Start Discovering Solved Questions and Your Course Assignments
TextBooks Included
Active Tutors
Asked Questions
Answered Questions
1 suppose a stock price can go up by 15 or down by 13 over the next year you own a one-year put on the stock the
suppose you want to provide a quote for a treasury bond that matures in 2 years and pays semi-annual coupons of 3 the
suppose that an interest rate is constant at 4 this year 6 next year and 5 for the following year assuming continuous
as a result of a treasury bill auction 3-month t-bills were issued in february 2009 at a price of 99325 per 1000 face
in may 2010 a bank bid 3996800 on a 3 month 4 million treasury bill what was the discounted rate of
a stocks current annual dividend is 1 per share and its beta is 10 it is currently traded at 55 per share assume that
in april 2010 the interest rate on 36 month used car loans was 574 suppose you have a contract to a buy a used car for
find the amount you must repay for each discounted loan what is the equivalent simple interest rate for this loanthe
mr bright the vice president of finance suggests that stockholders often prefer a stable dividend policy to a highly
pension funds pay lifetime annuities to recipients if a firm remains in business indefinitely the pension obligation
suppose there is an increase in the demand for apartment units which market will be affected first on a neat and
famarsquos llamas has a weighted average cost of capital of 104 percent the companyrsquos cost of equity is 13 percent
1 - long term does even a small difference in interest rate or discounting rate impact decisions or have a large
dinklage corp has 8 million shares of common stock outstanding the current share price is 80 and the book value per
twice shy industries has a debtminusequity ratio of 16 its wacc is 86 percent and its cost of debt is 61 percent the
1 cash flow projections are a central component to the analysis of new investment ideas in most firms the person
suppose the spot exchange rate for the hungarian forint is huf 20482 the inflation rate in the united states will be 2
a bond with a face value of 1000 has 12 years until maturity carries a coupon rate of 64 and sells for 1097a what is
the treasurer of a major us firm has 37 million to invest for three months the interest rate in the united states is 25
1 mike and phil are phil are partners in a general partnership phil signs numerous contracts on behalf of the
suppose that a particular public project would generate 10 million from the present period to infinite using a discount
suppose the spot and three-month forward rates for the yen are yen7925 and yen7868 respectively what would you estimate
using the du pont method evaluate the effects of the following relationships for the butters corporationa butters
suppose the japanese yen exchange rate is yen79 1 and the british pound exchange rate is pound1 163a what is the
a bond with face value 1000 has a current yield of 67 and a coupon rate of 87a if interest is paid annually what is the