What company of the next couples of companies expected to be

Assignment Help Finance Basics
Reference no: EM13839037

1. An investor has invested all his money in shares of a gold mine. What reduce portfolio risk: diversify by buying shares in silver mining shares or car factories? Why?

2. Imagine IBM lab late at night. A scientist is talking with a colleague. "He's right, Watson, I recognize that this experiment will consume the entire budget for this year. I do not know what will happen if we fail. But if this hitrio and magnesium alloy is superconducting, patents will be worth millions of dollars." Would this be a good investment for IBM? It is impossible to say. But from the point of view of investors, it is not risky. Explain why.

3. What company of the next couples of companies expected to be more exposed to macroeconomic risks?

a. A luxurious restaurant in Manhattan or well established franchise of Burger Queen?

b. A paint factory selling in small hardware shop and DIY or another selling large amount of paint to Ford, GM and Chrysler?

For the above, make a critical analysis based on the theory of risks and present numerical examples, graphs, or real specific examples.

4. In the financial capital budgeting analysis are considered Net Present Value, Internal Rate of Return-TIR, Opportunity Cost, Cost Benefit Analysis, Period of payback, etc. From your point of view, which of all these is the best indicator for making investment decisions?

Reference no: EM13839037

Questions Cloud

Outcomes of community hospital healthcare system : Discuss the issues and outcomes of Community Hospital Healthcare System (CHHS), giving a brief overview of its initial plans and how those plans were altered after careful evaluation of the facility’s finances. The paper should discuss the various ap..
Analysis of your individual strengths in writing : A summary of the feedback that you received on your Week One, Week Two, and Week Four Individual Assignments. An analysis of your individual strengths and weaknesses in writing.
Noncumulative and cumulative preferred stockholders : 1. What is the difference between noncumulative and cumulative preferred stockholders? What does dividend in arrears mean?
Scf-indirect method-post-balance-sheet events : The following are Sullivan Corp.'s comparative balance sheet accounts at December 31, 2014 and 2013, with a column showing the increase (decrease) from 2013 to 2014.
What company of the next couples of companies expected to be : An investor has invested all his money in shares of a gold mine. What reduce portfolio risk: diversify by buying shares in silver mining shares or car factories? Why? What company of the next couples of companies expected to be more exposed to macroe..
American families have undergone many changes : American families have undergone many changes since 1900. What changes to the American family do you believe will be the most advantageous to children. Which will be the least advantageous
Most closely matches your own teaching philosophy : Review the major curriculum models and approaches discussed in the chapters this week (e.g. Montessori, Reggio Emilia, Creative Curriculum, etc.). Which model/approach most closely matches your own teaching philosophy
What would the percentage change in the price of bond sam be : If rates were to suddenly fall by 2 percent instead, what would the percentage change in the price of Bond Sam be then? Of Bond Dave? Illustrate your answers by graphing bond prices versus YTM. What does this problem tell you about the interest rate ..
Illustrate rose experience that you are comparing : Use quotes from the text to illustrate Rose's experience that you are comparing to your education. All of your quotes should be integrated into sentences. Use APA style and have a References page

Reviews

Write a Review

Finance Basics Questions & Answers

  Fundamental stock price maximization

If a company attempts to maximize its fundamental stock price, is this good or bad for society. I have a text that describe that it can be good for society,

  Determining the need for external financing

Discuss and explain different ways a financial manager can determine his or her future financing needs. Include ways of estimating the need for external financing.

  Making profit by selling programs

Byron is considering to finance his college education by selling programs at the football games. There is a fixed expenses of $400 for printing these programs, & the variable cost is $3.

  What is the expected return on the equity

Backwards has $266 million of debt outstanding at an interest rate of 10 percent and $686 million of equity (market value) outstanding. What is the expected return on the equity with this capital structure?

  Constant growth model

Here are information on two stocks, both of which have discount rates of 15%. Determine the dividend payout ratios for each firm.

  What is the weighted average cost of capital

The SML hold for the company. If a new peoject of the company has the same risk as the overall firm, what is the weighted average cost of capital?

  A company just issued at 320 cumulative preferred stock at

a company just issued at 3.20 cumulative preferred stock at a price to the public of 30 a share. the flotation costs

  Find the expected market price per share

Suppose you are planning about purchasing a share of Kampfert Industries, which has a current market price of $31.60 per share. Kampfert's expects to pay a dividend of $2.37 per share next year.

  Determining the present value-annual value

The estimated cash flow of Project XP-05/3 is given below:

  The jackson-timberlake wardrobe co just paid a dividend of

the jackson-timberlake wardrobe co. just paid a dividend of 1.45 per share on its stock. the dividends are expected to

  What will be the company stock price after stock split

SPU's stock is trade at $80 a share. The company is planning for a 2-for-1 stock split. What will be the company stock price after stock split.

  What is the treynor measure of the portfolio

A portfolio P generates an annual return of 16%, a beta of .8, and a standard deviation of 25%. The market index return is 15% and has a standard deviation of 21%. T-bill rate is 3%.

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