Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
You are bearish on stock ABC, and its current market price is €100 per share. You ask your broker to sell short 100 shares. Your broker has a 50% margin requirement on short sales, so you add €5,000 on your account with the broker. Holding period is one year.
a. If the maintenance margin is 40%, at which price you will get a margin call?
b. If you cannot allow yourself a loss higher than €1,000, which price-contingent order will you place and at which price?
c. ABC has paid a year-end dividend of €0.50 per share. Calculate your rate of return if, after one year the ex-dividend price per share is €88.
The Board Chair is concerned about factors that affect the corporate cost of capital for any business: the level of interest rates, tax rates, capital structure policy, and capital investment policy. Does the tax rate, cost of debt, or cost of equity..
Use Matlab to write a computer code which takes as inputs: and which calculates the American option price as well as the composition of the replicating portfolio at every node of the tree and also determines the optimal exercise dates.
Sankey, Inc., has current assets of $4,000, net fixed assets of $23,100, current liabilities of $2,500, and long-term debt of $12,400. What is the value of the shareholders' equity account for this firm? How much is net working capital?
What are the reasons for regulating financial institutions? What is the process of asset transformation performed by a financial institution? Why does this process often lead to the creation of interest rate risk? What is interest rate risk?
Daily Enterprises is contemplating the acquisition of some new equipment. The purchase price is $31,000. The equipment has a 4-year life. The company expects to sell the equipment at the end of year 4 for $7,000. What is the incremental annual cash f..
A 7.10 percent coupon bond with 14 years left to maturity is priced to offer a 7.8 percent yield to maturity. You believe that in one year, the yield to maturity will be 7.4 percent. What is the change in price the bond will experience in dollars?
You have been asked to analyze the following potential project. The expected cash flow stream is $20,000 for year 1 with an expected 4% growth rate per year for the next 3 years. If your cost of capital is 10%, how much would you be willing to invest..
Determine the current amount of money that must be invested at 14% nominal interest, compounded monthly, to provide an annuity of $11,500 (per year) for 6 years, starting 11 years from now. The interest rate remains constant over this entire period o..
Acme has branched out to rentals of office furniture to start-up companies. Consider a $4,600 desk. Desks last for six years and can be depreciated on a five-year MACRS schedule. Assume administrative costs drop to $360 per year. The company has just..
Matt paid mortgage interest of $4,010 during his first year of owning a condominium. His property taxes were $598, and his homeowner's insurance was $401. If matt is in a 15% marginal tax rate bracket, what were his tax savings for his first year? (H..
A security produced returns of 12 percent, -11 percent, -2 percent, 15 percent, and 9 percent over the past five years, respectively. Based on these five years, what is the probability that an investor in this stock will lose more than 17.06 percent ..
A corporate bond pays 6 percent interest. How much would a municipal bond have to pay to be equivalent to this on an after-tax basis if you are in the 15 percent tax bracket? Your portfolio has provided you with returns of 8.6 percent, 14.2 percent, ..
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd