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!
1. If a firm has the option of selling some raw land to another firm or utilizing it to build a new factory, then if the firm chose to build the factory how should it handle the lost opportunity to sell the real estate for capital budgeting purposes?
A. Ignore it.
B. Include it as an opportunity cost.
C. Include half of it as additional revenue for the project.
D. Only
2. Which of the following statements is NOT true about the CDS spread?
a) Other things equal, CDS spread should be higher is the recovery rate is higher.
b) Other things equal, CDS spread should be higher if the yield spread of the bonds issued by the reference entity is higher.
c) CDS spreads generally go up when the macroeconomy is bad.
d) CDS spread should be negatively correlated with the stock price of the refence comp.
A probability of .2 that the return will be 12%; a probability of .35 that the return will be 18%; a probability of .3 that the return will be -10%; and a probability of .15 that the return will be 10%. What is the expected return of this stock? What..
You can deposit ?$14,000 into an account paying 15?% annual interest either today or exactly 5 years from today. How much better off will you be at the end of 20 years if you decide to make the initial deposit today rather than 5 years from? today? I..
An economic indicator is data, usually of macroeconomic scale, used by investors to interpret current or future investment possibilities and to judge the overall health of an economy. Identify and define five economic indicators.
You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck for $70,000. The truck falls into the MACRS 3-year class, and it will be sold after three years for $19,900. What will the cash f..
A company is thinking about investing in a new project. The balance sheet reports that they currently have $42 million worth of long-term debt and $24 million worth of common equity. They also have 1.2 million shares of stock outstanding and the stoc..
Compute the present value of a $1,000 cash flow for the following combinations of discount rates and times:
Calculating Present Values [LO2] Suppose you are still committed to owning a $225,000 Ferrari (see Problem 9). If you believe your mutual fund can achieve a 12 percent annual rate of return and you want to buy the car in 9 years on the day you turn 3..
Calculate the present value using a 10% discount rate: If the discount rate were changed to 11% would you expect PV to increase or decrease? Why? if the initial investment was $10,000, would you do the project? Why/ why not?
Compute the price of a 4.9 percent coupon bond with 15 years left to maturity and a market interest rate of 7.6 percent. What is the bond price? Is this a discount or premium bond?
A Treasury bond that matures in 14 years has a yield of 4.33%. A 14-year corporate bond has a yield of 7.39%. Assume that the liquidity premium on the corporate bond is 0.33%. What is the default risk premium on the corporate bond?
You will receive a $80,000 inheritance in 10 years. You could invest that money today at 9% compounded semi annually. What is the present value of your inheritance?
Decatur Arts Center writes 158 checks a day for an average amount of $211 each. These checks generally clear the bank 3.5 days after they are written. In addition, the firm generally receives an average of $50,000 a day in checks. The checks that are..
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