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# Finance

### Finance: M1, M2 money supply; discount rates, bank's total assets, equity capital ratio

Determine the size of the M1 money supply using the following information. Currency plus traveler's checks \$25 million, Negotiable CDs \$10 million, Demand deposits \$13 million Other checkable deposits \$12 million Following are components of the M1 money supply at the end of last year. What will be the size of the M1 money sup

### Federal Reserve Board Member Terms

The term of office for the Federal Reserve's Board of Governors is 14 years. But how long does a member actually serve? Calculate the average duration of Board service for these two twenty-year periods: 1950-1970 1990-2010 Note: Calculate the average period of time served based only on persons who went onto the Board after Ja

### Describe risks associated with the initiative and financial effects they may have.

Please help me describe risks associated with the initiative and financial effects they may have: Part of the strategic planning initiative for The Walt Disney Company's media networks is to continue to acquire more competitive programming to increase advertising revenue. Another strategic initiative includes expanding and u

### What is the effective annual rate of 8.7 percent compounded semi-annually?

What is the effective annual rate of 8.7 percent compounded semi-annually? Answer 8.99 percent 9.67 percent 8.32 percent 10.27 percent 8.89 percent

### At \$325 per month, how much can Steven afford to borrow at 5.25 interest

Steven can afford car payments of \$325 a month for 60 months. The bank will lend him this money at 5.2 percent interest. How much can Steven borrow today? \$12,983.45 \$17,138.64 \$9,093.27 \$23,883.43 \$32,394.57

### Public versus Private Financing

List the advantages and disadvantages of Public versus Private Financing. Discuss why companies go to private and leveraged buyouts.

### Recommend a mutual fund for a middle aged college professor: retire in 25 years

See attached file. Please recommend a mutual fund for a middle aged college professor who is investing for his retirement in 25 years. Please provide your rationale for the recommendation (based on assumptions you make about the investor). I have chosen the Vanguard Target Retirement 2035 Fund (VTTHX) due to the fact it

### Discuss operating expenses of types of mutual funds

1. Would you expect a typical open-end fixed income mutual fund to have higher or lower operating expenses than a fixed-income unit investment trust? Why? Please discuss in detail and give two references.

### Forecasted earnings per share to forecast stock price

1. The PE ratio combined with forecasted earnings per share to forecast stock price. So how would you determine what the growth rate is to work into your application of the formula? 2. If the government and the global markets decided to change to one world currency but it was not as convenient to carry would you still be incl

### Mortgage Loan Analysis for Mr. Johnson plans to buy a new house

Please show work in Excel along with a detailed written explanation of your findings typed in word format. Mini-Project 1: Mortgage Loan Analysis: Mr. Johnson plans to buy a new house at Sugar Land in June 2010. The sale price of the house is \$580,000. He plans to pay 20% down payments and borrow additional 80% from Wells Far

### Expected Returns Problem

The market and Stock J have the following probability distributions: Probability rM r3 0.3 15% 19% 0.4 8 4 0.3 20 11

### Prevent nonresident alien shareholders from owning stock

Why do we prevent nonresident alien shareholders from owning stock in S corporations? What might happen if they were allowed to own stock in such a corporation? What happens if a nonresident alien becomes a shareholder?

### Designing an integrated risk management program

For what kinds of questions does one seek answers in designing a risk management program? Outline (or provide a picture of) your concept of an integrated risk management system.

### Evaluation of Financial Performance

1.An investor bought 10 Ellis Industries, Inc., long-term bonds one year ago, when they were first issued by the company. In addition, he bought 200 shares of the company's common stock at the same time for \$30 per share. He paid \$1,000 each for the bonds, and today, the bonds are selling at \$950 each (long-term interest rates h

### Riordan: Identify and explain the steps of the collaboration process to achieve goals

Address the following with Riordan Manufacturing: Identify and explain the steps of the collaboration process among the functional areas that must be employed to achieve organizational goals, and prepare an action plan to implement the collaboration process

### Explain an ETF and why they are becoming a staple of investment portfolios

Please explain what an ETF is? Why are ETFs increasingly becoming a staple of investment portfolios? and How are they? Please discuss in detail Provide at least 1 reference

### Finance: Valuation of non-dividend paying company stock; high risk investment

1. The stock valuation approach uses discounted cash flows concepts to calculate the theoretical value of a stock. The most popular academic approach is the dividend growth model. If a stock does not pay a dividend, this model cannot be used. What might be an alternative method or approach to valuing a stock if it does no

### Portfolio Weights and Diversification for Karen's portfolio

Karen's portfolio which has a beta of 1.02, consists of three mutual funds: an international fund, a utility fund, and a technology fund. The international fund has a beta of 1.5 and makes up to 20% of the portfolio. The utility fund has a beta of 05, and the technology fund has a beta of 1.3, If the portfolio's beta equals 1.02

### Meyer's Motor Court: Break Even or Outsource

Susan Meyer, owner/manager of Meyer's Motor Court in Key West, is considering outsourcing the daily room cleanup for her motel to Duffy's Maid Service. Susan rents an average of 50 rooms for each of the 365 nights (365*50 equals the total rooms rented for the year). Susan's cost to clean a room is \$12.50. The Duffy's Maid Servic

Could you please help me with this question?: When corporations raise funds, what type of financing vehicle (instrument or instruments) is most favored?

### Solve: Expected Mean, Variance and Standard Deviation

In answering the following questions, it is given that the potential investment has the following range of possible outcomes and probabilities: 10% probability of a -20% return, 40% probability of a 15% return, 40% probability of a 25% return, and a 10% probability of a 50% return. (a) Calculate the weighted mean of the proba

### If the inflation rate in the United States is greater than the inflation rate in Britain, other things held constant, the British pound will:

1) If the inflation rate in the United States is greater than the inflation rate in Britain, other things held constant, the British pound will: -Appreciate against the U.S. dollar. -Depreciate against the U.S. dollar. -Remain unchanged against the U.S. dollar. -Appreciate against other major currencies. -Appreciate aga

### Description of Risk Analysis: Company harvest the timber

Bunyan Lumber, LLC, harvests timber and delivers logs to timber mills for sale. The company was founded 70 years ago by Pete Bunyan. The current CEO is Paula Bunyan, the granddaughter of the founder. The company is currently evaluating a 7,500 acre forest it owns in Oregon. Paula has asked Steve Boles, the company's finance offi

### Applications for possible Loan Approval: Select one and justify selection

See attached files. Review the following five applications. They are all for primary residential, 30-year mortgages, with full documentation. Be sure that before you decide which applications to approve, you consult the Lending Policies Manual. Your goal is to give the bank the greatest possible gain. Choose the loan(s)

### Prospect Theory and Expected Utility Theory Questions

According to prospect theory, which is preferred? 1. Prospect A or B Decision (i) Choose between A. (.80, \$50, \$0) B. (.4, \$100, \$0) 2. Prospect C or D? Decision (ii) Choose between: C. (.00002, \$500,000, \$0) and D. (.00001, \$1,000,000, \$0) 3. Are these choices consistent with expected utility

### What is a banker's acceptance? How are they initiated? Why are they desirable for the exporter?

What is a banker's acceptance? How are they initiated? Why are they desirable for the exporter?

### Personal financing: Calculate the total cost of a loan, use and abuse of credit

Problem 1 Objectives: Calculate the total cost of a loan. Task: Respond to each of the scenarios below. Compute the answer showing your work. Context: 1. You are considering buying a used piano. The cash price of the piano is \$600. The company selling the piano is willing to sell it to you for \$50 down plus 12 mo

### Financial Markets: Relationship between Credit Crises and Alleviating Inefficiency

Some people have suggested that a credit crisis in the financial market indirectly alleviates inefficiency in financial institutions' operations. What could be the influence? Describe how the credit crisis causes this to occur. Suggest at least two proactive steps that financial institutions may take to provide the same influenc

### Evaluate the benefits and limitations of portfolio diversification

Evaluate the benefits and limitations of portfolio diversification. Discuss how risk is assessed and what methods are most appropriate for measuring systematic and unsystematic risks. What are the best ways to diversify a portfolio? Please provide your team's rationale for their opinions from this week's readings.