Q: Pulangan Geometrik = __% Geometric return=_%
A: To determine the geometric mean, we first need to compute the change in price using the formula…
Q: vestment of $2.31 million. The fixed asset will be depr s three-year tax life, after which time it…
A: NP3 is the difference between the projected value of cash flow and initial investment and it must be…
Q: NPV Calculate the net present value (NPV) for a 15-year project with an initial investment of…
A: Net present value is the technique used in capital budgeting to evaluate the acceptability of the…
Q: Consider the following money market information being quoted: Which of the following statements is…
A: The terms "ask" and "bid" refer to the prices at which assets like stocks, bonds, or currencies are…
Q: On July 1, an investor holds 100,000 shares of a certain stock. The market price is $100 per share…
A: Hedging is a process of risk management through which the risk of financial investments is…
Q: Q5 according to the diagram that shown the cash flow below: find the future worth at the year 8 if…
A: The future worth of the cash flow or any amount refers to the compounded value which consists of the…
Q: Calculating Returns Suppose you bought a 6 percent coupon bond one year ago for $1,040. The bond…
A: We need to use the below equation to calculate total nominal return.Total Dollar return =(Bond price…
Q: The Wall Street Journal reports that the rate on 3-year Treasury securities is 1.50 percent and the…
A: The unbiased expectations theory is based on the assumption that we can predict future short term…
Q: The real risk-free rate, , is 1.7%. Inflation is expected to average 1.5% a year for the next 4…
A: The yield on a bond is the required rate of return by the investors for investing in such bonds.…
Q: The Balance Sheet of a firm has the following items of the Right Side: Short Term Debt $5,995 Long…
A: Price-to-book value (P/B) is the ratio of the market value of a company's shares (share price) over…
Q: if Peter exchanges NZD1,250.00 for SGD.
A: We can determine the amount that Peter is going to spend in SGD using the bid and ask rates. Ask is…
Q: An investor has preferences represented by the utility function U = E(r)-20². What is her certainty…
A: Equivalent return of portfolio:The term "equivalent return of portfolio" refers to the measure used…
Q: Calculate X. A 16,402.37 B 16,834.05 C 16,845.29 D 17,390.57 E 17,402.37
A: Present value illustrates the current value of a sum of money that will be received or paid in the…
Q: Start with a $1,000 deposit and assume a reserve requirement of 15 percent. Trace the amount of…
A: Lending cycles refer to the recurring patterns in a financial institution's willingness to extend…
Q: 1, 21.01% 2, -13.83% 3, 15.67% 4, 0.88% 5, -1.32%
A: Coefficient of variation shows the risk and return combination of stock and less coeffcient of…
Q: Which alternative would you choose as a base one? Choose the correct answer below. XA Alternative A…
A: The internal rate of return(IRR) is used to evaluate the profitability of an investment project. It…
Q: Consider the following quoted spot rates and identify which statement(s) below is (are) true: Spot…
A: Triangular arbitrage is a foreign exchange trading strategy that exploits inconsistencies in…
Q: Assure Investments has a $15 million portfolio with a beta of 0.6. The firm employs the E-mini Dow…
A: The sensitivity of an investment or stock to fluctuations in the stock market as a whole is measured…
Q: Keenan Industries has a bond outstanding with 15 years to maturity, an 8.25% coupon rate with…
A: Compound = Semiannual = 2Coupon Rate = c = 8.25 / 2 = 4.125%Face Value = fv = $1000Price of Called…
Q: You are considering investing in a European bank account that pays a nominal annual rate of 8%,…
A: Solution:-When an equal amount is invested each periodat beginning of period, it is known as annuity…
Q: You are going to value Lauryn's Doll Co. using the FCF model. After consulting various sources, you…
A: It refers to the amount of money left for the firm after paying all the operating expenses and…
Q: Jose bought a portfolio of five bonds for $50,000. Each of the bonds is a par valued 10,000 6% bond…
A: A financial statistic known as annual percentage yield (APY) shows the effective yearly rate of…
Q: NPV and EVA A project cost $2.3 million up front and will generate cash flows in perpetuity of…
A: NPV refers to the net asset value that means cost and benefit analysis of the investment made in the…
Q: mport Industries has 7,000 perpetual bonds outstanding with a face value of $2,000 each. The bonds…
A: PV of tax shield from perpetual debt is calculated using the formula below:- PV of tax shield from…
Q: Show your excel workings for the following problems. Round up to two decimal places if necessary. 1.…
A: Value of stock can be determined based on the dividend and growth of dividend and based on required…
Q: Anle Corporation has a current price of $16, is expected to pay a dividend of $1 in one year, and…
A: Expected dividend yield is calculated below:Expected dividend yield = Dividend/ Current stock price…
Q: Calculate the covariance between the assets ProbabilityReturn AReturn B 0.08 0.07 0.01 0.15 0.5 0.35…
A: Co-variance is shown the relation ship between the stock. Positive Co-variance shown that both the…
Q: Calculate the monthly principal and interest (PI), using Table 14-1 from your text, and the monthly…
A: Monthly PITI is very important in mortgage loans and that includes the monthly mortgage payment and…
Q: 12. When Alfred Nobel died, he left the majority of his estate to fund five prizes, each to be…
A: In finance, a perpetuity is an annuity that lasts indefinitely. Some common perpetual investments…
Q: You own the portfolio of five stocks shown below: 1 2 3 4 5 6 Human Genome Frozen Food Express…
A: Solution:Portfolio beta means the weighted average beta of the assets in the portfolio.
Q: Your bank offers a savings account that pays 2.5% interest, compounded annually. If you invest…
A: Future value refers to the value of an investment or cash flow at a specified point in the future.…
Q: constant, use the AFN equation to determine the firm's self-supporting growth rate-in other words,…
A: The maximum growth rate that an organization can accomplish without having recourse to outside money…
Q: Assume that there is no prepayment. Base ortgages, What is the APR of Loan C? (choose the closest…
A: The Effective Cost of Borrowing is the true and comprehensive cost associated with obtaining and…
Q: The market price of a semi-annual pay bond is $986.15. It has 15.00 years to maturity and a yield to…
A: Compound = Semiannually = 2Price of Bond = pv = $986.15Time = t = 15 * 2 = 30Yield to Maturity = r =…
Q: UHFD has just paid a dividend of $2.56 and is expected to increase the future dividends at a rate of…
A: Solution:Dividend Discount Model (DDM) is the equity model which measures current price of share.As…
Q: ou are working as a financial planner. A couple has asked you to put together an investment plan for…
A: In financial planning the first thing is to determine how much future value is required and how much…
Q: Determine the interest payment for the following three bonds
A: We can determine the interest payment using the formula below:Treasury notes also pay interest…
Q: If you deposit $368.00 into an account paying 15.46% annual interest compounded quarterly, how many…
A: The concept of time value of money will be used and applied here. As per this concept the worth of…
Q: Intro The annual interest rate is 4%. Part 1 What is the present value (PV) of $1,000 that you'll…
A: Solution:When amount is invested somewhere, it earns interest on it. The amount initially invested…
Q: peter minuit, director-general of the dutch west india company in North America bought Manhattan…
A: Future Value (FV) is a financial concept that represents the projected worth of a sum of money at a…
Q: The proportion of the optimal risky portfolio that should be invested in A is?
A: Risk and return are essential financial principles. The term “risk” refers to the uncertainty and…
Q: 1. Consider the following two mutually exclusive projects, X and Y, and their cash flows…
A: Payback period is the number of years required to recover the original cash investment. The lesser…
Q: In the spot market, $1 is currently equal to £.55. The expected inflation rate in the U.K. is 4…
A: Purchasing power parity explains and quantifies the relationship between inflation and the spot…
Q: Eliott Credit Corporation wants to earn an effective annual return on its consumer loans of 13…
A: The formula for calculating the effective annual rate is
Q: A futures contract will mature in one time step. The current return over one time-step is R = 1.01…
A: In the first case, the underlying asset for the futures contract has a market value of $27. Specific…
Q: Consider the following $1,000 par value zero-coupon bonds: Bond Years to Maturity Yield to Maturity…
A: Yield to matuirty(YTM) the rate of return bondholders will get if they hold bond till maturity and…
Q: White Lion Homebuilders has a current stock price of $27 per share, and is expected to pay a…
A: Current stock price = $27Flotation cost = 3.90%Expected dividend = $4.60Growth rate = 5.10%
Q: You are given the following information for a firm: FCF for a firm Growth Rate of FCF Asset Beta…
A: Solution:Free Cash Flow (FCF) approach is the equity approach to compute the value of firm.As per…
Q: Assume that one year ago you bought 200 shares of a mutual fund for $20 per share, you received a…
A: Solution:Percentage of total return means the percentage of total return earned by the investor over…
Q: Use the following information to answer this question: Windswept, Incorporated 2021 Income…
A: Cash coverage ratio measures the liquidity of the firm to discharge interest expenses from cash…
On January 1, you sold short 200 shares of Walt Disney Co at $150 per share and pledged 50% initial margin. On March 1, a dividend of $10 per share was paid. On June 1, you closed your position buying 200 shares at $170 per share. What is your
Please answer fast i give upvote
Step by step
Solved in 3 steps with 2 images
- You’ve borrowed $22,000 on margin to buy shares in Ixnay, which is now selling at $32 per share. Your account starts at the initial margin requirement of 50%. The maintenance margin is 30%. Two days later, the stock price falls to $22 per share. a. Will you receive a margin call? multiple choice No Yes b. How low can the price of Ixnay shares fall before you receive a margin call? (Round your answer to 2 decimal places.) Margin call will be made as price _______ or lower.Suppose you sold short 100 shares of some stock on January 1 at a price of $30 per share. A dividend of $2 per share was paid on March 1. On April 1, you closed your short position. You paid $0.50 per share for each transaction and all-in-all you realized a net gain of $300. At what price did you close your short position?You've borrowed $27,950 on margin to buy shares in Ixnay, which is now selling at $43.0 per share. You invest 1,300 shares. Your account starts at the initial margin requirement of 50%. The maintenance margin is 35%, Two days later, the stock price changes to $50 per share. Required: a. Will you receive a margin call? O Yes O No b. At what price will you receive a margin call? (Round your answer to 2 decimal places.) Stock price
- You sell short 300 shares of Microsoft that are currently selling at $30 per share. You post the 50% margin required on the short sale. If you earn no interest on the funds in your margin account, what will be your rate of return after 1 year if Microsoft is selling at $29? (Ignore any dividends.) Select one: а. 20% b. 15% C. 6.67% d. 10%You’ve borrowed $20,000 on margin to buy shares in Ixnay, which is now selling at $40 per share. Your account starts at the initial margin requirement of 50%. The maintenance margin is 35%. Two days later, the stock price falls to $35 per share.a. Will you receive a margin call?b. How low can the price of Ixnay shares fall before you receive a margin call?You purchase 1,000 shares of WMT (Walmart) for $143 per share. A year later, you sell the stock for $166 per share. You receive a dividend of $2.27 a share. a.What is your total dollar return? b. What are your dividend yield, capital gain yield, and total percentage return? Note: don't use chat gpt.
- You’ve borrowed $14,000 on margin to buy shares in Ixnay, which is now selling at $56 per share. Your account starts at the initial margin requirement of 50%. The maintenance margin is 35%. Two days later, the stock price falls to $51 per share. a. Will you receive a margin call? Yes No b. How low can the price of Ixnay shares fall before you receive a margin call? (Round your answer to 2 decimal places.)You purchased 200 shares of a stock trading at $45 per share and used $6,000 of your own money and borrowed the rest. If the maintenance margin is 30%, how low can the stock go before you receive a maintenance call? Group of answer choices c. $40.55 d. $36.25 b. $33.75 a. $21.43c. You purchased 100 shares of common stock on margin at $55 per share. Assume that the initial margin is 60%, with the maintenance margin of 35%. If the price moves to $40 per share, what would be the remaining equity margin in your account? Calculate the price at which there will be a margin call?
- You purchase 460 shares of stock at $37.60 per share. Several months later you sell the shares at $33.10. Your broker charges 2% commission on round lots and 3% on odd lots. Calculate the gain or loss (in $) on the transaction. Enter a number. Need Help? Read It Watch It Master ItAssume you sell short 100 shares of common stock at BDT $50per share, with initial margin at 0.5. The stock paid dividends during the period of $2.5. and you did not remove any money from the account before making the offsetting transaction. The interest is 7% if price at time of covering your position reached48. maintenance margin is 0.32 percent, calculate what is your account value what is your equity what is your equity after price changes'? what is your actual margin at what price the broker will give you a margin callwhat is your account value what is your equity what is your equity after price changes'? what is your actual margin at what price the broker will give you a margin calle what is your returnSuppose that you sell short 1,000 shares of Xtel, currently selling for $20 per share, and give your broker $15,000 to establish your margin account.a. If you earn no interest on the funds in your margin account, what will be your rate of return after one year if Xtel stock is selling at: (i) $22; (ii) $20; (iii) $18? Assume that Xtel pays no dividends.b. If the maintenance margin is 25%, how high can Xtel’s price rise before you get a margin call?c. Redo parts (a) and (b), but now assume that Xtel also has paid a year-end dividend of $1 per share. The prices in part (a) should be interpreted as ex-dividend, that is, prices after the dividend has been paid.