User Account

All Pages

Calculate the present value

Assignment Help Business Management
Reference no: EM132407330

XYZ company's stocks are publicly listed.

(a) Investors can only obtain the historical data of XYZ's stock's price. Assume that the market for XYZ's stock is efficient in the weak form, and the fair risk-adjusted expected rate of return is 10%. If the expected price of XYZ's stock in the next trading day is $6.6, then what is the price of XYZ's stock today? [Hint: assume there is no frictions. Given the capital cost, how do you calculate the present value?]

(b) If the market is semistrong efficient. Friday afternoon at 2pm, XYZ announces to the public that it receives a huge donation. Assume that this is the only new public information on that day. Does the price of XYZ's stock at 1:55 pm differ from the price at 2:05 pm? Does the price of XYZ's stock at 2:10 pm differ from the price at 2:15 pm? Why?

Reference no: EM132407330

Questions Cloud

Percent of the current cash flows : The board announce a plan to pay out 50 percent of the current cash flows as a dividend to its shareholders.
State program combating proliferation of drugs : Explain how you would use data available to you to prepare a report for the Governor for the State Program "Combating Proliferation of Drugs."
Create minimum of three learning objectives for presentation : Create a minimum of three learning objectives for your presentation. These objectives should guide your presentation and should be listed on the first slide.
SCC211- OPERATING SYSTEMS- Assignment Problem : SCC211: OPERATING SYSTEMS Assignment Help and Solutions, Lancaster University, UK-Create a file system in Java that can read an ext2 filesystems.
Calculate the present value : Investors can only obtain the historical data of XYZ's stock's price. Assume that the market for XYZ's stock is efficient in the weak form
MLC101 Law for Commerce Assignment : MLC101 Law for Commerce Assignment Help and Solution, Deakin University - Assessment Writing Service - principles of law for commerce to recognise.
What is a partnership in business : What is a partnership in business and how does it work? What is the purpose of partnership?
What is the value for put and call-utilizing black scholes : The stock price six months from the expiration of an option is $13.50, the exercise price of the option is $13, the risk free interest rate is 10 percent per
What is the forward contract price : It has a face value of $1000, 1 year spot rate:3 pct. and 10 year spot rate: 6 pct. What is the forward contract price?

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd