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Serving European Community Market

A small Canadian firm that has developed a set of valuable new medical products using its own unique biotechnology know-how is trying to decide how best to serve the European Community market. Its choices are as follows: 1) Manufacture the product at home and let foreign sales agents handle marketing. 2) Manufacture the pr

16:2. (Conversion of Bonds)

2. (Conversion of Bonds) Aubrey Inc. issued $4,000,000 of 10%, 10-year convertible bonds on June 1, 2004, at 98 plus accrued interest. The bonds were dated April 1, 2004, with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis. On April 1, 2005, $1,500,000 of these bonds w

Currency speculation problems

Book used multinational business finance 10/e by david d eiteman Mexican peso futures US$/peso (CME) Maturity open high low settle change high low open interest Mar .10953 .10988 ,10930 .10958 ------ .11000 .09770 34,841

The Chineese Yuan and effects on Wal-Mart

The Chinese central bank maintained a firm peg of the yuan to the U.S. dollar at 8.27 yuan/$ from 1996 until July 21, 2005 when the yuan was revalued upward by 2.1%. At the same time the yuan became pegged to an undisclosed, trade-weighted basket of currencies. During 2003 and 2004 pressure had been building in the U.S. Congr

Pervasive Argument That is Win-Win

Provide a pervasive argument that is win-win for NECI that the Executive Team agrees that the CFO can hire a staff accountant immediately at $45,000 - $50,000 per year. (See attached files for full problem description).

Stock Problem

9.) The stock of Pills Berry Company is currently selling at $60 per share. The firm pays a dividend of $1.80 per share. a.) What is the annual dividend yield? b.) If the firm has a payout rate of 50 percent, what is the firm's P/E ratio? 11.) Ms. Queen is in a 35 percent marginal tax bracket. If Ms. Queen receives $3.80

New Employee Training Program: The Investment Environment

You have been asked to write a training document about the US Bond Market for use in the new employee training program. In your document, you must make sure to address each of the following: 1. the key players in the market; and the types of investments available to both individual investors and institutional investors,

Equity as an option: calculate value of equity and value of debt

A corporation's assets are currently worth $1,030. In one year, they will be worth either $1,000 or $1,300. The risk-free interest rate is 4%. Suppose they have an outstanding debt issue with a face value of $1,000. This debt is due in one year. a. The value of the equity is $____?. (Rounded to 2 decimal places.) b. The

Choices for using options to hedge against home purchase in one year.

Mr. and Mrs. Smith plan to buy a house in the near future. Their dream house costs $240,000 and will be available in a year. The Smiths currently hold $250,000 in 2,500 shares of Company A. Their financial advisor tells them that they have three options to preserve at best the value of their investment: (1) create a protecti

Futures & options

5. Suppose that the pension you are managing is expecting an inflow of funds of $100 million next year and you want to make sure that you will earn the current interest rate of 8% when you invest the incoming funds in long term bonds. How would you use the futures market to do this? 6. How would you use the options market to

Options

Question #1 Which of the following is NOT true for the writer of a put option? a. the maximum loss is limited to the strike price of the underlying asset less the premium. b. the gain or loss is equal to but of the opposite sign of the buyer of a put option c. the maximum gain is the amount of the premium d. all of the ab

Stock Options

At the recent shareholders' meeting, the CEO of a small bank proposed a plan to offer each of its employees 250 incentive options for Class A common stock. The key provisions of the plan are that employees must exercise the options between January 2004 and December 2007, and if an employee terminates his or her employment with t

2 Problems

(See attached file for full problem description) --- 1. You are forming an equally weighted porfolio of stocks... 2. What spot and forward rates are embedded... ---

Risk and Return - Case Study

STOCKS A AND B The data that follow (and in file STOCK AB) give the rates of return over a 50-year period for two stocks, which we'll call stock A and stock B. The rate of return is defined as the increase in value of the portfolio (including any dividends or other distributions) during the year divided by its value at the b

Option and Warrants Part 1

4 Questions for you to familiarize with option and warrants, especially the Call/Put Parity, formula and relations. Question 1 Pintail's stock price is currently $200. A one-year American call option has an exercise price of $50 and is priced at $75. How would you take advantage of this great opportunity? Now suppose the op

Probability Distribution of Forecasts and Forecasting

Please provide answers to these questions involving: Probability Distribution of Forecasts and Forecasting with a Forward Rate (attached). Please provide some details explaining answers so that I can study from them . Thanks.

Critical Analysis of Three Case Studies

AOL AND TIME WARNER: FRAGILE PROMISES . Why did the media refer to the merger as the deal of the century? . Why was Time Warner eager to merge with AOL? . What challenges did AOL and Time Warner face as a merged company? . How is the company doing financially? How much turnover has occurred among high-level executives?

Long-term financing

A firm needs $1.5 million of long-term financing. The firm is considering the sale of common stock or a convertible bond. The current market price of the common stock is $16 per share. To sell this new issue, the stock would have to be underpriced by $1 and sold for $15 per share. The firm currently has 600,000 shares of com

Riskiness and Rank Position Forms

I am trying to answer the following two part question: (a) You own 100 shares of GE stock. In terms of riskiness, rank the positions form by alternatively combining with a long call, a long put, writing a call and writing a put, and briefly explain why? (b) You are short 100 shares of GE stock. In terms of riskiness, r

Performance Comparison between 2 stocks: NVR and TOL

Question: How is NVR, Inc. compared to Toll Brothers in terms of performance (stocks, income, sales. dividends, profit.. ) Stock ticker: NVR ane TOL I need to know how well these stocks are performing and why one or the other is better. I am writing a research paper, and one of the question i need help is hwo well both sto

Comparison of performance of CTX and NVR stocks

I am trying to do a reseach paper on both NVR and CTX who are both in the same industry. I need to compare both companies in terms of performance and stocks. 2 Stocks to compare (CTX) Centex Corporation (NVR) NVR, Inc

Banking/ Loans Entire Line of Credit

Question: If the bank decides to withdraw the entire line of credit and to demand immediate repayment of the two existing loans (the short-term and long-term loans) extended to Garden State Corp., what alternatives would be available to Garden State? I can not figure out any alternative except looking for assets to pay it