One of the disadvantages of a sole proprietorship is that the proprietor is exposed to unlimited liability. One of the advantages of the corporate form of organization is that it avoids double taxation. Corporations of all types are subject to the co..

Calculate the duration and convexity of a 4year, 4 percent coupon bond with a face value of $1000. Assume that the yield on this bond is 5 percent. If the interest rates decrease 10 basis points, what would be the approximate change in the price of ..

Calculate the duration of a 4year, 4 percent coupon bond with a face value of $1000. Assume that the yield on this bond is 5 percent. If the interest rates decrease 10 basis points, what would be the approximate change in the price of the bond usin..

An insurance company must make a payment of $5,788.125 in 3 years and another $12,762.82 in 5 years. The market interest rate is 5 %. The company’s portfolio manager wishes to fund the obligation using 2year zerocoupon bonds and perpetuities paying..

Melissa recently paid $400 for roundtrip airfare to San Francisco to attend a business conference for three days. Melissa also paid the following expenses: $250 fee to register for the conference, $300 per night for three night’s lodging, $200 for m..

Sales Increase Maggie's Muffins, Inc., generated $4,000,000 in sales during 2013, and its yearend total assets were $2,800,000. Also, at yearend 2013, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of account..

Cummings has EAT, depreciation expense, capital expenses, debt and debt principal payments of $9m, $2.8m, $1.3m, $40m and $1.5m respectively. Cummings plows about 30% of its profits back into its business. Derive the value of Cummings, if the growth ..

A call option is currently selling for $6.40. It has a strike price of $55 and six months to maturity. A put option with the same strike price sells for $7.40. The riskfree rate is 5.3 percent, and the stock will pay a dividend of $2.70 in three mon..

A call option is currently selling for $6.40. It has a strike price of $55 and six months to maturity. A put option with the same strike price sells for $7.40. The riskfree rate is 5.3 percent, and the stock will pay a dividend of $2.70 in three mon..

NPV A project has an initial cost of $53,725, expected net cash inflows of $13,000 per year for 10 years, and a cost of capital of 12%. What is the project's NPV? (Hint: Begin by constructing a time line.) Do not round your intermediate calculations...
