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What is weighted average cost of capital (WACC)? IF Halos cost of new common equity is 15 percent, what is the flotation cost charged by its investment banker.
Shall we long or short the futures? Why can't we stick with ICE Newcastle Coal January 2023 futures contracts?
Describe how you would decide whether to refinance. Include qualitative considerations. Provide examples of your calculations.
If the yield decreases by 30 basis points, the price of the bond will go up to $1,090. Based on this information, calculate the modified duration of the bond.
Xiophie plans on purchasing 20 shares of each of the following two ETFs. How much must the portfolio increase in value to break even after paying commissions?
Define the small firm effect. The existence of the small firm effect provides a definite rejection of the EMH. Do you agree with this statement?
Suppose Goodyear Tire and Rubber Company is considering divesting. What after-tax amount must it receive for the plant for the divestiture to be pro?table?
Aoort industries has 7 million shares outstanding and a current share. Based on this information, estimate Aoort's WACC. What is Amrt's equity cost of capital?
What is the optimal debt ratio for Coca Cola based on the cost of capital approach and what is its actual debt ratio?
You wish to combine two stocks Encor and Maestro into a portfolio. What is the composition (weights) of the portfolio? What is the portfolio standard deviation?
The initial value of the swap is zero to IBM. If the coupon rate is 10% per year for the dollar loan, what is the coupon rate on the sterling loan?
Calculate the year-end dividends that it should be able to pay in perpetuity if money is worth 4.25% compounded semi-annually.
Atlantic Manufacturing is considering a new investment project that will last for four years. What is the project's NPV?
Laurel's Lawn Care Limited has a new mower line that can generate revenues. Calculate the operating cash flows of the project if the firm's tax bracket is 25%.
Paul has $3,000 that he wishes to invest in bonds. Which investment will give Paul the higher annual earnings after taxes are considered?
What conclusion did you reach after examining your bank's relative investment performance over the last complete calendar year?
Identify and explain ways to track information on companies that a potential venture capital fund tends to source?
What is the beta of the share of Unilever With respect to the market? If CAPM holds, What is its expected return of the share of Unilever?
Using this code identify the core principles BAS agents are required to abide by and give one example for each principle in relation to how it affect your role.
In the previous problem, suppose the projections given for price quantity, variable costs, and fixed costs. Calculate the best-case and worst-case NPV figure.
What are the implications of speculation using credit derivatives to the broader society and economy? Provide examples where necessary.
Would you recommend ANZ to hedge its exposure to exchange rate risk? Critically analyse your recommendation to hedge or not.
What proportion (weight) should be invested in the Treasury Bill to form a complete portfolio with an expected rate of return of 9.25%?
Determine whether dealers in NASDAQ shares and dealers (''specialists'') in NYSE shares in the particular market being discussed provided price improvements.
What would a profit-and-loss statement for a 3-year period for Nike look like? One that would include revenue and state realistic assumptions.