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    Calculating Preferred Stock Rate of Return

    Walk me through the steps to do this on a TI BA II Plus and the rationale. EMC has preferred stock outstanding which pays a dividend of $5.00 at the end of each year. This stock was issued in perpetuity and has no maturity date. EMC's preferred stock sells for $60 per share. (Pr. 10-4). Calculate this preferred stock's

    Walk me through the steps to do this on a TI BA II Plus and the rationale.

    Pablo's Pizza International Inc.'s common stock currently sells for $20 per share. The stock has just paid an annual dividend of $1.00 (D0 = $1.00). The dividend is expected to grow at a constant rate of 10% per year. (Pr. 10-3) a. Calculate the stock price expected 1 year from now. b. Calculate the required rate of ret

    Finance Practice Solution

    You have won a lottery have been offered (1) $0.5 million, or (2) a gamble in which you would receive a $1 million if a head were flipped and $ 0 if a tail came up. a. What is the expected value of the gamble? b. Would you take the sure $0.5 million or take the gamble? Why? c. If you choose the sure $0.5 milli

    Expected Rates of Return, Standard Deviation & Coefficients

    The market and Stock A have the following probability distributions: Probability km (Market) kA (Stock A) 0.3 15% 20% 0.4 9 5 0.3 18 12 a. Calculate the expected rates of return for the market and Stock A. b. Calculate the standard deviations for the market a

    Finance and accounting multiple choice questions

    16 Which of the following may be used to smooth distributable profits from one year to another? A asset revaluation reserve B capital redemption reserve C general reserve D provisions for depreciation 17 A company makes three products for which the following details are given. Prod

    Explicit agency cost

    The following is an example of an explicit agency cost a. the requirement that the firm's finances are audited c. expected bankruptcy costs c. bad debts

    The Total Interest on a Five Year Loan Compounded Annually

    To purchase a product, the total price comes to $11,425. I will borrow the money for five years at 8.2% interest compounded annually. That will result in monthly payments of $282.38 each. How much interest will I pay over the life of the loan?

    Accounting, Business Analysis, Finance

    The following information relates to a business for a period. Selling price per unit: 100; Variable costs per unit: 60; Total fixed costs: 90,000; Net profit: 15,000. How many units were sold in the period? (Please see attachment for full question)

    Calculating effective fixed rate

    A company has a variable-rate loan with a bank paying LIBOR plus 65. The company wishes to create a synthetic fixed-rate loan and enters into an interest rate swap paying a swap fixed rate of 9% and receives LIBOR. The company also pays an annual swap spread of 35 base points to the swap dealer. Calculate the effective fixed

    Portfolio Analysis and Expected Return

    Assume that security returns are generated by a factor model in which two factors are pervasive. The sensitivities of two securities and of the risk-free asset to each of the two factors are shown below, along with the expected return on each security. See attached file for full problem description.

    One Factor model - portfolio analysis

    Is one of the portfolio's expected return not in line with the fractor model relationship? Which one? Can you construct a combination of the other two portfolios that has the same factor sensitivity as the "out-of-line" portfolio? What is the expected return of that combination? What action would you expect investors to take wit

    Calculate the equilibrium expected return on a security.

    The risk free rate is 5% while the market portfolio's expected return is 12%. If the standard deviation of the market portfolio is 13%, what is the equilibrium expected return on a security that has a co-variance with a market portfolio of 186?

    McGraw-Hill text book cases Finance by Jim DeMeLLo: June and Patrick Baker

    Loan Amortization When June and Patrick Baker were "house hunting" five years ago, the mortgage rates were pretty high. The fixed rate on a 30-year mortgage was 8.75% while the 15-yearfixed rate was at 8%. After walking through many homes, they finally reached a consensus and decided to buy a $150,000 two-story house in an up

    Calculating the Standard Deviation of a Two-stock Portfolio

    Let X and Y be two stocks with the following features: - Stock X Expected Return 14% - Stock Y Expected Return 18% - Stock X Standard Deviation 40% - Stock Y Standard Deviation 54% - Correlation(X,Y) = .25 - Mean is 15.6% What is the standard deviation for a portfolio with 60% in stock x and 40% invested in stoc

    Manipulation of a summation with application to finance math and interest rates.

    Please see the attached file for the fully formatted problem. In financial mathematics, when valuing cash flows, an important function is the so-called immediate annuity-certain, a_n, which is defined by the relation a_n = v + v^2 + v^3 + ....... + v^n where v:=(1+i)^(-1) and i represents the effective rate of interest

    Standard deviation for a portfolio of common stock

    The standard deviation of the rate of return for Jasper products is 6%, while for Headline Industries it is 12%. If the correlation between their returns is 0.74, what is the standard deviation of a portfolio composed of 80% Jasper and 20% Headline common stock?

    Big Tom's stock valuation: Approximate current market price

    Big Tom's stock is not expected to pay cash dividends for 3 years. In years 4, 5, and 6 the cash dividend will be $6 per year, and year 7 to infinity the cash dividend will be $8 per year. If the required rate of return is 12%, what is the approximate current market price of Big Tom's common stock?

    Finance: Ezzell preferred stock, Bahnsen common stock, Levine Co dividends

    Please see the files attached. Financial accounting calculations for Ezzell, Bahnsen and Levine Company. The problems all relate to stock and dividends issues concerning valuation, present value, rate of return. The answers are given in the attachments. The solution must provide all the detail calculations to arrive at the

    Taussig Technologies, Upton Company Growth Rate, Etc.

    Please help with these 2 questions (8-23,24) in calculations using a calculator (TI BAII Plus or HP12C). Please show all calculator keystrokes AND formulas in MS word so that I know how to work it. The answers MUST match in the attached answer sheet. NO EXCEL acceptable. Also provide reasons why you chose your answers, w

    Accounting: Providing financial planning advice for the given situation.

    Jan and Mickey Haggerty graduated from college several years ago. Each majored in biology, and they were fortunate to receive good job offers at graduation; their combined income last year was over $100,000. The Haggertys enjoy a high level of current consumption, but they also have saved about $6000, which is invested in a bank

    Investment analysis

    The management of an amusement park is considering purchasing a new ride for $80,000 that would have a useful life of 10 years and a salvage value of 10,000. The ride would require annual operating costs of $32,000 throught its useful life. The company's discount rate is 9%. Management is unsure about how much additional ticket

    Finance

    John is the beneficiary of a trust fund set up for him by his grandmother. If the trust fund amounts to $20,000 earning 8% compounded semiannually and he is to receive the money in equal semiannual installments for the next 15 years, how much will he receive each 6 months?

    Compound interest in finance

    I need help trying to figure out which formula to use to get $10,078.44 Problem: Mr Jones wants to save for his son's college education. If he deposits $500 every 6 months at 6% compounded semiannually, how much will he have on hand at the end of 8 years?