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How much money will George need in the future to sustain the $10,000 monthly payments for 15 years? In how many years can he retire?
Assume the asking price for a small apartment property is $1,800,000. What is the rent (i.e., PGI) needed to support the $1.8 million price tag?
What is the internal rate of return (IRR) on an industrial building investment originally purchased for $3,500,000, seven years ago which has an annual net inco
A property is purchased for $10 million. Financing is obtained at a loan-to-value ratio of 60% with annual mortgage payments. What is the equity dividend rate?
Determine the outstanding balance at the end of seven years on a $100,000 loan, originated at 5.50 percent annual interest.
Maple Aircraft has issued a 4¾% convertible subordinated debenture. In the absence of the conversion feature, what is the current yield and yield to maturity?
Using the expected cash flows above, what is the internal rate of return, IRR, of the equity investment, if levered?
Why would equity investors sell in this environment? Describe the arguments on each side for selling now or holding based on the yield curve and bond market.
Imagine that you are in charge of finance at a corporation and you have $1 million of cash available today you need for an upcoming project. What do you do?
What are possible reasons to apply capital rationing in highly heterogeneous organizations and highly homogeneous organizations?
1 year later, if the 6 month LIBOR turns out to be 5% with semi-annual compounding, how much do you need to pay or receive at 1year point?
What are the current events that are affecting the stock price of Ford Motor Company? Do you believe their stock is overpriced, underpriced or priced correctly?
Suppose the yield curve rises for 5 years and then falls. Based on the expectations theory, what does this tell us about future short-term interest rates?
Yang Bai is investing $10,000 and wants a portfolio that is 80% stocks and 20% bonds. What should she do to meet her asset allocation goal?
What is her annualized HPR before-tax if she does not reinvest the interest income? What is her annualized HPR before-tax if she reinvests the interest income?
Assume an annual return of 7.00% on your funds. How much will you need to save at the end of each of the next 25 years to reach your retirement goal?
Your professor offers to buy winning ticket from you. How much should you charge your professor for the winning ticket: Using formula PV= C/r x (1 - 1/(1+r)^T).
Which system should Blooper install? Briefly explain why you selected this system in the space provided below.
You have just been hired as a consultant by Vogus Corporation. If the appropriate discount rate is 20% per year, what is the worst-case NPV for this project?
The stock will either increase or decrease by 16 percent over the next year. What is the risk-neutral value of the call option?
How would a convertible bondholder decide whether to exercise his rights of exchange? How do venture capital firms design successful deals?
How to use contracts to change the portfolio duration when there is an interest rate increase? For example, which one or more contracts should be used?
What is the goal of the Fed's actions in the FOMC statement? Does the Fed want households to reduce expenditures and therefore increase (or decrease) savings?
Is the portfolio immunized at the time of bond purchase? What is the duration of the bonds? Will the portfolio be immunized one year later?
What annual IRR does his pension ?md need to achieve over the 25 years that he is retired in order to afford his retirement plan?