saumyam

After leaving a port a ship sails 132.0 km in the direction  . How far east it travels ?

Six years ago, Bradford Community Hospital issued 20-year municipal bonds with a 7% annual coupon rate.

The capital structure of Foster Medical (given in terms of both book value and market value) is as follows:

1. 
   What is the weighted average cost of capital using both Book Value and Market Value calculations for Foster Medical?
   b. What is theoretically the best weighting method? Why?

Tony DiLorenzo is evaluating an investment opportunity. He feels that this investment must earn a minimum compound annual after-tax return of 9% in order to be acceptable. Tony’s initial investment would be $7,500, and he expects to receive annual after-tax cash flows of $500 per year in each of the first 4 years, followed by $700 per year at the end of years 5 through 8. He plans to sell the investment at the end of year 8 and net $9,000, after taxes.

The assets of Dallas & Associates consist entirely of current assets and net plant and equipment, and the firm has no excess cash. The firm has total assets of $2.8 million and net plant and equipment equals $2.4 million. It has notes payable of $140,000, long-term debt of $755,000, and total common equity of $1.55 million. The firm does have accounts payable and accruals on its balance sheet. The firm only finances with debt and common equity, so it has no preferred stock on its balance sheet. Write out your answers completely. For example, 25 million should be entered as 25,000,000. Negative values, if any, should be indicated by a minus sign. Round your answers to the nearest dollar, if necessary.

3. XYZ Builders need to acquire the use of a crane for construction business, and are considering buying or leasing a crane. The crane costs Rs. 1,000,000, and is subject to the straight-line method of depreciation to a zero-salvage value at the end of 5 years. In contrast, the lease rent is Rs 220,000 per year to be paid in advance each year for 5 years. XYZ Builders can raise debt at 14% payable in equal annual instalments, each instalment due at the beginning of the year. The company is in the 50% tax bracket. Should it lease or buy the crane?

What return on equity do investors expect for a firm with a $12 stock price, a dividend in year one of $2.00, a beta of 1.6, and a constant growth rate of 2%?

2. Explain why the NPV of a relatively long-term project, defined as one for which a high percentage of its cash flows are expected in the distant future, is more sensitive to changes in the cost of capital than is in the NPV of a short-term project

Suppose the current risk-free rate of return is 5 percent and the expected market risk premium is 7 percent. Using this information, estimate the cost of retained earnings for a company with a beta coefficient equal to 2.0?

In each of the following situations, would you recommend vertical integration no vertical integration? Please explain (50p) Firm X has manufactured its own products for years. Recently, however, one of these products has become more and more like a commodity. Several firms are now able to manufacture this product at the same price and quality as Firm X. However, they do not have Firm X’s brand name in the marketplace. Should Firm X continue to manufacture this product, or should it outsource it to one of these other firms? Firm Z is convinced that a certain class of technologies holds real economic potential. However, it does not know, for sure, which particular version of this technology is going to dominate the market. There are eight competing versions of this technology currently, but ultimately only one will dominate the market. Should Firm Z invest in all eight of these technologies itself? Should it invest in just one of these techologies? Should it partner with other firms that are investing in these different technologies?

Chad, age 32, owns an ordinary life insurance policy with face amount of $200,000. The following riders are attached to the policy: additional benefit of $50,000 if death occurs from an accident, and guaranteed purchase option. For each scenario, answer the question that follows. Treat each case separately. 4. Twenty years after the policy was issued, Chad felt that the premium payments are financially burdensome. He wants to reduce his annual premium outlay (at least temporarily), but he wants to keep the policy limit as is, as well as the duration of insurance coverage. If Chad’s policy pays dividend, which dividend option fits Chad’s objective? Circle one. a) Paid-up Addition. b) Dividend Accumulation. c) Premium payment. 5. Chad wants to make sure that when he dies, his mother will receive income for 20 years. Which option of payment of policy proceeds fits Chad’s objective? Circle one. a) Life income option. b) Fixed amount option. c) Fixed period option 6. Ten years after the policy was issued, Chad wants to buy a house. He doesn’t have enough money to pay for the down payment but he doesn’t want to surrender his policy. What advice can you give to Chad? 7. Chad wants to retire and does not want to pay premiums anymore on his policy. He does not want to surrender the policy and still wants to be covered for life. Which nonforfeiture option fits Chad’s objective? Circle one. a) Extended Insurance. b) Paid-up Insurance. c) Surrender for Cash.

Mullet Technologies is considering whether or not to refund a $250 million, 12% coupon, 30-year bond issue that was sold 5 years ago. It is amortizing $3 million of flotation costs on the 12% bonds over the issue's 30-year life. Mullet's investment banks have indicated that the company could sell a new 25-year issue at an interest rate of 10% in today's market. Neither they nor Mullet's management anticipate that interest rates will fall below 10% any time soon, but there is a chance that rates will increase. A call premium of 10% would be required to retire the old bonds, and flotation costs on the new issue would amount to $5 million. Mullet's marginal federal-plus-state tax rate is 40%. The new bonds would be issued 1 month before the old bonds are called, with the proceeds being invested in short-term government securities returning 6% annually during the interim period. Conduct a complete bond refunding analysis. What is the bond refunding's NPV? Do not round intermediate calculations. Round your answer to the nearest cent. $ What factors would influence Mullet's decision to refund now rather than later?

 Discuss the effects on distribution policy consistent with: (1) the signaling hypothesis (also called the information content hypothesis) and (2) the clientele effect.

Companies tend to be priced relative to their global competitors. This largely because

Bell Media has common stock trading at a price of​ $74, and a market capitalization of​ $23 billion. The firm also has preferred stock worth a total of​ $6 billion, currently trading at​ $54 per share and paying a dividend of​ $4.50 per share. The​ firm's beta is​ 1.2, the​ risk-free rate is​ 2.4%, and the market risk premium is​ 6%. The firm has​ $28 billion of debt with a yield to maturity of​ 4%. If the​ firm's tax rate is​ 30%, what is​ Bell's WACC

In​ 2016, the Allen Corporation had sales of  ​million, total assets of  ​million, and total liabilities of  million. The interest rate on the​ company's debt is  ​percent, and its tax rate is  percent. The operating profit margin is  percent.
a. Compute the​ firm's 2016 net operating income and net income.

K Co. is a publicly listed company involved in the production of highly technical and sophisticated electronic components for complex machinery. It has a number of diverse and popular products, an active research and development department, significant cash reserves and a highly talented management who are very good in getting products to market quickly.

A new industry that K Co. is looking to venture into is biotechnology, which has been expanding rapidly and there are strong indications that this recent growth is set to continue. However, K Co. has limited experience in this industry. Therefore, it believes that the best and quickest way to expand would be through acquiring a company already operating in this industry sector.

Discussions taken place about the possibility of acquiring Tee Co. being acquired by K Co. Price of Tee company in stock market during last one year are as follows.

Price at the end of month

1. Calculate average return for both stock and market
2. Calculate Standard deviation for both
3. Calculate coefficient of variation for both
4. Calculate Beta of stock
5. Suggest what you understand from Beta

I.

“Firms often involve themselves in projects that do not result directly in profits. For example, Apple donated $50 million to Stanford University hospitals and another $50 million to the African aid organization (Product) RED, a charity fighting against AIDS, tuberculosis, and malaria.”

Find a case or a news or a critic or an article about "goal of value maximisation". Try it to have an emerging economies and, if possible, Turkey perspective. Write the link of the source you choose first. Then criticize this material and make the connections, accordant and discordant dimensions with the theory of the subject you learned during  "The Valuation and Characteristics of Stock".

II.

Find a case or a news or a critic or an article, etc. about "interest rate and its effect on corporate finance". Try it to have an emerging economies and, if possible, Turkey perspective. Write the link of the source you choose first. Then criticize this material and make the connections, accordant and discordant dimensions with the theory of the subject you learned during  "The Financial Markets and Interest Rates".

for the following project compute NPV, IRR, MIRR, profitability index, and payback. If these projects are mutually exclusive, which ones should be done? If they are independent which ones should be undertaken? year 0 A-1000 B -1,500 C-500 d -2000 year 1 A 400 B 500 C 100 D 600 year 2 A 400 B 500 C 300 D 800 year 3 A 400 B 700 C 250 D 200 year 4 A 400 B 200 C 200 D 300 DISCOUNT RATE A 10% B 12% C 15% D 8%

For the following projects, compute NPV, IRR, MIRR, profitability index, and payback. If these projects are mutually exclusive, which one(s) should be done? If they are independent, which one(s) should be undertaken?
A B C D
Year0 -1,000 -1,500 -500 -2,000
Year1 400 500 100 600
Year2 400 500 300 800
Year3 400 700 250 200
Year4 400 200 200 300
Discount rate 10% 12% 15% 8%

For the following projects, compute NPV, IRR, MIRR, profitability index, and payback. If these projects are mutually exclusive, which one(s) should be done? If they are independent, which one(s) should be undertaken?
A B C D
Year0 -1,000 -1,500 -500 -2,000
Year1 400 500 100 600
Year2 400 500 300 800
Year3 400 700 250 200
Year4 400 200 200 300
Discount rate 10% 12% 15% 8%

For the following projects, compute NPV,IRR,MIRR,profitability index, and payback. If these projects are mutually exclusive, which one(s) should be done? If they are independant, which one(s) should be undertaken?

A B C D

Year 0 -1000 -1500 -500 -2000

year 1 400 500 100 600

year 2 400 500 300 800

year 3 400 700 250 200

year 4 400 200 200 300

discount rate 10% 12% 15% 8%

Concept of cost of capital Mace Manufacturing is in the process of analyzing its investment decision making procedures. Two projects evaluated by the firm recently involved building new facilities in differnt regions, North and South. The basic variables surrounding each project analysis and the resulting decision arctions are summarized in the following table

a. an analyst evaluating the North facility expects the project will be financed by debt that costs the firm 7%. What recommendations do you think thes analyst will make regarding the investment opportunity?

b. Another analyst assged to study the South facility believes that the funding for that project will come from the firm's retained earnings at a cost of 16%. What recommendations do you think thes analyst will make regarding the investment opportunity?

c. Explain why the decisions in part a and b may not be in the best interest of the firm's investors.

d. If the firm maintains a capital structure containing 40% debt and 60% equity, find it weighted average cost using data in the table.

e. If both analysts had used the weighted average cost calculated in part d, what recommendations would they ahve made regarding the North and South facilities?

f. Compare and contrast the analyst's initial recommendation with your finding in part e. Which decision method seems more appropriate? Why?

J.P. Morgan Tells Analysts To Warn of a Downgrade By Wade Lambert and Jathon Sapsford Staff Reporters of The Wall Street Journal March 22, 2001

J.P. Morgan Chase & Co.'s head of European research told his team of analysts they must run all changes in European stock recommendations past both the company in question and J.P. Morgan's investment-banking department. "Both the company and the client banker need to be notified, in advance, of the recommendation change that we plan to make," said the memo, written by Peter Houghton, head of equity research in Europe. "If the company requests changes to the research note, the analyst has a responsibility to either incorporate the changes requested or communicate clearly why the changes cannot be made." The memo, which a company spokesman described as a global policy for the bank and which was previously reported by the Times of London, represents a rare written edict on a practice that raises questions about analysts' independence. Wall Street analysts long have been pressured by corporate clients and their own bankers to shun negative research. Some companies penalize analysts or their firms for "sell" recommendations. Investment bankers pressure analysts because they fear any negative research will hamper their chances of winning lucrative underwriting or advisory business from the same corporate client. Thus, many savvy investors ignore much of the research that comes from securities firms. "It defeats the purpose of research," says Frank Barkocy, director of research at hedge fund Keefe Managers. Mr. Barkocy represents the "buy side," or those who are potential customers for the research of analysts at Wall Street securities firms who are known as the "sell side." By showing the report first to the company in question, "the way an analyst uses some words might very well be minimized," Mr. Barkocy says. "It's a disservice to the analyst and a disservice to the buy side." J.P. Morgan Chase maintains the memo merely reiterates a policy it has long followed, and that it reflects practices that are common in the industry. The company says it sent the memo to ensure that several new analysts who came from other firms know the policy. The company maintains that analysts aren't under pressure to change recommendations, but only to make factual changes. "The point of the memo was to ensure that there's clear communication between analysts and bankers and companies," says Nick O'Donohoe, head of European equities at J.P. Morgan. It is "a normal, common courtesy" to warn a company that an analyst was about to downgrade its stock. Nothing in the memo "compromises the honesty or objectivity or independence of our analysts," he says. Analysts' practices are coming under increased scrutiny after the Securities and Exchange Commission last October began enforcing Regulation FD, for fair disclosure, a rule that seeks to rein in the flow of privileged information between corporations and the Wall Street analysts who cover them. Wall Street analysts also have been criticized for maintaining "buy" recommendations on once-highflying tech stocks, despite their lack of profits, and long after their stocks had fallen. The issue came to a head for many European investors in December over the initial public offering for France Telecom's Orange PLC unit. Analysts were barred from a briefing by Orange officials unless they agreed to let the lead banks "fact-check" their reports on the share offering. Some question whether research can ever be considered objective if the other arm of the firm publishing it is advising the same company on a merger or selling shares. Sebastian Virchow, a fund manager at Deutsche Bank AG's asset-management unit DWS Group in Frankfurt, says his team confirms the earnings and scientific developments of the companies it invests in, rather than taking analysts' reports at face value. "We read the analyst reports and gather information, but we do our own due diligence and would never just use the reports on their own," he says. "We talk to the companies ourselves and make our own earnings estimates." Write to Wade Lambert at [email protected] and Jathon Sapsford at [email protected].

What is meant by "analysts' independence"? When and how might analysts' independence be compromised? What pressures do analysts face that might reduce their independence? Is maintaining a "buy" recommendation on a stock after its price has fallen evidence that an analysts' independence is compromised? Do analysts who currently recommend investing in tech stocks and the broader stock market lack independence?

J.P. Morgan Tells Analysts To Warn of a Downgrade By Wade Lambert and Jathon Sapsford Staff Reporters of The Wall Street Journal March 22, 2001

J.P. Morgan Chase & Co.'s head of European research told his team of analysts they must run all changes in European stock recommendations past both the company in question and J.P. Morgan's investment-banking department. "Both the company and the client banker need to be notified, in advance, of the recommendation change that we plan to make," said the memo, written by Peter Houghton, head of equity research in Europe. "If the company requests changes to the research note, the analyst has a responsibility to either incorporate the changes requested or communicate clearly why the changes cannot be made." The memo, which a company spokesman described as a global policy for the bank and which was previously reported by the Times of London, represents a rare written edict on a practice that raises questions about analysts' independence. Wall Street analysts long have been pressured by corporate clients and their own bankers to shun negative research. Some companies penalize analysts or their firms for "sell" recommendations. Investment bankers pressure analysts because they fear any negative research will hamper their chances of winning lucrative underwriting or advisory business from the same corporate client. Thus, many savvy investors ignore much of the research that comes from securities firms. "It defeats the purpose of research," says Frank Barkocy, director of research at hedge fund Keefe Managers. Mr. Barkocy represents the "buy side," or those who are potential customers for the research of analysts at Wall Street securities firms who are known as the "sell side." By showing the report first to the company in question, "the way an analyst uses some words might very well be minimized," Mr. Barkocy says. "It's a disservice to the analyst and a disservice to the buy side." J.P. Morgan Chase maintains the memo merely reiterates a policy it has long followed, and that it reflects practices that are common in the industry. The company says it sent the memo to ensure that several new analysts who came from other firms know the policy. The company maintains that analysts aren't under pressure to change recommendations, but only to make factual changes. "The point of the memo was to ensure that there's clear communication between analysts and bankers and companies," says Nick O'Donohoe, head of European equities at J.P. Morgan. It is "a normal, common courtesy" to warn a company that an analyst was about to downgrade its stock. Nothing in the memo "compromises the honesty or objectivity or independence of our analysts," he says. Analysts' practices are coming under increased scrutiny after the Securities and Exchange Commission last October began enforcing Regulation FD, for fair disclosure, a rule that seeks to rein in the flow of privileged information between corporations and the Wall Street analysts who cover them. Wall Street analysts also have been criticized for maintaining "buy" recommendations on once-highflying tech stocks, despite their lack of profits, and long after their stocks had fallen. The issue came to a head for many European investors in December over the initial public offering for France Telecom's Orange PLC unit. Analysts were barred from a briefing by Orange officials unless they agreed to let the lead banks "fact-check" their reports on the share offering. Some question whether research can ever be considered objective if the other arm of the firm publishing it is advising the same company on a merger or selling shares. Sebastian Virchow, a fund manager at Deutsche Bank AG's asset-management unit DWS Group in Frankfurt, says his team confirms the earnings and scientific developments of the companies it invests in, rather than taking analysts' reports at face value. "We read the analyst reports and gather information, but we do our own due diligence and would never just use the reports on their own," he says. "We talk to the companies ourselves and make our own earnings estimates."

Why might "sell side" companies extend the "normal, common courtesy" of warning firms before they downgrade their stocks? Would you consider this good business practice? What is Mr. Barkocy's "buy side" criticism of such practices? Why might the "sell side" ignore such criticism?

J.P. Morgan Tells Analysts To Warn of a Downgrade By Wade Lambert and Jathon Sapsford Staff Reporters of The Wall Street Journal March 22, 2001

J.P. Morgan Chase & Co.'s head of European research told his team of analysts they must run all changes in European stock recommendations past both the company in question and J.P. Morgan's investment-banking department. "Both the company and the client banker need to be notified, in advance, of the recommendation change that we plan to make," said the memo, written by Peter Houghton, head of equity research in Europe. "If the company requests changes to the research note, the analyst has a responsibility to either incorporate the changes requested or communicate clearly why the changes cannot be made." The memo, which a company spokesman described as a global policy for the bank and which was previously reported by the Times of London, represents a rare written edict on a practice that raises questions about analysts' independence. Wall Street analysts long have been pressured by corporate clients and their own bankers to shun negative research. Some companies penalize analysts or their firms for "sell" recommendations. Investment bankers pressure analysts because they fear any negative research will hamper their chances of winning lucrative underwriting or advisory business from the same corporate client. Thus, many savvy investors ignore much of the research that comes from securities firms. "It defeats the purpose of research," says Frank Barkocy, director of research at hedge fund Keefe Managers. Mr. Barkocy represents the "buy side," or those who are potential customers for the research of analysts at Wall Street securities firms who are known as the "sell side." By showing the report first to the company in question, "the way an analyst uses some words might very well be minimized," Mr. Barkocy says. "It's a disservice to the analyst and a disservice to the buy side." J.P. Morgan Chase maintains the memo merely reiterates a policy it has long followed, and that it reflects practices that are common in the industry. The company says it sent the memo to ensure that several new analysts who came from other firms know the policy. The company maintains that analysts aren't under pressure to change recommendations, but only to make factual changes. "The point of the memo was to ensure that there's clear communication between analysts and bankers and companies," says Nick O'Donohoe, head of European equities at J.P. Morgan. It is "a normal, common courtesy" to warn a company that an analyst was about to downgrade its stock. Nothing in the memo "compromises the honesty or objectivity or independence of our analysts," he says. Analysts' practices are coming under increased scrutiny after the Securities and Exchange Commission last October began enforcing Regulation FD, for fair disclosure, a rule that seeks to rein in the flow of privileged information between corporations and the Wall Street analysts who cover them. Wall Street analysts also have been criticized for maintaining "buy" recommendations on once-highflying tech stocks, despite their lack of profits, and long after their stocks had fallen. The issue came to a head for many European investors in December over the initial public offering for France Telecom's Orange PLC unit. Analysts were barred from a briefing by Orange officials unless they agreed to let the lead banks "fact-check" their reports on the share offering. Some question whether research can ever be considered objective if the other arm of the firm publishing it is advising the same company on a merger or selling shares. Sebastian Virchow, a fund manager at Deutsche Bank AG's asset-management unit DWS Group in Frankfurt, says his team confirms the earnings and scientific developments of the companies it invests in, rather than taking analysts' reports at face value. "We read the analyst reports and gather information, but we do our own due diligence and would never just use the reports on their own," he says. "We talk to the companies ourselves and make our own earnings estimates."

What exactly does Peter Houghton's memo say? Does the memo say that analysts should compromise their independence? How does the memo raise questions about analysts' independence? Does it make any difference whether "analysts aren't pressured to change recommendations, but only to make factual changes"?

• Because of the inherent optimism included in a manager’s recommendation of an investment, some financial analysts believe they should incorporate some conservatism in their evaluation of those recommendations. Do you think such an analytical action is appropriate? If so, how would you effect that? If not, is there some other action you would suggest?

For the following projects, compute NVP, IRR, MIRR, profitability index and payback. If these projects are mutually exclusive, which one(s) should be done? If they are independent, which one(s) should be undertaken? Project A Project B Project C Project D -1000 -1500 -500 -2000 400 500 100 600 400 500 300 800 400 700 250 200 400 200 200 300

For the following projects, compute NPV, IRR, MIRR, profitability index, and payback. If these projects are mutually exclusive, which one(s) should be done? If they are independent, which one(s) should be undertaken?
A B C D
Year0 -1,000 -1,500 -500 -2,000
Year1 400 500 100 600
Year2 400 500 300 800
Year3 400 700 250 200
Year4 400 200 200 300
Discount rate 10% 12% 15% 8%

For the following projects, compute NPV, IRR, MIRR, profitability index, and payback. If these projects are mutually exclusive, which
one(s) should be done? If they are independent, which one(s) should be undertaken?
A B C D
Year 0 ($1,000) ($1,500) ($500) ($2,000)
Year 1 $400 $500 $100 $600
Year 2 $400 $500 $300 $800
Year 3 $400 $700 $250 $200
Year 4 $400 $200 $200 $300
Discount Rate 10% 12% 15% 8%

Suppose the demand and cost function for a monopolistically competitive firm are given by Q=36-4Q, C(Q)=124-16Q+Q².

A. Determine the profit-maximizing price and level of output.

B. Calculate the firm profits level.

A friend who knows that you have taken an ABA class is a soccer coach for 7 year old. They ask you for advice about how to teach new members of the team to correctly throw in the ball.

Part 1) What advice do you have for your friend? Part 2) describes that advice in behavioral language.

1. a) What is the concentration of a solution prepared by mixing35.0 mL of 0.10M acetic acid with 15.0 ml of Water?

b)Calculate [H₃O⁺],[C₂H₃O₂^-], and[HC₂H₃O₂] in this solution

c)What is the pH of this solution?

d)Calculate [H₃O⁺],[C₂H₃O₂^-], and[HC₂H₃O₂] for a solution preparedby mixing 35.0 mL of 0.10 M acetic acid and 15 mL of 0.20 M sodiumacetate?

e)What is the pH of this solution?