$857.14 =28.5714x30 | | Instructor Explanation: | Answer is: e Chapter 19: pp. 770-774 Conversion value = Conversion ratio x Market price of stock = $857.14 | | | | Points Received: | 10 of 10 | | Comments: | | | | 3. | Question : | (TCO B) SA - Your firm has debt worth $350‚000‚ with a yield of 12.5 percent‚ and equity worth $700‚000. It is growing at a seven percent rate‚ and faces a 40 percent tax rate. A similar firm with no debt has a cost equity of 17 percent
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Stock B‚ what will be the expected return on your portfolio? What will be the standard deviation on your portfolio? State of Economy Probability Return on A Return on B Recession 0.1 -20% 30% Normal 0.6 10% 20% Boom 0.3 70% 50% 3. Stock Y has a beta of 1.50 and an expected return of 16%. Stock Z has a beta of 0.70 and an expected return of 11.5%. The market risk premium is 8%. What would the risk-free rate have to be for the two stocks to be correctly priced relative to each
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“ p c l h n t Ms h m Le H S ei t a k o . a i a a P n frh ligu t d t i po c” o e n s o o hs rj t p e Table of content: Excutive Summary: …………..P.3 Business Plan:………………….P.3 Vision:…………………………….P.3 Main Services:…………………P.3 Evaluating the market:……….P.4 Financial Plan:…………………..P.5 Initial Investment:……………..P.5 Interest Payment:………………P.6 Wages Payment: ………………P.6 Variable cost:…………………..P.7 Fixed cost per year for Selling and Admin activities:……….P.7 Expected number of customers:……………………….P.7
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FORMAT: You can use a Word document‚ an Excel spreadsheet or both. If you use Excel‚ submit the Excel file rather than embedding Excel into a Word document. Please use single-space‚ 11 pt. or 12 pt. font. Multiple Choice: Select the best response (3 points each). You may add comments to explain your reasons. 1. If the correlation coefficient is 0‚ A) You can completely eliminate risk by short selling the riskier asset and investing the proceeds in the less risk one. B) You can completely
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In this file of FIN 467 Week 4 Discussion Questions you will find the next information: 1. "When would a long-term lease be better than a short-term lease? When would it be worse? Explain your answers." "How do ground or land leases differ from commercial leases?" "What duties would you expect a management company to perform for you as a real estate investor?" 2. "Have you ever obtained a mortgage? What concerns did you have about obtaining a mortgage?" "How would a lender protect itself when
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Financial Terms and Roles Kelly L. Banks FIN/370 May 23‚ 2012 Richard Harrell Financial Terms and Roles Finance: Finance is the study of how individuals and organizations identify how they will make investments. Efficient Market: Market that displays data that is readily available to all that need to make a decision on whether to invest or sell securities Primary Market: Market in which new securities are bought and sold. Secondary Market: Market where you sell shares that were previously
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$2‚000‚000. 21) The growth in dividends of Music Doctors‚ Inc. is expected to be 8% per year for the next two years‚ followed by a growth rate of 4% per year for three years; after this five-year period‚ the growth in dividends is expected to be 3% per year‚ indefinitely. The required rate of return on Music Doctors‚ Inc. is 11%. Last year’s dividends per share were $2.75. What should the stock sell for today? A. $8.99 B. $25.21 C. $39.71 D. $110.00 E. None of the options
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capital growth 3). A good address can open social doors 4) high collateral value 5) lifestyle 6) hedge against rental expense Cons: 1) Price risk 2). Interest rate risk 3) liquidity risk 4) high costs * Incentives provided: main residence CGT exemption; CGT 50% discount for holding property>1 yr; Various types of mortgage available; First Home saver accounts(government co-contributes equal to 17% of ur contribution) 3) Most Australian
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settling on these target ranges‚ what other factors should Bixton’s chief financial officer consider? 1. Does the company have the ability to fully utilize non-interest tax credits? 2. Does the company have the ability to raise debt from the markets? 3. Does the company have the appropriate level of income to absorb the cost associated with the issuance of the debt? 4. Does the company have the appropriate level of income to absorb the cost associated with the future fixed expense of interest payments
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Learning Team Reflection Cassie Fernandez‚ Shoshannah Farber‚ Melody Castillo‚ and Darlene See FIN/571 July 27‚ 2015 Dave Faiella Learning Team Reflection In the video‚ Corporate Finance Video: Stable Money Makers‚ Peggy Parks has taken a chance on raising and breeding alpacas. She chooses to do this instead of watching her 401K slowly disappear and have nothing for her senior years. Ms. Parks initially invested $56‚000 to buy seven animals to start up the alpaca farm. Her investment is starting
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