A cookie company wants to expand its retail operations. Based on a preliminary study, 10 stores are feasible in various parts of the country. The cash flow at each store is expected to be $150000 in the first year and grow by 10.00% per year over the next 4 years (in years 2, 3, 4 and 5). At that point the project ends. Each store requires an immediate investment of $400000 to set up operations. Assuming a required rate of return 7.00%, what is the NPV of each store?

## Approximate nominal rate of interest requiredA saver will lend her money to someone else if she she gets a return of 4% per year for not having use of her funds. She also thinks that prices will increase by 2% per year during the time of the loan. 6% is the approximate nominal rate of interest .. |

## Bank pays a nominal interest rateNon Annual Compounding It is now January 1. You plan to make a total of 5 deposits of $100 each, one every 6 months, with the first payment being made today. The bank pays a nominal interest rate of 12% but uses semiannual compounding. You plan to le.. |

## What is the value today of dietrich debt and equitySteinberg Corporation and Dietrich Corporation are identical companies except that Dietrich is more levered. Both companies will remain in business for one more year. What is the value today of Steinberg's debt and equity? What is the value today of.. |

## Explain the difference between a put option on euroExplain the difference between a put option on euro € and a put option on euro futures. |

## What is the expected risk premium on the portfolioConsider the following information on a portfolio of three stocks: what is the expected risk premium on the portfolio? |

## Question 1 the exercise price on one of orne corporationsquestion 1 the exercise price on one of orne corporations call options is 25 and the price of the underlying stock is |

## Value of all the outstanding shares after the splitA firm has one share of stock outstanding and it has a market value of $1,000,000. The firm decides to execute a two-for-one stock split, where they will split the single share into two shares. What is the total value of all the outstanding shares af.. |

## Explain the various ways that you as managerExplain the various ways that you as manager of your department can ensure that you prepare the best proposal possible. |

## Compute the fair value of two nearest to expiration futuresCompute the ‘fair’ value of the two nearest to expiration futures contracts on the S&P500 Index (SPX) using SPX as the underlying asset. Did the futures contract settle above or below SPX? |

## The total proceeds from holding the bond to maturityConsider an annual coupon bond with a face value of ?$100?, 11 years to? maturity, The total proceeds from holding the bond to maturity are ? |

## How much money needs to be written off as bad debtZoom Café's policy is to write-off debts if the debts haven't been paid for more than 91 days. How much money needs to be written off as bad debt |

## How many hours should the firm hire karen per dayKaren is a trusted employee whose productivity declines as she works more and more hours each day. After careful observation of her work performance, her manager prepared the following chart. Karen's total cost to the firm is $11 per hour. Each work .. |

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