Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Your next assignment is to assume that $10,000 was invested in the stock of General Medical Corporation with the intention of selling after one year. The stock pays no dividends, so the entire return will be based on the price of the stock when sold. The opportunity cost of capital on the stock is 10 percent. (PLEASE SHOW WORK)
a. To begin, assume that the stock sale nets $11,500. What is the dollar return on the stock investment? What is the rate of return?
b. Assume that the stock price falls and the net is only $9,500 when the stock is sold. What is the dollar return and rate of return?
c. Assume that the sales prices remain the same but the stock is held for two (02) years. Now, what is the dollar return and rate of return?
Financial ratio analysis is conducted by managers, equity investors, long-term creditors, and short-term creditors. What is the primary emphasis of each of these groups in evaluating ratios?
A stock has a beta of 19.5 and an expected return of 12%. A risk free asset currently earns 3.8%. What is the expected return on a portfolio that is equally invested in the two assets? If portfolio of the two assets has a beta of .78, what are the po..
You are saving to buy a $182,000 house. There are two competing banks in your area, both offering certificates of deposit yielding 6.7 percent. How long will it take your initial $99,000 investment to reach the desired level at First Bank, which pays..
Your firm has an average collection period of 20 days. Current practice is to factor all receivables immediately at a 1.00 percent discount.
Nora Fashion Corp. is thinking to acquire Sally Shoes Corp. The presence of marketing synergies will produce an estimated additional value of $9,259,259. The gain from the synergies will be shared equally between the shareholders of two companies. Ho..
Consider two projects with the following cash flows: Project S is a 4 year project with initial (time 0) cash outflow of 3000 and time 1 through 4 cash inflows of 1500, 1200, 800 and 300 respectively. Project L is a 4 year project with initial (time ..
Your company (Apple Inc) is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique. Your company (Apple Inc) is considering the construction of a new building. The building will have an ..
Assuming you have no intention of using your money for anything other than that purpose, what would be the approximate maturity of bonds that would minimize components of interest rate risk?
Find the proceeds if the vendor sells the note to his bank, which charges 12% interest, and if the merchandise costs the vendor $1,600, how much would he make?
To pay for her college education, Gina is saving $2,000 at the beginning of each year for the next eight years in a bank account paying 12 percent interest. How much will Gina have in that account at the end of 8th year?
Bobby Brown decides to buy a Nissan Maxima. After paying a down payment and taxes, Bobby Brown can finance the rest of the purchase price with a loan of $27,000 for 60 months at a special finance rate offered by Nissan: 0.9% APR compounded monthly. W..
Describe the condition under which it would rational to exercise both an American-style put and call stock option before the expiration date. In both cases, comment specifically on the role that dividends play.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd