200; taxes = $21,315; dividends = $10,000. In addition, youâre told that the...
06 Sep 2020The bonds of Vandalay Inc. pay annual coupons at the rate of 7%. They mature in 15 years with a face value of $1,000. What is their price if their yield is 6%? A.$731.70 B.$908.92 C.$1,000 D.$1,097.12 E.$1,279.83
06 Sep 20201. Assume that a $1,000 par value bond with a coupon rate of 7.5% (paid semi-annually) has 20 years to maturity.a. If the current rate of interest on bonds like this is 9%, what will be the price of the bond? What is the price if current interest rates are instead 6%? (2 pts.)b. ...
06 Sep 2020If a five-year bond paying semiannual interest sells for $1,000 and has a yield to maturity of 10%, what is the semiannual coupon payment? A.$10 B.$50 C.$75 D.$100 E.$120
06 Sep 2020Skillet Industries has a debtâequity ratio of 1.8. Its WACC is 9.1 percent, and its cost of debt is 7.1 percent. The corporate tax rate is 35 percent.a. What is the companyâs cost of equity capital? (Round your answer to 2 decimal places. (e.g., 32.16))Cost of equity capital_...
06 Sep 2020Company X has a beginning cash balance of $200,000 on February 1, 2008. History shows the company collects from sales as follows: 8% from current month sales; 20% collected 1 month after the sale; 45% collected in the 2" month after the sale, 20% collected in the 3" month after t...
06 Sep 2020Comp1Comp 2Comp 3Price$300,000$350,000$375,000Effectice gross income50,00055,00060,000% Operating expense50%55%54%NOI25,00030,00032,500Consider the table above. Assume that the subject property has effective gross income of $53,000 and a NOI of $27,500.(a) What value would a GIM ...
06 Sep 2020icrosoft just issued a bond with annual coupons and twenty years to maturity. The bond has a face value of $1,000 and a coupon rate of 10%. If the yield on equivalently risky corporate bonds is currently 10%, then what were the proceeds to Microsoft from the bond issue? a.$1,000 ...
06 Sep 2020In 2012, a baseball player signed a contract reported to be worth $55 million. The contract was to be paid as $7.2 million in 2012, $8.9 million in 2013, $9.6 million in 2014, $9.7 million in 2015, $9.7 million in 2016, and $9.9 million in 2017. Required: If the appropriate inter...
06 Sep 2020A stock has an expected return of 14 percent, its beta is 1.50, and the risk-free rate is 5.4 percent. What must the expected return on the market be? (Round your answer to 2 decimal places. (e.g., 32.16))
06 Sep 2020How would you understand whistleblower using a chart in page 46 in the 7th edition of the book business ethics by Velasquez .
06 Sep 2020What can you do to manage risk?Larry Kraft owns a restaurant that is open 7 days a week. He has 25 full-time employees, but he has fairly high employee turnover. He believes that he can stabilize his workforce if he has a pension plan for his employees. Larry hears about a small ...
06 Sep 2020Within todayâs changing global software and mobile phone industries, evaluate and assess Nokiaâs and Microsoftâs product lines and market shares
06 Sep 2020Galaxy United, Inc. 2009 Income Statement ($ in millions) Net sales $8,500 Less: Cost of goods sold 7,230 Less: Depreciation 400 Earnings before interest and taxes 870 Less: Interest paid 74 Taxable Income 796 Less: Taxes 279 Net income $ 517 Galaxy United, Inc. 2008 and 2009 Bal...
06 Sep 2020How are health services paid for? Any roles for the government here?
06 Sep 2020You are considering a 3-year project. You require 9% annual return on projects of this kind of risk. The project requires $1,819 initial investment now and some additional investment in year 2. The cash flows in year 1 - 3 are $1,749, $-662, and $1,157. a. Which investment criter...
06 Sep 2020How are health services paid for in canada and the united states?
06 Sep 2020a 6 month call option on 100 shares of SRS Corp stock is selling for $300. the strike price for the option is 40$. the stock currently selling at 38$ per share. ignoring brokeage fees what price must the stock achieve just cover the exspense of the option. if the stock prices ris...
06 Sep 2020Intel has been shown to have a low debt ratio. To learn more about this company go to its website: www.intel.com. Click on âAbout Intel.â Scroll down and click on âInvestor Relations.â Click on âFinancial Information.â Click on âannual Reports, 10-k and Proxy Statem...
06 Sep 2020Your firm is contemplating the purchase of a new $745,500 computer-based order entry system. The system will be depreciated straight-line to zero over its seven-year life. It will be worth $45,000 at the end of that time. You will be able to reduce working capital by $40,000 at t...
06 Sep 2020In fiscal 2011, Mass Corp. reported a statutory tax rate of 35.0%, an effective tax rate of 10.00% and a tax rate on operating profit of 15.00%. The 2011 income statement reported income tax expense of $1,406 million.What did Mass Corp report as income before income tax expense t...
06 Sep 2020The Prosthetic Legs and Arms Act (PLAA) sets up a no-fault compensation program for persons injured through the use of medical prostheses. The PLAA protects prosthesis makers from liability for unavoidable side effects. When Quint is injured in an auto accident, his physician pre...
06 Sep 2020Lee purchased a stock one year ago for $26. The stock is now worth $31, and the total return to Lee for owning the stock was 0.37. What is the dollar amount of dividends that he received for owning the stock during the year?
06 Sep 2020a. Whats a rollover mortgage?b. Which buyers are eligible for FHA loans or is that open to everyone?c. Define both prepayment risk and extension risk. Who bears these risks and how can the impacted party mitigate against this risk?
06 Sep 20201. (TCOs 6 and 7) A(n) _____ fund is a mutual fund in which new shares are issued and redeemed by the investment company at the request of investors. (Points : 1) open-end closed-end load no-load convertibleQuestion 2.2. (TCOs 6 and 7) The _____ refers to the value of a mutual fu...
06 Sep 2020Suppose that a stock is expected to pay a $1 dividend at the end of this year and that your required return on equity investments is 9%. Using aâ one-period model of stock priceâ determination, if you expect to sell a stock you buy today a year later for $17.0â, you will be...
06 Sep 2020A borrower can obtain an 80 percent loan with an 8 percent interest rate and monthly payments. The loan is to be fully amortized over 25 years. Alternatively, he could obtain a 90 percent loan at an 8.5 percent rate with the same loan term. The borrower plans to own the property ...
06 Sep 2020
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