Use the following quotes for JC Penney stock options: Picture Picture Assume you purchased the right to sell 4,400 shares of JC Penney stock in January 2013 at a strike price of $25 per share. Suppose the stock sells for $23.82 per share immediately before your options’ expiration. What is the rate of return on your investment? What is your rate of return if the stock sells for $30.33 per share? (Enter the rates of return for the 3-month period.) (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Return on investment at $23.82 % Return on investment at $30.33 %

Define motivation using examples and anecdotes : Discuss importance of transferring writing skills mastered in this course in your future courses and career requirements. |

Risk-free rate-what is the cost of equity : The risk-free rate on 30 year U.S. Treasury bonds is 2.75% and the expected rate of return on the overall stock market is 7%. The BOW company has a beta of 1.4. What is the cost of equity? |

Summarize chapters - identifying target customers : Read and summarize Chapters 4- Identifying target customers: (Segmentation and targeting Analysis), Chapter 5-Creating Customer Value: (Developing a value proposition and Positing) Please read the assigned chapters carefully and thoroughly. Ident.. |

Implementation of the binomial market model : Use appropriate current Treasury bill data to determine a continuously compounded interest rate suitable to price June options. Note: You need to indicated your sources of data and document your procedure. |

What is the rate of return on your investment : Use the following quotes for JC Penney stock options: Picture Picture Assume you purchased the right to sell 4,400 shares of JC Penney stock in January 2013 at a strike price of $25 per share. Suppose the stock sells for $23.82 per share immediately .. |

What the benefit of a property manager is : After reviewing Chapter 15, "Managing Commercial Real Estate," explain what the benefit of a property manager is and whether you would solicit this type of assistance. describe your logic. |

What are the probabilities of the six simple events : Now suppose that the die is loaded so that the probability of any particular simple event is proportional to the number showing on the corresponding upturned face; that is, P(O1) = c, P(O2) = 2c, . . . , P(O6) = 6c. What are the probabilities of t.. |

Employees participate in self-insurance : 1. Newsweek (November 23, 1992) reported that 40% of all U.S. employees participate in "self-insurance" health plans (p = .40). |

If a portfolio of the two assets has an expected return : A stock has a beta of 1.2 and an expected return of 11.8 percent. A risk free asset currently earns 3.8 percent. What is the expected return on a portfolio that's equally invested in the two assets? If a portfolio of the two assets has a beta of .8, .. |

## Time to reach a financial goalYou have $21,072.44 in a brokerage account, and you plan to deposit an additional $6,000 at the end of every future year until your account totals $210,000. You expect to earn 11% annually on the account. How many years will it take to reach your goa.. |

## Yield to maturity remains unchangedA bond has a par value of $1,000, a time to maturity of 20 years, and a coupon rate of 7.20% with interest paid annually. If the current market price is $720, what will be the approximate capital gain of this bond over the next year if its yield to m.. |

## What was the dollar amount of the price change on the bondHow much would you have to pay for one of these $1,000 face value bonds? What was the dollar amount of the price change on this bond? |

## Salvage value of the equipment used in production processAssume NEWC has an investment opportunity (similar to the air bag opportunity in Other People's Money).The firm can spend a product that will be sold in packets or units of twenty. Assume CF equals net income available to common stockholders plus dep.. |

## Use nonconvertible preferred stock extensively_____use nonconvertible preferred stock extensively as a means of long-term financing. |

## What is the cost of external equity if its stockA current dividend of $1.80. Dividends are expected to grow at a rate of 7 percent a year into the foreseeable future. What's the cost of external equity if its stock can be sold to net $46 a share? |

## What interest rate would the investment have to yieldStanley Roper has $2,300 that he is looking to invest. His brother approached him with an investment opportunity that could give Patrick $4,600 in 4 years. What interest rate would the investment have to yield in order for Stanley’s brother to delive.. |

## Salary increases at an average annual rateUpon graduating from college, you make an annual salary of $31,546. You set a goal to double it in the future. If your salary increases at an average annual rate of 6.48 percent, how long will it take you to reach your goal? |

## Company can borrow from its bank at prime plusXYZ wants to buy a new production machine for $20,000. Projected cash flows (already adjusted) from this investment will be 5,000; 4,000; 6,000; 6,000, and 6,000. The residual value of the machine is 500$, and t he company will receive the IRS ITC fo.. |

## What is the current yield on the one-year LIBOR[Note: The information presented here applies to questions 3, 4, 5, and 6.] The fully-indexed rate on a 5/1 ARM with a maturity of 30 years is determined by the yield on the one-year LIBOR plus a margin of 250 basis points. If the fully-indexed (comp.. |

## What was the holding period return for the stockA stock has had returns of 16.42 percent, 12.14 percent, 5.64 percent, 26.50 percent, and ?13.34 percent over the past five years, respectively. What was the holding period return for the stock? |

## Two alternatives-automatic machine and manual machineAssume that you have a company and need to evaluate two alternatives, an automatic machine (AM) and a manual machine (MM). Capital investment for these AM and MM are $23,000 and $8,000, respectively. The salvage values for AM and MM are $4,000 and $0.. |

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