Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1) A 1 year long forward contract on the non dividend paying stock is entered into when stock price is= $40 and risk free interest rate is= 10% with continuous compounding

a) Compute forward price

b) 6 month later price of the stock is $45 and risk free interest rate is still similar. What are the forward prices and value of forward contract?

2) Is there anyone recognizable with Harvard case study Ameritrade for finance class? Determine what would be included in cash flow for company’s intended investments? Create a spreadsheet with about paragraph of description for your choices, and describe the volatility of stock prices of appropriate companies. You will require utilizing a spreadsheet for your computations. prepare a paragraph describing your conclusions.

3) Assume you have the investment opportunities given but only $90,000 available which projects would you choose?

PJ  NPV    Investment
1  5,000    10,000
2  5,000      5,000
3  10,000   90,000
4  15,000   60,000
5  15,000    75,000
6  3,000     15,000

4) A project has the forecasted cash flow of= $110 in year 1= $121 in year 2 the interest rate is= 5 % risk premium on market is= 10%, project has the beta of= .5 if you utilize constant risk adjusted discount rate what is:

a) The PV of project
b) Certainty Equivalent cash flow in year 1 and year 2
c) Ratio of certainty equivalent cash flows to expected cash flows from years 1 and 2.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M914346

Have any Question? 


Related Questions in Basic Finance

Bellamee company has bonds outstanding with five years to

Bellamee Company has bonds outstanding with five years to maturity and a face value of $5,299. The bonds are currently priced at their face value. If the bonds have a coupon rate of 25 percent, then what is Bellamee's af ...

A property is expected to have noi of 100000 the first year

A property is expected to have NOI of $100,000 the first year. The NOI is expected to increase by 3 percent per year thereafter. The appraised value of the property is currently $1 million and the lender is willing to ma ...

Read one practical article of how psychology affects

Read one practical article of how psychology affects spending behavior. Easily retrieve possible articles by doing an online search using the terms "psychology" and "spending." Summarize the main points of the article.

Choose an article that discusses the differences between

Choose an article that discusses the differences between book value, liquidation value, market value, and intrinsic value. Explain the three factors that determine the intrinsic, or economic, value of an asset. As an inv ...

Does depreciation affect cash flow in a positive or

Does depreciation affect cash flow in a positive or negative manner? From a net present-value perspective, why is accelerated depreciation preferable? Is it acceptable to utilize one depreciation method for tax purposes ...

Locate a newspaper or magazine article that reports a

Locate a newspaper or magazine article that reports a behavioral science research project. a. Determine whether the project is a descriptive, a correlational, or an experimental research design. b. What variables are mea ...

Govt exam review1be prepared to give two examples of

GOVT Exam Review 1. Be prepared to give two examples of Internal Validity problems AND two examples of External Validity problems that can cause inaccurate or biased results in public opinion polls. 2. Be able to explain ...

You purchased a new car for 23000 to purchase the car you

You purchased a new car for $23,000. To purchase the car you have a loan with payments of $509.09 monthly for four years. What is the monthly interest rate on this loan? What is the nominal annual interest rate on this l ...

Problems about the ability of borrowers to meet mortgage

Problems about the ability of borrowers to meet mortgage payments and the evolution of fixed interest rate mortgages with various payment patterns were discussed. Why didn't this evolution address problems faced by lende ...

Describe the common definitions of inflows of cash and

Describe the common definitions of "inflows of cash" and "outflows of cash" used by analysts to classify certain balance sheet changes and income statement values. What three categories of cash flow are used in the state ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro