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What is the price value of a basis point for the bond? Compute the Macaulay durations for the bond. Compute the modified duration for the bond.
What is the expected stock price? Suppose there is excess kurtosis of 10. What would this do to the confidence interval? Provide 2 arguments.
In a typical situation in business, if the demand for a product is high and the supple is limited. What is wrong with doing that during a pandemic?
How do betas help you with investment decisions? What did you learn about your stocks? Which asset is best according to these measures?
Based on your calculated FCFs, calculate the Net Present Value of the project and identify which of the projects you would recommend.
What is the trailing twelve month dividend yield for SPY? What is the discount rate implied by the current price?
Can we be affected by transactional, translational, or economic exposure? What is your strategy to mitigate the impact of these exposures?
Calculate the new company cost of capital. Calculate the new cost of equity. Calculate the new asset beta (ßA), the bond beta (ßD) and the new equity beta (ßE).
What is the minimum price per trailer WSB should bid if it must earn 14% for investments of this risk and faces a tax rate of 34%?
Suppose the US dollar suddenly depreciates against the South African Rand. How does this impact the profits of the company in US dollar terms?
What would be points of high consideration you would give in recommending risky assets? Why?
A property has net operating income of $220,000. A lender offers an 8 percent, 20-year, fully amortizing mortgage loan. What is the value of the property?
Supposed that you were still short on occasion (as to current assets easily convertible to cash), what other vehicle of capital would you use?
What is the implied value of the warrants attached to each bond? Do not round intermediate calculations.
What is the value of a put in this environment? What is probability implied in this framework that BC Company stock price will exceed 40 when options expire?
The Variable costs depend on the volume of production estimated at $250/unit. What is the volume of sales needed for this product to break-even?
A manufacturing engineer is considering whether to repair or replace a broken machine. What would be the preferable alternative?
What are the idiosyncratic volatilities for each of the four stocks? According to Treynor and Black model how would you construct a portfolio using four stocks?
Annual maintenance charges are estimated to be $100. At an interest rate of 10%, what is the equivalent uniform annual cost?
What is your yield if you serve 16 oz beers? How much revenue will you generate from a single keg? How much is the contribution margin for a single keg?
After reading Case Study Wedding Scenario, explain how you would advise the farm owners regarding the insurance coverage on the farm house.
Calculate the differential between the interest rates. Create a swap in which company A wants a variable interest rate and company B wants a fixed interest rate
You are purchasing a home for $150,000 at an 8% APR. Your loan period is 360 months. If your payment is $1,100.65, what is your loan balance after 10 years?
What annual rate of return must Kirk earn on his investment to accumulate enough money to pay for the ring?
What is your schedule monthly payment? What is the mortgage balance after making your scheduled payment for 5 years?