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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?

Constant Growth

Suppose that in 2006 the expected dividends of the stocks in a broad market index equaled $210 million when the discount rate was 9.5% and the expected growth rate of the dividends equaled 6.5%. Using the constant growth formula for valuation, if interest rates increase to 10.5%, what will the value of the market change by?

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

Sampling excel worksheet

A manager has selected a random sample of his league customers. he asked them to record the number of games they bowl during the month of December, including both league and open bowling. The reason for this interest in this data is that he is planning on offering a special discount to customers who bowl over a specified number

Managerial Finance

Consider the below Consolidated Statement of Operations for the year ending September 25, 2009 and answer the following questions. 1.Use the Percentage Sales Method and a 20% increase in sales to forecast the Consolidated Statement of Operations for the period September 26, 2008 through September 25, 2009. Assume a 15% tax ra

Financial Institution problems

Research indicates that the 1,000,000 cars in your city experience unrecoverable losses of $250,000,000 per year from theft, collisions, etc. If 30% of premiums are used to cover expenses, what premium must be charged to car owners. Show all work PLEASE.

Business finance

1. Your hospital has the following revenue for the month of July-September: July $2, 000,000 Aug $ 2, 500,000 Sep $ 3,000,000 If 30% of the month's revenue is collected in the same month, 40% is collected in the second month and 30% is collected in the third month, how much of July's revenue is collected in August? and

Constant growth stock

Constant growth stock The last dividend paid by XYZ Company was $1.00. XYZs growth rate is expected to be a constant 5 percent. XYZ's required rate of return on equity (ks) is 10 percent. What is the current price of XYZ's common stock?

Business finance multiple choice

1) Which of the following best describes the goal of the firm? A. The maximization of the total market value of the firm's common stock] B. Profit maximization C. Risk minimization D. None of the above 2) In terms of organizational costs, which of the following sequences is correct, moving from lowe

Discounting problems.

3. You will receive $5,000 three years from now. The discount rate is 8 percent. a. What is the value of your investment two years from now? Multiply $5,000 _ .926 (one year's discount rate at 8 percent). b. What is the value of your investment one year from now? Multiply your answer to part a by .926 (one year's discoun

Solution assistance

1. On April 1, 20X2, Jack company paid $800,000 for all of Ann Corporationâ??s issued and outstanding common stock. Annâ??s recorded assets and liabilities on April 1, 20X2, were as follows: Cash $ 80,000 Inventory 240,000 Prop & Equip (net of Accum Depre of $320,000) 480,000 Li

Compute post-retirement pension expense; journal entry to record

The following information is related to the Hedge Co. post-retirement ("pension") benefits plan for 2011: Service Cost $168,000 Discount Rate 10% EPBO, January 1, 2011 820,000 APBO, January 1, 2011 640,000 Actual return on plan assets in 2011 22,400 Expected return on plan assets in 2011 29,00

General Fund Transaction Impacts

Indicate (i) how each of the following transactions impacts the fund balance of the General Fund for fund-based financial statements and (ii) what the impact is on the net asset balance of the governmental funds for government- wide financial statements. A. Issue a five-year bond for $6 million to finance general operations.

diminishing returns of an additional worker

31. When will the diminishing returns of an additional worker become evident? use the below info to answer # of workers.............Qties of output 0................................0 1................................35 2................................80 3................................130 4..............................

Monthly payments

1. If Hudson Inc borrows $500,000 on a 10% add-on basis, payable in 12 equal end-of-month installments, how large would the monthly payments be? 2. If Tapley Inc borrows $600,000 on a 10% add-on basis, payable over 3 years in 36 equal end-of-month installments, how large would the monthly payments be?

What is

To avoid a hostile takeover, a company may seek the help of a â??white knightâ? or perform strategies of their own. What exactly does this mean, and how is it accomplished??

Rate of Return and Risk

1. (Expected Rate of Return and Risk) B. J. Orange Enterprises is evaluating a security. One-year Treasury bills are currently paying 1.9 percent (with little risk - 1 percent). Calculate the investment's expected return and its standard deviation. Should Orange invest in this security or the Treasury bills? You should calculate

Career Paths Personal Opinion

What career paths are of interest to you? How has the information presented in this course influenced your thoughts about your personal career path? What insights or reactions do you have concerning what you now know about the field of finance?

Valuation and Leverage and Estimating Value

Valuation and Leverage 1. Discuss the concept of valuation with leverage. How could we estimate the appropriate cost of capita for a project. Explore how the financing decision of the firm can affect both the cost of capital and the set of cash flows that we discount. Estimating value 2. Discuss the approach to estimate


Which of the following assets would pay a dividend? US treasury security Municipal bond Preferred stock Corporate bond

Portfolio Decisions: Agree or disagree with investment advisor recommenadtions

U09a1 Portfolio Decisions Lotta As an individual investor, you are attempting to invest in a well-diversified portfolio of mutual funds so that you will be somewhat insulated from any type of economic shock that may occur. ? An investment advisor recommends that you buy four different U.S. growth stock funds. Since these

LL Sams & Melinda Garcia Career Services: Evaluate Balance Sheet

See attached file. The proprietors of two businesses, L.L. Sams Company and Melinda Garcia Career Services, have sought business loans from you. To decide whether to make the loans, you have requested their balance sheets. Click Balance sheets below to view. Solely on the basis of these balance sheets, to which entity woul

Recapitalization for Dye Trucking

Dye Trucking raised $150 million in new debt and used this to buy back stock. After the recap, Dye's stock price is $7.5. If Dye had 60 million shares of stock before the recap, how many shares does it have after the recap?

Finance Acctg ROE

You have been provided financial information (see following page) of the Crum Company (CC). The firm expects sales to grow by 50% next year, and operating costs should increase at the same rate. Fixed assets were being operated at 40% of capacity this past year, but all other assets were used to full capacity. Underutilized fixe

Finding the Break-Even Point in Units of Output for the Firm

I am an analyst in the office of financial operations for a manufacturing firm that produces a single product. I have developed the following cost structure information for this company. All of it pertains to an output level of 10 million units. Using this information, find the break-even point in units of output for the firm

Value and Yield to Maturity for Par Value Bonds

1. Bond. What is the value of a $1,000 par value bond with annual payments of an a. 11% coupon with a maturity of 20 years and a 15% required return? b. 12% coupon with a maturity of 10 years and a 7% required return? c. 8% semiannual coupon with a maturity of 10 years and a 11% required return? d. 8% semiannual coupon with