Calculate the variance and standard deviation in the given case.

A game of chance offers the following odds and payoffs. Each play of the game costs $100, so the net profit per play is the payoff less $100. Probability .10, .50 and .40. Payoff is $500, 100 and 0. net Profit is $400, 0 and -100. What are the expected cash payoff and expected rate of return? Calculate the variance and stan

The Power - or Curse - of Compounding

Chapter 4 in the Finance: Applications and Theory textbook by Cornett, Adair, and Nofsinger provides an introduction to the main concepts of the time value of money for a single cash flow amount. These concepts are important in finance, because cash flows analyzed in most of finance occur at various periods of time, and adjustme

Buy sell recommendation

Make recommendations: on the following two companies: Pep Boys O'Reilly Automotive Inc From an investor's perspective of whether one should buy/sell/remain neutral on both stocks. From a lender's perspective of whether or not a short-term and/or long-term loan should be made to either company. From a manager's perspecti

Internal financial information Walgreens vs CVS

Internal financial information is not available to public, so we have to rely on external information for our analysis. Review the financial statements for two years for your company which is Walgreens and another company which is CVS in the same industry. From the finnacial statments, make a comparison of revenues; cost of

Planning and budgeting to Carolina medical center

I need information in regards to Carolina medical center in North Carolina and planning and budgeting and explaining on the topics below. 1. Describe the overall planning process and the likely components of CHS's financial plan. Be sure to include discussion as to how you arrived at an

Calculate the expected return and market risk premium in the given case.

Risk Free rate 4% and the expected return on the market portfolio is 12%. Using the capital asset model: (a). What is the risk premium on the market? (b). What is the required return on an investment with a beta of 1.5? (c). If an investment with a beta of .8 offers an expected return of 9.8%, does it have a positive NPV?

The Value of Stock

Otobai Motor Company is currently paying a dividend of $1.40 per year. The dividends are expected to grow at a rate of 18% for the next three years and then a constant rate of 5% thereafter forever. What is the value of its current stock price? Assuming that the discount rate is 10%. Please show calculation.

Calculate the expected return and standard deviation of this portfolio.

The U.S. market has an expected return of 12% and a standard deviation of 22%. An index mutual fund that matches the Morgan Stanley Europe, Australia, and Far East Index (EAFE) has an expected return of 14% and a standard deviation of 30%. The U.S. market and the EAFE fund have a correlation coefficient of 0.5%. Kramer was con

Finance Question-The commando motorcycle company

The commando motorcycle company has decided to become decentralized and split it's operations into two divisions. Motor and Assembly.Both divisions will be treated as investment centers. The motor division is currently operating at it's capacity of 30,000 motors per year Direct Materials = $30 Direct Labor = 50 Variable Ma

Finance Problem-Niesen Corporation

Niesen Corporation has two major business segments-consumer and commercial. Data for the segment and for the company for August appear below: Sales Revenues, consumer = $690,000 Sales Revenues, Commercial = $310,000 Variable Expenses, consumer = $290,000 Variable expenses, commercial = $164,000 Traceable fixed expenses,

Finance- The Litton Company

The Litton Company has established Standards as follows: Direct Material: 3 pounds per unit @ $4 per pound = $12 per unit Direct Labor: 2 hours per unit at $8 per hour = $16 per unit Variable Manufacturing Overhead: 2 hours per unit @$5 per hour = $10 per unit Units Produced = 600 units Direct Material Used = 2000 poun

Finance- MooreHouse Clinic

MooreHouse Clinic uses client visits as it's measure of activity. During December, the clinic budgeted for 3,700 Client visits, but it's actual level of activity was 3690 client visits. The clinic has provided the following data concerning the formulas used in it's budgeting and it's actual results for December. The personal

Most publicly traded companies are analyzed by numerous analysts

Most publicly traded companies are analyzed by numerous analysts. These analysts often don't agree about a company's future prospects. In this exercise you will find analysts' ratings about companies and make comparisons over time and across companies in the same industry. You will also see to what extent the analysts experience

Long-term debt financing

Assume Venture Healthcare sold bonds that have a 10-year maturity, a 12% coupon rate with annual payments, and a $1,000 par value. Suppose that two years after the bonds were issued, the required interest rate fell to 7%. What would be the bonds value? Suppose that two years after the bonds were issued, the required interest rat

Washburn Guitars: Using Break-Even Points

In Washburn's factory, what is the break-even point for the new line of guitars if the retail price is $349? Using Washburn guitars, explain shifting the demand curve versus moving along the demand curve. Discuss the factors that affect the demand for Washburn guitars.

Healthcare finances reimbursement

I would like pros and cons of the following reimburesments: Prospective-payment, Cost-reimbursement, Discounted-charge, Flat-rate reimbursement. How does each of the reimbursement system affect the departments of health care companies and healthcare providers.

Country risk analysis for manufacturing expansion in India or Brazil

Country Risk Analysis paper Conduct an initial country risk analysis for each country in your scenario. The selected scenario is : A manufacturing organization considering expansion to India or Brazil Include the following risk analyses in your paper: 1.Translation exposure 2.Transaction exposure

Long Term Investment Analysis

A company is planning to invest $75,000 (before taxes) in a personnel training program. The $75000 outlay will be charged off as an expense by the firm this year (Year 0). The returns estimated from the program in the forms of greater productivity and less employee turnover are as follows (on an after-tax basis): Years 1-10:

100,000 mortgage loan to be repaid over 25 years in 300 monthly payments

6) You are taking out a 100,000 mortgage loan to be repaid over 25 years in 300 monthly payments a) if the interest rate is 16% per year what is the amount of the monthly payment? Answer: PMT = 1,358.89 b) if you can afford to pay 1500 per month and need to borrow 100,000 how many months would it take to pay off the mortgage?