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consider two stocks stock d with an expected return of 19 percent and a standard deviation of 34 percent and stock i an
the down and out co just issued a dividend of 226 per share on its common stock the company is expected to maintain a
1 discuss the costs and benefits of both debt and equity financing and the circumstances in which less or more of each
assume that you have 6000 in the bank and that you are going to receive 1500 three times a year until the day of your
choose an investment strategy and explain why you have chosen that strategy then pick two 2 stocks bonds or mutual
1 the weighted average cost of capital is used as a discount rate when making capital budgeting decisions becausea it
buchanan brothers anticipates that its net income at the end of the year will be 36 million before any recapitalization
we have a stock which has a pe of 12 it has 1 million outstanding shares and the equity is 2 million its net profit
jiminys cricket farm issued a 30-year 7 percent semi-annual bond 8 years ago the bond currently sells for 89 percent of
waller inc is trying to determine its cost of debt the firm has a debt issue outstanding with 11 years to maturity that
suppose you bought stock index futures contr for 200 and were required to put up initial m of 10000 the value of the
the sunbelt corporation has 37 million of bonds outstanding that were issued at a coupon rate of 11475 percent seven
innovative designs recently reported 230000 of sales 140 500 of operating costs other than depreciation and 9 200 of
instruction answer all questions in this section each question carries 2 marks answer true or false to the following
1 propose two 2 applications of knowledge that you have learned in this course to your current or a future position
an insurance company issued a 98 million one-year zero-coupon note at 8 percent add-on annual interest paying one
a newly issued bond pays its coupons once a year its coupon rate is 45 its maturity is 20 years and its yield to
if wild widgets inc were an all-equity company it would have a beta of 95 the company has a target debtndashequity
1 suppose a call option on a stock has an exercise price of 70 and a cost of 2 and suppose you buy the call identify
an insurance company issued a 108 million one-year zero-coupon note at 8 percent add-on annual interest paying one
1 a one-time business investment today of 25000 promises to return 10000 annually for the next 3 years with no salvage
you purchased a bond at par on january 1 the coupon rate was 5 per year paid annually the maturity date was three years
1 state the two key policy mistakes that were made during the great depression in the 1930s2 how did those mistakes
you are attempting to value a call option with an exercise price of 55 and one year to expiration the underlying stock