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Calculating Alpha

I need to figure out how to calculate alpha. All the other calculations are included on the attached. Please show me how to calculate. MARKET Apr-91 13.46% AVERAGE 16.39% Apr-92 10.55% STD. DEV. 10.91% Apr-93 6.08% VARIANCE 1.19% Apr-94 2.44% CO-VAR. 1.07% Apr-95 14.15% Apr-96 27.09% Apr-97 22.50%

Yield curve and Excel

Assuming a real risk-free rate of 2% and a MRP +0.1x(t)%, t is the # of years to maturity, estimate the interest rate in Jan 1981 on bonds that mature in 1,2,5 and 20 years, and use Excel to draw a yield curve based on this information.

Managerial Finance

Sales (30,000 units) $150,000 Variable costs 100,800 Contributions margin $ 49,200 Fixed manufacturing costs 24,000 Operating Income $ 25,200 Interest 18,000 Earnings Before Taxes $ 7,200 Taxes (30%) 2,160 Net Income $ 5,040 Shares Outstanding 600 This firm's break-even point is: A) 4,800 units

Break Even Point Analysis in Costs

1. ABC Company sell for $20 per unit, and the variable cost to produce them is $15. Gateway estimates that the fixed costs are $80,000. a. Compute the break-even point in units. b. Fill in the table below (in dollars) to illustrate that the break-even point has been achieved. Sales _______________ -Fixed costs _____

Leverage and break-even points - Harmon Company

The Harmon Company manufactures skates. The company's income statement for 2004 is as follows: Harmon Company Income Statement For the Year Ended December 31, 2004 Sales (30,000 skates @ $25 each) $750,000 Less: Variable costs (30,000 skates at $7) 210,000 Fixed costs 270,000 Earnings before interest an

Prepare adjusting entries for amortization.

Please help with the following problem. The following are selected 2006 transactions of Yosuke Co.: Jan 1 Purchased a small company and recorded goodwill of $150,000.Its useful life is indefinite. May 1 Purchased for $60,000 a patent with an estimated useful life of 5 yrs. and a legal life of 20 yrs. Instructions:

Financial risk management-

Calculate the implied volatility of soybean futures prices from the following information concerning a European put on soybean futures: Current futures price 525 Exercise price 525 Risk-free rate 6% per annum Time to maturity 5 months Put price 20

Calculating PV etc.

I need to calculate the price for both the best and worst case scenarios. I have attached a spreadsheet with the best and worst cases. I want to calculate each using a discount rate of 9.7% and then also using 11.2%. This is the hint the teacher gave us, but i still cant figure it out: Your first step is to determine the

Investing in common stocks

Your father is a member of an investment club that invests in common stocks. He has asked you to help him with an assignment to research three stocks traded on the NYSE or NASDAQ and recommend one for purchase. Each club member has been assigned to research companies from a different stock sector. Use the Library, unit resources

Real Estate Investment

1. Distinguish between investing in properties located in the local economy and investing in properties located overseas. 2. Why is forecasting of income and expenses for a real property considered a challenging activity? 3. Why is the debt coverage ratio important to lenders?

Real Time Inc. Project Analysis

1. The president of Real Time Inc. has asked you to evaluate the proposed acquisition of a new computer. The computer's price is $40,000, and it falls into the MACRS 3-year class. Purchase of the computer would require an increase in net operating working capital of $2,000. The computer would increase the firm's before-tax re

Stock question

Which of the following statements is most correct? a. The before-tax cost of preferred stock may be lower than the before-tax cost of debt, even though preferred stock is riskier than debt. b. If a company's stock price increases, this increases its cost of common stock. c. If the cost of equity capital increases, it must b

Company's cost of debt

A company has just been taken over by new management which believes that it can raise earnings before taxes (EBT) from $600 to $1,000, merely by cutting overtime pay and thus reducing the cost of goods sold. Prior to the change, the following data applied: Total assets: $8,000 Debt ratio: 45% Tax rate:

Charitable contribution problem

Kelly has AGI of $100,000 in 2006. She contributes stock in Tulip Corp. (a publicly traded corp.) to a State University (a qualified charitable org.) The stock is worth $59000 & she acquired it as an investment 2 years ago at a cost of $44,000. 1. What is the total amount that kelly can deduct as a charitable contribution, as

Economic benefit

Investors may receive an economic benefit from the ownership of stock by: Receiving interest. Receiving dividends. Receiving capital gains. Both b and c, but not a

Finance Problems: HR Pickett, Liability, and AFN

Problem #1 The HR Pickett corporation has $500,000 of debt outstanding, and pays an interest rate of 10% annually, Pickett's annual sales are $2 millions, it's average tax rate is 30% , and it's net profit margin on sales 5%. If the company does not maintain a TIE ratio of at least 5 times, it's Bank's will refuse to renew the

Various Finance Questions

1- What should you consider when comparing fixed assets turnover of one firm to others? In other words, can you simply compare the ratios and explore the differences or should we strive to learn more before conducting such an analysis? 2 - Class, do you think it is easier to manipulate ratios that come from the balance sheet

Balance Sheets and Income Statements

I need some assistance in trying to analyze and answer the balance sheet and income statements for the attachment. The following are balance sheets for Scott Company as of the end of the Years 1 and 2: Balance Sheet Year 2 Year 1 Cash 189 50 Accounts Receivable 950 750 Inventory 500

Predatory Home Lending

As a homeowner, you often receive solicitations to open a home equity line of credit. They are enticing, but you know that a growing number of Americans have lost their homes in recent years due to becoming victim to predatory lenders. Some of these victims are consumers who try to free themselves from credit card debt through a

Analysis of small businesses

SCENARIO 1 Mrs. Kumal Mubarek is the CEO of a small business in Bangladesh that produces mattresses. To keep up with increasing demand, she needed a bank loan to help build her company's capacity. But the bank she approached denied her loan application for whatever reason and she does not know where to turn. What would you do?

Finance net income and receivables turnover

If a company can expect an extra $2 million in sales if it enters a new market and it knows that 15% of its sales will be uncollectible, collection costs will be 2% on all new sales, and the company's production and selling costs are 80% of sales and it also has a tax rate of 30%, what will the company's net income be. Also

Additional Funds Needed with Excess Capacity

Sales for the year just ended were $400, and fixed assets were used at 80 percent of capacity, but its current assets were at optimal levels. Sales are expected to grow by 5 percent next year, and the dividend payout ratio is 60 percent. How much additional funds (APN) will be needed? A firm has the following balance sheet (s

Amortization of long lived assets -Straight line method.

Comprehensive problem on amortization: 1st January 2006, Maple Leaf Corporation reported the following property, plant, equipments. Assets Cost Estimated life Salvage value Accumulated amortization Land 4500000 N.A. Nil Building 6000000 40 years Nil 3300000 Equipment 2000000 10 years Nil 1250000 During 2006 followi

Management of a Firm

The factors that are listed below raise some interesting thoughts. If you were calling the shots for any organization where would you focus your attention? Management Attitudes: There is room for managerial judgment (i.e., tastes and preferences) in determining a firm's optimal capital structure. Where do you stand on this is