Nora is thinking about buying a small business for $100,000.

Question Nora is thinking about buying a small business for $100,000. She expects to earn profits of $10,000 per year for 5 years and then sell the business for $115,000 (also at the end of the fifth year). Calculate the IRR for the business, round your answer to the nearest percent

You are the CFO of GreatFood, a large chain of

Question You are the CFO of GreatFood, a large chain of grocery stores. It is the first week in December, and you are planning to expand your business by acquiring the GoodWine winery that has recently been put up for sale by the owners. You think that this acquisition may turn out to be a good investment so you want to have solid financial background for the deal to present at the upcoming Shareholders Meeting in late December 2019. You have the following information about the GoodWine winery (the “Target”) and your firm (the “Acquirer”).GoodWine winery (“Target”)Some important accounting numbers projected for the next 5 years are as follows (all numbers are before-tax, as of the end of the fiscal year and in $ thousands)After year 5, the winery’s free cash flow (FCF) will grow at an annual rate of 3% into perpetuity. There are 200 thousand shares outstanding. The market value of equity is currently $3,500 thousand and the market value of outstanding debt is $450 thousand (assume that the share price, the value of equity, and the value of debt are given at the valuation date, i.e. end of December, 2019). The firm faces the (marginal) tax rate of 40%. The asset beta of the target (the beta of the same but all-equity firm) is 1.15.GreatFood (Acquirer)The acquirer expects to have the following estimated synergies from the M

Qn 1(A). Briefly discuss the main advantage and disadvantage of

Question Qn 1(A). Briefly discuss the main advantage and disadvantage of hedging interest rate risk using an interest rate collar instead of options(B) Discuss on the factors that influence bank liquidity requirement

QuestionWe have the following information on the shares prices of

Question QuestionWe have the following information on the shares prices of Papa Smirph Corporation over the last five years. Calculate the total dollar return and percentage return on each share.YearPapa Smirph share priceAnnual dividend per share1$20$1.502$25$1.503$22$1.504$30$1.605$32$1.60Select one:a. $12; 60%b. $19.7; 61.6%c. $19.7; 98.5%d. $12; 38.5%e. $3.94; 15.3%Question 2Not yet answeredMarked out of 1.00Flag questionQuestion textGiven the following share price history, what is the arithmetic average return per share?YearShare price1$222$263$304$285$25Select one:a. 13.64%b. 4.05%c. 3.24%d. 5.36%e. 32.75%Question 3Not yet answeredMarked out of 1.00Flag questionQuestion textGiven the following share price and Consumer Price Index history, what is the average real return per share?YearShare priceConsumer Price Index1$351002$301023$391044$421065$45108Select one:a. 12.59%b. 4.49%c. 3.55%d. 5.16%e. 5.59%We know that during the last 10 years, the average historical return on a market index is 12%. We also know that the average inflation rate and average risk-free rate over the last 10 years are 2% and 5%, respectively. What is the real risk premium using the exact Fisher equation?Select one:a. 2.94%b. 6.86%c. 7.00%d. 9.80%e. 10.00%Question 5Not yet answeredMarked out of 1.00Flag questionQuestion textGiven the following share price history, calculate the standard deviation of the returns on this stock.YearShare price1$352$303$394$425$45Select one:a. 0.18%b. 5.89%c. 18.08%d. 3.27%e. 1.81%Question 6Not yet answeredMarked out of 1.00Flag questionQuestion textWhich of the following lessons can be learned from studying the history of individual asset returns in the capital market?Select one:a. Return and risk expectations can and will materialize over time if we wait long enough.b. There are rewards, in terms of higher risk premiums, for holding risky assets.c. Arithmetic and geometric average returns would be the same in an efficient financial market.d. Unsystematic risk is the risk that is important to the average investor.e. Excess returns on mutual funds cannot beat excess returns on index funds.Question 7Not yet answeredMarked out of 1.00Flag questionQuestion textWhat is the geometric average return of a stock with the following share price history?YearShare price1$352$303$394$425$45Select one:a. 7.95%b. 7.64%c. 7.14%d. 6.84%e. 6.48%Question 8Not yet answeredMarked out of 1.00Flag questionQuestion textThe statement “all information, including ‘insider information,’ are already priced in the market” describes a _____________ market.Select one:a. weak-form efficientb. strong-form efficientc. semi-strong-form efficientd. stocke. bondQuestion 9Not yet answeredMarked out of 1.00Flag questionQuestion textThe average historical annual return on a stock is 7.16%, with a standard deviation of 44.35%. What is the 97.5% annual value-at-risk (VaR) on a $1 million investment in this stock?Select one:a. -$371,900b. -$443,000c. -$815,400d. -$975,000e. -$1,000,000Research into the performance of mutual funds showed that fund managers have not been able to beat the returns on index funds. This is lends credence toSelect one:a. the argument for market diversification.b. the argument for centralized regulation of the financial market.c. semi-strong form market efficiency.d. strong form market efficiency.e. the non-existence of market anomalies.

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Question src=”/qa/attachment/9271539/” alt=”F8553748-8374-4B4F-9DD1-549F4B26B2FA.jpeg” />lolkmkmkkkmkmkmkmk, Attachment 1 Attachment 2 ATTACHMENT PREVIEW Download attachment AC4B2396-07E0-45A7-BCAC-7BF372C27985.jpeg points and intercepts (if any)). (0) Now show — using a profit diagram — the cash flows for Pinder Ltd in terms of the cost they face in September (per kilo) for their hops if they hedge using the option described in (a) and (b). [assume that they pay $1 for the option] (d) Explain the circumstances — if any — under which Pinder Ltd will be worse off (overall) if they hedge using the options described above as compared with not hedging at all. Demonstrate this graphically. ATTACHMENT PREVIEW Download attachment F8553748-8374-4B4F-9DD1-549F4B26B2FA.jpeg Pinder Ltd is a company specialising in the brewing of a style of beer called IPA. A key ingredient in [PA is a type of hops called Simcoe Hops. Simcoe Hops is currently traded in the market for $20 per kilo. It is July 2019 and you have been engaged by Pinder Ltd to provide them with advice on how they might manage their exposure to the cost of hops when they next need to buy them in November 2019. The Chief Financial Officer (CFO) of Pinder Ltd tells you that hops prices are notoriously volatile (see here for example: goo.gLr’3Muuvd) and she would like to understand how the use of options might assist her company in managing that risk. (a) Advise the CFO what style of option Pinder Ltd should consider purchasing (Le. a put or call) and why that is the case. (b) Show — using a payoff diagram — the payoffs fiom the style of option selected in part (a) — assuming that that option had an exercise price of $22 per kilo. Also include the payoff fiom an unhedged position (no need to use Excel here — just label turning

In finance, discounted cash flow (DCF) analysis is a common

Question In finance, discounted cash flow (DCF) analysis is a common technique of placing value on a project or company. All of the future cash flows are projected and discounted by using cost of capital to determine their present values (PVs). Adding up all future cash flows, both incoming and outgoing, provides the net present value (NPV).Give an example of a situation where a building contractor may want to use the discounted cash flow (DCF) analysis method. 

What kinds of metrics are currently used in healthcare

Question What kinds of metrics are currently used in healthcare

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Question Hey all! Thanks so much! ATTACHMENT PREVIEW Download attachment Capture.PNG

ost Card Depot, an large retailer of post cards, orders

Question ost Card Depot, an large retailer of post cards, orders 7,365,601 post cards per year from its manufacturer. Post Card Depot plans on ordering post card 15 times over the next year. Post Card Depot receives the same number of post cards each time it orders. The carrying cost is $0.16 per post card per year. The ordering cost is $494 per order. What is the annual carrying costs of post card inventory (round the answer to two decimal places)?

Cheeseburger and Taco Company purchases 11,212 boxes of cheese each

Question Cheeseburger and Taco Company purchases 11,212 boxes of cheese each year. It costs $24 to place and ship each order and $5.57 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders. Calculate Economic Order Quantity.Round the answer to the whole number.

Thanks so much all! Sorry it’s in two pics Attachment

Question Thanks so much all! Sorry it’s in two pics Attachment 1 Attachment 2 ATTACHMENT PREVIEW Download attachment 2.PNG ATTACHMENT PREVIEW Download attachment Capture.PNG

Can you tell from some recent events, how do various

Question Can you tell from some recent events, how do various countries benefit from direct foreign investment? Can you provide some specific examples?

What could be the downside of direct foreign investments? Can

Question What could be the downside of direct foreign investments? Can companies and governments lose money by investing in foreign countries. Any examples?

Post Card Depot, an large retailer of post cards, orders

Question Post Card Depot, an large retailer of post cards, orders 5,916,399 post cards per year from its manufacturer. Post Card Depot plans on ordering post card 7 times over the next year. Post Card Depot receives the same number of post cards each time it orders. The carrying cost is $0.13 per post card per year. The ordering cost is $376 per order.What is the annual ordering cost of the post card inventory?(Round the answer to two decimal places)

The Board of Directors of Greenisland plc has decided to

Question The Board of Directors of Greenisland plc has decided to limit investment funds to £10,000,000 for the next year and is preparing its capital budget. The company is currently considering five projects, as follows:      Initial investment   Net present value   £  £ Project A     2,500,000     1,000,000 Project B    2,200,000     1,550,000 Project C     2,600,000     1,350,000 Project D     1,900,000     1,500,000 Project E     5,000,000   To be estimated   All five projects have a project life of four years. Projects A, B, C and D are divisible, and Projects B and D are mutually exclusive. All net present values are in nominal, after-tax terms.  Project E This is a strategically important project which the Board of Greenisland plc have decided must be undertaken in order for the company to remain competitive, regardless of its financial acceptability.  Information relating to the future cash flows of this project is as follows:  Year    1   2   3   4 Sales volume (units)    12,000    13,000    10,000     10,000 Selling price (£/unit)   450   475   500   570 Variable cost (£/unit)      260   280   295   320 Fixed costs (£000)   750   750   750   750  These forecasts are before taking account of selling price inflation of 5·0% per year, variable cost inflation of 6·0% per year and fixed cost inflation of 3·5% per year. The fixed costs are incremental fixed costs which are associated with Project E. At the end of four years, machinery from the project will be sold for scrap with a value of £400,000.  Tax allowable depreciation on the initial investment cost of Project E is available on a 25% reducing balance basis and Greenisland plc pays corporation tax of 28% per year, one year in arrears. A balancing charge or allowance is available at the end of the fourth year of operation. Greenisland plc has a nominal after-tax cost of capital of 13% per year.  Requirement  (a) Calculate the nominal after-tax net present value of Project E and comment  on the financial acceptability of this project.      (b) Calculate the maximum net present value which can be obtained from investing the fund of £10 million, assuming here that the nominal after-tax NPV of Project E is zero.        (c) Discuss the reasons why the Board of Greenisland plc may have decided to limit investment funds for the next year.  

Local Currency Brazil (reais. R $)Earning before tax R$ 6,250Income

Question Local Currency Brazil (reais. R $)Earning before tax R$ 6,250Income tax rate coroperate 25 %Average exchange rate R$ 3.5/ $A has currently 65,000 shares outstanding.If brazilian reais appreciates 20 % against $ what is EPS (Earning per share)answer with detail solution

Case:Robin Lark is a legal secretary in New York City,

Question Case:Robin Lark is a legal secretary in New York City, where she has worked for the last two years. It’s too expensive to live in the city on her $32,000 salary, so Robin commutes from New Jersey at a cost of $60 per week. Robin is worried about her personal finances. In the two years she has worked in New York, she has spent more than she has earned, primarily to buy clothes for work. A few lunch-hour shopping sprees with coworkers have resulted in impulse purchases on credit cards, and Robin now has $4,500 in credit card debt. Robin is considering a legal secretary position with a small firm in New Jersey that will pay $3,000 less than her current job. Questions:1.    Why should Robin develop a budget as a first step? 2.    What are some alternative for reducing her credit card debt?3.    If Robin’s credit card carries an interest rate of 14% and she wants to pay her debt off in 3-1/2 years, what payment will she need to make each month?4.    What factors should Robin consider in deciding whether to change jobs? How will the New Jersey job affect her finances?

A potential project has a net present value (NPV) OF

Question A potential project has a net present value (NPV) OF $28,35. This amount includes the initial cash outlay of $30,000. The correct decision would be to:

the internal rate of return (IRR) is the discount rate

Question the internal rate of return (IRR) is the discount rate that results in a net present value (VPN) of zero. True False

Acme industries is considering a project that will cost $200,000

Question Acme industries is considering a project that will cost $200,000 and generate returns of $45,000 at the end of year 1, $85,000 at the end of year 2, $65,000 at end of year 3 and $30,000 at the end of year 4. Calculate the NPV of the project using a cost of capital of J1=8.0%. Round your answer to the nearest dollar.

Andy’s Fishing Charters is considering the purchase of a new

Question Andy’s Fishing Charters is considering the purchase of a new boat costing $80,000. the boat is expected to increase profits by $12,000 per year for each of the next 8 years. After 4 years, the boat will require maintain of $6,000. After the 8 years, the boat will be sold for $32,000. Calculate the NPV of the boat using a cost of capital of 12%. fund your answer to the nearest dollar.

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