What percentage of your invest able funds

Assignment Help Financial Management
Reference no: EM131896675

Portfolio Allocation

1. Given the categories below - if you were to determine the optimal weighting of a portfolio of investments - what percentage of your investable funds would you allocate to what categories (must equal 100%). Why? Would this be different if you were 20 years older or 20 years younger?

Cash

US Treasuries

Bonds

Small Cap Stocks

Large Cap Stocks

International Stocks

2. From January 20X1 to January 20X2, the EUR appreciated 10% against the USD. Norvatis, a European pharmaceutical company, wants to adjust the prices of some of its drugs in the US. It raises the price on its Glucotrol, a diabetes drug, from USD40 per case in January 20X1 to USD43.2 per case in January 20X2.  Calculate the percentage change in price.

+7.407%

+8%

-8%

-7.407%

Reference no: EM131896675

Questions Cloud

What is the required rate of return on a stock with beta : What is the required rate of return on a stock with a beta of 1.1?
Weighted average cost of capital for a new airline business : You would like to estimate the weighted average cost of capital for a new airline business. The weighted average cost of capital is %?
Dividends paid out to preferred and common shareholders : Write out and circle your answer for the amount of dividends paid out to preferred and common shareholders this year.
What is the effective rate of interest : What is the effective rate of interest? What is the present worth of the entire 30 years of service, given an interest rate of 10%?
What percentage of your invest able funds : what percentage of your invest able funds would you allocate to what categories (must equal 100%). Why?
New battery-operated toaster for his restaurant chain : Your boss asks you to evaluate the purchase of a new battery-operated toaster for his restaurant chain.
What is the required rate of return on AAs stock : What is the required rate of return on AA's stock?
What is the effective borrowing cost : What is the lenders Yield? What is the effective borrowing cost?
What is bob cost of preferred stock : Bob believes that company can issue additional shares at that price, but with flotation costs at 8% of selling price. What is Bob's cost of preferred stock?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the after-tax cost of debt

Billy Bob Inc is preparing to calculate its cost of debt. It presently has debt outstanding that pays $ 81 per year in interest and has seven years left unto maturity. The current market value of those bonds is $ 1,090. The company pays 35% in taxes...

  Mathematical notation represents required rate of return

What is the required rate of return? What mathematical notation represents the required rate of return? If the RRR for an investor is 14% and the expected return of the investment is 16%, will the investor invest (or not) in the investment? Why? Expl..

  How much of the return came from dividend yield

What was your realized? return? How much of the return came from dividend yield and how much came from capital? gain?

  Relationship between corporations common stockholders

Describe the relationship between a corporation’s common stockholders its board of directors, and its chief executive officer(CEO)

  What was the total amount of new money raised

What was the total amount of new money raised? What was the prospective stock price after the issue?

  Bonds liquidity premium-what is the risk free rate

The bonds liquidity premium (LP) of 0.40% and default risk premium (DRP) of 3.40%. what is the risk free rate.

  What is the covariance between rush and oberman

what is the covariance between Rush and Oberman if there is a 0.70 probability that the economy will be in the state of boom and a 0.30 probability.

  Annual percentage rate and effective annual rate

What is the difference between the annual percentage rate (APR) and the effective annual rate ( EAR)? Which rate do you believe is more relevant for financial decisions and why?

  The bond is currently selling at price above its par value

A 12-year bond has an annual coupon rate of 8%. The coupon rate will remain fixed until the bond matures. The bond has a yield to maturity of 10%.  The bond is currently selling at a price above its par value. If market interest rates decline, the pr..

  Discuss risk management to avoid financial crisis

Corporate earnings or cash flows have bearing on wealth of shareholders through valuation of the corporation. Discuss Risk Management to avoid financial crisis.

  What is the days sales outstanding

McDowell Industries sells on terms of 3/10, net 20. Total sales for the year are $1,256,500; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 80 days after their purchases. What is the days' sales outs..

  Transaction costs such as brokerage fees

For simplicity, ignore dividends, transaction costs such as brokerage fees and fund management fees, and taxes.

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