Maximize the total returns for the investments

Assignment Help Business Management
Reference no: EM132835080

A financial advisor at Baroda Investments identified two companies that are likely candidates for a takeover in the near future. Eastern cable is a leading manufacturer of flexible cable systems used in the construction industry, and comswitch is the new firm specializing in digital switching systems. Eastern cable is currently trading for $40 per share, and comswitch is currently trading for $25 per share. If the takeovers occur, the financial advisor estimates that the price of eastern cable will go to $55 per share and comswitch will go to $43 per share. At this point in time, the financial advisor has identified comswitch as the higher risk alternative. Assume that a client indicated a willingness to invest a maximum of 50000 in two companies. The clients wants to invest at least $15000 in eastern cable and atleast $10000 in comswitch. Because of the higher risk associated with comswitch, the financial advisor has recommended that at most $25000 should be invested in comswitch. Formulate a linear programming model that can be used to determine the number of shares of eastern cable and the number of shares of comswitch that will meet the investment constraints and maximize the total returns for the investments.

Reference no: EM132835080

Questions Cloud

Compute the company variable-overhead efficiency variance : If Priority estimates 1.90 hours to manufacture a completed unit, compute the company's variable-overhead efficiency variance
Identify the area of the brain damaged in the disorder : Describe the disorder of Prosopagnosia, discussing the main problems a patient with Prosopagnosia would experience. Identify the area of the brain damaged.
Bsbinn30-promote innovation in a team environment : For this section of this unit I am required to interview people on how their team worked innovative and identify any shortcomings and suggestion
How much annual payment in the retirement account is needed : How much annual payment in the retirement account is needed to accumulate the amount needed to purchase the bond when retiring?
Maximize the total returns for the investments : Formulate a linear programming model that can be used to determine the number of shares of eastern cable and the number of shares of comswitch
Basic purpose of a code of ethics for a profession : 1. What is the basic purpose of a code of ethics for a profession? 2. Name and explain the characteristics and values associated with ethical behavior.
Calculate the monthly payment in retirement account : Calculate the monthly payment in your retirement account in order to be able to achieve the plan mentioned above? How much will your inheritors receive?
Prepare a direct materials budget for April and June : Assume direct materials cost $5 per pound. Prepare a direct materials budget for April, May, and June
Define impact of culture on therapists clinical impressions : Discuss the impact of cultural settings on diagnostic practices and treatment in psychothearpy. What is the possible impact of culture on a therapists clinical.

Reviews

Write a Review

Business Management Questions & Answers

  In a swot analysis how are opportunities external

In a SWOT analysis how are opportunities external?

  Lower cost production method

Suppose a lower cost production method is found for a product sold in a perfectly competitive market and that the demand for the product is inelastic. What happens to industry profits in the short run, when the number of firms is fixed?

  Round all computations to the nearest whole dollar

Compute the book value for each of the above mentioned assets at December 31, 2015 and 2016. Compute the income statement effects for 2015 and 2016 for each of the above mentioned transactions.

  Every individual employee in the organization plays

Do you agree or do you think Control is something that only managers are responsible for? Explain.

  Future of autonomous cars depends on the standardization

Some industry experts believe that the future of autonomous cars depends on the standardization of artificial intelligence algorithms across all vehicles.

  Creating a complex model of real-world phenomena

For each of the problems described below, explain which paradigm (Object-Oriented or Functional) would best be suited to create the solution.

  Discuss barbaras suit against alfred

In a minimum of a 1,000-word contract analysis, discuss the following questions: Was Mundo obligated to sell the presses to Extra for $2.4 million?

  Principles integrate to build a successful team

How do leadership, motivation and teamwork principles integrate to build a successful team?

  Discuss leadership qualities

Discuss leadership qualities, that could help companies to maintain customer satisfaction, also as a manager for an organization, what leadership quality

  Accomplishment competitive strategy

How Amazon and Ebay changes its marketing, sales technique to better accomplishment its competitive strategy?

  Determine whether certain contract remedy exist in scenario

Determine whether certain contract remedies exist in the following scenario: Forrest Gump is a famous table tennis player. He enters into a contract with Alabama Sports Marketing to advertise the latest ping pong game.

  Discuss the political realities governing international

Discuss the political realities governing international trade in the light of the current controversy over the North American Free Trade Agreement (NAFTA).

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!

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