An investor notices that an ounce of gold is priced at $318 in London and $325 in New York. What action could the investor take to try to profit from the price discrepancy? Which of the six trading activities would this be? What might be some impediments to the success of the transaction?
Please help with quantitatively evaluating the following data by calculating the expected impact, the standard deviation, and the coefficient of variation for each risk. Additionally, what do these statistics tell you about the possible risks? For commodity price risk, there is a 25% chance that oil prices will increase, whic
a). What types of decisions would need to be made before the investment is made? Indicate the main kinds of information/data needed to evaluate this capital investment project. b). Consider a health care organization with which you are familiar with and present one or two challenges that are likely to arise during this decisi
Would you be willing to pay $500 today in exchange for $10,000 in 30 years? What would be the key considerations in answering yes or no? Would your answer depend on who is making the promise to repay? For purpose of comparison, compute the annual rate of return on this investment.
I am managing a conference at my college. My fixed costs are $15,000. I must pay the 10 speakers $700 each, and the college union $300 per conference participant for food and lodging costs. I am charging each conference participant who is not also a speaker $900, which includes the conference fee and their food and lodging costs
You are a new city council person for the City of Scottsdale, Arizona. You are aware that several cities have been in the news recently for financial crises for which the council or board is being held accountable. The governing bodies have been criticized for not being aware of the negative signals and trends that obviously led
Understanding risks is very important for any business. As discussed in our text by Hunton, Bryant, and Bagranoff, risks are classified in four major parts: - Business risk - Audit Risk - Security Risk - Continuity Risk Briefly explain what are the similarities and differences among these risks
Billings Village is considering shifting its payroll period from twice a month to monthly. Total payroll for the year is $80 million. Billings can earn 6% on its invested money. How much would the village save from such a change? Should it shift its payroll period to monthly.
Explain why distinguishing between investment centers and their managers is important in performance evaluations.
One of your relatives has come into a significant amount of money recently, and wants to invest $100,000 dollars in a stock which is listed either on the New York Stock Exchange (NYSE) or the NASDAQ. This relative has asked you to recommend three stocks, and will choose from one of the three you recommend. You may use one of
What should the management of Sports Products, Inc., pursue as its overriding goal? Why? Does the firm appear to have an agency problem? Explain. Evaluate the firm approach to pollution control. Does it seem to be ethical? Why might incurring the expense to control pollution be in the best interests of the firm's owners de
You are required to do an event at the university in order to fund money for the charity. Tell us how would you start your even by using the following: - Planning - Organizing - Leading - Controlling
1.) Select any health care organization with which you are familiar with in the United States (or one that you would like to learn more about), and think about the role of budgeting in that particular organization. Conduct research, as needed, to find out more about the budgeting process of this organization. 2.) Bring to m
Jeannie is saving up to make a down payment on a new car. She currently has $1,450 in a savings plan that pays interest at the end of every month with an interest rate of 3% compounded monthly; however, she needs at least $5,000 for the down payment. If Jeannie can save $180 at the end of every month, then the number of months i
Identifying Key Risk Indicators Key risk indicators (KRI) act as signals for sound risk management, potentially helping to prevent or prepare for risk exposure. (1) Please describe KRI. (2) Identify and describe two key risk indicators that might be implemented to measure the potential for this risk to the organizati
What are some risk management techniques? How would you use portfolio management to assess the risk and return of an investment? Predict how the results would be different based on different risk preferences? What is a sensitivity analysis? What is a scenario analysis? How would you apply each one to a potential investment op
As a growing number of producers pursue multichannel distribution, they could probably learn some lessons from the masters at the game- the big soda companies. Think of all the places in your community where you can purchase a Coke or a Pepsi. How is the soda promoted differently through each channel? How does the price chang
A trader buys 200 shares of a stock on margin. The price of the stock is $20. The initial margin is 60% and the maintenance margin is 30%. How much money does the trader have to provide initially? What share price is there a margin call?
I have 2 questions I need help with: 1. Should a yield curve influence a borrower's preferred maturity of a loan? 2. Should there be a global Central Bank?
What is the difference between one-price and flexible-price policies? Which would be the most appropriate for a hardware store?
I need help with the following: Suppose that the expected return on the market is 12% and the risk free rate is 7%. The standard deviation of the return on the market is 15%. One investor creates a portfolio on the efficient frontier with an expected return of 10% and another creates a portfolio on the efficient frontier with
Please give a brief definition and implication of portfolio theory, and then argue both sides of portfolio theory, both limits and benefits. Question: Critically assess the implications of the Portfolio Theory, discuss the benefits and limitations, citing the key scholars in the area.
Investor buys 100 shares in a mutual fund on January 1 2009 for $50 each the fund earns dividends $ 2 and $ 3 per share during the 2009 and 2010. These are reinvested in the fund. Its capital gains in 2009 and 2010. These are the reinvested in the fund. Its capital gains in 2009 and 2010 are $5 per share respectively. The invest
1) What kind of costs do not qualify for 15-year amortization? 2) How much of start-up cost and organization expense can be deducted in the first year of operation? What is the amortization period for the rest of the costs?
Please help answer the following questions. - Why do firms purchase other corporations? - Do firms pay too much for the acquired corporation? - Why do so many acquisitions result in shareholder losses?
A) Would you still think investing in junk bonds from a new company with a lot of potential is without a doubt a bad idea?. Thoughts? B) There is a reason why these types of bonds exist and there is a reason why people invest in them. However, before jumping in one needs to decide what all of the implications can be, what the
What conclusions would one come to regarding the organization's performance over the last five years in terms of liquidity, activity, leverage, profitability and market value ratios? How does the organization's performance compare with its industry peers for this same time period?
1. Financial institutions are subject to regulations to ensure that they do not take excessive risk and can safely facilitate the flow of funds through financial markets. Nevertheless, during the credit crisis, individuals were concerned about using financial institutions to facilitate their financial transactions. Why do you th
I need some help getting started with the following: A) How does the cost of capital calculations impact on investment decisions? B) While most financial professionals are very comfortable with the textbook calculation, there are a few gray areas worthy of note because of their potential impact on capital budgeting decisio
You find a small business loan in the amount of 50,000 is the amount you need to purchase the restaurant location. After researching banks to find the best interest rate, you find that the best interest rate of 9% intersest that compounds monthly for seven years. 1. What is the monthly payment for this loan? Show the formula