Homework Help for Finance

Project C requires a net investment of $1,000,000 and has a payback period of 5.6 years. You analyze Project C and decide that Year 1 free cash flow is $100,000 too low, and Year 3 free cash flow is $100,000 too high. After making the necessary adjustments ________. Answer A)the NPV of Project C will decrease B)the payback period for Project C will be shorter than 5.6 years C)the IRR of Project C will increase D0the payback period for Project C will be longer than 5.6 years

4) A mortgage banker had made loan commitments for $20 million in 3 months. How many contracts on Treasury bonds futures must the banker write or buy? 5) Duration is defined as the weighted average time to maturity of a financial instrument. Explain how this knowledge can help protect against interest rate risk.

The Wall Street Journal reported the following spot and forward rates for the Swiss franc ($/SF) in June of 2009.

a. Was the Swiss franc selling at a discount or premium in the forward market?

b. What was the 30-day forward premium (or discount)?

c. What was the 90-day forward premium (or discount)?

1.The real risk-free rate is 4%. Inflation is expected to be 3% this year, 5% next year, and then 5% thereafter. The maturity risk premium is estimated to be 0.0003 x (t - 1), where t = number of years to maturity. What is the nominal interest rate on a 7-year Treasury security?

2.

Assume that the real risk-free rate, r*, is 2% and that inflation is expected to be 8% in Year 1, 5% in Year 2, and 4% thereafter. Assume also that all Treasury securities are highly liquid and free of default risk. If 2-year and 5-year Treasury notes both yield 10%, what is the difference in the maturity risk premiums (MRPs) on the two notes; that is, what is MRP5 minus MRP2? Round your answer to two decimal places.

3.

Because of a recession, the inflation rate expected for the coming year is only 3%. However, the inflation rate in Year 2 and thereafter is expected to be constant at some level above 3%. Assume that the real risk-free rate is r* = 2% for all maturities and that there are no maturity premiums. If 3-year Treasury notes yield 2 percentage points more than 1-year notes, what inflation rate is expected after Year 1?

Use the data below to solve for the sustainable growth rates for 2011 to 2015. What is the sustainable growth rate for each year? Based on your analysis of the sustainable growth rate between 2011 and 2015, what are your recommendations for the firm?

Assume Emerson Electric

"Family Dispute." When Trudy and Mark married, they both had children from previous marriages. After their marriage, Trudy and Mark purchased a home together as tenants by the entirety and lived there for many years. Mark died when he was 93 and Trudy was 95. Mark's will left any property he owned to his son, Alex, who promptly told Trudy that she needed to get out of the house. Trudy told him to forget it. Trudy died a week later. Her will left everything she owned to her daughter, Samantha, who moved in the home and refuses to leave. Mandy, who had loaned Mark $10,000, has filed a claim against any heir of Mark or Trudy, including Alex and Samantha, claiming an interest in the home to satisfy the debt Mark owed her.

Which of the following would be the most likely result regarding Alex's claim to ownership of the house upon Mark's death?

a. Alex would not receive the house upon Mark's death because full ownership immediately passed to Trudy.

b.Alex would get the house as Mark's child regardless of whether Mark left it to him in the will.

c. Regardless of the form of ownership held by Trudy and Mark, Alex would get the house because Mark left all his property to Alex in his will.

d. Alex would get ownership of the house, but he would have a duty to allow Trudy to live there the remainder of her life.

e. Because of the form of ownership held by Trudy and Mark, the will could have conveyed the house to Alex only if the house was specifically mentioned; therefore, since the will simply referenced property, Alex would not get the house.

So we end with leadership. Which many would argue should be at the start of any organization. What qualities and behaviors are most important in a leader? Are manager’s leaders? Why or why not? And lastly, inevitable you’ll be asked to name all the good qualities you want to see in a manager, or a leader. Tell me the worst qualities you’ve actually experienced in managers and leaders. Why do they stand in your mind? Are you a strong enough leader yourself to employ the same tactics as you move forward in your career? Or are managers and leaders sometimes forced to use techniques that you consider “poor” at this point in your career?

What is the responsibility of finance in the innovation process and what financial tools do they use?

Give examples of types of properties (and/or appraisal types) that are likely appropriate for appraisal via (i) sales comparison, (ii) income capitalization and (iii) cost approaches?

1.

The directors of a corporation are the principal of the corporation.

True

False

2.

Which of the following apply to a sole proprietorship:

3.

A U.S. passport is a document accepted as proof of personal identity and employment eligibility.

True

False

4.

The Occupational Safety and Health Act requires employers to follow health and safety standards issued by OSHA.

True

False

5.

Choosing to promote a younger person rather than an older person, because the older person is likely to retire in several years, may violate the Age Discrimination in Employment Act.

True

False

6.

To prove discrimination under Title VII, a plaintiff must prove, among other elements of proof, that he or she is a member of a protected class, and that there was an adverse job action.

True

False

A nine-year annuity that makes 36 quarterly payments of $6,700 will begin 6 years from now with the first payment coming 6.25 years from now. If the discount rate is 4.5 percent compounded quarterly, what is the present value of the annuity?

How do you calculate the total value of equity by backing out debt and preferred stock from total company value.

A local bank advertises the following deal: Pay us $100 at the end of each year for 12 years and then we will pay you (or your beneficiaries) $100 at the end of each year forever. a. Calculate the present value of your payments to the bank if the interest rate available on other deposits is 5.75%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value $ b. What is the present value of a $100 perpetuity deferred for 12 years if the interest rate available on other deposits is 5.75%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value $ c. Is this a good deal? Yes No