What is the duration of equity

Assignment Help Financial Management
Reference no: EM131519761

ASSETS

Cash reserves $50 / 0 YEARS

Autoloans $100 / 2 YEARS

Mortgages $150 / 7 YEARS

TOTAL ASSETS $300

LIABILITIES

Checking and savings $80 / 0 YEARS

GICS $100 / 2 YEARS

Long-term financing $100 / 10 YEARS

TOTAL LIABILITIES 280

EQUITY $20

TOTAL LIABILITIES AND EQUITY $300

1) What is the duration of equity?

2) Rash and mortgages prepayments reduced mortgages from 150 to 100. What is the duration of equity?

3) If interest rates fall from 4 percent to 3 percent, what is the chage in the value of equity?

4) After mortgage decrease to 100 but before change in interest rate, what amount of long term bonds should be bought to eliminate interest risk?

Reference no: EM131519761

Questions Cloud

Cash conversion cycle will decrease increase by days : A firm is considering several policy changes to increase sales. The cash conversion cycle will decrease increase by days.
Calculate the bond yield to maturity : The face value of the bond is $1,500, and the bond is currently trading at $1,232.56. Calculate the bond's yield to maturity.?
Record the month-end adjusting entry for office supplies : Provide an example of an accrued expense. The adjusting entry associated with an accrued expense always includes a debit and credit to which account.
Discuss the importance of sleep : In this 700-800 word paper, take some time to discuss the importance of sleep and the benefits we receive from it
What is the duration of equity : What is the duration of equity? Rash and mortgages prepayments reduced mortgages from 150 to 100. What is the duration of equity?
How the chosen document reflects general issues : Write a 4-5 page paper showing how the chosen document reflects general issues, trends or opinions.
What is the role of exercise in weight control : What is the role of exercise in weight control? What other factors must be considered
Will this cause any of jacksons accounts to be misstated : Jackson Rental receives its September utility bill of $320 on September 30 but does not pay the bill until October 10. Jackson's accountant records the utility.
How would a psychoanalyst explain what is happening here : How would a psychoanalyst explain what is happening here? How might a psychoanalyst explain Judy's high standards and feelings of worthlessness and shame

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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