A Pension Fund Has An Average Duration Of Its Liabilities Equal To 13 Years.

A pension fund has an average duration of its liabilities equal to 13 years. The fund is looking at 6-year maturity zero-coupon bonds and 4% yield perpetuities to immunize its interest rate risk. How much of its portfolio should it allocate to the zero-coupon bonds to immunize if there are no other assets funding the plan?

The Company, Neuralink, Is No Longer Allowed To Outsource Their Chips From China. They’re

The company, Neuralink, is no longer allowed to outsource their chips from china. They’re looking into three different options for getting their chips. The 3 options are: (1) using fully automated equipment to manufacture chips; (2) to produce in-house in the US; and (3) outsourcing from other companies such as Google, Qualcomm, and Intel. Option 1: The cost of self-running equipment is 250 million with a salvage value of 12.5 million after 6 years. The company selling this equipment desires 15% interest annually on the price of the machine. Option 2: The cost of equipment totals into 32.5 million at the start of the first year. Which will have a salvage value of 3 million at the end of 6 years. After a recent area 51 raid, the company acquired a team of Area 51 aliens with an annual demand of 500,000. The operational costs and software maintenance is 700,000 annually. As the years go by, an inflation of 16% will demand increasing prices for these values Option 3: Outsourcing from other companies, will cost 40 dollars per chip, with a yearly demand of 72,500 chips. However, the cost of chips will increase by 5% over the next 6 years. What is the best option?

You Want To Buy A New House. Your Options Are A Tradition House For

You want to buy a new house. Your options are a tradition house for $350,000 and a 3D printed concrete house for $100,000. These houses are built over a plot that increases 5% every year. You want to keep this house for 20 years and make a bit of money at the end. Which house would be the better option if both homes lose 2% of its value, but also increase due to an inflation of 3.22% every year?

A7X Corp. Just Paid A Dividend Of $1.30 Per Share. The Dividends Are

A7X Corp. just paid a dividend of $1.30 per share. The dividends are expected to grow at 35 percent for the next 8 years and then level off to a growth rate of 6 percent indefinitely.     If the required return is 14 percent, what is the price of the stock today? Multiple Choice $92.39 $2.93 $90.58 $88.77 $66.62

Red Sun Rising Just Paid A Dividend Of $2.43 Per Share. The Company Said

Red Sun Rising just paid a dividend of $2.43 per share. The company said that it will increase the dividend by 15 percent and 10 over the next two years, respectively. After that, the company is expected to increase its annual dividend at 4.1 percent. If the required return is 11.5 percent, what is the stock price today? Multiple Choice $37.29 $39.76 $38.53 $10.00 $34.78

Scott Is Considering A Project That Will Produce Cash Inflows Of $2,900 A Year

Scott is considering a project that will produce cash inflows of $2,900 a year for 3 years. The required rate of return is 15.4 percent and the initial cost is $6,800. What is the discounted payback period? Multiple Choice Never .91 years .26 years 1.28 years 1.39 years

TL Lumber Is Evaluating A Project With Cash Flows Of −$12,800, $7,400, $11,600, And

TL Lumber is evaluating a project with cash flows of −$12,800, $7,400, $11,600, and −$3,200 for Years 0 to 3, respectively. Given an interest rate of 8 percent, what is the MIRR using the discounted approach? Multiple Choice 13.25 percent 14.08 percent 15.40 percent 14.36 percent 19.23 percent

A Stock Has A Beta Of 1.17 And An Expected Return Of 15.4 Percent.

A stock has a beta of 1.17 and an expected return of 15.4 percent. A risk-free asset currently earns 4.7 percent. The beta of a portfolio comprised of these two assets is .76. What percentage of the portfolio is invested in the stock? Multiple Choice 65 percent 77 percent 74 percent 71 percent 62 percent

Granite Works Maintains A Debt-equity Ratio Of .58 And Has A Tax Rate Of

Granite Works maintains a debt-equity ratio of .58 and has a tax rate of 21 percent. The pretax cost of debt is 8.9 percent. There are 18,000 shares of stock outstanding with a beta of 1.42 and a market price of $23 a share. The current market risk premium is 7.8 percent and the current risk-free rate is 3.1 percent. This year, the firm paid an annual dividend of $1.68 a share and expects to increase that amount by 2 percent each year. Using an average expected cost of equity, what is the weighted average cost of capital? Multiple Choice 8.44 percent 9.78 percent 8.96 percent 9.13 percent 10.06 percent

Swaptions Are Like Forward Swaps In Which Of The Following Ways A. Both Are

Swaptions are like forward swaps in which of the following ways A. Both are free of credit risk B.Both require the execution of a swap at expiration C.They have the same price D .Both are traded on swaption exchanges E. none of the above

Which Of The Following Is A Limitation Of Using The Black Model To Price

Which of the following is a limitation of using the Black model to price interest rate options? a. the risk-free rate is not constant B. the volatility is not constant C. interest rates are not lognormally distributed D. all of the above E. none of the above

Which Of The Following Is Not Required To Determine A Swaption Payoff At Expiration?

Which of the following is not required to determine a swaption payoff at expiration? A. the exercise rate B.the term structure of zero coupon rates at the swaption expiration C.the maturity of the underlying swap D.the yield on a bond of equivalent maturity as the swap E.none of the above

A Long Position In An Interest Rate Call Would Be Appropriate For Which Of

A long position in an interest rate call would be appropriate for which of the following situations: A. a bond trader expects falling interest rates B. a borrower expects rising interest rates C. a lender expects rising interest rates D. a derivatives dealer is exposed to the risk of falling interest rates E. a party holding a short position in Eurodollar futures is concerned about losing money

I AM CONFUSED BETWEEN OPTIONS B AND E. Pls Explain Why You Chose You

I AM CONFUSED BETWEEN OPTIONS B AND E. Pls explain why you chose you answer The cost of capital for a new project: Multiple Choice a. is determined by the overall risk level of the firm. b. is dependent upon the source of the funds obtained to fund that project. c. is dependent upon the firm’s overall capital structure. d. should be applied as the discount rate for all other projects considered by the firm. e. depends upon how the funds raised for that project are going to be spent

1 Jana Runs A Business Manufacturing Toy Sheep For Export. This Year She Hopes

1 Jana runs a business manufacturing toy sheep for export. This year she hopes to generate $400,000 in sales. She estimates the business has, on average: 10 days of raw materials inventory 10 days of work in progress inventory eight days of finished goods inventory Payment terms are: 20 days for suppliers 14 days for customers Jana calculates that raw materials make up 50% of the sales price of the finished toys she produces. How many days will Jana need to finance? How much working capital will Jana need? Show all workings. Upload a file (7MB max) 2 Calculate the working capital ratio of a designer boutique—the current liabilities are $24,000 and assets are $36,000. Comment on what this means for the solvency of the business and the ability of the business to meet its profit projections in the future. Upload a file (7MB max)

CHAPTER 16 (7.) At The End Of 2017, Payne Industries Had A Deferred Tax

CHAPTER 16 (7.) At the end of 2017, Payne Industries had a deferred tax asset account with a balance of $34 million attributable to a temporary book–tax difference of $85 million in a liability for estimated expenses. At the end of 2018, the temporary difference is $80 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2018 is $185 million and the tax rate is 40%. Required: 1. Prepare the journal entry(s) to record Payne’s income taxes for 2018, assuming it is more likely than not that the deferred tax asset will be realized. 2. Prepare the journal entry(s) to record Payne’s income taxes for 2018, assuming it is more likely than not that one-fourth of the deferred tax asset will ultimately be realized.   

Explain The Importance Of Economic Value Added (EVA) In A Modern Enterprises.

explain the importance of Economic Value Added (EVA) in a modern enterprises.

There Was Two Previous Question Before This, But I Just Want You To Answer

There was two previous question before this, but I just want you to answer the question in the red-square. If possible can you show your working too because I don’t know how to calculate for ROA —–

Hayden Inc. Has A Number Of Copiers That Were Bought Four Years Ago

Hayden Inc. has a number of copiers that were bought four years ago for $20,000. Currently maintenance costs $2,000 a year, but the maintenance agreement expires at the end of two years and thereafter the annual maintenance charge will rise to $8,000. The machines have a current resale value of $8,000, but at the end of year 2 their value will have fallen to $3,500. By the end of year 6 the machines will be valueless and would be scrapped. Hayden is considering replacing the copiers with new machines that would do essentially the same job. These machines cost $25,000, and the company can take out an eight-year maintenance contract for $1,000 a year. The machines will have no value by the end of the eight years and will be scrapped. Both machines are depreciated by using seven-year MACRS, and the tax rate is 35%. Assume for simplicity that the inflation rate is zero. The real cost of capital is 7%. When should Hayden replace its copiers? Thx! and also please show me how to calculate the depreciation!

Assume A Primary Care Clinic Has The Following In Costs: Wages And Benefits =

Assume a primary care clinic has the following in costs: Wages and benefits = $280,000 Rent = $10,000 annually Depreciation = $24,000 Utilities = $3,000 Medical supplies = $50,000 Administrative supplies = $8,000 Visits = 15,000 Assume all costs are fixed except medical supplies. What is the clinic’s underlying cost structure? ______________ What are the clinic’s total expected costs? _______________ What would the estimated costs be if visits were 5% over expected? ___________ What if they were 8% under expected? ____________ What is the average cost per visit for: 15,000 visits = ______________ 5% above = _______________ 8% below = ___________________ What price do services need to be set at for the clinic to break even at 15,000 visits? _________________

1.Describe The Effect Of The Weather On The Olympic Car Wash Business Model. How

1.Describe the effect of the weather on the Olympic Car Wash business model. How might you design performance measures to factor in such an uncontrollable influence?

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