I am trying to figure out how to calculate beta (sensitivity) of the monthly return compared to the liquidity factor. thanks!
Please help with the given problem: Lexicon Inc. bought a patent for $600,000 on January 2, 2001, at which time the patent had an estimated useful life of ten years. On February 2, 2004, it was determined that the patent's useful life would expire at the end of 2007. How much would Lexicon record as amortization expense for t
Deposit $40,000 into an account at t=0. At t=1, before the deposit, value of account $44,000. Deposit $10,000 into an account at t=1. At t =2, value of account $50,000. a. Calculate time weighted return b. Calculate internal rate of return.
E3-4 On January 1, 2002, the stockholders' equity section of Ted Parge Corporation shows: common stock ($5 par value) $1,500,000; paid-in capital in excess of par value $1,000,000; and retained earnings $1,200,000. During the year, the following treasury stock transactions occurred. Mar. 1 Purchased 50,000 shares for cash at
Following are ten quarters of return data for Barboo Associates Stock, as well as return data during the same period for a broad stock market index. Using this information, calculate the following statistics for Barboo Associates stock. I.) Beta II.) Alpha III.) Coefficient of determination Quarter Bara
The company is comparing two different capital structures. Plan 1 would result in 2,000 shares of stock and $40,000 in debt and plan 2 would result in 4,000 shares of stock and $20,000 in debt. The interest rate is 10%. So if i ignored taxes and compare both of these plans to an all equity plan assuming EBIT is $5,000 and the
Buffet enterprises is considering a change from its current capital structure. Buffet currently has an all equity capital structure and is considering a capital structure with 40% debt. There are 2,000 shares outstanding at a price per share of $100. EBIT is expected to remain constant at $29,000. the interest rate on the new de
Our intrepid investment advisor, Uncle Sal, is recommending that Granny invest in his latest hot stock pick. Granny has asked Sal to provide her with a ratio analysis of his pick, Fluffy's Cat Farms (ticker: FCF) traded on the Cat and Dog Exchange. Granny is considering buying a $50,000 stake in FCF at a buy-in price of $2 per
What does bull market and bear market mean?
It is your responsibility, as the new head of the automotive section of Nichols Department Store, to ensure that reorder quantities for the various items have been correctly established. You decide to test on item and choose Michelin tires, XW size 185X14 BSW. A perpetual inventory system has been used, so you examine this as we
The X is a standard item stocked in a company's inventory of component parts. Each year the firm, on a random basis, uses a bout 2,000 of item X, which costs $25 each. Storage costs, which include insurance and cost of capital, amount to $5 per unit of average inventory. Every time an order is placed for more item X, it costs $1
A car is to be paid off with a custom-made loan. $6,000 one year from now, $7,000 two years from now, and $5,000 three years from now. If interest rates are 8% what is the amount of the loan?
Examine the relationship between hotel REITS and inflation as measured by the consumer price index (over a five year period).
The maturity value of a $40,000, 90-day, 6% note payable is?
Question: A portfolio is made up of 75% of stock 1, and 25% of stock 2. Stock 1 has a variance of .08, and stock 2 has a variance of .035. The covariance between the stocks is -.001. Calculate both the variance and the standard deviation of the portfolio.
Bank Financing: a. How much bank financing is needeed to eliminate the past-due accounts payable? b. Would you as a bank loan officer make the loan? Why or why not?
The Raattama Corporation had sales of $3.5 million last year, and it earned a 5 % return after taxes, on sales. Recently the company has fallen behind in accounts payable. Although its terms of purchase are net 30 days, its accounts payable represent 60 days' purchases. The company's treasurer is seeking to increase bank borrow
Determine the missing amounts within the four different companies' financial information as follows...
(See attached file for full problem description) Problem P1-5A Instructions: Determine the missing amounts within the four different companies' financial information as follows: (a) Jan 01, 02 Judd Company Hefel Company Marpe Company Morgan Company Assets 92,000 110,000 (g) 160,000 Liabilities 5
1. Which of the following might be attributed to efficient inventory management? a. High inventory turnover ratio. b. Low incidence of production schedule disruptions. c. High total assets turnover. d. Statements a and c are correct. e. All of the statements above are correct. 2. Which of the following statements is
Reconsider the Best Candy and Sugar Beet stock market hedging. Assume that the probability distribution of the rate of return on Best Candy stock is unchanged but for Sugar Beet stock, it becomes the following: See attached document for data a) If Humanex's portfolio is half Best Candy stock and half Sugar Beet, what ar
The probability distribution of demand during lead time of a certain product is given below. Demand During Lead Time Probability 240 0.05 260 0.10 280
Supersport Footballs, Inc., has to determine the best number of All-Pro (A), College (C), and High School (H) models of footballs to produce in order to maximize profits. Constraints include production capacity limitations (time available in minutes) in each of three departments (cutting and dyeing, sewing, and inspection and pa
To provide additional practice in formulating and interpreting the computer solution for linear programs involving more than two decision variables, we consider a minimization problem involving three decision variables. Bluegrass Farms, located in Lexington, Kentucky, has been experimenting with a special diet for its racehorses
Consider the following 3 investments Security Expected Return Standard Deviation J .12 .4 K .14 .4 L .13 .5 M
(See attached file for full problem description) --- HOMEWORK CHAPTER 7 1- Use the WSJ listing to answer the following questions: Maturity Ask Rate Mo/Yr Bid Asked Yield 6.300 April 25 108:07 108:08 ----- 4.625 April 17 90:17 90:18 ----- 10.55 Apr
CK's earnings and dividends will grow at .5% monthly for the next 5 years. After that the growth will stop. For year 6 and afterward, it will pay out all earnings as dividends. Next years EPS is $10 and the dividends is $5 and the market capitalizes rate is 9%. How can I determine what CK's stock price is?
Explain and work in excel Expected return on the market portfolio is 17.7 percent and risk free rate is 4.1 percent. Edward Jones has a beta of 1.6. Under CAPM A. what is the expected return on Edward Jones stock B. If risk free rate decreases to 3 percent, what is the expected return on Edward Jones stock.
Please see the attached excel file. I have included the answer and just need the work shown in excel.
Bob Brown was recently involved in a minor auto accident. His car was hit from behind, and he, in turn, slammed into the car in front of him. He would like someone to explain his coverage and show him where, in his auto policy, each of his losses might be covered. The explanation of coverage and the location of coverage should b
What is the expected return for Ross Revolutionaries if the S&P 500 went down 3% and the Treasuries yielded 6%, if its beta is 1.54? Ans: -7.86%
What is the NPV of a project that is expected to pay $10,000 a year for 7 years if the initial investment is $40,000 and the required return is 15%?