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10 points Question 2You can earn 4% on your bank

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Question 10 points Question 2You can earn 4% on your bank deposits, but your bank will charge you 8% to borrow money. You are considering a one-year project that will cost $10,000. You have $4,000 that you can invest. What minimum rate of return does this project have to offer before you should consider investing in it? A) 4.0% B) 5.6% C) 6.4% D) 8.01% question 3 Which of the following statements is true? A) A market imperfection exists if the promised borrowing rate is higher than the expected borrowing rate. B) A market imperfection exists if the promised savings rate is higher than the promised borrowing rate. C) A market imperfection exists if the expected borrowing rate from the lenderʹs perspective differs from the expected borrowing rate from the borrowerʹs perspective. D) All of the above are market imperfections.Question 4 You purchased 100 shares of Amazon.com (AMZN) for $50 a share and paid $20 in commissions and other transaction costs. You sold the stock a few months later for $88 a share, again incurring $20 in transaction costs. What was your rate of return? A) 74.9% B) 76.7% C) 75.3% D) 76.3%Question 5 In 2008, the tax schedule for a single taxpayer is as follows: Taxable Income Tax Rate $0 to $8,025 10% $8,025 to $32,550 15% $32,550 to $78,850 25% $78,850 to $164,550 28% $164,550 to $357,700 33% greater than $357,700 35% What is the marginal tax rate and the average tax rate of a single taxpayer who has taxable income of $60,000? A) marginal rate = 25%; average rate = 13.7%. B) marginal rate = 25%; average rate = 18.9% C) marginal rate = 28%; average rate = 32.5% D) marginal rate = 28%; average rate = 15.0%Question 6 An efficient market is defined as one in which A) the current prices reflect all available information. B) there are no transaction costs. C) there are no taxes. D) All of the above are necessary conditions for an efficient market.Question 7 If an investor believes that the stock market is efficient at only the weak level, which of the following activities would he consider to be a waste of time and effort? A) analyzing current information about a firm as it is made public. B) studying a firmʹs financial statements in an attempt to forecast the future cash flows of the firm. C) reading a column in the Wall Street Journal that he believes often hints at insider information. D) plotting the historical prices of a stock to look for a trend that will suggest when it is a good time to buy or sell that stock.Question 8 Which of the following statements is most correct in an efficient perfect market? A) The best predictor of tomorrowʹs stock price is its price today. B) The best predictor of tomorrowʹs stock price is its price today minus any transaction costs. C) The best predictor of tomorrowʹs stock price is its price today plus a tiny drift. D) The best predictor of tomorrowʹs stock price is its price today plus or minus about 1%.Question 9 Which of the following is an example of an arbitrage opportunity? A) You have found an investment that is guaranteed to offer you a 100% return on your investment in one year. B) You are able to borrow money today for one year at 3% and simultaneously invest the proceeds in a project that is guaranteed to return 15% at the end of the year. There are no transaction costs associated with either the loan or the investment. C) You can play a game in which you will win $100,000 if you draw any card but an ace out of a 52-card deck. If you draw an ace, however, you pay only $1.00. D) None of the above is an arbitrage opportunity.Question 10

Maria is in the style=”color:rgb(0,0,0);”>2828​% tax bracket. Steve is in

Question Maria is in the style=”color:rgb(0,0,0);”>2828​% tax bracket. Steve is in the 3535​% tax bracket. They each itemize their deductions and pay ​$10 comma 00010,000 in mortgage interest during the year. Compare their true costs for mortgage interest.​Maria’s true cost for mortgage interest is ​$

For part d in question 1, how are they getting

Question For part d in question 1, how are they getting the number -2518.21 to invest?

Assume that you were recently hired as assistant to Michael

Question Assume that you were recently hired as assistant to Michael Jordan, financial VP of Sunndo Technologies. Your first task is to estimate Sunndo’s cost of capital. Lehman has provided you with the following data, which he believes is relevant to your task: (1) The firm’s marginal tax rate is 40%. (2) The current price of Sunndo’s 12 % coupon, semiannual payment, noncallable bonds with 15 years remaining to maturity is $1,153.72. Sunndo does not use short-term interest-bearing debt on a permanent basis. New bonds would be privately placed with no flotation cost. (3) The current price of the firm’s 10%, $100 par value, quarterly dividend, perpetual preferred stock is $113.10. Sunndo would incur flotation costs of $2 per share on a new issue. (4) Sunndo’s common stock is currently selling at $50 per share. Its last dividend (D0) was $4.19, and dividends are expected to grow at a constant rate of 5% in the foreseeable future. Sunndo’s beta is 1.2, the yield on Treasury bonds is 7%, and the market risk premium is estimated to be 6%. For the bond-yield-plus-risk-premium approach, the firm uses a four percentage point risk premium. (5) Up to $300,000 of new common stock can be sold at a flotation cost of 15%. Above $300,000, the flotation cost would rise to 25%. (6) Sunndo’s target capital structure is 30 %long-term debt, 10% preferred stock, and 60% common equity. (7) The firm is forecasting retained earnings of $300,000 for the coming year.xi. (1) At what amount of new investment would Sunndo be forced to issue new common stock? To put it another way, what is the largest capital budget the company could support without issuing new common stock? Assume that the 30/10/60 target capital structure will be maintained. (2) At what amount of new investment would Sunndo be forced to issue new common stock with a 25% flotation cost? (3) What is a marginal cost of capital (MCC) schedule? Construct a graph that shows Sunndo’s MCC schedule. xii. Sunndo’s director of capital budgeting has identified the following potential projects: Project Cost Life Cash Flow IRR A $700,000 5 years $218,795 17.0% B 500,000 5 152,705 16.0 B* 500,000 20 79,881 15.0 C 800,000 5 219,185 11.5 Projects B and B* are mutually exclusive, whereas the other projects are independent. All of the projects are equally risky. (1) Plot the IOS schedule on the same graph that contains your MCC schedule. What is the firm’s marginal cost of capital for capital budgeting purposes? (2) What are the dollar size and the included projects in Sunndo’s optimal capital budget? Explain your answer fully. (3) Would Sunndo’s MCC schedule remain constant at 12.8% beyond $2 million regardless of the amount of capital required? (4) If WACC3 had been 18.5% rather than 12.8%, but the second WACC break point had still occurred at $1,000,000, how would that have affected the analysis? xiii. Suppose you learned that Sunndo could raise only $200,000 of new debt at a 10% interest rate and that new debt beyond $200,000 would have a yield to investors of 12%. Trace back through your work and explain how this new fact would change the situation.

Question 1Your firm recently divested some non-core assets and now

Question Question 1Your firm recently divested some non-core assets and now has a significant amount of excess cash. Barry Allen, the CEO, is considering investing in either SizzleTechnologies Engineering Limited (“STE”) shares or 10-year Super Government Securities (“SGS”) or a combination of both. He knows that you are studying aFinance course, and he is seeking your advice.Based on your research, the following market data was obtained:Information relating to STE, Date                    Share Price           Dividends per Share (cents)        31-Dec-13           3.59                       1531-Dec-14           3.25                       1531-Dec-15           2.83                       1531-Dec-16           3.30                       1531-Dec-17           3.37                       1531-Dec-18           3.72                       15As at December 2018, beta is 0.72.Informationrelating to SGS, Date                     Bond Price         31-Dec-13           101.61                  31-Dec-14           106.21                  31-Dec-15           98.15    31-Dec-16           97.08    31-Dec-17           112.47  31-Dec-18           104.94  The coupon rate is 2.75% per year and will mature in December 2023.Other market data•Market risk premium = 5.5%•Inflation rate = 1.2% (a) Calculate the annual returns for both STE and SGS for the 5 years 2014 to 2018. (b) Calculate the historical arithmetic and geometric average returns of both STE and SGS over the last 5 years. (c) Calculate the expected return for STE using the CAPM model as of December 2018. (d) Discuss two (2) reasons why the expected return is different from the historical arithmetic average return. (e) Calculate the historical variance and standard deviation of returns for both STE and SGS. You are expected to show your workings. (f) Discuss the differences between systematic risk and total risk, and ascertain which measure of is more appropriate for the firm to use. (g) Calculate the portfolio return (arithmetic average) and standard deviation of the following:(i) Portfolio A: 20% in STE and 80% in SGS(ii) Portfolio B: 50% in STE and 50% in SGS(iii) Portfolio C: 80% in STE and 20% in SGS (h) Discuss which portfolio in part (g) is appropriate for the firm. State the assumptions made in arriving at your answer. Important Note: Please submit your Excel spreadsheets(if any) showing the computations, forverification of your answers. 

1. To gain the benefit of _______________, a bank makes

Question 1.        To gain the benefit of _______________, a bank makes various types of loans, to various types of borrowers.A.    guaranteed income B.     diversification C.     more firm-specific risk exposure D.    reduced operational risk E.     reduced off-balance-sheet risk2.        Argentina unilaterally told its creditors in 2005 that it would henceforth repay only $0.30 for every $1.00 of its debt that was outstanding.  Argentina’s creditors had been exposed to ______________ risk, which was then realized.A.    sovereign B.     operational C.     technology D.    interest rate E.     (b) and (c)3.        Many banks lost considerable amounts on failing real estate mortgage loans about the time of the Financial Crisis of 2007-08. The risk of such occurrences would be categorized as:A.    off-balance-sheet risk B.     operational risk C.     credit risk D.    technology risk E.     country or sovereign risk4.        All of Hometown Bank’s outstanding loans are fixed interest rates with maturities over two years.  Hometown’s deposits all have maturities less than six months, either overnight checking account deposits or six-month CDs.  From this fact alone, Hometown is facing:A.    Credit risk B.     Insolvency risk C.     Liquidity risk D.    Operational risk E.     Interest rate risk5.        If an unanticipated increase in deposits withdrawals forces a Savings Institution to sell balance sheet assets at “fire sale” prices, the SI was exposed to ____________. A.    credit risk. B.    liquidity risk. C.     interest rate risk. D.     sovereign risk. E.     technology risk.

1. The equipment used by Hometown Bank for sorting and

Question 1.        The equipment used by Hometown Bank for sorting and clearing depositors’ checks breaks down. Hometown Bank was exposed to ____________.A.    Credit riskB.     Insolvency riskC.     Operational riskD.    Liquidity riskE.     Market risk2.        Hometown Bank, in an effort to diversify, makes some loans in Toronto, Ontario, Canada denominated in the Canadian Dollar. Fluctuations in the U.S. Dollar value of the Canadian Dollar will create ____________.A.    credit riskB.     off-balance-sheet riskC.     operational riskD.    foreign exchange riskE.     country risk3.        Which of the following would create off-balance-sheet risk for the Financial Institution cited?A.    A bank issues a letter of creditB.     An insurance company buys some corporate bondsC.     A credit union receives a savings depositD.    A pension fund invests in some common stockE.     A bank makes a business loan4.        Nation-wide credit risk caused by pervasive, economy-wide factors, is termed:A.    Off-balance-sheet riskB.     Country riskC.     Systematic riskD.    Firm specific riskE.     Reinvestment risk5.      The risk of insolvency is fundamentally the risk that _____________A.    borrowers do not pay off lenders in a timely fashion.B.     machinery breaks down.C.     the FI cannot find buyers for its assets.D.    asset value falling below liability value.E.     human resource costs increase in a tight labor market.

The Surest Concrete Company produces cement in a continuous process.

Question The Surest Concrete Company produces cement in a continuous process. Two ingredients in the cement are sand, which Surest purchases for $8 per ton, and gravel, which costs $10 per ton. The other ingredients are lumped together and referred to as “Other”. The cost of the other ingredients is $7 per ton. No more than 40 percent of the cement can be sand, and at least 30 percent of the cement must be gravel. The maximum amount of gravel available is 100 tons. The maximum amount available of the “Other” ingredients is 125 tons. The cement sells for $62 per ton. Fractional values of the inputs and outputs are allowed. The company wants to maximize its profit. a) Formulate the liner programming problem to maximize the profit. b) Using linear programming, solve for the optimal solution, identifying the value of the objective function and the variables at optimality. To receive credit for this answer, you must provide a copy of your linear programming output, identifying the value of the objective function and the values of the variables at optimality. You must submit your linear programming formulation and show the linear programming software solution to this problem to receive credit. c) Using the sensitivity analysis output from part b, provide any two sensitivity analysis interpretations. One of the interpretations must relate to the objective function and the second one must relate to one of the constraints.d) Write the constraints ensuring the following two conditions are satisfied. You only need to formulate these constraints. You do not need to solve the linear programming problem for the solution.  Write the constraint(s) that ensures that the cost of the “Gravel” ingredient is not less than 25% of the total cost of the cement being provided.  Write the constraint that ensures that the amount of the “Other” ingredients is not more than 20% of the amount of all of the ingredients being provided.

Calculate the NSFR for First Bank 20. Banc Two has

Question Calculate the NSFR for First Bank 20. Banc Two has the following balance sheet (in millions of dollars). Assets $ $ 190 70 100 125 Liabilities and Equity 20 Stable retail deposits 30 Less stable retail deposits 145 CDs maturing in 6 months 50 Unsecured wholesale funding from: Stable small business deposits 60 Less stable small business deposits 540 Nonfinancial corporates Equity 285 Total Cash Deposits at the Fed Treasury bonds Qualifying marketable securi- ties (maturity 1 year) Mortgages (unencumbered) Premises Total 125 100 100 450 130 $1,165 500 165 $1,165 are Calculate the NSFR for Banc Two and also include your steps and calculations as well as a brief summary.

Understanding the Breakeven point in marketing analytics is important because:

Question Understanding the Breakeven point in marketing analytics is important because: A. It quantitatively relates Profit, Costs, Response RatesB. It can help manage a business’ response to any changes in Costs, Profits or Response RatesC. It represents the point that a business needs to exceed to be successfulD. All of the aboveE. None of the above2.Which of the following are the reasons why an NPV analyses is important? A. If provides a historical look at past performance of the businessB. It provides insights to current reasons for customer satisfactionC. It provides a way to assess future “what-if” effects under various business operating conditionsD. All of the above3.You have calculated LTV values for customers over a period of 3 years, including NPV adjustments for each year. To calculate the average LTV of a customer for Year 3, which of the following apply?  A. Retention rate is usually assumed to be a fixed value of 15%B. The exponent in the NPV calculation is = 3C. The denominator of the average LTV calculation is the number of customers that you started withD. All of the aboveE. None of the above4.In digital marketing, many marketing touch points may be presented to a consumer (personalized email, targeted banner ads, etc.), and the consumer may decide to make a purchase (even offline) sometime later. The ability to measure, and credit, the fractional effect of each marketing touchpoint to the purchase behavior is referred to by which of the following terms? A. Attrition measurementB. Audience DeliveryC. Attribution measurementD. All of the aboveE. None of the above5.In the context of digital marketing analytics, which of the following are used to track and/or identify a consumer’s online behavior. A. Cookies,B. IP AddressC. Device identifierD. All of the aboveE. None of the above6.Imagine that you run a Marketing Analytics team. Your team has run a Segmentation Analysis and all 10,000 customers in the company database have been assigned to one of three segments. Your Chief Marketing Officer and Chief Financial Officer have asked how much revenue might be expected if the company presented an offer only to the segment of Best customers, and each customer can order one product and each product brings in $5. Your analyst has calculated an expected revenue amount of $50,000. What might you conclude?

Which amount will be worth more in the future?(1) $300

Question Which amount will be worth more in the future?(1)  $300 invested monthly for 35 years with an average annual return of 10% compounded monthly.or(2)  $1,000,000 lottery you win 35 years from nowNote: You must support your response with a calculation!

You have been accepted into a prestigious private university for

Question You have been accepted into a prestigious private university for your doctoral program. Congratulations! Since no one from this school has ever graduated in only 4 years, you anticipate that you will need to make 10 semi-annual tuition payments of $15,000 each with the first cash flow 6 months from today. If you choose to discount these cash flows at an annual rate of 7%, what is the present value cost of tuition to attend your university of choice?

You are about to purchase a new car from a

Question You are about to purchase a new car from a dealer. The amount you will need to borrow now is $26,000. The annual interest rate is 3.0% and the loan period is 60 months with interest compounding monthly. What is the amount of the monthly car payment you will need to make at the end of each month? 

This question was created from BA 620 Project Guidelines (1).docx

Question This question was created from BA 620 Project Guidelines (1).docx https://www..com/file/30924956/BA-620-Project-Guidelines-1docx/ Need this for CVS ATTACHMENT PREVIEW Download attachment 30924956-334647.jpeg A. Based on formulas in your textbook, compute the following ratios for two years. You may use Excel to compute your ratios. 1. Debt ratio 2. Gross profit margin 3. Free cash flow 4. Times interest earned 5. Accounts receivable turnover 6. Inventory turnover

What is a “Eurobond?”

Question What is a “Eurobond?”

How are international banks different from domestic banks?What is the

Question How are international banks different from domestic banks?What is the most direct and popular way of hedging transaction exposure?

4. Suppose we have one risky asset Stock I and

Question 4.       Suppose we have one risky asset Stock I and a risk-free asset. Stock I has an expected return of 25% and a beta of 2. The risk-free asset’s return is 6%.                                                                                              (15 marks total)e.  Plot the portfolio betas against the portfolio expected returns for Stock I on a graph, and link all the points together with a line. Then plot the portfolio betas against the portfolio expected returns for Stock J on the same graph, and link all these points together with another line. (This can be done easily with the charting function in Microsoft Excel.)                                            (2 marks)f.   Use the graph in part (e) above, together with your answers to parts (b) and (d) above to explain why Stock J is an inferior investment to Stock I.        (2 marks)    g.  Can a situation in which one stock is inferior to another stock persist in a well-organized, active market? Why or why not?                               (2 marks)Hi there,This is regarding fnce 379 assignment 4 – i am stuck at the sections from (e to g), can you please help me out.Thanks

True or False The euro zone is remarkably comparable to

Question True or False The euro zone is remarkably comparable to the United States in terms of gross domestic product (GDP), even though the population is significantly smaller. 

Q 1. Suppose that you own 2,600 shares of Nocash

Question Q 1. Suppose that you own 2,600 shares of Nocash Corp. and the company is about to pay a 25% stock dividend. The stock currently sells at $120 per share.a. What will be the number of shares that you hold after the stock dividend is paid? (Do not round intermediate calculations.)b. What will be the total value of your equity position after the stock dividend is paid? (Do not round intermediate calculations.)c. What will be the number of shares that you hold if the firm splits five-for-four instead of paying the stock dividend?Q 2. Consolidated Pasta is currently expected to pay annual dividends of $10 a share in perpetuity on the 1.5 million shares that are outstanding. Shareholders require a rate of return of 10% from Consolidated stock.a. What is the price of Consolidated stock? (Do not round intermediate calculations.)b. What is the total market value of its equity? (Enter your answer in millions.)Consolidated now decides to increase next year’s dividend to $20 a share, without changing its investment or borrowing plans. Thereafter the company will revert to its policy of distributing $10 million a year. c. How much new equity capital will the company need to raise to finance the extra dividend payment? (Enter your answer in millions.)d. What will be the total present value of dividends paid each year on the new shares that the company will need to issue? (Enter your answer in millions.)e. What will be the transfer of value from the old shareholders to the new shareholders? (Enter your answer in millions.) f. Is this figure more than, less than, or the same as the extra dividend that the old shareholders will receive? Q 3. The expected pretax return on three stocks is divided between dividends and capital gains in the follow way: Expected Expected Stock Dividend Capital Gain A $0 $10 B 5 5 C 10 0a. If each stock is priced at $115, what are the expected net percentage returns on each stock to (i) a pension fund that does not pay taxes, (ii) a corporation paying tax at 45% (the effective tax rate on dividends received by corporations is 10.5%), and (iii) an individual with an effective tax rate of 10% on dividends and 5% on capital gains? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Stock Pension Investor Individual corporationA % % %B % % %C % % %b. Suppose that investors pay 40% tax on dividends and 10% tax on capital gains. If stocks are priced to yield an after-tax return of 10%, what would A, B, and C each sell for? Assume the expected dividend is a level perpetuity. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Stock Price A B C

How are international banks different from domestic banks? The main

Question How are international banks different from domestic banks? The main functions of international bank?

I would like to have someone look over my homework

Question I would like to have someone look over my homework and make suggestions for improvement. The yellow highlighted parts are my answers. Thank you! Tesla Balance sheet athttps://www.sec.gov/cgi-bin/viewer?action=view

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