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

Paychex inc payx recently paid an 088 dividend the dividend

Paychex Inc. (PAYX) recently paid an $0.88 dividend. The dividend is expected to grow at a 15 percent rate. The current stock price is $55.71. What is the return shareholders are expecting? (Do not round intermediate cal ...

A with reference to the four quadrant diagram explain in

a) With reference to the four quadrant diagram, explain in your own words the short and long run effects of an (unanticipated) monetary expansion on exchange rates; interest rates; the price level; the trade balance; out ...

A company has 12 salespeople a board member at the company

A company has 12 salespeople. A board member at the company asks for a list of the top 5 salespeople, ranked in order of effectiveness. How many lists are possible? Assume that the order of the salespeople on the list is ...

Suppose a central bank is trying to decide whether to

Suppose a central bank is trying to decide whether to target money growth. Proponents of the move are confident that the new policy would be successful as, under the existing policy regime, they observed a stable statist ...

Solve this proble using a formula thnaks suppose the texas

Solve this proble using a formula, thnaks. Suppose the Texas lottery advertises that it pays its winner 5 million. However, this prize money is paid at the rate of $1 million each year (with the first payment being immed ...

Cross-border mergers are a useful means of overseas

Cross-border mergers are a useful means of overseas expansion for multinational enterprises (MNEs). What are cross-border mergers? What are the circumstances under which MNEs internationalise using cross-border mergers? ...

There are three well-diversified portfolios a b and c with

There are three well-diversified portfolios A, B and C with alphas of 0.0132, 0.0289 and 0.0579, respectively, and betas of 1.27, 1.15 and 1.50, respectively. The risk-free rate is 4.7% p.a., the market risk premium is 8 ...

An investor holds a bond portfolio with principal value

An investor holds a bond portfolio with principal value $10,000,000 whose price and modi?ed duration are respectively 112 and 9.21. He wishes to be hedged against a rise in interest rates by selling futures contracts wri ...

Learning outcomesthis assignment has been structured in

Learning Outcomes This assignment has been structured in accordance with the following Graduate Attributes: - Ability to demonstrate the quantitative skills taught in the unit. - Use of computing skills to effectively pr ...

Under the bretton woods system the us dollar was the

Under the Bretton Woods system, the U.S. dollar was the official reserve asset. How did this affect the U.S. balance of payments on current and capital accounts? Could the United States experience large balance of paymen ...

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate