Homework Help for Finance

True or False: It's never optimal to early exercise an American call, if the underlying pays dividend.

A bond is selling at 101.230

A. $_____ is the current price for this bond

B. This bond is selling at a _______. (premium or discount)

C. If the above bond has a coupon of 6%, then the current yield is ______

You purchase a home for $69,750 at 6.5% for 30 years. The property taxes are $2,450 per year, and the hazard insurance premium is $256 semiannually. Find the monthly PITI payment.

1)

All of the following statements are true about ERP implementation alternatives except:

A vanilla implementation can be accomplished with moderate cost.

A vanilla implementation is easiest to implement.

A single vendor ERP implementation with customizations allows a company to maintain its strategic processes.

A single vendor ERP implementation with customizations may cause a company to forfeit internal systems which provide a strategic advantage.

A single vendor ERP implementation with customizations poses greater risk and higher cost because vendor modifications cannot be easily adopted

2)

All of the following statements are false except:

Enhanced governance and control over domestic and overseas operations is a mandate given to the purchasing department by the CFO.

A three-way match involves matching the invoice to the purchase order and the check disbursement.

In the E-R diagram for Order Entry/Sales, SALES_ORDERS activates the STOCK_PICK.

The purchasing supervisor is responsible for receiving incoming goods and signing the bill of lading.

Lack of standardized processes is not a cash forecasting challenge

3)

With respect to accounting records in a manual system, _____________ are used to capture and formalize transaction data needed for transaction processing.

product documents

journals

registers

source documents

turnaround documents

We tend to think of flow charting in terms of improving or documenting an existing process, but can a flowchart also be useful for new processes Why? How? I believe I saw an example or two earlier in the discussion this week.

Can you think of other examples that you may be familiar with that involved creating a flow chart to develop a "new" process or procedure?

Identify and describe the fundamental distinctions between a futures contract and an option contract, and briefly explain the difference in the manner that futures and options modify portfolio risk.

What is the purpose of disbursement policies?

Consider Ford stock (F) with a current price of $20 per share and a standard deviation of returns of 15%.

General Motors (GM) stock has an expected return of 12% and a standard deviation of returns of 16%.

a) An investor expects to sell Ford stock in one year at $21 per share and expects the firm to pay a dividend of $1 per share at the end of the year. What is the expected total return and what is the dividend yield?

b) An investor holds a portfolio of F and GM with 80% of the portfolio in Ford. What is the standard deviation of this portfolio if Ford and GM have a correlation of -1?

c) Given the correlation of Ford and GM stock, can an investor construct a zero variance portfolio? If so, what are the weights on F and GM in this portfolio? If not, explain why?

d) Given your answer in c), what is the risk-free rate? Why?

This problem is complete, not a lack of any information.If you can't answer, please don't comment. Thank you!

Answer the following essay question as completely as possible.

What is the S&P 500 Index? What is significance and possible advantage in watching and studying indexes such as the S&P Index?

Consider the Big Charts, graph that has been provided:

#Describe the information being depicted o In your answer,

Discuss- time frame, frequency, index numbers and volume.

Discuss - 200 day moving average ?Discuss - the lower indicator of Volume +

Discuss - any apparent trend, trend reversal and/or price patterns

#Can you follow the general market character by following the SPX? If so, what can be said about the character over the last six months? Considering class discussion when can be said about the trend over the last six years.

#Consider "The Big Picture?and the "Market Pulse.”

Discuss the correlation between these and the chart under review.

#Use what we discussed in class. Big Charts, IBD, your technical training, and your understanding of current geo-political, economic and market conditions to provide a forecast for future market direction.

o The last quarter of 2014

o One year from now

o Three years from now

What is a convertible security? What are some reasons that a company would choose to issue a convertible security?

The Holmes Company's currently outstanding bonds have a 10% coupon and a 12% yield to maturity. Holmes believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 40%, what is Holmes's after-tax cost of debt? Round your answer to two decimal places.

Select a publicly traded company that trades on the New York Stock Exchange (NYSE) or on the NASDAQ to analyze. Please note that it is usually easier to find more recent information on larger or well-known companies. The analysis in your essay should answer the questions noted on the Writing Assignment Guidelines and Rubric.The Writing Assignment is to be 750 – 1,250 words in length.

Suppose you would like to retire in 50 years as a millionaire. If you have $7,500 today, what rate of return must you earn on $7,500 to achieve your goal?

What are major characteristics of currency futures contracts? List at least five of them.

200 words

You may have heard a salesperson tell you “This product pays for itself!” While this is probably rare for most products, sometimes there are future savings in money from certain products that will offset some of the costs. For example, if you buy a newer, more reliable, and more fuel-efficient car it may save you on repair bills and gas prices over your old car. If you are a coffee connoisseur, buying a $100 espresso machine might save you money over buying $4 drinks at your local Starbucks.

Think of a purchase you are planning to make or have recently made. How much did it cost? Also, how much per year do you think you will save from this purchase and for how many years will you get these savings? Estimate the present value of the savings, and subtract the cost of the product. Note that it is rare that any purchase will “pay for itself” (e.g. have a positive NPV). But are the savings enough that the product becomes a lot “cheaper” and more worthwhile for you to buy?