Capital market instrument

Assignment Help Financial Management
Reference no: EM131044644

Which of the following is a capital market instrument?

A) A certificate of deposit.

B) A federal funds loan.

C) Commercial paper.

D) A Treasury bond.

Reference no: EM131044644

Questions Cloud

What is operating leverage : What is operating leverage? How if at all, is it similar to financial leverage? If a firm has high operating leverage, would you expect it ot have high or low financial leverage? explain your reasoning?
Dividend is expected to grow at a steady : Brigapenski Co. has just paid a cash dividend of $2 per share. Investors require a 16% return from investments such as this. If the dividend is expected to grow at a steady 8% per year, what is the current value of the stock? a. $27 b. $36.73 c. $25 ..
Sensitivity analysis and break-even point : Sensitivity Analysis and Break-Even Point We are evaluating a project that costs $836,000, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. What is the sensitivity of OC..
Example of asymmetric information in financial markets : An example of asymmetric information in financial markets is that
Capital market instrument : Which of the following is a capital market instrument?
Use present value as the method of analysis : You are the new financial manager,your grandfather is the current presiden of the firm. One of the first things you notice is your family's firm uses payback to make it's capital investment decisions. Tell your grandfather (very diplomatically as he ..
Russo home services-calculate revised depreciation expense : Russo Home Services cleans homes and businesses especially those with upholstered furniture and plie carpets. To remain competitive with like businesses, three years ago the company invested in some important equipment. Calculate the net book values ..
Offer price and total amount firm will raise net of spread : Nano Manufacturing wants to issue 2 million new shares. It has 4 million shares outstanding, which its investment banking firm estimates $65 million. If the investment banking firm charges a 4% spread, calculate the offer price and total amount ($) t..
Concluded that the demand for annual preventive clinic : Researchers have concluded that the demand for annual preventive clinic visits by children with asthma equals 1 + 0.00004 × Y − 0.04 × P . In this equation Y represents family income and P represents price. Calculate how many visits a child with a fa..

Reviews

Write a Review

Financial Management Questions & Answers

  Increase your withdrawals

When you retire at 65 years old, you have $1 million in your saving account which earns 7% interest annually. You want to be able to increase your withdrawals by 3% each year to keep up with inflation. How much can you withdraw the first year if you ..

  Statements is true of zero coupon bonds

Which of the following statements is true of zero coupon bonds?

  Assume that the risk-free rate of interest

Harrison Corporation is interested in acquiring Van Buren Corporation. Assume that the risk-free rate of interest is 5% and the market risk premium is 6%. Van Buren currently expects to pay a year-end dividend of $1.70 a share (D1 = $1.70). Van Buren..

  Using the adjusted dividend discount model

Tarzak Inc. has earnings of $10 per share, and investors expect that the earnings per share will grow by 3 percent per year. Furthermore, the mean PE ratio of all other firms in the same industry as Tarzak is 15. Tarzak is expected to pay a dividend ..

  The asset beta for firms in the same industry code

ind the WACC for a firm with the following characteristics. A few years ago the firm issued $4,000,000 debt with a coupon rate of 4%; currently that debt is trading with a yield to maturity of 5.5% and a value of $3,500,000. The firm has 1,000,000 co..

  What is the net present value of the energy savings

You are a hyperbolic discounter. In fact your discount rate between year t and year t+1 is given by .05/(1+t) for t=0(today), 1 (next year), 2, 3, … This means the discount rate between today and a year from now is .05. Calculate your discount factor..

  Under existing property insurance policy

Dillon’s Camping Equipment was burglarized on 3/10/15. It is unclear how many items were stolen. Dillon and its insurance company are currently working to estimate the dollar value of the stolen goods in order to reach a financial settlement under th..

  About the retirement fund each year

Assume Mr. Prudent pays $2,500 into his retirement fund each year from age 35 to age 65. After age 65, Mr. P will withdraw a fixed amount each year for 20 years until he is 85 years old. Assume his investments will earn 5% for the next 30 years, and ..

  Target weights of debt-preferred and common equity

A company has target weights of debt, preferred and common equity of 20%, 10% and 70%, respectively. It has liquidation values of debt, preferred and common equity of 30%, 15% and 55%. Its book values of debt, preferred and common equity are 40%, 10%..

  Risk premium for the market portfolio

The following table shows betas for several companies. Calculate each stock’s expected rate of return using the CAPM. Assume the risk-free rate of interest is 7%. Use a 8% risk premium for the market portfolio.

  An entity has the following income for the current year

An entity has the following income for the current year: The entity has earnings and profits (AAA for an S corporation) of $900,000 at the be-ginning of the year.

  What should be ranyards current stock price

Ranyard's beta is 0.96, and the last dividend per share paid was $3.62. The market risk premium is estimated to be 6.45%, and the real rate of interest is 2.02%. The liquidity risk premium is 0.5%. Analysts expect the company to grow at a rate of 3.9..

Free Assignment Quote

Assured A++ Grade

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