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!
Five years ago, the venture capital fund Techno Fund II made a $4 million investment in Optical Fibers Corporation and in return received 1 million shares representing 20 percent of Optical Fibers' equity.
Optical Fibers is now planning an initial public offering in which it will sell 1 million newly created shares for $50 per share. Techno has chosen to exercise its demand registration rights and will sell its shares-alongside the newly created shares-in Optical Fibers' IPO.
The investment banks underwriting Optical Fibers' IPO will charge a 7 percent underwriting spread, so both the firm and Techno Fund II will receive 93 percent of the $50 per-share offer price.
Assuming the IPO is successful, calculate the compound annual return that Techno will have earned on its investment.
If in bankruptcy the entrepreneur will not pay back anything, but otherwise everything will be repaid, then what does the bank believe the probability of failure to be?
A company has a $20 million portfolio with a beta of 1.2. It would like to use future contracts on a stock index to hedge its risk. The index future price is currently standing at 1080, and each contract is for delivery of $250 times the index. What ..
Prepare a classified balance sheet at December 31, 2015 - The investment in Sasse common stock is considered to be a long-term available-for-sale security.
Sometimes, the management of a corporation will waste a firm’s resources on things like lavish office furnishings and a corporate jet. Is this behavior more likely to occur when the firm is 100% equity financed or when it has some debt in its capital..
Time value of money calculations may not be required in an economic evaluation for all of the following reasons except:
Assume that the 1-year interest rate in the US is 2% and the 1-year interest rate in Sweden is 4%. You have no additional information on the spot or the forward rate. What is likely to happen to the USD / SKR spot rate and why? What is likely to happ..
An asset has had an arithmetic return of 10.2 percent and a geometric return of 8.2 percent over the last 88 years. What return would you estimate for this asset over the next 9 years? 24 years? 40 years? (Do not round intermediate calculations. Ente..
Snider Industries sells on terms of 3/10, net 30. Total sales for the year are $1,183,000. Thirty percent of the customers pay on the 10th day and take discounts; the other 70% pay, on average, 88 days after their purchases. What is the days sales ou..
A currency swap has a remaining life of 27 months. It involves exchanging interest at 10% on £20 million for interest at 6% on $30 million twice a year. What is the value of the swap to the party paying sterling?
Economic crises in one country often have an impact on the economic or business measures of other countries. For example, economic and monetary crises in Asia in 1997, the Argentine debt crisis of 2001, and more recently the European currency crisis ..
Bradford Manufacturing Company has a beta of 2.2, while Farley Industries has a beta of 0.5. The required return on an index fund that holds the entire stock market is 9.5%. The risk-free rate of interest is 3%. By how much does Bradford's required r..
Why is paying your credit card balance in full so important? What should you do if you can't avoid credit card debt? Explain.
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