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Which of the following are expenses for accounting purposes but are not operating cash flows for financial purposes?
I. interest expense
II. taxes
III. costs of goods sold
IV. depreciation
Basic Finance, Finance
The required rate of return on a certain bond changes from 12 percent to 8 percent, causing the price of the bond to change from $900 to $1,100. Determine the bond's price elasticity.
Consider a currency swap for $10 million and SF 15 million. One party pays dollars at a fixed rate of 9%, and the other pays Swiss francs at a fixed rate of 8 percent. The payments are made semiannually based on the exac ...
Your are the investment advisor for your aunt who would like to invest $1,250,000 with a AAA rated insurance company that will pay her a "monthly" fixed-payment annuity for the next 20-years. Calculate the monthly paymen ...
1.) An analyst has modeled XYZ stock using the Fama & French three factor model (FF3FM). Over the past few years the risk premium on SMB was 2.75% and the risk premium on HML was 3.50%. Regression analysis shows that XYZ ...
As the financial controller for KL Incorporated, a highly diversified conglomerate, you are considering the alternative financing plans for the next millennium. Due to the good relationship with the banks, your firm is a ...
A client has identified two annuities that are available for purchase, The first annuity pays $1,000 at the end of each month over a 3-year period at a nominal rate of 13% p.a. The second annuity pays $3,000 at the end o ...
Assume that the expected rates of inflation over the next 5 years are 4 percent, 7 percent, 10 percent, 8 percent, and 6 percent, respectively. What is the average expected inflation rate over this 5-year period? 6% 9% 8 ...
Suppose that today's stock price is $53.09. If the required rate on equity is 15.6% and the growth rate is 9.3%, compute the expected dividend (i.e. compute D1)
Kiessling Corp. pays a constant $9 dividend on its stock. The company will maintain this dividend for the next eight years and will then cease paying dividends forever. If the required return on this stock is 11 percent, ...
What is the value of an investment that pays $25,000 every other year forever, if the first payment occurs one year from today and the discount rate is 9 percent compounded daily? What is the value today if the first p ...
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