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Playing the stock market is like gambling. Such speculative investing has no social value, other than the pleasure people get from this form of gambling.
What is the difference between the breakeven points for Machines A and B? (Hint: Find BEB - BEA)
. How much higher or lower will the project's ROE be if you select the machine that produces the higher ROE, i.e., what is ROEB - ROEA?
How much money would the farmer receive from hedging by selling eight contracts of September
Vertical vs Horizontal analysis. Should someone put more emphasize on one type over the other?
National Emerald Bank charges 3% APR compounded monthly. What are the EARs for the two banks, which bank is the better choice?
Similarly, when a company spins off a under performing subsidiary or discontinues a line of business, the horizontal number analysis tends to unreliable.
a. Calculate the after-tax cost of borrowing for each alternative. b. Which alternative has the lowest cost of borrowing?
Compute an exponential smoothing forecast with a=0.20, an adjusted exponential smoothing forecast with a=0.20 and b=0.20 and a linear trend line forecast.
Problem 1. Of the following statements, which is not a huge disadvantage of using credit?
What are the expected returns for stocks X, Y, and Z for the next period based on the above prices and dividends?
The market risk premium is 5.50%, and the risk-free rate is 3.00%. What is the current price of the common stock?
The corporate tax rate is 30%. Find the free cash flows for the project by filling in the table below.
If the fund earns 10 percent interest compounded annually, what is the value of the fund today?
A hedge is a position established in one market in an attempt to offset exposure to price fluctuations in some opposite position in another market
a) Find the net present value of the investment b) Find the internal rate of return for the investment
Question: What are the benefits gained from the shorthand approach for estimating external funds?
Problem 1. How are NYSE and NASDAQ similar, if at all? Problem 2. How are the two exchanges different from one another, if at all?
Common stock B has an expected return of 12%, a standard deviation of future returns of 15%, and a beta of 1.50. Which stock is riskier. Explain.
a. Calculate the expected return on each stock. b. Calculate the standard deviation of returns on each stock.
What is the percentage earned on the investment if the stock is bough for cash (i.e, the investor did not use margin)?
Earnings will grow annually at the rate of 10 percent for five years and then decline to 5 percent. What are the expected earnings after ten years?
Shares for a premium of 5 percent over the net asset value, what is the percentage earned on the investment?
Rather than kicking back and avoiding all work, you are contemplating starting and operating a landscaping business with a friend
What role does the cost of capital play in the overall financial decision making of the firm's top managers?