period? c. What was the standard deviation of returns over this period? d. Suppose the current T-bill rate is 0.15%. What is the risk premium of owing INTC Corporation’s stock? e. What range of returns would you expect to see 95% of the time? 2. Suppose you have $20‚000 total. If you put $14‚000 in Stock A and the remainder in 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
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Problem Sets Chapter 5 A1. (Bond valuation) A $1‚000 face value bond has a remaining maturity of 10 years and a required return of 9%. The bond’s coupon rate is 7.4%. What is the fair value of this bond? Calculating PV factor: i= required return = 9% = 0.09 n= 10 years Using Cash Flow of $1000 to calculate present value‚ Cash flow= $1000 PV factor = 1/(1+i)^n = 0.42241 PV = $1000*0.42241= 422.41 Using Coupon Rate to calculate present value of Annuity Cash flow= $1000 * 7.4/100 =
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in revenues/ change in price= Q( 1+elasticity). If demand is elastic then the expression becomes negative so that price rises causes revenues to fall. When dmand is inelastic a price rise causes revenues to fall as the expression becomes negative. 2. Show graphically and explain verbally how a monopoly results in a deadweight loss. Also point out the redistribution that takes place in society because of monopoly. The total of loss of consumer and producer surplus equals dead weight loss
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Industry Background The history of the cement industry in India dates back to the 1889 when a Kolkata-based company started manufacturing cement from Argillaceous. But the industry started getting the organized shape in the early 1900s. In 1914‚ India Cement Company Ltd was established in Porbandar with a capacity of 10‚000 tons and production of 1000 installed. The World War I gave the first initial thrust to the cement industry in India and the industry started growing at a fast rate in terms
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The Cell 2 06 The Cell 3 07 Cell membranes 08 Cell communication 1 * 09 Cell communication 2 10 Cell communication 3 11 Metabolism 1 12 Metabolism 2 13 Metabolism 3 14 Metabolism 4 / EXAM 1 (lects. 1-11) Holiday (President’s Day) 15 Metabolism 5 16 Metabolism 6 17 Photosynthesis 18 The cell cycle 19 Mitosis 20 Meiosis 21 Biology of Disease - Diabetes & Obesity 22 Intro. to Physiology; Cardiovascular System 1 23 Cardiovascular System 2 24 Cardiovascular System 3 25 Respiration 1 / EXAM 2 (lects. 12-22)
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this problems. We provide a service for customer to hire our kitchen with full machines & tools of cake cooking to made a cake or chocolate. We also provides ingridiants in Shop of cake ingridients in 1st floor and Class of learning how to make a cake 2 times/week. With this advantages and professional of this service‚ we believe we will achieve the highest expectation from customer. To be the first company provide service in hiring Cake making machines and Tools‚ Cake paradise have high grow rate and
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percentages rounded off to two decimal points. Do not enter % in the answer box. Selected Answer: 9.91 Correct Answer: 9.91 Answer range +/- 0.05 (9.86 - 9.96) Response Feedback: NPER = 10* 2 RATE = ? * 2 = Answer = 4.953 * 2 = 9.91% PV = -880.76 PMT = 1000 * 8%/2 = 40 FV = 1000 Question 2 1 out of 1 points ABC Industries will pay a dividend of $1 next year on their common stock. The company predicts that the dividend will increase by 5 percent each year indefinitely. What is the
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Ch 10 Outsourcing- ↑flexibility‚ focus on core competencies‚ deve comp advantage. Increasing rapidly. Can enable: leveraging of supplier’s expertise‚ ↑in innovation. Results in: lower staffing levels‚ ↓costs‚ ↑flexibility. Strategic- Not outsourced: an item that is critical to success of product. Item requiring specizd design‚ mfging skills or equip. item that fits well w/in firm’s core comp. Make or Buy Tactical- poor supplier perf‚ changing sales demand‚ restricted mfging capability‚ mod
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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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long-term debt/capitalization ratio between 22-24%. B. Before 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
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