Dr. Harold Wolf of Medical Research Corporation (MRC) was thrilled with the response he had received from drug companies for his latest discovery, a unique electronic stimulator that reduces the pain from arthritis. The process had yet to pass rigorous Federal Drug Administration (FDA) testing and was still in the early stages o
Describe the investment banking process including portfolio construction.
What is the most important phase of the SDLC? Why?
You have been asked to provide your expertise and opinion on the issue below to a Congressional Committee On the discussion board, state your position on this issue: Pharmaceutical companies are unfair in charging prices that so far exceed the costs of the chemicals in their products, especially in lifesaving drugs.
Video Concepts, Inc. (VCI) markets video equipment and film through a variety of retail outlets. Presently, VCI is faced with a decision as to whether it should obtain the distribution rights to an unreleased film titled Touch of Orange. If this film is distributed by VCI directly to large retailers, VCI's investment in the pr
Video Concepts, Inc. (VCI) markets video equipment and film through a variety of retail outlets. Presently, VCI is faced with a decision as to whether it should obtain the distribution rights to an unreleased film titled Touch of Orange. If this film is distributed by VCI directly to large retailers, VCI's investment in the pr
Here is recent financial data on Pisa Construction, Inc. Stock price $40 Market value of firm $400,000 Number of shares 10,000 Earnings per share $4 Book net worth $500,000 Return on investment 2% quarterly. Pisa has not performed spectacularly to date. However, it wishes to issue new shares to obtain $100,000 to f
I have to describe Ford's stock price performance over the past 10 years. I have to do either a chart or a graph to help describe this. I am really not sure where to begin. Any assistance would be greatly appreciated.
State Pi kj 1 0.3 20% 2 0.4 5 3 0.3 12 Calculate the expected return for security j. Calculate the standard deviation for security j. Calculate the coefficient of variation for security j.
Imagine you are managing a portfolio of 10 stocks which are held in equal amounts. The current beta of the portfolio is 1.64, and the beta of Stock A us 2.0. If Stock A is sold, what does the beta of the replacement stock have to be to produce a new portfolio of 1.55?
Is it true that, when comparing the reported earnings of corporations, "a dollar is a dollar"? Note: Cite the source.
Calculate the expected return, standard deviation, and C.V. of expected dollar returns for Ditto Copier, given the following distribution of returns: Probability Return .20 $50 .50 20 .30 -15
Veronica Madrid began the year with a portfolio valued at $10,000 and made a contribution to and a withdrawal from this portfolio over the next 3 months. Information regarding amounts and dates of these cash flows and the portfolio's market value at various dates is shown below: Date Contribution (-) or withdrawal (+) Por
Marquez Inc. has announced $50,000 in net income after paying taxes of $26,000 and interest of $20,000. They intend to pay $17,000 of net income as dividends. Their assets have averaged $600,000 over the past year, during which their total debt ratio has averaged 40%. Given this information, answer the following about the compan
Why do you think debt offerings are more common than equity offerings and typically much larger as well?
Topstone Industries' preferred stock pays an annual dividend of $4.00 per share. When issued, the shares sold for their par value of $100 per share. What is the cost of preferred stock if the current price is $125.00?
1. What is the return on a 5 % coupon bond that initially sells for $1,000 and sells for $900 one year later? 2. The duration of a ten-year, 10% coupon bond when the interest rate is 10% is 6.76 years. What happens to the price of the bond if the interest rate falls to 8%?
What would you pay today for a stock that is expected to make a $1.50 dividend in one year if the expected dividend growth rate is 3% and you require a 16% return on your investment?
Say I just won the lottery and want to put some money away for my child's college education. College will cost $65,000 in 18 years. I can earn 8% compounded annually. How much would I need to invest?
Why is it so difficult for most small business owners to raise the capital needed to start, operate, or expand their ventures? How can a firm employ bootstrap financing to stretch its current capital supply?
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 explanantion of coverage and the location of coverage should
If an American company were to expand in Brazil and could not raise the finances needed for the expansion operation in Brazil, what are the other options for raising the finances needed?
1. An example of macroeconomic data useful to a retailer is Interest Rate data. Yes or No. 2. If according to the historical financial statements for Starbucks, the debt to assets ratio is 4.00 percent and is forecasted to go to zero in 2003. The times interest earned ratio is 177 in 2002 and is projected to be 286 in 2003.
A stock's return has the following distribution: Demand for the Probability of This Rate of Return Company's Products Demand Occuring if This Demand Occurs Weak 0.1 (50%) Below Average 0.2
Suppose net income for the coming year is forecasted to be $1,634 and dividends are forecasted to be $657. After careful analysis, you determine asset needs for next year are $48,824 and liabilities are expected to be $12,869. Owner's equity of the year just completed was $9,040. Calculate the additional funds needed or generate
You are considering hiring an investment advisor to help you manage your portfolio. This advisor tells you that she has consistently "beaten the market" over the last 5 years. You ask the advisor to prove her claim. a. In words, describe what it would mean for her to have "beaten the market." You may refer to CAPM as needed to
5. How much would you have to invest today to receive: with work shown a. $15,000 in 8 years at 10 percent? b. $20,000 in 12 years at 13 percent? c. $6,000 each year for 10 years at 9 percent? d. $50,000 each year for 50 years at 7 percent?
Company ABC earnings and dividends will grow at 0.5% monthly during the next five years. Its growth will stop after year 5. In year 6 and afterward, it will pay out all earnings as dividends. Assume next year's EPS is $10 and the dividend is $5 and the market capitalization rate is 9%. What is ABC's stock price?
Bank deposit transaction, Standard length of he purchase order. computer program for date selection. Computer program based control procedures.
Need to understand this question can you give me an example: "The CFO of your company has asked you to develop a set of internal guidelines that will ensure that the finance department adheres to the highest ethical standards for financial forecasting without consideration of any legal requirements, develop a set of procedure