The merged company is riskier or less risky

Assignment Help Financial Management

Reference no: EM131994129

1. An estate leaves $700,000 to three children ages 11, 17 and 20. Each child is to receive the same amount at age 25. How much does each receive if the fund is invested at 6.5% interest compounded quarterly?

2. How is beta affected by mergers in the airline industry. For example, is the beta of merged American Airlines/U.S. Airways higher, lower, or unchanged from their betas as stand-alone companies? Prior to their merger in December 2013, the beta of American was 1.7 and the beta of U.S. Airways was .37. Consider whether the merged company is riskier or less risky than the 2 stand-alone companies.

Reference no: EM131994129

Questions Cloud

Calculate the excess advance premium tax credit : Calculate the excess advance premium tax credit and the repayment amount for 2016.

Regarding the euro and statements related to beta : Which of the following is true regarding the euro? Which one of these statements related to beta is correct?

Musical instruments and supplies through its retail outlets : Alto Music is a levered company providing musical instruments and supplies through its retail outlets.

How your intervention program will address the cultural : Which racial/ethnic minority group did you choose? Explain how your intervention program will address the cultural and language characteristics of your chosen.

The merged company is riskier or less risky : Consider whether the merged company is riskier or less risky than the 2 stand-alone companies.

Write pros and cons associated with each types of systems : Discuss the differences between formal and informal performance appraisal systems. What are the pros and cons associated with each of these types of systems?

Compute payback period-modified internal rate of return : The total cash inflow is expected to be $22,000 or an average of $4,400 per year. Compute the payback period in years. Modified internal rate of return.

Calculate the present value of the future payoff : Calculate the present value of the future payoff, if the interest rate is 6%. Calculate the present value, if the interest rate is 10%.

The two fatal flaws of the internal rate of return rule : The two fatal flaws of the internal rate of return rule are. The internal rate of return (IRR).

User Account

All Pages