Douglas Keel, a financial analyst for Orange Industries, wishes to estimate the rate of return for two similar-risk investments, X and Y. Douglas’s research indicates that the immediate past returns will serve as reasonable estimates of future returns. A year earlier, investment X had a market value of $27,000; investment Y had a market value of $49,000. During the year, investment X generated cash flow of $2025 and investment Y generated cash flow of 5848The current market values of investments X and Y are $28723and $49000, respectively. a. Calculate the expected rate of return on investments X and Y using the most recent year’s data. b. Assuming that the two investments are equally risky, which one should Douglas recommend? Why?

More important and essential for a corporation or mentor : Suppose an organization must make a decision regarding the cycle over which they may have more control, whether it's a focus on inventory and the receipt of cash from the receivables or the illusion of the emph a sis on the payment or payables, which.. |

The single-period binomial option pricing approach : The current price of a stock is $16. In 6 months, the price will be either $20 or $12. The annual risk-free rate is 7%. Find the price of a call option on the stock that has a strike price of $15 and that expires in 6 months. |

Management of cash cycles and working capital management : When it comes to the management of cash cycles and working capital management in general a company may afopt different strategies depending upon the current cash flow and outflow, as well as their preferences and needs related to cash. What is the di.. |

Company will also pay out a liquidating dividend : JJ Industries will pay a regular dividend of $3.20 per share for each of the next four years. At the end of four years, the company will also pay out a liquidating dividend. If the discount rate is 9 percent, and the current share price is $85, what .. |

Calculate the expected rate of return on investments : Douglas Keel, a financial analyst for Orange Industries, wishes to estimate the rate of return for two similar-risk investments, X and Y. Douglas’s research indicates that the immediate past returns will serve as reasonable estimates of future return.. |

What is the intrinsic value of the stock : Miltmar Corporation will pay a year-end dividend of $5, and dividends thereafter are expected to grow at the constant rate of 7% per year. The risk-free rate is 4%, and the expected return on the market portfolio is 16%. The stock has a beta of 0.75... |

What is the projects MIRR : Ehrmann Data Systems is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note that a project's projected MIRR can be less than the WACC (and even negative), in which case it will be rejected. WACC: 12... |

What is the value of your retirement plan : Assume that you contribute $230 per month to a retirement plan for 20 years. Then you are able to increase the contribution to $460 per month for another 30 years. Given a 7 percent interest rate, what is the value of your retirement plan after the 5.. |

Debating whether to lease or purchase a new imaging machine : A small town hospital is debating whether to lease or purchase a new imaging machine. What financial and other factors do you think they need to consider when making a decision? |

## What was nancys net profit on the optionNancy Marchand purchased a put option on British pounds for $.04 per unit. The strike price was $1.80 and the spot rate at the time the pound option was exercised was $1.59. Assume there are 31,250 units in a British pound option. What was Nancy’s ne.. |

## What is value of bond that maturesWhat is the value of a bond that matures in 17 years makes an annual coupon payment of $50 and has a par value of $1,000. Assume a required rate of return of 6% |

## According to christian theism-what are deists missingWhat are “Nones”? What do they believe? How do they characterize a growing trend in belief in the United States? Why do you think a majority of these individuals are coming from traditional religious backgrounds? 2. What is appealing about Deism to “.. |

## Amortize the rest with equal monthly paymentsA sailboat costs $24,278.00 you pay 15% down and amortize the rest with equal monthly payments over a 9-year period. If you must pay 8.4% compounded monthly, what is your monthly payment? (Do not round until the final answer. Then, round to the neare.. |

## What is the annual percentage rate on the loanAssume that you deposit $700 every three months at 6% annual rate, compounded quarterly. How much will you have at the end of 20 years? You borrow a five year $13,000 loan with monthly payments of $250. What is the annual percentage rate (APR) on the.. |

## Compute the irr for the new outlaySuppose that a mining operation has spent $8 million developing an ore deposit in South America. Current expectations are that the deposit will require 2 years of development and will result in a realizable cash flow of $10 million at that time. ompu.. |

## What is the transport divisions suggestionCalculate cost of capital (k-wacc) to use as the discount rate - What is the Transport Division's suggestion |

## Discount rate should the firm apply to project cash flowsDeep Mines has 14 million shares of common stock outstanding with a beta of 1.15 and a market price of $42 a share. There are 900,000 shares of 9 percent preferred stock outstanding valued at $80 a share. What discount rate should the firm apply to a.. |

## What percentage of the portfolio is invested in stockStock A has an expected return of 12% and a standard deviation of 10.5%, and Stock B has an expected return of 20% and a standard deviation of 27.2%. The correlation coefficient between the two stock is -0.2. In order to produce the minimum risk port.. |

## Calculating portfolio betasCalculating Portfolio Betas You own a stock portfolio invested 10 percent in Stock Q , 35 percent in Stock R , 20 percent in Stock S , and 35 percent in Stock T. The betas for these four stocks are .75, 1.90, 1.38, and 1.16, respectively. What is the.. |

## What will your monthly payments beSuppose you want to purchase a $ 165000 house. If you put 20% down and finance the rest in a 30 year mortgage at an interest rate of 7.25%, what will your monthly payments be? |

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd