Tyler is trying to decide between two mobile phone carriers. Carrier A requires him to pay $500 for the phone and monthly charges of $70 for 36 months. Carrier B wants him to pay $300 for the phone and monthly charges of $80 for 30 months. Assume he will keep replacing the phone after his contract expires. His cost of capital is 55%. Based on cost alone, which carrier should he choose What are the equivalent monthly cost for both carrier?

## How many contracts are needed to be held in the hedgeA mortgage banker had made loan commitments for $20 million in 3 months. How many contracts on Treasury bonds futures must the banker write or buy? |

## Compute numbers and explicate five different possibilitesWe receive a $400,000 mortgage from the bank for 30 years. A VP at the bank, tells us to fully amortize the mortgage we need to pay $5,000 monthly. First, we would like to know how much the yearly mortgage rate the bank charges us. Compute the number.. |

## Coupon rate of a bond is less than the discount rateWhen the coupon rate of a bond is less than the discount rate, the bond sells at |

## Stock price in five years if p-e ratio remained unchangedIf this growth rate continues, what would be the stock price in five years if the P/E ratio remained unchanged? |

## Determine the price per shareThe firm has $120 million in long term debt and preferred stock and has 50 million shares outstanding. |

## Expected growth rate in earnings per shareBIC Corporation reported a return on equity of 20% and paid out 37% of its earnings as dividends in the most recent year. Assuming that these fundamentals do not change, estimate the expected growth rate in earnings per share. Assuming that these fun.. |

## Calculate the interest rate on one-year treasury securitiesSuppose the inflation rate is expected to be 6.45% next year, 4.9% the following year, and 2% thereafter. Assume that the real risk-free rate, r*, will remain at 1.7% and that maturity risk premiums on Treasury securities rise from zero on very short.. |

## What will be required return on portfolioIf you invest the money in a stock with a beta of 1.15, what will be the required return on your $5.5 million portfolio? |

## What is best estimate of one-year forward exchange premiumWhat is the best estimate of the one-year forward exchange premium(discount) on the yen against dollar? |

## What was flotation cost as percentage of funds raisedThe Wiley Oakley Co. has just gone public. Under a firm commitment agreement, the company received $21.65 for each of the 6.65 million shares sold. The initial offering price was $23.50 per share, and the stock rose to $30.01 per share in the first f.. |

## Draw an expanded version of given figureDraw an expanded version of given Figure for emerging economy crises. - Show how this phenomenon and its consequences interact with the other elements common to a financial crisis. |

## You are an arbitrageur looking for opportunities toyou are an arbitrageur looking for opportunities to capitalise on mispriced securities. you notice that the bhp put |

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