It is only in the last five years that the growth of Islamic finance and banking in the UK has taken place but according to Ainley et al (2007), the sharia-compliant transaction in the London financial markets existed even in the 1980s. The Middle Eastern institutions attained liquidity through Murabaha type transactions. Retail Islamic products […]

Cocoa produced in tropical or semitropical areas. Such climates found in Asia, Africa, and Latin America who form the principal producers of cocoa. The types of cocoa production are small-scale or large-scale production. An estimated 70% of world cocoa production comes from small-scale farmers. The number of small-scale farmers estimated to be 2.5 million with […]

The Modigliani-Miller theorem is a significant arena of contemporary corporate finance. At its centre, the theory refers to an irrelevance proposition. The Modigliani Miller theory offers cases under which the financial decision of a firm does not have an effect on its value. According to the theorem, with well-functioning markets … and rational investors, who […]

The dynamic model based on historical data for UK property development by Barras and Ferguson (1987a, 1987 b) establishes an endogenous development cycle mechanism. This model identifies the level of user activity and the level of investment activity as the two major economic factors affecting property cycles. This model, however, explicitly includes an endogenous cycle […]

There usually exists a gap between the poor and the rich in both, though the poor in the industrialized countries do not live in abject poverty. This gap results in the inequalities that many sociologists endeavor to eliminate. They view it as an undesirable aspect amongst humans (Evenett and Keller 1998 p. 18). This essay […]

Since the inception of the general management board in 2008, the authority was being funded partly by the Government of Mozambique through the Council of Ministers and partially self-funded as a result of ventures with private companies both local and international (Williams 2004, p. 54). The authority has solid financial autonomy, making it easier for […]

Soccer is one the most common games worldwide that is played with the feet and a ball and consists of two teams with each 11 players battling it out to score goals of which the one with most wins. They obviously follow a set of rules and regulations laid down by the worlds soccer governing […]

These subjects affect all players in the economy. In addition, some concepts will be explored and discussed in relation with the depression. II. Crowding Out The concept of crowding out pertains to the increase in government borrowing leading to reduction in consumption and investments (Blanchard, 2008). When the government decides to bolster spending, the best […]

There are several limitations in the price of future contracts and it is ensured by future arbitrage. The existence of price limits help to minimise the instability of prices by defending organizations against market overreaction. However, price limit can also make future contracts less liquid. Future arbitrage makes future contracts more valuable. Arbitrage generates a […]

What is more is that the crisis poses a serious challenge to the future transnational community’s sustainable development. Yardney, M. 2007. What does the American sub-prime mortgage crisis mean for Australia? http://www.propertyupdate.com.au/articles/254/1/What-does-the-American-sub-prime-mortgage-crisis-mean-for-Australia/Page1.html. 30 The financial crisis is a scenario in which the demand for money supersedes money supply – there is the rapid withdrawal of […]

Beyond abstract indicators that confirm that those who have more, increasing accumulate wealth, while the poorest seem doomed to never migrate out of this condition, the consequences ofthis dynamic eventually permeate the daily life of millions of people.Apparently, there is a model, which currently governs the finance and markets, designed to dilute any possibility of […]

Within federal jurisdiction, it represented the policies and programs of the municipal governments of Canada since 1901. The FCM ensures that its 1200 members representing larger cities to small rural communities work sincerely for improving the quality of life of the communities they represent. The municipal institutions of Canada are efficient, strong and accountable and […]

Boutique Hotel Introduction The hospitality industry is very diverse. It has a number of income generating activities that are viable. The first way that Boutique hotel can generate revenue is buy-selling rooms. The rooms can be used by revelers who visit Barcelona for business or leisure. The hotel can also earn some revenue by selling […]

The stock market in Japan peaked after the 1980’s when Japan gained dominance over the United s in the car marketplace and other high technological sectors. At the time one would think that good times would continue, but they did not. For over 15 years the Japanese securities marketplace has been on a downturn. In […]

In spite of these speculations, it has risen to be the leader for the last two decades.Sainsbury has relied heavily on equity capital to finance its operations in the recent past. The management consists of the contributors of the needed capital. Being a company based in United Kingdom, where a company with more than 50% […]

SEC Investigation: Suit Filed against Martha Stewart Insider trading laws and their enforcement came into being in the1990’s (Bhattacharya and Daouk 2006, 91). Insider trading is the act obtaining information that is not available to other stockholders in order to have an unfair advantage. It is illegal since stockholders depend on information in the audited […]

The financial analysis of a company is done in order to evaluate and interpret the financial data along with the other information in order to plan an assessment of the present and future financial condition of the company. The supplier with whom the organization is dealing has been experiencing cash flow problem. So, to deal […]

As widely known, Islamic banks requires strict compliance with Islamic Shariah, mainly based on its fundamental principle of ‘prohibition of riba-interest-‘ whereas interest plays significant roles in making conventional banks competitive in the market. Islamic banks normally provide almost all services that conventional banks used to offer to its customers except that Islamic banks don’t […]

Market risks arise because of the exposure to market variables (Prasanna Chandra, 2008). Risk management is the umbrella term used to define the process that includes identification, assessment, prioritization, and management of risks in such a way so as to minimize or eliminate, if possible, the adverse impacts of the risks (I.M.Pandey, 2006). A multi-national […]

The organization acquired necessary property for the call centre and a number of key management employees having British citizenship will supervise the call centre.A UK based company extended the business into the finance and insurance sector with a banking and finance division which was incorporated with around 50,000 customer accounts in mid 2000s. Overtime it […]

While the Confederates were fighting for secession, the Republicans opposed it and hence on April 12th 1861, fighting commenced with the Confederates attacking a United States military installation in Fort Sumter in South Carolina.Both parties raised large armies and fought many wars at Antietam and Shiloh, but what gave a major turn to the events […]

The explanation states that the utility function formed for wealth is concave in shape. A person who is wealthy has lower marginal utility for any additional wealth. In contrast to it the person who is poor has higher marginal utility for additional wealth. The economist who model risk aversion based on expected utility theory, do […]

Bissonnette talks about the common belief that a person’s economic success is greatly affected by his choice of major in college. This, as the essay points out, is a misconception based on actual surveys relating one’s college degree to his earning capacity that concludes, it’s really not all that important (Bissonnette para.6) The most common […]

Every business project is profit oriented and returns on capital employed stand as the main goal. That is why I consider that Finance perspective should focus on the cost control to ensure that in the long run income is more than the input. In a business process, the steps of what to do are provided […]

Finance71750 The present prices of the bonds would help in the determination of the market rate of interest, or the price that would be paid for the use of the money for a period of time. There exists a functional relationship between the rate of interest and the time of the bonds. The term structure […]

Teacher Without question, the Museum of Contemporary Art in Los Angeles was operated in a reckless manner that one’s household must not be operated the way the institution was operated. By putting art before finances, the museum nearly killed itself. In the last eight years of operation, it operated on loss for six years where […]

spite this clear relationship between money supply and banks, there are other factors that influence the control of national and international money supply and take away the full control of banks. these include personal account holders, foreign investors and various businesses and corporations.Ancient Babylonian records dating from the 18th century BC show that a rudimentary […]

NEM is considering the proposed investment and production to begin from 2015 onwards and expected the cost of investment is estimated at $200m out of which 40 percent would be requiredin early 2013 and remaining 60 percent will be required in early 2014. The cost of investment includes construction, insurance, operating assets and working capital […]

The Need for Variance Analysis The need for variance analysis Introduction Adhering to the budget is imperative in any organizationin order to prevent overspending. In many cases, budget implementers find themselves spending more than the projected amounts in the initial budget. To determine the possible causes of overspending, variance analysis is inevitable (Baker and Baker, […]

Teacher Cradle Will Rock Despite mounting government budget deficits, it is still possible to embark on large-scale government-sponsored national arts program in today’s United States if the government really wanted to. America today is entirely different from the 1930s when Cradle Will Rock was created. These differences from 1930s and today would make the development […]

But of late the U.S. has become to a lesser extent reliant on China’s funding of its deficits predominantly as the U.S. classified saving rate has increased and the current account shortage has decreased. However, the mere scale of the U.S. shortage funding need which is approximately $1.6 trillion budget deficit in 2010 and forecast […]

Finance Questions a) US Treasury is a risk-free security. It is issued by the US government, thus bears no default risk. My discount rate forthis type of security will be close to the US Treasury actual rate. As of March 17 2006, US six-month treasury had yield t maturity of 4.775% (Wall Street Journal, 23). […]

Nike V. Under Armour Nike and Under Armour are two sports clothing companies and they both are competing against each other in terms of customers as well as endorsements. The customers of both these companies include those individuals who love sports and are fans of various sports clubs and activities. These companies even compete against […]

Ethics and Compliance in PepsiCo Ethics and Compliance in PepsiCo Ethics and compliance are essential ingredients in building asuccessful organization. They are crucial in building organizational trust and transparency. Adherence to the two values helps in minimizing risks and establishes a culture of transparency and commitment to the organization in all functions and structures. Pepsi-Cola […]

There are several capital budgeting techniques that can be used by companies.NPV can be defined as the difference that exists between the present value of cash outflows and the present value of cash inflows. The technique is applicable in capital budgeting in the analsyiss of the profitability that is associated with an investment. The analsysis […]

Corporate debt in India From this article it can be learnt that, due to the reducing in the inflation level in India the government through the ministry of finance and the reserved Bank of India, have decided to maintain the banks interest rates at 8%. Also, the Indian government is looking for a way of […]

The paper now outlines the principal theoretical approaches to the financial crisis. The first two sections cover, respectively, the concept of contagious runs on financial institutions and markets, and the aspects of financial regulation, which seek to protect against such events. I then assess two ‘traditional’ views of the financial crisis, which attempt to explain […]

Answering Questions about Financial Accounting Answering Questions about Financial Accounting Q The financing period is a time that the company has before the payments of current liabilities become due. The current liabilities are those loans that have to be paid off within one year. Nevertheless, the company may have a negative financing period, if it […]

manufactures time series photographic equipment. It is currently at its target debt-equity ratio of 1.3. It is considering building a new 45million manufacturing facility. This new plant is expected to generate after-tax cash flows of 5.7 million to perpetuity. There are three financing options.It will be noted that the flotation charges made from issuing common […]

Essay One Monopolistic Competition Monopolistic competition as the signifies is a blend of monopoly and competition. It is systematic and realistic theory of price analysis in this imperfectly competitive world. Monopolistic competition is a market situation in which there are relatively large numbers of small firms, which produce or sell similar but not identical commodities […]

Factors Influencing the National Health Service in Modern Britain Details: al Affiliation: Submission:Factors Influencing the National Health Service in Modern BritainThere is no doubt that the National Health Service (NHS) has been one of the most cherished institutions in modern Britain (Hewitt, 2005). So it is that the former British Prime Minister Tony Blair had […]

Among the 22 people in the IT department, there is an overlap of roles as was revealed during Carol’s interview with the staff. This calls for the need to change the type of leadership to the department if the new outfit of a CIO organization is to yield intended results. The most appropriate leadership style […]

Blog Reflection Post for personal branding Blog Reflection Post for personal branding Introduction Conformity involves an individual’s adjustment in belief or behavior so as to fit a particular social group. Some consumers choose brand loyalty because they are motivated to do so while others opt for brand stereotypes .These affects the decision consumers take on […]

SSM being a user centered design approach concentrates mainly on the people involved with the problem and focus on the specific problems secondarily. It also aims at analyzing the problem from different perspectives. SSM provides an effective and efficient way to carry out an analysis of the processes in which technological processes and human activities […]

It is widely believed that the CIO can be a bridge between enterprise finance, marketing, and sales functions. This person oversees the operations ofthese departments and he also acts as a central point of exchange of information. The CIO can communicate directly with representatives from different departments which helps to promote the smooth flow of […]

Competitive QsGreen amp. Competitive Qs Several major corporations have recently launched major green initiatives. What do you make of GEs Ecomagination initiative? General Electric (GE) company is one of the American largest conglomerate corporations that operate under the five major segments namely. energy, industrial, technological infrastructure, consumer and finance segment. However, in 2000, the political […]

etail outlets also sell mid to high priced apparel, food, and household items under the companys private label brands, including Autograph, Classic, per una, and Portfolio. The British retail icon operates in about 330 Mamp.S department stores and some 340 Simply Food shops throughout the UK. Beyond Britain, it spreads across over 325 locations, mostly […]

2 EndingAnswer – DecisionsPage :Date:1As total Return is 27 %, capital gain yield is25 01 amp; Dividend yield is 2 % Total Returnamp; capital gain is good but dividend yieldShould Increased by…Finance

Running head: Coca-Cola Company Coca-Cola CompanyInstitution AffiliationStudent nameInstructor nameCourse title and numberDue date Coca-Cola Company 1 Coca-Cola CompanyOne of most interesting…Finance

Finance and Europe-Africa Address/Explain reasons for significant variances vs Projections and vs IndustryAverages. Finance oriented SWOT (GP, OP, EPS, ROE, Cash, Debt, Credit Rating, Leverage,…Finance

On the off chance that it’s not all that much inconvenience slight this it for tradition purposes.The Lovecraft’s quot;The Lurking Fearquot; short story has diverse characters who demonstrate…Finance

satisfaction. why is+ Untitled spreadsheet – Google Sh X+Xdocs.google.com/spreadsheets/d/1slYi0Qfk5DJMdQT3BOkl41VeZvz-SZC2jtTTVQA3SGU/edit#gid=0S:: Apps W MarketWatch: Stock.. Risk Management -… Q List of…Finance

the company selected for the Week 2 (Starbucks) assignment’s annual reportThere is a very important relationship between the strategic and financial planning which helpsto a great extent in order to survive in a highly competitive and volatile economy. The goals ofthe…Finance

(Individual or component costs of capital) Compute the cost of the following:a. A bond that has $1,000 par value (face value) and a contract or coupon interest rate of 6 percent. A new issue would have a floatation cost of 8 percent of the $1, 125 market value. Thebonds mature in 5 years. The firm’s […]

Yield to maturity What is the yfl of each of the following bonds, 3 if interest (coupon) is paid annually? 3. What is the 31% of the following bond if interest (coupon) is paid annually? (Round to two decimal places.) Years to Yield toPar Value Coupon Rate Maturity Maturity Finance

() Preparing the financial plan , whichprojects revenues, expenditures andfinancing Needs over a given period.all) Investing the firms funds in projectamp; securities that provide high returns…Finance

Does the project make economic sense if7 yearsPotential costs for 8-50years include operatingConstruction costsand maintenance costs, opportunity costs,for 0-7 yearsand loss of service from free flowing river.Potential benefits…Finance

Jasmine Group (JJG) is considering a capital restructuring to allow $500 million in debt. Currently,Page :Income statement ( debt $30o mittion )( $ in million)EBIT380Less – Interest @ 10 -f. 20002 00180Leg – Tax @ 35%63earning aftertax (EAT)117Value of the firm =11711. 3 810= $…Finance

Appendix03:3210 2 25%Answer 1 of 1W+With a Aaa rating at issue, the coupon rate is9.8% annually or 4.9% semiannually. With adowngrading to Aal, the new yield to maturity is10% or 5% semiannually….Finance

Paper Mechanics Please complete your Interpretation of ChartThe general movement of CVS returns follows that of Samp;P 500 returns. The price todayis significantly higher than the price 5 years ago. At the beginning of the…Finance

Bonds Par Value vs. Bond Market Value (3 points each):a) What is the most common par value amount for corporate bonds?b) What conditions have to be met for a bond’s market value (i.e., price) be equal to thebond’s par value?Finance

SOLUTION 3) Duration ofthe bond can be calculated as below: Cash Flow PVIF PV of CF (PV/Tota1)* Year0.934579 65.42056 0.0654205610.873439 61.14071 0.122281422 0.316293 57.14035 01714225541070…Finance

color:rgb(17,17,17)Your firm is contemplating a capitalYear 1Year 2Annual revenue$ 13,000,000.00S13,000,000.00Less: Annual expenses$ 10,250,000.0010,250,000.00Less: Depreciation ($2,000,000 / 2)1,000,000.00S1,000,000.00Profit before taxS…Finance

LM 7 HW iSavedSave amp; Exit SubmitXYou received no credit for this question in the previous attempt.View previous attemptBy the end of 2011, Threadless hired Jason Macatangay as Vice President of Finance. Which of the following descriptionsPart 3 of 5best encapsulates his primary role at the firm?1.25pointsMultiple ChoiceReferencesOEnsures efficient operation, attainment of goals, and maintenance […]

Both Bond Sam and Bond Dave have 6.5 percent coupons, make semiannual payments, and are priced at par value.SOLUTION Calculations relating to Band SAMSince the bond is priced at Par, the coupon rate=YTM=6.5%. Coupon per period = 1000*6.5%*(6/12)= 32.5Period : Years to maturity X 2 : 6Calculation 01’…Finance

Your company is considering a capital investment of $334.391 million. The project will generate equal annual after-tax operating cash flows of $52.48 million for 8 years. At the end of its life, the project will be sold for $55 million, but the project’sadjusted tax basis at termination will be $39 million. The project will require […]

Explain what is the Altman Z Score model. Consider the critical performance measures for ANZ Bank and how well these align with the Altman Z model. This is short answer question. Words limit 100 to… Finance

Finance date of Adams Stores. Inc. for the year ending 2016 and 2017. Items Sales $3.Cash Other Expenses Retained Earnings Long-term debt Cost of goods sold 2.Depreciation Short-term investments Fixed Assets Interest Expenses Shares outstanding (par value = $4.60) Market Price of stock Accounts Receivable Accounts payable Inventory Notes Payable Accumulated Depreciation AccrualsTax Rate Instructions: […]

Problem 2. A firm is considering expanding into new geographic markets. The expansion will have the samebusiness risk as its existing assets. The expansion will require an initial investment of $50 million and isexpected to generate perpetual EBIT of $20 million per year. After the initial investment, future capitalexpenditures are expected to equal depreciation, and […]

Instructor will post in Announcements 1.Money functionsMoney is regularly characterized as far as the three capacities or administrations that it gives.Cash fills in as a medium of trade, as a store of significant worth, and as a…Finance

Question Torp Industries has a debt-equity ratio of 1.5. Its WACC is 12%, and its cost of debt is 12%. The corporate tax rate is 35% a. What is Torp’s cost of equity capital? b. What would the cost of equity be if the debt-equity ratio were 2? What if it were 1? Finance

sells $100 million worth of 23-year to maturity 6.69% annual coupon bonds. The net proceeds Question Great Seneca Inc. sells $100 million worth of 23-year to maturity 6.69% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $980 for each $1,000 bond. The firm’s marginal tax rate is 40%. What is the after-tax […]

Question Interpret the following statements made by Wall Street analysts and portfolio managers. Given the recent uncertainty about future interest rates, investors are fleeing from zero-coupon bonds. Catrell Insurance Company invests heavily in bonds, and its stock price increased substantially today in response to the Fed’s signal that it plans to reduce interest rates. Bond […]

Question Suppose you just bought an annuity with 9 annual payments of $15,300 at the current interest rate of 10.75 percent per year. What is the value of the investment at the current interest rate of 10.75 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) What happens […]

Question University of Texas is considering purchasing a power supply system. The system costs $300,000, has a useful life of 10 years, and will cost $20,000 per year to keep running. The system uses straight line depreciation and the salvage value is zero at the end of year 10. The tax rate is 30% and […]

Question PLEASE SHOW WORK Consider the following details for a bond issued by Bravo Incorporated: Issue Date 8/5/2000 Maturity Date 8/5/2030 Annual Coupon Rate (ANNUAL coupons) 9% Face Value $1,000 Suppose that today’s date is 8/5/2004. What should the current trading price be for this bond if investors want a 12% ANNUAL return? (Show your […]

Question A bond with 16 years to maturity and a semiannual coupon rate of 5.20 percent has a current yield of 5.47 percent. The bond’s par value is $2,000. What is the bond’s price? Multiple Choice Finance

Question 3. Melco Pty Ltd. wants to raise external funds in order to expand its business. Melco has looked into bonds and shares but cannot decide on which one to choose. Given that Melco would like to use the cheapest form of financing available, advise Melco on whether to issue shares or bonds and explain […]

Question We were doing real-time trading on a stock platform where I bought one Treasury bill that matures within one year(considered as a short term bond) and one long term bond that matures in 5 years. Both of them decreased when I sold after one week. What are the factors may affect the bond price? […]

Question A bond has a coupon rate of 5.65 percent, a face value of $1,000, semiannual payments, and sells at par. The current yield is _____ percent and the effective annual yield is _____ percent. 5.73; 5.81 5.73; 5.65 5.73; 5.73 5.65; 5.73 5.65; 5.81 Finance

Question The question is as follows: A project requires initial investment of $35,000 and will generate annual before-tax cash flow of $4,750 for 60 years. The asset beta of the project is 0.9. The market risk premium is 6% and the risk-free rate is 5%. The project will be financed at its target debt-to-equity ratio […]

Question If Tinker Inc finances its seasonal working capital with short term bank loans and plans to borrow $65,000 for a year and was offered a 3.5% discounted loan with a 1.5% origination fee why is the interest paid calculated using $65,000 x .1 x 120/360 = $2,167 and can this question be answered using […]

puremarket risk for a given corporation?(You may Question Which of the following factors reflect pure market risk for a given corporation? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to […]

Question Compare the cost of the following leasing agreement with the finance charge on a loan for the same time period. The price of the car is $14,000, and its projected residual value at the end of four years is $3,000. Monthly payment$250 Capital cost reduction $1,000 Disposition charge $200 Other things being equal, one […]

If your nominal annual Question A $1,000 par value bond pays interest of $40 each quarter and will mature in 10 years. If your nominal annual required rate of return is 12 percent with quarterly compounding, how much should you be willing to pay for this bond? How do I solve this using Excel? Finance

Question 1. What is Production/ Operations Management, and how does it relate to the other two basic functions of an organization (i.e. marketing and finance)? What are the current trends in operations management? Management

Question Jemisen’s has expected earnings before interest and taxes of $6200. Its unlevered cost of capital is 14 percent and it’s tax rate is 34 percent. The firm has debt with both a book and a face value of $2500. This debt has a 9 percent coupon and pays interest annually. What is the firms […]

Question Magnus Inc. has earnings before interest and tax (EBIT) of $10 million. There is $50 million of debt outstanding with a required rate of return of 6%. The required rate of return on assets in the industry is 12%. The corporate tax rate is 28%. There are no personal taxes. Compute the value of […]

Question To calculate the WACC let’s go back to the Paley Products, Inc. financial statements for 2016 on p. 300 of the text. Paley has a pre-tax cost of debt of 5%, a cost of equity of 9.8%, 10,000 shares outstanding at a market price of $129.08 each and a tax rate of 35%: 1. […]

Question The par value of Jason Company bonds is $1000 and matures in 6 years has a yield to maturity of 8.5%If the bonds has a 10% coupon rate and pay interest on a semi annual basis.Calculate the current yield and capital gains yield on the bonds for the year( assume there are no changes […]

Question You can borrow $5000 to finance a new business venture. this new venture will generate annual earnings of $251. the maximum interest rate that you would pay on the borrowed funds and still increase your income is?? Economics

Question A company is 36% financed by risk-free debt. The interest rate is 9%, the expected market risk premium is 7%, and the beta of company’s common stock is 0.63. What is the after-tax WACC, assuming that the company pays tax at a 34% rate? Finance

Question based on the following data prepare financial comparison of buying and leasing a motor vehicle with $24,000 cash price down payment to finance $4000 monthly loan payment 560 length of loan 48 months value vehicle at the end of lone $7200 down payment for lease $1200 monthly lease payment $440 length of lease 48 […]

Question 875000 During 2015,blue buck Ltd took part in the following transactions concerning shareholders equity: paid the annual dividend on the preferred shares and a $2 dividend on the common shares.These dividends had been declared on 28 December 2014. Issued 500 preferred shares at $105. Received equipment with a market value of $77600 for 7500 […]

Question GOGreen has made the following projections: In the first year 2,000 units will be sold, growing at 10% per annum. The price for each unit in the first year will be AU$50,000. This price will increase each year by 5%. Variable costs are 60% of the sales price, which will grow by 3% each […]

Question If the debt-to-assets ratio is 50 percent, the interest rate on all debt is 8 percent, the tax rate is 50 percent, and the return on equity is 10 percent, then the ratio of earnings before interest and taxes (EBIT) to total assets, or the basic earning power ratio, must be Group of answer […]

Question Hi, i need help on these 3 equations Consider a $1,000 par value bond with a 6% coupon rate paid semiannually, and has 9 years to maturity. What is the price of the bond if it is priced to yield 7%? Linebacker Co. has 7 percent coupon bonds on the market with 9 years […]

color:rgb(45,59,69)Contrast (provide brief example) Question Contrast (provide brief example)Alternative Finance – Earnings 800,000ParticularsPlan IPlan IIPlan III12 % bonds$2,000,000Preferred 9% stock, $50 par– $2,008,0001,000,000Common stock, $10 par$4,000,0002,000,000…Finance

Question Which of the following is a conclusion of agency theory? A. Managers may accept excessive financial risks to increase the returns to shareholders. B. Managers tend to avoid high-risk, high-return investments that may jeopardize their positions if successful. C. Managers will always use the least expensive source of funds to finance investments. D. Managers […]

Question Asian Inc.’s operating income for the year is $6,000,000 and its tax rate is 21%. Its total invested capital is $30,000,000 and its after cost of capital is 6%. What is its EVA? Please show work with formula use. Finance

Question Which of the following is true about bonds? A. They are obligations from the investor to the corporation. B. Their interest rate always varies with the Consumer Price Index. C. They have a fixed maturity, and they pay an amount equal to the maturity value times the coupon rate each year. D. At maturity […]

Question True or False 1.) When calculating a firm’s Weighted Average Cost of Capital, the cost of debt is based on the weighted average coupon rate of all debt issues outstanding. 2.) Your firm has a project that has an NPV of $500,000 when excluding the cost of research and development that has already been […]

Question Help answering what the payback period, the payback period of two years, and if the movie has a positive npv if the cost of capital is 10.1 You are considering making a movie. The movie is expected to cost $10.8 million up front and take a year to produce. After that. it is expected […]

Question A company’s management is determining how many employees to hire for the customer service department over the next year. Which part of the management process is this? – Operational planning – Process improvement – Strategic planning – Decision making ——— In which step of the capital budgeting process should a firm determine where it […]

Question The following statements relates to bond relationships.please insert the following phrases to complete each statement. Increase,decrease,par,discount,premium,less than,more than,greater,less A.If the current interest rate exceeds the bond’s coupon rate, the bond will sell at a ______________. B. The value of a bond will increase if there is a/an___________in interest rates. C.A bond’s coupon rate is […]

This is the major Question In actual practice, short-term interest rates are just as likely to fall as to rise. This is the major shortcoming of ____ A) Segmented market theory B) Pure expectations theory C) Liquidity preference theory D) Loanable funds theory Finance

Question Which of the following statements about investments are true?(more than one option) i. Unsystematic risks are usually nor evident in portfolios of more than 25 stocks; ii. Sensitivity of a stock to systemic risks is measured by a beta-coefficient; iii. Active investment can be described by strategic allocation of funds following analysis of the […]

Which of the following is typically not an input to a decision model? A.decision Question A)Which of the following is typically not an input to a decision model? A.decision points B.data C.uncontrollable inputs D.decision options B)Models that involve chance or risk are called A.deterministic B.probabilistic C.risk-oriented D.none of the above C)Interquartile Range, Variance, and Standard […]

Question 16) Your university is running a special offer on tuition. This year’s tuition cost is $16,000. Next year’s tuition cost is scheduled to be $16,640. The university offers to discount next year’s tuition at a rate of 4% if you agree to pay both years’ tuition in full today. How much is the total […]

Question Bond X is noncallable and has 20 years to maturity, an 8% annual coupon, and a $1,000 par value. Your required return on Bond X is 9%; if you buy it, you plan to hold it for 5 years. You (and the market) have expectations that in 5 years, the yield to maturity on […]

Question Your company will receive USD10,000,000 in 3 months’ time and will keep the funds for a 3-month period to cover a payable 6 months from today. Your analysts think that interest rates may fall from their current level at 6.1% and you want to protect the return you will get until you need the […]

Question How can a bond with a coupon rate of 10% and being sold at par offer the same return to the investor as a bond paying interest of 6% per year and selling below par, assuming that both are held until maturity? Finance

Question The time value of money is the economic principal that a dollar received today has greater value than a dollar received in the future. In a professional setting, understanding the time value of money is necessary for financial decisions such as business loans, investment analysis, capital budgeting, and many more crucial decisions needed to […]

Question Africa Industries is an industrial conglomerate is currently evaluating a project to produce a new electronic lock mechanism recently developed by the company. The project will require an immediate outlay of NOK 100 000 on production machinery. The machinery would have a zero scrap value at all times and would not be allowable expense […]

Question 1. In the following discussion question you will evaluate long term financing options and their effects on the organization. If you were considering long-term financing alternatives for your organization, what are your options? How will you decide? What will you need to consider? How do you determine the correct balance between debt and equity? […]

Increase as flotation Question The cost of new common equity will Question 1 options: a) Increase as flotation costs increase b) Decrease as flotation costs increase c) Increase as flotation costs decrease d) Increase as the tax rate increases Question 2 (2 points) Assuming no change to a company’s overall risk level, if a project’s […]

Question Healthy Foods’ balance sheet shows a total of $25 million long-term debt with a coupon rate of 8.50%. The yield to maturity on this debt is 8.00%, and the debt has a total current market value of $27 million. The company has 10 million shares of stock, and the stock has a book value […]

olgtltligtAB, Inc. has a debt-equity ratio of 2. Its WACC is 15 percent, and its cost of debt is 6 Question olliAB, Inc. has a debt-equity ratio of 2. Its WACC is 15 percent, and its cost of debt is 6 percent. The corporate tax rate is 30 percent. What is the firm’s unlevered cost […]

Question How do you calculate intrinsic value aka expected price aka PV? PROBLEM: FYI bonds have a par value of $1,000. The bonds pay an 8% annual coupon and will mature in 11 years. i) Calculate the price if the yield to maturity on the bonds is 7%, 8% and 9%, respectively. ii) What is […]

Question Mulligan Manufacturing (MM) is a fast growing firm with expected earnings of $3 million next year. MM expects earnings to grow 10% per year indefinitely and MM’s cost of capital is 14%. MM has creative accounts, so it pays no taxes. What is the market value of MM? If MM has no debt, then […]

Question As relative prices in various industries change due to trade, the marginal product of the mobile resources used in the expanding industry __________, and the marginal product of the mobile resources used in the contracting industry __________. Finance

Question Ben invested $7,500 twenty years ago with a insurance company that has paid him 6 percent simple interest on his funds. Charles invested $7,500 twenty years ago in a fund that had paid him 6 percent interst compound annually. How much more interest has charles earned than Ben over the past 20 years? Finance

Question Outline the differences between the insider regulations in Australia and the US. Consider the following scenarios and determine their legal status based on various definition of insider trading liability: Finance

Question Hi please help me to figure out this question. thank you! Assume an investor purchased a fixed-coupon bond at a time when the bond’s yield to maturity was 6.9%. Further assume the investor sold the bond prior to maturity and realized a total return of 7.1%. Which of these most likely occurred while the […]

Question Restex maintains a debt-equity ratio of 0.85, and has an equity cost of capital of 12% and a debt cost of capital of 7%. Restex’s corporate tax rate is 40%, and its market capitalization is $220 million. a. If Restex’s free cash flow is expected to be $10 million in one year, what constant […]

Question Nine years ago the Templeton Company issued 21-year bonds with an 12% annual coupon rate at their $1,000 par value. The bonds had an 8% call premium, with 5 years of call protection. Today Templeton called the bonds. Compute the realized rate of return for an investor who purchased the bonds when they were […]

Question A callable bond pays annual interest of $5, has a par value of $100, matures in 10 years but is callable in 5 years at a price of $110, and has a value today of $106. Calculate the yield to call. Group of answer choices 5.18% 5.27% 5.39% 5.58% Finance

Question You have decided to start slowly investing in a total markets fund with your hard earned cash. You expect the market to yield an average of 12.5% per year for the forseeable future. You plan to invest $940 at the end of each year. How much will you accumulate after 18 years of investing? […]

Question YIELD TO MATURITY AND FUTURE PRICE A bond has a $1,000 par value, 8 years to maturity, and a 6% annual coupon and sells for $930. What is its yield to maturity (YTM)? Round your answer to two decimal places. ?% Assume that the yield to maturity remains constant for the next 4 years. […]

Question The most recently issued 4 week T-Bill is quoted at a discount of 1.91. a. What is the price of this T-Bill? b. What is the bond-equivalent yield? Assume 4 weeks is 30 days, and the par value is $10,000. Express your answers rounded to two decimal places. Question 3 2 pts The most […]

company is considering investing in a new equipment that will cost the company $2,260 at time=0. The after-tax Question A company is considering investing in a new equipment that will cost the company $2,260 at time=0. The after-tax cash flows are expected to be $672 each year for 17 years. What is the payback period? […]

Question A T-bill with face value $10,000 and 82 days to maturity is selling at a bank discount ask yield of 2.9%. Face Value $10,000.00 days to maturity 82 days Asked yield 2.90% a. What is the price of the bill? (Use 360 days a year. Do not round intermediate calculations. Round your answer to […]

Question Which of the following statements is​ false? A. The actual cash flow that the investor will get to keep will be reduced by the amount of any tax payments. B. The right discount rate for a cash flow is the rate of return available in the market on other investments of comparable risk and […]

raises funds by issuing commercial paper to Rio Tinto and invests in governments and corporate Question D.Indirect finance using the financial markets for the intermediary’s use and source of fundsEconomics

Question Question 5 You are given the following information by Apple PLC Spot Exchange Rate ($ / ¥) $1.00 / ¥100.00 USA Interest Rate 7.5% Japan Interest Rate 2% USA Inflation Rate 4% Japan Inflation Rate 1% a) Using the interest rate parity theory, determine: i. Whether the $ will appreciate or depreciate ii. The […]

Question Apple PLC, the globally-dominant California-based US-Tech giant is worried that despite its big market share across all market segments, changes in the global economy and the geo-political 6 environment is negatively affecting its profitability. Depreciating currencies from its major markets and the volatile global political environment has resulted in falling profitability despite an increased […]

Question Samuelson, Inc., has just purchased a $650,000 machine to produce calculators. The machine will be fully depreciated by the straight-line method over its economic life of four years and will produce 41,000 calculators each year. The variable production cost per calculator is $11, and total fixed costs are $900,000 per year. The corporate tax […]

Question You are advising several individual investors who are interested in investing in portfolios comprised of both stocks and bonds. In preparation for meeting with these various investors, you plot the investment opportunity set for stocks and bonds. Given this information, why might you advise some of the investors to invest in a portfolio other […]

Question Simplified circular flow diagram for the economy of Micronia. ( no investment in Micronia.) a. what is the value of GDP in Micronia? b. What is the value of net exports? c. what is the value of disposable income? d. Does the total flow of money of of houses holds the sum of taxes […]

Question what is the yield on 2-year T securities. Real risk free rate of interest is 4%, inflation expected to be 2%, during next two years 4%, maturity risk premium, par value is $1,000. I got 7.00%; What is the yield on 3-year T securities. I got 6.00% can you please tell me if that […]

coupon rate, a $1000 par value, and 12years to maturity. The bonds are Question The bonds for Company A have a 4.5% coupon rate, a $1000 par value, and 12 years to maturity. The bonds are currently priced at $905.40. What is the yield to maturity for this bond? Finance

Question Bond Valuation with Annual Payments Jackson Corporation’s bonds have 5 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 10.5%. The bonds have a yield to maturity of 13%. What is the current market price of these bonds? Round your answer to […]

Question A CFO reviews reports detailing a company’s financial performance over the past few years regarding operations and financing activities. Which type of financial statement is this CFO reviewing? – Revenue Statement – Statement of cash flows – Balance sheet statement – Statement of retained earnings Finance

Since the market is hot, you plan to put in an offer for Question Looking to buy a home with an asking price of $225,000. Since the market is hot, you plan to put in an offer for full asking price. You also plan to put a $45,000 down payment and finance the remainder. Your […]

Question Find a recent news event from SOUTH AFRICA you believe would affect that country’s currency value (stronger or weaker). Post a link to the article. Brief summary of the article; make sure to include the date of the article. Also, discuss how the news event would affect the exchange rate or other issues that […]

Question You have invested $6,000 in plant improvements and financed $6,000 Long-Term debt to pay for it. You have also elected to retire $6,000 of Long-Term Debt. Now, your closing cash position reads -$3,000. How can you fix the current financial decisions so that you have a healthy cash position at the end of the […]

Question Provided within correct answer plz, that would be perfect if background of yours info are given. Endlessly thankful 1.​Which of the following action/s is/are considered as source/s of cash? ​A.​Decrease in asset account ​B.​Increase in liability account ​C.​Decrease in equity account ​D.​Only A and B 2.​Which of the following action/s is/are considered as use/s […]

Question Question 1 Please help me to answer this question with formulas and explanations. a) Halliford Corporation expects to have earnings this coming year of $3 per share. Halliford plans to retain all of its earnings for the next two years. For the subsequent two years, the firm will retain 50% of its earnings. It […]

Question CMS Corporation’s balance sheet as of today is as follows: Long-term debt (bonds, at par)$10,000,000Preferred stock2,000,000Common stock ($10 par)10,000,000Retained earnings4,000,000Total debt and equity$26,000,000 The bonds have an 8.7% coupon rate, payable semiannually, and a par value of $1,000. They mature exactly 10 years from today. The yield to maturity is 12%, so the bonds […]

Question Bart’s Moving Company bonds have a 11% coupon rate. Interest is paid annually. The bonds have a par value of $1,000 and will mature 8 years from now. Compute the value of Bart’s Moving Company bonds if investors’ required rate of return is 9.5% Please show work. Thank you Finance

identify which contract you recommend the rookie Question Show the inputs to solve for the PV of each contract; identify which contract you recommend the rookie accept? PV of a Cash Flows Stream: A rookie quarterback is negotiating his first NFL contract. His opportunity cost is 7%. He has been offered three possible 4-year contracts. […]

Question Which of the following actions does NOT help managers defend against a hostile takeover? a. Establishing a poison pill provision. b. Granting lucrative golden parachutes to senior managers. c. Establishing a super-majority provision in the company’s bylaws to raise the percentage of the board of directors that must approve an acquisition from 50% to […]

a. Excessive shareholder Question Which of the following is generally not seen as a major criticism of an LBO: a. Excessive shareholder returns b. LBO’s could harm the long term competitiveness of a firm c. LBO’s lead to downsizing of employees in the target firm d. Investment into plant, property and equipment slows e. Target […]

Question The value of HILEV firm at the end of one year can be $50 m or $100 m with equal probability of 0.5. The firm has debt with a face value of $50 m that matures in one year. Assume that investors are risk-neutral and the risk free rate is zero. The CEO of […]

Question Help needed – Thanks in advance Suppose you have a project with a projected annual cash flow before interest and taxes of $6 million, indefinitely. The initial investment of $18 million will be financed with 60% equity and 40% debt. Your tax rate is 34%, your cost of capital if you were an all-equity […]

Question _____________________% Preferred stock ______________% Common equity ______6.16________% This was correct Weighted average ____________% | C l D IEIFlGlH Dividend Growth rate 9.20%Stock Selling Price $ 55.00Dividend { D1) 5 7.50Cost of Equity ( Dividend / Share Price) + dividend Growth rate[7.5/55)+9.2%Cost of Equity 20.74%…Finance

Question The duration of a soon to be approved loan of $10 million is four years. The 99th percentile increase in risk premium for bonds belonging to the same risk category of the loan has been estimated to be 5.5%. The current average level of interest rates for this category of bonds is 12%. If […]

Products is operating at just 87 percent capacity, although it is earning a substantial profit, its Question As Plastic Products is operating at just 87 percent capacity, although it is earning a substantial profit, its increase in sales will least lead to the firm’s __________ to increase. Finance

Question BOND VALUATION Madsen Motors’s bonds have 20 years remaining to maturity. Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 8.5%; and the yield to maturity is 12%. What is the bond’s current market price? Round your answer to the nearest cent. Finance

Question Question 2 Samsung Electronics is a Seoul (South Korea) based diversified electronics giant. It is doing very well in within the Asian sub-continent. Samsung Electronics has a desire for aggressive growth. To achieve this it embarked, over the last 10-years on a two-pronged strategy: product innovation and efficient production. It commissioned a Market Research […]

Question Explain why, if he/she as the Angel Investor would require more or less debt versus equity financing. Be sure to note the nature of the claims, secured debt versus equity financing on assets in times of bankruptcy. Finance

Question Kedia Inc. forecasts a negative free cash flow for the coming year, FCF1 = −$10 million, but it expects positive numbers thereafter, with FCF2 = $25 million. After Year 2, FCF is expected to grow at a constant rate of 4% forever. If the weighted average cost of capital is 14.0%, what is the […]

Problem 1. GoPro – Question STEP-BY-STEP SOLUTION TO :Problem Set 9: DCF: Free Cash Flow1. Problem 1. GoPro – NOPAT GoPro’s earnings before interest and taxes (EBIT) was $190 million. Assuming GoPro’s tax rate is 35%, what is their net operating profit after taxes (NOPAT) for 2014 expressed in million of dollars? *Make sure to […]

Question Q5. Gecko Life Assurance Company has received premium payments on policies that greatly exceeds the amount that it anticipates that it will need to pay out on life insurance policies this year. It is considering investing the surplus in either 10-year bonds or 20-year bonds and is considering the following two investments: Option 1: […]

Question (a) Imagine that the yield curve is currently flat. The Treasury announces that they will no longer issue securities with maturities longer than two years. As a result, long-term government bonds will be refinanced using only relatively short-term debt. If the market segmentation theory of the yield curve is correct, what will happen to […]

Question Consider an investment that pays $200 one year from now, with cash flows increasing by $200 per year through year four. If the interest rate is 12 percent, what is the present value of this stream of cash flows? If the issuer offers this investment for $1,500, should you purchase it? Finance

Question Suppose that the interest rate on a one-year Treasury bill is currently 1% and that investors expect that the interest rates on one-year Treasury bills over the next three years will be 2%, 3%, and 2%. Use the expectations theory to calculate the current interest rates on two-year, three-year, and four-year Treasury notes. Finance

Question All things being equal, which has more interest rate risk: a. A long-term bond or a short-term bond? b. Low coupon bond vs high coupon bond? c. Long-term, high coupon bond or short-term low coupon bond? Finance

olgtltligtWhy do you think small banks have a higher proportion of assets in investments than do large Question olliWhy do you think small banks have a higher proportion of assets in investments than do large banks?/liliDescribe a typical fed funds transaction. Why do you think small banks sell more fed funds as a proportion of […]

Question Worldwide Widget Manufacturing, Inc., decided to go ahead with its plan to expand. It issued $30 million in debt due in 30 years to finance the expansion at an 8 percent coupon rate. The company makes interest-only, semiannual payments of $1,200,000 on this debt. Debt issued today would cost only 7 percent interest. You […]

Question An American buys a Japanese car, paying by credit card. How would this be accounted for in the balance of payments of Japan? A) a credit in the current account and a debit in the current account B) a credit in the current account and a debit in the financial account C) a debit […]

Question In the context of the financial system, economies of scale refers to: A) less risk for small institutions B) The ability of the government to make better decisions about capital allocation C) A reduction in volatility for liquid securities D) The ability of banks to trade stock efficiently E) Costs being negatively related to […]

ulgtltligtWhat type of financial management system would best suit the needs of the organization? Why? Question ulliWhat type of financial management system would best suit the needs of the organization? Why? How did you review, assess, and select this system?/li/ul Finance

Question My wife and I are planning to go into business together. Which of the following statements is Not True? Group of answer choices We can both form a Sole Proprietorship, since we file our taxes jointly. We can both form a Partnership, with each of us as partners. IF we both form a Partnership, […]

Question REACHING A FINANCIAL GOAL Allison and Leslie, who are twins, just received $25,000 each for their 25th birthdays. They both have aspirations to become millionaires. Each plans to make a $5,000 annual contribution to her early retirement fund on her birthday, beginning a year from today. Allison opened an account with the Safety First […]

Question Polycorp is investigating two projects. The risk free rate is .06 and the market premium is 0.06. Project A has a beta of .75 and Project B has a beta 1.6 times that of the average for the firm’s existing projects. Projects A and B are independent. If accepted the projects will initially be […]

Question A loan commitment of $4.37 million with an up-front fee of 60 basis points and a back-end fee of 25 basis points. The take-down on the loan is 40 percent. What is the total fees you will pay on this loan commitment. Problem 18-06 Calculating Costs of Issuing Debt (LG18-4) Harper’s Dog Pens, Inc. […]

Question evaluate the choices in purchasing stock via online brokerage accounts (where you can buy and sell stock via the Internet) and the use of dividend reinvestment plans (known as DIPs and DRIPs) or mutual funds or index funds. For online brokers, what is the the requirements to open the accounts: costs, minimum balances, and […]

Degree of past Question The market allocates capital to firms based on all of the following except: Degree of past performance Expected returns Level of efficiency Higher risk requires lower returns due to higher expectations Finance

Question Hello i need help solving this question. A deposit of X is made in to a fund which pays an annual effective interest rate of 6% for 10 years. At the same time, X=2 is deposited in to another fund which pays an annual effective rate of discount of d for 10 years. The […]

Question 1. A Common stock of General Motors closed at $38.16 today 7/03/19 The company paid $0.40 last quarter and the growth rate is expected to be 5.5%. What will be the investor’s price assuming she has a required rate of 9.5%? What would be the yield the yield on the investment based on an […]

Question In general, the capital structures used by non-financial U.S. firms A. typically result in debt-to-asset ratios between 60 and 80 percent. B. tend to converge to the same proportions of debt and equity. C. tend to be those that maximize the use of the firm’s available tax shelters. D. vary significantly across industries. E. […]

Question Please teach me how get those answer Thank you！！！ Par value of 12% preference share is $3. Market expectation is 14% from this preference share. What would be the intrinsic value of this preference share? Group of answer choices A $3.50 A$2.57 A$3.06 A$3.00 Finance

Question D. Short-term bonds have higher interest rate risk. Q2. There is an inverse relationship between bonds’ quality ratings and their required rates of return. Thus, the required return is lowest for AAA-rated bonds, and required returns decrease as the bond ratings get higher. True or False Finance

Question Discussion and review Question – page 326, Question 7 Some Japanese firms have a policy of rotating their managers among different managerial jobs. In contrast, American managers are more likely to specialize in a certain are (e.g , finance or operations). Discuss the advantages and disadvantages of each the approaches. Which do you prefer? […]

Question 1. The great physicist, Albert Einstein was credited with the observation that compound interest is the most powerful force in the universe. Explain by using an example and a graph to make your points (Hint: use say $100 over a 50 year period with a non-compounding interest of 12% and a compound interest of […]

You have applied for a home mortgage of $75,000 to finance the purchase of a new home for 30 Question 1. You have applied for a home mortgage of $75,000 to finance the purchase of a new home for 30 years. The bank requires a 14% interest rate. What will be the annual payment? *** […]

Question The pecking order theory of capital structure implies that: I. When a firm uses external finance it means that the firm did not have enough abundant internal finance II. Firms prefer debt to equity when using external finance III. Firms issue securities based on the trade-off between financial distress costs and interest tax savings […]

Question Gluon Inc. is considering the purchase of a new high pressure glue ball. It can purchase the glue ball for $220,000 and sell its old low- pressure glue ball, which is fully depreciated, for $40,000. The new equipment has a 10-year useful life and will save $48,000 a year in expenses. The opportunity cost […]

Question Investigate two investment choices that interest you from the list below and provide your fellow students with insights into those two investments, how they work, the level of risk, the potential for gain, regulations covering them, etc. o CDs o Money Market Funds o Stocks o Mutual Funds o Government Bonds o Derivatives o […]

Question i. Investment X for 100,000 is invested at a nominal rate of interest j, convertible semiannually. After four years, it accumulates to 214,358.88. ii. Investment Y for 100,000 is invested at a nominal rate of discount k, convertible quarterly. After two years, it accumulates to 232,305.73. iii. Investment Z for 100,000 is invested at […]

Question Midland Utilities has a bond issue outstanding that will mature to its $1000 par value in 12 years. The bond has a coupon rate of 11% and pays interest annually. a. Find the value of the bond if the required return is (1) 11%, (2) 15%, and (3) 8% b. Plot your findings in […]

Question Consider three bonds with 5.90% coupon rates, all making annual coupon payments and all selling at face value. The short term bond has a maturity of 4 yrs, the intermediate-term bond has a maturity of 8 years, and the long-term bond has a maturity of 30 yrs. a. What will be the price of […]

Question Madsen Motors’s bonds have 23 year remaining to maturity. Interest is paid annually, they have a $1,000 par value, the coupon interest rate is 9%, and the yield to maturity is 11%. What is the bond’s current market price? Finance

Question Hi can I please have some help with the following question? Thanks. BDJ Ltd wants to issue new 25-year bonds for some much-needed expansion projects. The company currently has 7.8% coupon bonds on the market that sell for $1125, make semi-annual payments and matures in 20 years. What coupon rate should the company set […]

Question WWT is considering replacing a $5 million piece of equipment. The project will generate pretax savings of $1,500,000 per year, and not change the risk level of the firm. The initial expense will be depreciated straight-line to zero salvage value over 5 years; the pretax salvage value in year 5 will be $500,000. The […]

Question The firm plans to issue equity to pay off debt. This will reduce the debt ratio to .15. The market risk premium is 10%. Find the return on equity after the capital structure change. Finance

Question JBL Industries is an all-equity financed corporation with a current 12% cost of capital and $200m market capitalization (risk free rate is 5% and the company’s stock beta is 1). JBL business has become stable and the firm has been generating a stable stream of cash in recent years. 2) Management contemplates to replace […]

Question Caviar Fishfarm Ltd (‘CFL’) is unlevered, (all equity) has an equity beta of 1.25 and unlevered cash flows of $76,800 per annum that will continue in perpetuity. The expected market return is 10%p.a and Treasury bills earn 2%p.a. CFL is currently considering issuing $300,000 in new debt with an 8% interest rate. CFL would […]

Question A strongly competitive home market can sharpen a firm’s competitive advantage relative to firms located in less competitive markets. Explain what is meant by the competitive advantage of nations. Finance