• Q : Presence of a risk-free security....
    Finance Basics :

    Describe the great contribution to Capital Market Theory by Harry Markowitz. Discuss how the presence of a risk-free security changes the shape of the efficient frontier

  • Q : Types of derivative securities....
    Finance Basics :

    Describe the manner in which put-call parity can be used to price other types of derivative securities, such as forwards or futures contracts.

  • Q : Prices of defautable and default free zero coupon bond....
    Finance Basics :

    Suppose the prices of defautable and default free zero coupon bond with principal of $1, for different maturities (in years) are as follows:

  • Q : Determining the forward price of contract....
    Finance Basics :

    What is the forward price of your contract? Suppose both the 1-year and 15-year spot rates unexpectedly shift downward by 2 percent. What is the new price of the forward contract?

  • Q : Tranches of the abacus....
    Finance Basics :

    AIG was effectively the largest unfunded investor in the super-senior tranches of the Abacus 2004 deal.This means that AIG: Effectively would sell the underlying subprime collateral as the mortgages b

  • Q : Significance of weighted average cost of capital....
    Finance Basics :

    Imagine you are the CFO of ABC Company. You have been successful over the years, but are now concerned about how many sources of funds you have, and the cost of those funds. With changing business c

  • Q : Expected interest rate-variance and standard deviation....
    Finance Basics :

    What is the expected interest rate under Ima's forecast? What is the variance and standard deviation of Ima's interest rate forecast? What is the coefficient of variation of Ima's interest rate foreca

  • Q : Difference in the annual inflation rates for united states....
    Finance Basics :

    Suppose the current exchange rate for the Russian ruble is RUB 34.50. The expected exchange rate in three years is RUB 37.78. Assume that the anticipated rate is constant for both countries. What i

  • Q : Probable effects on sales and profits....
    Finance Basics :

    What are the probable effects on sales and profits of each of the following credit policies?

  • Q : Requirements for trading....
    Finance Basics :

    Search three online trading sites, and determine the requirements for trading, including the price per trade. Compare and contrast the online trading companies. (2-3 pages)

  • Q : Effect on flashback eps and pe ratio....
    Finance Basics :

    Current earnings are $3.10 per share, and the stock currently sells for $85 per share. There are 3,400 shares outstanding. Ignore taxes and other imperfections. What will be the effect on Flashback'

  • Q : Floatation cost as a percentage of funds....
    Finance Basics :

    Bostitch paid $905,000 in legal and other direct costs and $250,000 in indirect costs. What was the floatation cost as a percentage of funds raised?

  • Q : Net amount of cash provided by for financing activity....
    Finance Basics :

    Calculate the net amount of cash provided by or used for financing activities for the year. (Omit the "tiny_mce_markerquot; sign in your response.)

  • Q : Average balance in accounts payable....
    Finance Basics :

    Coley, Inc., has a cash cycle of 42.5 days, an operating cycle of 61 days, and an inventory period of 26 days. The company reported cost of goods sold in the amount of $340,000, and credit sales we

  • Q : Difference between primary and secondary securities markets....
    Finance Basics :

    What is the difference between the primary and secondary securities markets?

  • Q : Build human and social capital....
    Finance Basics :

    How is KPMG trying to build human and social capital? Explain. Discussion responses are subject to a word count for substance. Discussion responses should approximate 200 words.

  • Q : Rate of return on a price weighted average....
    Finance Basics :

    Calculate the rate of return on a price weighted average of the four stocks for the period December 31, 2000 to December 31, 2001. Remember to adjust for changes in the divisor.

  • Q : Discuss capital budgeting techniques....
    Finance Basics :

    Discuss capital budgeting techniques including: the Payback Rule, IRR, NPV, and the Profitability Index. Be sure to discuss the advantages and disadvantages of each one.

  • Q : What is securitization....
    Finance Basics :

    What is securitization? What part did securitization play in the financial crisis of 2008? Provide some insights as to what caused the financial crisis of 2008. Discuss the role of securitization in

  • Q : Confidence interval for the average price....
    Finance Basics :

    As the new manager of the data verification unit at the Star Tribune, you need to develop a 95 percent confidence interval for the average price of regular unleaded gasoline in the area.

  • Q : Probability of completing the project....
    Finance Basics :

    The time required to complete a certain type of construction projrct follows a normal distribution with a mean of 60 weeks and a standard deviation of 4 weeks. What is the probability of completing

  • Q : Determining the market and book ratio....
    Finance Basics :

    Winstoms Washer's stock price is $75 per share. Winston has 10 billion dollars in total assests. Its balance sheet shows $1 billion in current libilities, #3 billion in long-term debt, and $ 6 billi

  • Q : Calculate the carrying costs....
    Finance Basics :

    Clap Off Manufacturing uses 1,300 switch assemblies per week and then reorders another 1,300. Assume the relevant carrying cost per switch assembly is $5 and the fixed order cost is $575. Calculate

  • Q : Total cash inflows and cash outflows....
    Finance Basics :

    Determine Jane's total cash inflows and cash outflows. Determine the net cash flow for the month of August. If there is a shortage, what are a few options open to Jane? If there is a surplus, what wou

  • Q : Determining cost of capital from firm tax rate....
    Finance Basics :

    Common stock of the firm is currently selling for $29.44 per share and the firm expects tp pay a $2.34 dividend next year. Dividends have grown at a rate of 4.9% per year and are expected to continu

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