Question 1 When you retire 40 years from now‚ you want to have $1.2 million. You think you can earn an average of 12 percent on your investment. To meet your goal‚ you are trying to decide whether to deposit lump sum today‚ or to wait and deposit a lump sum 2 years from today. How much more will you have to deposit as a lump sum if you wait for 2 years before making the deposit? A)$1414.14 B)$2319.47 C)$2891.11 D)$3280.78 E)$3406.78 Question 2 Samantha opened a savings account this morning
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Question 1 This question is on open interest and trading volume of derivatives. a. How is open interest different than trading volume? On a trading day‚ can trading volume exceed open interest? b. Why does the open interest usually decline during the month preceding the delivery month? Question 2 Use the Black-Scholes model to value a call option on the following stock: Time to expiration 6 months Standard deviation 50% per year Exercise price $50 Stock price $50 Interest
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Jim Donovan has recently accepted a new position as president for the company Famous Products. He has been asked to fly in to Milwaukee to take a look at the facilities and meet with the former president Don Bird. Jim is so excited and confident about his new position that he doesn’t think twice about his meeting with Bird. Upon his arrival Bird welcomed Jim to the building then brought him into a huge conference room where a bunch of other men in business suits sat. Bird made it openly clear he
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with charcoal paste or burnt cork and danced a ridiculous jig while singing the lyrics to the song‚ "Jump Jim Crow." Rice created this character after seeing (while traveling in the South) a crippled‚ elderly black man (or some say a young black boy) dancing and singing a song ending with these chorus words: "Weel about and turn about and do jis so‚ Eb’ry time I weel about I jump Jim Crow." Civil War. Segregation and disfranchisement laws were often supported‚ moreover‚ by brutal acts
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NBA5980‚ BEHAVIORAL FINANCE FALL SEMESTER (2ND HALF)‚ 2012 Prof. Ming Huang 401H Sage Hall Phone: 255-9594 Email: mh375@cornell.edu Office hours: Monday 4:30-6:00pm Class Meetings: Section 01: Mon/Wed: 1:25-2:40pm Section 02: Mon/Wed: 2:55-4:10pm Location: Sage Hall B08 COURSE DESCRIPTION Traditional finance theories assume that financial market participants are rational‚ and argue that the financial market is always efficient and prices are always right. Behavioral finance‚ on the other hand
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Basic Finance for Non-Finance Managers As a line manager‚ department head‚ entrepreneur or financier‚ you will at some point find yourself having to analyze a spreadsheet or have some form of financial recording to do as part of your job description. Spreadsheets‚ budgets‚ cash flow projections‚ business statistics‚ figures and the financial side of a business is not just meant for accountancy experts. Many are baffled by balance sheets‚ or confused by the financial statements of a business entity
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Case #16 Reed’s Case Study and Questions 1.) Liquidity Ratios | Reed | Industry | Current Ration | 2.0 | 2.7 | Quick Ratio | 0.94 | 1.6 | Receivables turnover | 4.93 | 47.4 | Avg. Collection Period | 74.08 | 47.4 | Efficiency Ratios | Reed | Industry | Total Asset Turnover | 1.28 | 1.9 | Inventory Turnover | 2.91 | 7 | Payable Turnover | 6.97 | 15.1 | Profitability Ratios | Reed | Industry | Gross Profit Margin | 29.8% | 33 | Net profit Margin | 4.2% | 7.8 | Return on
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Analyze the Cash Method Described in this Case Jim Turin & Sons Inc. (“the taxpayer”) have been using the cash method to report income for the company. The cash method recognizes income once payment has been received. It also includes deducting the cost of asphalt. By not claiming the asphalt as inventory the taxpayer can recognize their income as it comes in instead of when the job is completed. “The Commissioner determined that asphalt was “merchandise‚” under Treas. Reg.S. 1.471-1‚ such that taxpayer
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ignments‚ use the spell checking tool on your computer and then read through your paper yourself to detect and correct other errors and omissions. Check you have answered all of the questions. ------------------------------------------------- This presentation is scheduled on Monday‚ 30th July 2012. The team presenting has to present and submit the paper according to the guidelines given above. Aurora Textile Company Discussion Questions 1. List the factors affecting the textile
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Financial Management FIN 5013 – Quiz 5 Chapter 4 Ali Nejadmalayeri October 23‚ 2007 NAME: 1. ID: __ __ __ __ __ __ __ __ __ __ __ __ __ __ Janet plans on saving $3‚000 a year and expects to earn 8.5%. How much will Janet have at the end of twenty-five years if she earns what she expects? AFV = $3‚000 × Enter 25 N Solve for (1 + .085) 25 − 1 = $3‚000 × 78.667792 = $236‚003.38 .085 8.5 I/Y PV -3‚000 PMT FV 236‚003.38 2. Winston Enterprises would like to buy some additional
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