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    Calculating Alpha

    I need to figure out how to calculate alpha. All the other calculations are included on the attached. Please show me how to calculate. MARKET Apr-91 13.46% AVERAGE 16.39% Apr-92 10.55% STD. DEV. 10.91% Apr-93 6.08% VARIANCE 1.19% Apr-94 2.44% CO-VAR. 1.07% Apr-95 14.15% Apr-96 27.09% Apr-97 22.50%

    Yield curve and Excel

    Assuming a real risk-free rate of 2% and a MRP +0.1x(t)%, t is the # of years to maturity, estimate the interest rate in Jan 1981 on bonds that mature in 1,2,5 and 20 years, and use Excel to draw a yield curve based on this information.

    Managerial Finance

    Sales (30,000 units) $150,000 Variable costs 100,800 Contributions margin $ 49,200 Fixed manufacturing costs 24,000 Operating Income $ 25,200 Interest 18,000 Earnings Before Taxes $ 7,200 Taxes (30%) 2,160 Net Income $ 5,040 Shares Outstanding 600 This firm's break-even point is: A) 4,800 units

    Break Even Point Analysis in Costs

    1. ABC Company sell for $20 per unit, and the variable cost to produce them is $15. Gateway estimates that the fixed costs are $80,000. a. Compute the break-even point in units. b. Fill in the table below (in dollars) to illustrate that the break-even point has been achieved. Sales _______________ -Fixed costs _____

    Leverage and break-even points - Harmon Company

    The Harmon Company manufactures skates. The company's income statement for 2004 is as follows: Harmon Company Income Statement For the Year Ended December 31, 2004 Sales (30,000 skates @ $25 each) $750,000 Less: Variable costs (30,000 skates at $7) 210,000 Fixed costs 270,000 Earnings before interest an

    College Investment Calculations: Present Value of Money

    Question: Assume the total expense for your current year in college equals $20,000. Approximately how much would your parents have needed to invest 21 years ago in an account paying 8% compounded annually to cover this amount?

    Finance Practice Problems

    Which of the following statements is false? a. If the discount (or interest) rate is positive, the future value of an expected series of payments will always exceed the present value of the same series. b. To increase present consumption beyond present income normally requires either the payment of interest or else an opport

    Prepare adjusting entries for amortization.

    Please help with the following problem. The following are selected 2006 transactions of Yosuke Co.: Jan 1 Purchased a small company and recorded goodwill of $150,000.Its useful life is indefinite. May 1 Purchased for $60,000 a patent with an estimated useful life of 5 yrs. and a legal life of 20 yrs. Instructions:

    Financial Managers in Non Profit firms

    How is the job of a financial manager in a nonprofit organization different from that of a financial manager with a profit seeking firm? Should financial managers in non-profit organizations be compensated equally to their counterparts in profit‑seeking firms? Why or why not? Do you see the job of the non-profit fi

    standard deviation of 25 percent per year

    Security F has an expected return of 12 percent and a standard deviation of 9 percent per year. Security G has an expected return of 18 percent and a standard deviation of 25 percent per year. A. What is the expected return on a portfolio composed of 30 percent of security F and 70 percent of security G? B. If the correlatio

    Stock valuation comparison betwee General Materials and Standard Fixtures

    Two years ago, General Materials and Standard Fixtures' stock prices were the same. Over the first year, General Materials' stock price increased by 10 percent while Standard Fixtures' stock price decreased by 10 percent. Over the second year, General Materials' stock price decreased by 10 percent and Standard Fixtures' stock p

    Financial risk management-

    Calculate the implied volatility of soybean futures prices from the following information concerning a European put on soybean futures: Current futures price 525 Exercise price 525 Risk-free rate 6% per annum Time to maturity 5 months Put price 20

    A Plan for Growth

    Andy Rexford had started his custom embroidery shop in his garage with just one two-head machine and an old computer. From this humble beginning, Custom Stitches had grown into a full-time family business with sales of more than $750,000 a year and supplied the local college and businesses of all sizes with embroidered caps, shi

    Calculating PV etc.

    I need to calculate the price for both the best and worst case scenarios. I have attached a spreadsheet with the best and worst cases. I want to calculate each using a discount rate of 9.7% and then also using 11.2%. This is the hint the teacher gave us, but i still cant figure it out: Your first step is to determine the

    Investing in common stocks

    Your father is a member of an investment club that invests in common stocks. He has asked you to help him with an assignment to research three stocks traded on the NYSE or NASDAQ and recommend one for purchase. Each club member has been assigned to research companies from a different stock sector. Use the Library, unit resources

    Real Estate Investment

    1. Distinguish between investing in properties located in the local economy and investing in properties located overseas. 2. Why is forecasting of income and expenses for a real property considered a challenging activity? 3. Why is the debt coverage ratio important to lenders?

    Real Time Inc. Project Analysis

    1. The president of Real Time Inc. has asked you to evaluate the proposed acquisition of a new computer. The computer's price is $40,000, and it falls into the MACRS 3-year class. Purchase of the computer would require an increase in net operating working capital of $2,000. The computer would increase the firm's before-tax re

    Break Even Analysis and Operating Leverage

    Break Even Analysis and Operating Leverage News.com is a Web site that offers users access to current national and international news. Global link that will link New.com's computer system to the internet. These firms are practical in terms of access speeds and number of users able to connect to the site per minute and both a

    Stock question

    Which of the following statements is most correct? a. The before-tax cost of preferred stock may be lower than the before-tax cost of debt, even though preferred stock is riskier than debt. b. If a company's stock price increases, this increases its cost of common stock. c. If the cost of equity capital increases, it must b

    Calculating Maximum Growth Rate

    Please show calculations. The Tapley Company is trying to determine an acceptable growth rate in sales. While the firm wants to expand, it does not want to use any external funds to support such expansion due to the particularly high interest rates in the market now. Having gathered the following data for the firm, what is

    Lone Star's Plastics EBIT

    Please show calculations. Lone Star Plastics has the following data: Assets: $100,000; Profit margin: 6.0%; Tax rate: 40%; Debt ratio: 40.0%; Interest rate: 8.0%: Total assets turnover: 3.0. What is Lone Star's EBIT? a. $ 3,200 b. $12,000 c. $18,000 d. $30,000 e. $33,200

    Company's cost of debt

    A company has just been taken over by new management which believes that it can raise earnings before taxes (EBT) from $600 to $1,000, merely by cutting overtime pay and thus reducing the cost of goods sold. Prior to the change, the following data applied: Total assets: $8,000 Debt ratio: 45% Tax rate:

    Charitable contribution problem

    Kelly has AGI of $100,000 in 2006. She contributes stock in Tulip Corp. (a publicly traded corp.) to a State University (a qualified charitable org.) The stock is worth $59000 & she acquired it as an investment 2 years ago at a cost of $44,000. 1. What is the total amount that kelly can deduct as a charitable contribution, as

    Economic benefit

    Investors may receive an economic benefit from the ownership of stock by: Receiving interest. Receiving dividends. Receiving capital gains. Both b and c, but not a

    Mr Blochirt investment

    Mr. Blochirt is creating a college investment fund for his daughter. He will put in $850 per year for the next 15 years and expects to earn a 8% annual rate of return. How much money will his daughter have when she starts college? A) $11,250 B) $12,263 C) $24,003 D) $23,079