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MBA Risk Concepts

Risk that can be eliminated through diversification is called ______ risk. a. unique b. firm-specific c. diversifiable d. all of the above Asset A has an expected return of 20% and a standard deviation of 25%. The risk free rate is 10%. What is the reward-to-variability ratio? a. .40 b. .50 c. .75 d. .80

Constant- growth model for Metatrend's stock

Metatrend's stock will generate earnings of $6 per share this year. The discount rate for the stock is 15%. and the rate of return on reinvested earning also is 5%. a. Find both the growth rate of dividends and the price of the stock if the company reinvests the following fraction of its earnings in the firm:(i) 0%; (ii) 40%,

Accounting and Finance: Balance Sheet and Income Statement

#1. (Balance sheet and income statement) Johnson's Scuba Co. has a weird accountant who reported the balance sheet and income statement items in alphabetical order. Please put these items in the correct format for a balance sheet and income statement for Johnson's Scuba Co. for the year ending January 31. All of the data are in

Cost of Internal Equity Capital and External Equity Capital

1.The common stock for Grapevine Plumbing Company currently sells for $40 per share. If a new issue is sold, the flotation cost is estimated to be $7 per share. The company had earnings of $2.00 per share four years ago. Next year, the company expects to have earnings of $3.22 per share. The company maintains a constant dividend

Loan Amortization

Messineo LLC borrowed $15,000 at a 14% annual rate of interest to be repaid over 3 years. The loan is amortized into three equal annual end of year payments. As the CFO of Messineo, LLC you must prepare a report of the pertinent information in a short summary for the CEO. a. Calculate the annual end of year loan payment amou

Corporate vs. Shareholder Conceptions

Referring to the case file attached, can somebody guide me through the following question: The case describes two conceptions of managers' responsibilities (on the ninth page). Which do you favour: the shareholder conception or the corporate conception? Does your stance make a difference in this case?

Finance Question: How to de-bias a forecaster's opinion

Question 1 Say the level of the market as measured by the Dow Jones Industrial Average is currently at 12,000. A forecaster has made a prediction of 13,300 for the level of the market in one year, along with a 95% confidence interval whose lower bound is 12,500 and whose upper bound is 14,500. You know from experience that

Have you worked for minimum wage? Would you favor increasing minimum wage?

Have you ever worked for the minimum wage? If so, for how long? Would you favor increasing the minimum wage by a dollar? By two dollars? By five dollars? Explain your reasoning. Explain how your answer might change from today's high unemployment vs. two or three years from now when the unemployment rate has returned to about 5%.

Complete amortization schedule. Allen Corp: Classify transactions

See attached file for format of the tables. Problem 1. Villarente Company issued 5-year $200,000 face value bonds at 95 on January 1, 2012. The stated interest rate on these bonds is 9%, and the effective interest rate is 10.33%. Use the effective interest rate method to complete the amortization schedule below. Cash P

Given the expected return on a portfolio, calculate the standard deviation.

You own a portfolio that has 35% invested in asset A, and 65% invested in asset B. Asset A's standard deviation is 12% and asset B's standard deviation is 18%. The correlation coefficient between the two assets is -0.7. The expected return on the portfolio is 13%. What is the portfolio standard deviation? 1. 8.5% 2. 9.3%

Role of Global Organizations and Consortiums

Identify a non-North American project in the global arena that was funded by a consortium of public and private financial institutions. Discuss the nature of the consortium and evaluate the role of each player. Assess the impact of the consortium's involvement on the project.

Sunflower Incorporated: Changes and Implementations

Using appropriate terms and theories, analyze the case provided. The analysis should answer the following questions: - How would you determine whether Albanese managed the pricing and purchasing changes at Sunflower successfully? Do you think the changes were implemented successfully? Why or why not? - What might Albanese

Recommendations for setting admission prices

12) The local space museum has hired you to assist them in setting admission prices. The museum's managers recognize that there are two distinct demand curves for admission. One demand curve applies to people ages 12 to 64, whereas the other is for children and senior citizens. The two demand curves are:

Investment Portfolio Endowment Choices

Ferris, an investment management firm located in New York, has recently been retained as the endowment fund manager for a small Midwestern college. The firm is attempting to determine a best investment portfolio for its client and has reduced overall consideration to six alternative investments to add to the college portfolio. I

Equity - Middleton Clinic

Middleton Clinic had total assets of $500,000 and an equity balance of $350,000 at the end of 2006. One year later, at the end of 2007, the clinic had $575,000 in assets and $380,000 in equity. What was the clinic's dollar growth in assets during 2007, and how was this growth financed? San Mateo Healthcare had an equity ba

Finance Problems

1. Dr. Gulakowicz is an orthodontist. She estimates that adding two new chairs will increase fixed costs by $150,000, including the annual equivalent cost of the capital investment and the salary of one more technician. Each new patient is expected to bring in $3,000 per year in additional revenue, with variable costs estimate

Pricing

Allied Laboratories is combining some of its most common tests into one-price packages. One such package will contain three tests that have the following variable costs: Disposable syringe $3.00 $3.00 $3.00 Blood Vial 0.50 0.50 0.50 Forms 0.15 0.15 0.15 R

Entries: Loan Between Young Company & Dobson Industries

Young Company lends Dobson Industries $30,000 on January 1, 2010, accepting a 9-month, 12% interest note. If Dobson dishonors the note and does not pay it in full at maturity but Young expects that it will eventually be able to collect the debt, which of the following entries should most likely be made by Young Company? a.ca

Finance Problems: Risk Free Rate of Return

Find attached finance problems I appreciate helping and solving in advance. 1. The risk free rate of return is 8 percent; the expected rate of return on the market is 12 percent. Stock X has a beta coefficient of 1.3, an earnings and dividend growth rate of 7 percent, and a current dividend of $2.40. If the stock is selling f

Company's Key Financial Data Compared with Corresponding Ones

See the attached file. The Ivory Furniture Company (Financial Analysis) The Ivory Furniture Company is a manufacturer of home and office furniture and such household hardware items as curtain rods, picture hangers and the like. The company was formed in the early 1990's as a consolidation of four smaller furniture suppliers

How do you calculate the annual scholarship payment?

A scholarship provider has $500,000 which she will invest today to fund a scholarship forever. She expects to earn 8% on her money each year. If she wants to begin paying out the scholarship starting today, what will the annual scholarship payment be? $40,000.00 $37.037.04 6,750,000.00 $36,800.00

What is the current value today of a stock?

What is the value today of a stock that will pay a dividend of $1.00 one year from now, a $1.50 dividend in year two and a dividend of $2.00 three years from now if its expected price in year three is $25? The stock has a required rate of return of 8%. $22.35 $23.64 $5.02 $36.95 $4.28 $22.37