Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1) Spencer Tools would like to present the special product to its best customers. Though, firm wishes to limit its maximum potential loss on this product to firm's initial investment in project. The fixed costs are evaluate at= $21,000, the depreciation expense is= $11,000, and contribution margin per unit is $12.50. Determine the minimum number of units firm must pre-sell to make sure its potential loss doesn’t exceed desired level?

i) 1,220 units
ii) 1,680 units
iii) 2,215 units
iv) 2,560 units
v) 2,750 units

2) You manage bond portfolios and are setting up a new portfolio with a “planning horizon” of three years. So you wish to set the duration of this portfolio to a 3-year horizon.

Portfolio is to be formed by using 2 bonds with durations longer than 3-year planning horizon. You are long one bond and short on other. One bond has duration of 7 years. The other bond has duration of nine years.

Solve, algebraically, for weights which you will need to hold in two bonds to set duration of portfolio to the wanted 3 years.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M914694

Have any Question? 


Related Questions in Basic Finance

1 how does the cost of canying inventory impact the

1. How does the cost of canying inventory impact the traditional earnings statement of the enterprise? 2. Discuss the relationship between service level, uncertainty, safety stock, and order quantity. How can trade-offs ...

1 in addition to the key words that were defined in the

1. In addition to the key words that were defined in the text, you should be able to define the following terms, which also appear in the Glossary: replication pseudoscience 2. Describe one way in which understanding res ...

Explain how closeout netting reduces the credit risk for

Explain how closeout netting reduces the credit risk for two firms engaged in several derivatives contracts ? How does the legal system impose risk on a derivatives dealer? Consider a firm that has assets that generate c ...

Norman jones an economic historian at the university of

Norman Jones, an economic historian at the University of Utah, has described the view of the ancient Greek philosopher Aristotle on interest: Aristotle defined money as a good that was consumed by use. Unlike houses and ...

1 list and briefly discuss the key features that

1. List and briefly discuss the key features that distinguish long-term debt issues from each other. 2. Define the following: term loan, balloon payment, collateral, and stock purchase warrants. 3. What is a syndicated l ...

The following excerpts are taken from dividend policy

The following excerpts are taken from "Dividend Policy Determinants: An Investigation of the Influences of Stakeholder Theory" by Mark E. Holder, Frederick W. Langrehr, and J. Lawrence Hexter, published in the Autumn 199 ...

A column in the wall street journal observes that while

A column in the Wall Street Journal observes that "while many people buy stocks in the hope of scoring profits down the road, dividends deliver cash right now." If stockholders desire dividends, why do some firms, such a ...

1 in what sense does an increase in accounts payable

1. In what sense does an increase in accounts payable represent a cash inflow? 2. List several ways to estimate a project's terminal value. 3. What are the tax consequences of selling an investment asset for more than it ...

1 explain the origin and purpose of real estate investment

1. Explain the origin and purpose of Real Estate Investment Trusts. 2. Name three primary market lenders that are not subject to banking regulations. 3. Describe a warehouse line of credit and who may use it. 4. Are ther ...

1 demonstrate your understanding of the relationship

1. Demonstrate your understanding of the relationship between logistical capabilities and competencies by tracing the evolution of logistical work to universal competencies. Does this logic have any practical application ...

  • 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