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Finance

The Capitol Asset Pricing Model

Using Yahoo! Finance find the value of beta for your reference company (Apple, INC.) a. What is the estimated beta coefficient of your company? What does this beta mean in terms of your choice to include this company in your overall portfolio? b. Given the beta of your company, the present yield to maturity on U.S. gov

Equity Futures

One specialized type of security is called an equity futures. This is a contract that guarantees you a share of a particular company to be delivered to you not today, but sometime in the future, at a price that is determined by the market right now. This price is usually called the futures price of the stock (note - the term is

Hartford Corporation: When is the optimal time to abandon the asset?

An asset costs $100,000 and will generate cash benefits of $30,000 at the end of each year for 5 years for Hartford Corporation. Salvage value are $50,000, $40,000, and $0 at the end of year 3, year 4, and year 5 respectively. The required return is 10%. Assuming that this asset can be replicated, when is the optimal time to aba

Operating Break Even Point Analysis

NEED HELP WITH THIS PRACTICE PROBLEM. Molly Jasper and her sister, Caitlin Peters, got into the novelties business almost by accident. Molly, a talented sculptor, often made little figurines as gifts for friends. Occasionally, she and Caitlin would set up a booth at a craft fair and sell a few of the figurines along with jewel

Investment problems

1. Invest $200,000 in a portfolio consisting of 4 stocks. 2. Conduct an Internet search to find the return of each stock in the previous 52 weeks and its beta. 3. Calculate the return of the portfolio and its beta for the previous year. 4. Write about 300 words report on the formation of the portfolio and the rationale for th

Basic Finance

True or False questions. 1. Dividends reinvested are not subject to federal income tax. 2. The value of a stock depends in part on future dividends and on the investors' required return 3. The value of a stock should increase if investors' require rate of return declines. 4. Valuation of stock depends on past dividends. 5.

Risk Standard Deviation for Two-Security Portfolio

1. Assume ABC are all positively correlated. A fourth stock is being considered for addition to the portfolio, either stock D or stock E. Both D and E have expected returns of 12%. If stock D is positively correlated with ABC and E is negatively correlated with ABC, which stock should be added to the portfolio? Why? 2. As

Growing Investment Amounts

1. I invested $15,000 today in a fund that earns 8% compounded annually. To what amount will the investment grow in 3 years? 2. To what amount would the investment grow in 3 years if the fund earns 8% compounded semiannually? 3. I need $25,000 in 4 years. What amount must be invested today if his investment earns 12% comp

Bonds

Jia Hua Enterprises wants to issue sixty 20-year, $1,000 par value, zero-coupon bonds. If each bond is priced to yield 7% , how much will Jia Hua receive ( ignoring issuance costs) when the bonds are first sold? A. $18,880 B $12,393 C. $20,000 D. $15,505 E $11,212

Rate of return

Question 10 What's the rate of return you would earn if you paid $950 for a perpetuity that pays $85 per year? 6.52% 7.25% 8.05% 8.95% 9.84% Question 11 What is the future value of $1,500 after 5 years if the appropriate interest rate is 6%, c

Personal Financial Planning: Stocks

A. John inherited $2 million in an IRA, which comprised of the entire estate from his father. He promptly withdrew the funds. The appropriate marginal tax rate was 28 percent. Was there any tax due? YES If so, how much? $2,000,000 *.28=$5,600,000 b. Assume it was $2 million in stocks held in a personal account. Would

Finance Questions

1. The three key elements of investment policy are the return, risk, and constraints. Explain why they are important. 2. Would these three (3) elements have different priorities if referring to an individual investor versus a mutual fund? How about a young adult versus an adult who is retired from his/her working years?

Financial Comparison Analysis for managers of Delta Airlines and Dell Computers

Review of Financial Statements-Delta Airlines and Dell Computers You are attending a managerial meeting, within your publicly held company, to hear a proposal for a possible corporate merger with a competitor. After a brief discussion, the Chief Financial Officer (CFO) conducts a slide presentation showing the competitor's f

Managers

Since managers are agents of stockholders, it is their professional obligation to make decisions to maximize the wealth of existing stockholders. Therefore, the interest of other stakeholders, such as customers, suppliers, employees, lenders, communities, as well as the society at large should not be a consideration in the decis

Common stock/ returns

Please see attached file. 1) The following are the returns for 1980 to 1986 on 5 types of capital-market instruments: common stocks, small-capitalization stocks, long-term corporate bonds, long-term U.S. government bonds, and U.S. Treasury Bills. You can use a spreadsheet program to make calculations. A. Calculate the ave

Step-down or Joint costs?

I have a question. At my work, I support a particular group of people with the back up assistance of a consultant from a 3rd party supplier. This 3rd party supplier backs me up as well as a colleague of mine who supports an entirely separate group of customers. My colleague's customer base is much smaller than mine but a higher

Finance

Write a two to three page paper discussing whether or not you think Apple, INC company will have a successful future. Get to the company's web site, into the "investors relations" section and provide some financial highlights of your company for the past year. Indicate which stock exchange the company is listed on and what was

Security Market Line

Problem: Security Market Line You plan to invest in Kish Hedge fund, which has total capital of $500 million invested in 5 stocks: Sock Investment Stock's Beta coefficient A $160 million 0.5 B $120 million 1.2 C $80 mill

long term liabilities

Waldman.'s accounting staff prepared the following amortization table related to the note: YR Bal at Beg of Yr Int Exp EOY Pymnt Bal at EOY 1 $2,577.10 $206.17 1,000.00 ? 2 1,783.27 142.

Ydepreciation and amortization concepts

Can you help me get started with this assignment? Your friend Lucy slept through a class in which her professor explained the concepts of depreciation and amortization. Think about cash flow and then write an explanation of the concepts for Lucy. Be sure to cite your sources. AICPA (http://www.aicpa.org) Official website

Sources of Funding for Growth: Andy Rexford's Custom Stitches

A Plan for Growth Andy Rexford had started his custom embroidery shop in his garage with just one, two-head machine and an old computer. From this humble beginning, Custom Stitches had grown into a full-time family business with sales of more than $750,000 a year and supplied the local college and businesses of all sizes wit

Net income, Total profit margin, Cash flow,

Brandywine Homecare, a not-for-profit business, had revenues of $12 million in 2007. Expenses other than depreciation totaled 75 percent of revenues, and depreciation expense was $1.5 million. All revenues were collected in cash during the year and all expenses other than depreciation were paid in cash. 1. What were Brandyw

nominal GDP and real GDP,,

1.Cindy has decided to retire in 24 yrs. She has $30,000 available today and wants to invest the money to supplement her pension plan. a. Assume cindy wants to accumulate $150,000 by her retirement date. Will she achieve her goal is she invests $30,000 today and earns 6 percent? Please show calculations supporting your answe

Compensation: Research on Financial Services Industry

Can you help me get started with this assignment? Conduct research on financial services industries. Identify the prevalent employee benefit practices for that industry. Discuss the discretionary benefits that are offered in your chosen industry. Make sure to discuss protection programs, paid time-off and services. Analyze bo

What can we tell about this mutual fund manager?

A mutual fund with a beta of 1.1 has outperformed the S&P500 over the last 20 years. Does the mutual fund manager; have had superior stock selection ability; have had superior asset allocation ability; have had superior timing ability; or may or may not have outperformed the S&P500 on a risk adjusted basis?

Finance problems - Invested money compounded annually

Can you help me get started with this assignment? How much money is needed to invest today to have a lump sum of $100,000 in 40 years if the interest rate is 12.5 percent compounded annually? If $100 is invested at the end of each month for 18 yrs into an account paying 10.5 percent compounded monthly, how much will your i