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General Materials and Standard Fixtures' stock prices were the same.

Please help with the following with computations in order to understand. Two years ago, General Materials and Standard Fixtures' stock prices were the same. Over the first year, General Materials' stock price increased by 10 percent while Standard Fixtures' stock price decreased by 10 percent. Over the second year, General

Marginal Product

Which of the following relationships is correct? a. When marginal product starts to decrease, marginal cost starts to decrease. b. When marginal cost starts to increase, average cost starts to increase. c. When marginal cost starts to increase, average variable cost starts to increase. d. When margina

Net Present Value

True or false: "when computing an NPV, it does not matter if high inflows occur after low inflows or vice versa - the order payments has no effect on the NPV" why? what is high inflows and low inflows?? and vice versa?? please explain the concept. thanks

YTM question Bond

Determine the price of a Canadian government bond as of January 1, 2007 with face value F=$1000, YTM of r=5%, a semi annual coupon of 6.375% if the bond matures on December 31, 2011. i got p= 920.70 with function 1000/(1+0.05/2)^10 + (1000*0.06375/2)/0.05 * [ 1- 1/(1+0.05/2)^10] however if i follow the formula t

Understanding of Market Efficiency

In an efficient market, a group of high growth stocks is expected to provide a higher expected return than a group of low growth stocks. Is this true or false?



Pro-Forma Statement of Cash Flows

The accountants at Karl's Fish Hatchery are currently preparing the pro-forma statement of cash flows for May. In getting ready to prepare the statement, they have the following information available: Dividends to be paid in May . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,500 Bon

Cash Flow and NPV

Tobacco Company of America is a very stable billion dollar company with sales growth of about 5 percent per year in good or bad economic conditions. Because of this stability (a correlation coefficient with the economy of + .3, and a standard deviation of sales of about 5 percent from the mean), Mr. Weed, the vice president of

Finance Problems

Suppose a firms common stock paid a dividend of $2 yesterday. You expect the dividend to grow at the rate of 5% per year for the next 3 years, and if you buy the stock, you plan to hold it for 3 years then sell it. A- Find the expected dividend for each of the next 3 years, that is, calculate D1, D2, and D3. Note that D0 = $2


List two ways a country can limit imports without an official trade barrier.

Data Analysis for Modeling

Five years ago, an automobile manufacturer stated offering an extended warranty to buyers of its sport-utility vehicle. The extended warranty covered defects occurring after the initial three-year warranty expired. Of the 10,000 people who bought the sport-utility in the first year of the program,15 percent purchased the extend

Investment Problems: Price of stocks

1) Price a stock that pays a dividend of $3 for the next ten years and then $2 forever after that. Assume the discount rate is 20%. Show in dollars and percent what you would earn if you held this stock for three years. 2) Price a stock that pays no dividend for five years, then pays a $1 dividend in year 6 after which t

Financial Economics

1. You are given the following information about Shoven Gambling Company. Long-term debt outstanding $300,000 Current yield to maturity of long-term debt 8% Number of shares of common stock 10,000 Price per share $50 Book Value per share $25 Expected rate of return on common stock

Financial Economics

1. As a result of improvements in product engineering, United Automation is able to sell one of its two milling machines. Both machines perform the same function but differ in age. The newer machine could be sold today for $50,000. Its operating costs are $20,000 per year, but in five years the machine will require a $20,000

Time Value of Money

A. Albrecht - Chapter 18, Exercise 18-2 Exercise 18-2 Time Value of Money Your late, rich uncle left you $250,000. The executor of the estate has asked if you would rather receive the full amount now or $30,000 a year for the next 40 years. Which of these options would you take, assuming that your desired rate of return is:


A. Explain the practical difference between the MCLG and the MCL. b. Draw the relationship of marginal social benefit and marginal social cost for the MCLG for lead, assuming it is set at an efficient level. Intuitively explain your model NOTE: One of the key elements of a primary drinking water regulation is the maximum c

What is the present value of future benefits?

I have several accounting problems that I cannot do. I need help with the formulas for the problems. ex. Jack Hammer invests in a stock that will pay dividends of $2.00 at the end of the first year; $2.20 at the end of the second year; and $2.40 at the end of the third year. Also, he believes that at the end of the third yea

Personal Finance - Future Value and Monthly Payments Calculations

You are 30 years old and plan to retire at age 60. Your goal is to create a fund that will allow you to receive $100,000 per year for 25 years after the retirement. You know that you will be able to earn an average of 8% per year for all your accounts. If you make annual payments into a retirement account, how much will you need

Annual year-end payments

How do I start this problem? Jim Rodriguez is borrowing $50,000 for his small business. If he pays equal annual installments for 5 years and 6% interest, what are his annual year-end payments?

Building Financial Models.

Building Financial Models. The following tables contain financial statements for Dynastatics Corporation. Although the company has not been growing, it now plans to expand and will increase net fixed assets (that is, assets net of depreciation) by $200,000 per year for the next 5 years and forecasts that the ratio of revenues to


Using Percentage of Sales. Eagle Sports Supply has the following financial statements. Assume that Eagle's assets are proportional to its sales INCOME STATEMENT, 2003 Sales $950 Costs 250 Interest 50 Taxes 150 Net Income $500 BALANCE SHEET, YEAR-END 2002 2003 20

Financial Economics

1. Mark Harrywitz proposes to invest in two different stocks, X and Y. He expects a return of 12% from X and 8% from Y. The standard deviation of returns is 20% for X and 10% for Y. The correlation coefficient between the returns is .2. a. Compute the expected return and the standard deviation of the following portfolios

Biogenetics, Inc plans to retain and reinvest all of their earnings for the next 30 years. Beginning in year 31, the firm will begin to pay a $12.00 per share dividend. The dividend will not subsequently change. Given a required return of 15%, what should the stock sell for today?

Biogenetics, Inc plans to retain and reinvest all of their earnings for the next 30 years. Beginning in year 31, the firm will begin to pay a $12.00 per share dividend. The dividend will not subsequently change. Given a required return of 15%, what should the stock sell for today?