### What is your expected starting salary

Assignment Help Finance Basics
##### Reference no: EM13298755

You have chosen biology as your college major because you would like to be a medical doctor. However, you find that the probability of being accepted into medical school is about 10 percent. If you are accepted into medical school, then your starting salary when you graduate will be \$300,000 per year. However, if you are not accepted, then you would choose to work in a zoo, where you will earn \$40,000 per year. Without considering the additional educational years or the time value of money, what is your expected starting salary as well as the standard deviation of that starting salary?

#### Demonstrate an arbitrage opportunity

A 1 year European Call option with a strike of \$100 * e^.05*1 = \$105.127 has a premium of \$11.924. A 1.5 year European call option with a strike price of \$100 * e^(.05*1.5)

#### What is the projected value of the card after 8 years

He expects the baseball card to increase 20% a year for the next 5 years. After that, he anticipates a 15% annual increase for the next 3 years. What is the projected value

#### What rate of return will you earn on these money multiplier

A leading broker has advertised money multiplier certificates that will triple your money in nine years; that is if you buy one for \$333.33 today, it will pay you \$1,000 at

#### Find a lower bound for the price

The current price of a security is 28. Given an interest rate of 5% compunded continously, find a lower bound for the price of a call option that expires in four months and

#### Why is working capital important to management

Compute (a) working capital and (b) the quick ratio (quick assets are \$70,000). Why is working capital important to management? How do financial analysts use the quick ratio

#### Compute the dealer expected carry income

The dealer can currently borrow \$ 2,000 million through one- week repurchase agreements at an interest rate of 1.20 percent. Compute the dealer's expected carry income in ea

#### What is famas debt equity ratio

Fama's Llamas has a weighted average cost of capital of 9.8 percent. The company cost of equity is 15 percent, and its cost of debt is 7.5 percent. The tax rate is 35 percen

#### What is the present value of expected future stock price

Given that the first dividend [ayment will occur 1 year from now, find the present value of the dividend stream; that is, calculate the PVs of D1, D2, and D3 and then sum th