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ASSETS
Cash reserves $50 / 0 YEARS
Autoloans $100 / 2 YEARS
Mortgages $150 / 7 YEARS
TOTAL ASSETS $300
LIABILITIES
Checking and savings $80 / 0 YEARS
GICS $100 / 2 YEARS
Long-term financing $100 / 10 YEARS
TOTAL LIABILITIES 280
EQUITY $20
TOTAL LIABILITIES AND EQUITY $300
1) What is the duration of equity?
2) Rash and mortgages prepayments reduced mortgages from 150 to 100. What is the duration of equity?
3) If interest rates fall from 4 percent to 3 percent, what is the chage in the value of equity?
4) After mortgage decrease to 100 but before change in interest rate, what amount of long term bonds should be bought to eliminate interest risk?
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Now the company sells 25,000 newly issued shares at a price of $4 per share. What will be the book value of equity after the issue?
For the most recent year, Seether, Inc., had sales of $444,000, cost of goods sold of $218,700, depreciation expense of $58,400, and additions to retained earnings of $50,600. How much in total dividends did the company pay? What was the company's in..
Last week, you purchased a call option on Edgewater stock with a strike price of $40. The stock price was $39.80 and the option price was $0.45 at that time. What is the intrinsic value per share if the stock is currently priced at $39.10?
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Broussard Skateboard's sales are expected to increase by 25% from $7.4 million in 2013 to $9.25 million in 2014. Its assets totaled $2 million at the end of 2013. Broussard is already at full capacity, so its assets must grow at the same rate as proj..
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