Jam llc unexpectedly executed a share buy-back. Before the buy-back the number of outstanding shares was 11,123,000, the market price of one share was $2.04 and the return on levered equity was 12.00%. The return on levered equity after the buy-back ..
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Digital Organics (DO) has the opportunity to invest $0.98 million now (t = 0) and expects after-tax returns of $580,000 in t = 1 and $680,000 in t = 2. The project will last for two years only. The appropriate cost of capital is 14% with all-equity f..
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Chuck Brown will receive from his investment cash flows of $3,145, $3,500, and $3,810 at the end of years 1, 2 and 3 respectively. If he can earn 7.5 percent on any investment that he makes, what is the future value of his investment cash flows at th..
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How does a company raise money (capital) for their projects? KOOKIS, Inc., has 3M shares of common stock, $20 per share. What is the market value of common equity? The company has 1M shares of preferred stock, $10 per share. What is the market value ..
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The Yeild to maturirty on the bond with the cusip 855244AD1 is less than the coupon on the bond. A firm has a cost of equity of 13 percent, a cost of preferred of 11 percent, and an aftertax cost of debt of 6 percent. Givin this, which one of the fol..
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A non-dividend-paying stock is currently priced at $46.57. The risk-free rate is 5.6 percent, and a futures contract on the stock matures in five months. What price should the futures be?
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Create a post that presents your view of one or two key emerging performance management topics in current academic or professional debates. Provide references. Present the topics discussed in the articles and explain their importance to the field ..
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Aspin Corporation’s charter authorizes issuance of 2,900,000 shares of common stock. Currently, 1,200,000 shares are outstanding, and 400,000 shares are being held as treasury stock. The firm wishes to raise $104,500,000 for a plant expansion.
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You own 400 shares of Stock A at a price of $70 per share, 450 shares of Stock B at $85 per share, and 850 shares of Stock C at $31 per share. The betas for the stocks are 0.8, 1.6, and 0.6, respectively. What is the beta of your portfolio?
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What is the right price for a stock? Is it book value, liquidation value or simply its market price at a given moment in time? Would you value a privately-owned company where there is no market value differently than a publicly owned company where th..
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What are the short run equilibrium effects of expansionary monetary policy in the DD-AA model? Make sure to analyze both temporary and permanent changes in monetary policy. What is the difference between these two scenarios with respect to equilibriu..
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Bonds mature in 13 years. The bonds have a face value of $1,000 and an 9% coupon rate, paid semi-annually. The price of the bonds is $1,150. Bonds are callable in five years at a price of $1,050. Need YTM and YTC
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