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Finance

Compounding Interest

I am looking for the formula to solve this problem: What interest rate would allow you to accumulate 10,000 in 8 years if you saved $60 per month and earned compound interest monthly.

Call Option

. You are based in Canada. A 1yr call option to buy USD at strike1.3500 CAD/USD has premium of .0595CAD. Spot CAD/USD is 1.3535. a) What is the moneyness of the call? What is its intrinsic value and time value? b) Everything being equal, if the option has a life of 6M, is the call option going to cost more or le

Variance/Covariance Efficient Portfolios

Question 9. You have the following info about company ABC: Variance of market returns = 0.05492 Covariance of the returns on Durnham and the market = 0.0635 Suppose that the market risk premium is 8.4% and the expected return on Treasury bills is 4.9%. a. Write the equation characterizing the set of efficent portfolios in

Stocks..current price..selling price

Avery industries jsut paid a dividend of $2.00 per share (i.e.,D0=$2.00). analysts expect the company's dividend to grow 25% for the next 2 yrs and 15% for the following 3 years. After 5 years the dividend is expected to grow at a constant rate of 5%. the required rate of return on the company's stock is 12%. what should be the

It needs an equation rather than to calculate it manually

One day your economics professor shows you a picture of a BMW automobile. You mess around with different configurations for the available options and accesories and it can be yours for $77,942. You notice a rather sinister glint in your professor's eye as he notes your interest in the car, but tells you nonetheless that you wo

45 - Interest & Consumption

Investing $1 for 35 years at 4 percent per annum yields approximately $2.94 in interest. The cost of consuming$1 today is therefore ______ of consumption in 35 years' time. a) $2.94 b) $102.90 c) $3.94 d) $137.90 e) $1.94

32- Interest Rates

What is the present value of $50 per year in each of the next three years if the interest rate is 10 percent? a) $150 b) $45.45 c) $124.34 d) $165.00 e) $168.00

Annuity Calculations

Please include with your response any necessary formula to solve this problem (on a regular calculator, NOT a financial calculator), along with a detailed explanation of how to solve the problem. You are offered an annuity of $10,000 for 10 years starting four years from now. With interest rates at 5%, how much should you b

Financial Management

Which of the following are concerns about target costing? a. Conflicts may arise within organizations. b. Employees may experience burnout due to the pressures of meeting target costs. c. Development time may increase. d. All of the above.

Financial Management

Which of the following is least likely to be a barrier in ABC implementation? (a) computer hardware and software problems (b) individual resistance to change (c) organizational resistance to change (d) lack of senior management commitment

Number of Periods

Please include a formula for the calculations, along with an explanation of how to work out the problem. How long will it take for $400 to grow to $1,000 at the interest rate specified? a) 4 percent b) 8 percent c) 16 percent

Greenspan Testimony

A http://www.federalreserve.gov/BoardDocs/speeches/2004/20040126/default.htm b. Read the above speech and summarize Greenspan's opinion on trade. Does he admonish the current administration's policies on trade? What does he say about job movement overseas and labor costs.

Trade Credit: A firm currently offers terms of sale of 3/20, net 40. What effect will the following actions have on the implicit interest rate charged to customers that pass up the cash discount?

Trade Credit Rates. A firm currently offers terms of sale of 3/20, net 40. What effect will the following actions have on the implicit interest rate charged to customers that pass up the cash discount? State whether the implicit interest rate will increase or decrease. a) The terms are changed to 4/20, net 40. b) The terms are

Cash Management Plan

Marcia and Phil Helm have been married for several years. They have no children, and each has a professional career. Marcia is a trainee for a management position at a large department store, and Phil is an engineer at an electronics firm. Their careers have promising futures, but neither has exceptionally good income protection

Managerial Finance: Calculating the weighted average cost of capital

A company's pre-tax cost of debt is 10%. Their preferred stock pays a $10 dividend and sells for $100. Common stock is selling for $50 and the next expected dividend will be $3. The dividend growth rate on common stock is 8%. The company's tax rate is 30% and their capital structure is: Debt: 50%