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Chapter 11 / Exercise 10
Nature of Mathematics
Smith
Expert Verified
this assignment, revised to incorporateall instructor feedback, along with theother three component assignments asone comprehensive submission in Topic8. To save time later in the course,consider addressing any feedback soonafter this assignment has been gradedand returned to you.Prepare this assignment according tothe guidelines found in the APA StyleGuide, located in the Student SuccessCenter. An abstract is not required.This assignment uses a rubric. Pleasereview the rubric prior to beginningthe assignment to become familiarwith the expectations for successfulcompletion.You are required to submit thisassignment to Turnitin. Please refer tothe directions in the Student SuccessCenter.125.0DiscussionQuestionTopic 4 DQ 25.0
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Chapter 11 / Exercise 10
Nature of Mathematics
Smith
Expert Verified
Gradable ItemsDetailsPoints PossibleConstruct an argument regarding whyan individual may not be convinced tomake a buy/sell decision based on theGordon Growth Model (also known as theDividend Discount Model). Support yourrationale with at least one citationfrom the literature.DiscussionQuestionTopic 4 DQ 1Describe the impact of the couponrate and yield to maturity (YTM) onthe bond par value and market value.If the Federal Reserve Bank decidesto increase the interest rate by 1%beginning next quarter, what stepswould you take as the CFO of a companyto raise capital from the financialmarkets?5.0Participation20.0Topic 5: Risk and Return and Costof CapitalDuration: 7 daysDescription:Objectives:1. Assess risk and return using various statistical measures.2. Recognize the risk/return relationship and its implications.3. Discuss the importance of diversification and its impact on totalrisk.4. Calculate the weighted-average cost of capital (WACC) deriving fromcost of equity, preferred stock, and debt capital.5. Explain the intuition behind calculating the cost of capital andits relationship to the investor's required return.Topic Material:Textbook1. Principles of Managerial FinanceRead Chapters 8 and 9 in Principles of Managerial Finance.Other2. Chapter 8 Powerpoint: Risk and ReturnReview the PowerPoint presentation for Chapter 8.Other3. Chapter 9 Powerpoint: The Cost of CapitalReview the PowerPoint presentation for Chapter 9.Electronic Resource4. Risk and Return Scenario AnalysisView "Risk and Return Scenario Analysis."Lecture Note
5. FIN-504 Lecture 5Read Lecture 5.Other6. Chapters 8-9 Excel ResourceUse the Excel resource (if needed) to complete the assignment for thistopic.Electronic Resource7. Finance DatabaseReview "Finance Database" as needed each topic. This media piece is adatabase of symbols, abbreviations, and formulas associated with yourfinance course.Gradable ItemsDetailsPoints PossibleAssignmentProblem Set 5: Risk and Return andCost of Capital ProblemsComplete the following problems fromChapters 8 and 9 in Principles ofManagerial Finance:Risk and Return: P8-1; P8-4; P8-7;P8-14; P8-20; P8-23; P8-24Cost of Capital: P9-1; P9-2; P9-9;P9-14; P9-17Use the Chapters 8-9 Excel resource(if needed) to complete the problem-set