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The cost of hedging depends on the how closely correlated are the price of the futures I use to hedge and price movements in the broader stock and bond markets.
Calculate the current price of instrument B per $100 face value. Assume the yield rate is j2 = 4.23% p.a. and Helene has just received her coupon payment.
On March 1, Minnerly Motors obtains a business loan from a local bank. What is Minnerly's interest charge for the first month (assuming 31 days in the month)?
Can you get out of a contract by filing for bankruptcy? Have any famous people ever did this?
What would her cash flow be under the new capital structure assuming that she keeps all of her shares?
What are the two general methodologies for valuing stock? Explain how each methodology is used to value shares. Please provide at least one example for each.
Describe and provide background information on each method, and should be in thousand words.
What would the depreciation expense be each year under each method? Which depreciation method would produce the higher NPV, and how much higher would it be?
What weight should be assigned to the bonds when computing the weighted average cost of capital?
You have successfully started and operated a company for the past 10 years. lf you require an EAR of 11%, how much are you being offered for your company?
determine the estimated standard deviation of your new portfolio's return if you sell $10 million of your existing assets and buy this emerging market country's
Determine the estimated Sharpe ratios of your portfolio before and after shift in part (I). Does the shift into this new asset appear to be a good idea?
Include recommendations on which countries in each continent would serve as a good candidate for your company to further analyze.
What is the present value of all future growth opportunities Big Industries will produce? What is present value at time 0 of all future growth opportunities?
Compute the difference in total market value of A and B, showing your steps and explaining your reasoning. Provide intuition for your answer.
Cindt owes a supplier €14,000payable in 3 months time.The current spot rate. What will be the $ cost of the payment if they set up a money market hedge?
Find a portfolio of the risk-free asset and the Trojan Explorer fund that has the same volatility as the S&P 500 (4%). What is the weights of this portfolio?
How do you know when a contract is formed? If there is conflicting language in the buyer's purchase order and the seller's confirmation,
Mr Pedro wants to go to court because he does not receive statutory sick pay for any sick leave.
What is the process to cancel an existing trademark? What are the valid reasons for seeking to nullify an existing trademark?
Problem: What are strategies used to reduce the risk of sexual harassment claims?
Alf approaches you for advice about an appropriate legal structure for his new business. Advise Alf, specifying explicitly any assumptions you consider
The sales representative is threatening to sue Brad for breach of contract. Use the IRAC method to advise Brad if the contract can be enforced against him?
Suppose they will borrow $600,000 today and plan to pay off $200,000 of debt each year. What is the overall increase in total firm value?
The company expects sales of $620.0 million during the current year and it expects sales to grow by 20% next year. What is the inventory forecast for next year?