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Unit 4 - Individual Project
Assignment Overview
Go To:
Type: Individual Project
Unit: The CAPM Pricing Model
Due Date: Sun, 1/31/16
Grading Type: Numeric
Points Possible: 115
Points Earned: 0
Deliverable Length: 600 to 800 words
Assignment D
Solution
Chapter:
Problem:
1/15/2015
7
15
Joshua & White Technologies: December 31 Balance Sheets
(Thousands of Dollars)
Assets
Cash and cash equivalents
Short-term investments
Accounts Receivable
Inventories
Total current assets
Net fixed assets
Total as
Student
Chapter:
Problem:
1/15/2015
7
15
Joshua & White Technologies: December 31 Balance Sheets
(Thousands of Dollars)
Assets
Cash and cash equivalents
Short-term investments
Accounts Receivable
Inventories
Total current assets
Net fixed assets
Total ass
Chapter 09 Practises
1. The Besnier Company had $250 million of sales last year,
and it had $75 million of fixed assets that were being operated
at 80% of capacity. In millions, how large could sales have
been if the company had operated at full capacity?
Practice & Review
Chapter 11, 12, 13
Burnham Brothers Inc. has no retained earnings since it has always paid
out all of its earnings as dividends. This same situation is expected to
persist in the future. The company uses the CAPM to calculate its cost o
BUS 1356 Exam #1 Review
1.
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9.
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Ratio analysis: analyze financial statements to appraise a firm's financial position and strength
Liquidity ratio
current ratio, quick ratio, cash ratio
how to increase
Student
Chapter:
Problem:
Andrew Beres
1/15/2015
12
23
Gardial Fisheries is considering two mutually exclusive investments. The projects' expected net cash
flows are as follows:
Time
0
1
2
3
4
5
6
7
Expected Net Cash Flows
Project A Project B
($375)
($575
Solution to Build a Model Problem
Chapter:
Problem:
9
11
Start with the partial model in the file Ch09 P11 Build a Model.xlsx on the textbooks Web site, which contains
Henley Corporations most recent financial statements. Use the following ratios and othe
For each of the scenarios below be certain: (1) each are structure so as to be a viable plan
(enough funds available for a lifetime) and (2) provide a narrative regarding the objective and
results of the scenario.
1. Thursday September 10, 2015
Create spr
Learning Objectives
Understand consumer loan choices
Understand what is and what is not the stated
APR
Differentiate between Chapter 7 and Chapter
13 bankruptcy
Consumer LoansYour Choices
Single-payment loans
Variable-rate installment loans
Unsecure
Volatility Smiles
Chapter 19
Fundamentals of Futures and Options Markets, 7th Ed, Ch 19, Copyright John C. Hull 2010
1
Volatility Smile
A
volatility smile shows the variation of
the implied volatility with the strike price
The volatility smile is the sam
Mechanics of Futures
Markets
Chapter 2
Fundamentals of Futures and Options Markets, 7th Ed, Ch 2, Copyright John C. Hull 2010
1
Futures Contracts
Available
on a wide range of underlyings
Exchange traded
Specifications need to be defined:
What can be de
Hedging Strategies Using
Futures
Chapter 3
Fundamentals of Futures and Options Markets, 7th Ed, Ch3, Copyright John C. Hull 2010
1
Long & Short Hedges
A
long futures hedge is appropriate
when you know you will purchase an
asset in the future and want to l
Interest Rates
Chapter 4
Fundamentals of Futures and Options Markets, 7th Ed, Ch 4, Copyright John C. Hull 2010
1
Types of Rates
Treasury
rates
LIBOR rates
Repo rates
Fundamentals of Futures and Options Markets, 7th Ed, Ch 4, Copyright John C. Hull 201
Determination of Forward
and Futures Prices
Chapter 5
Fundamentals of Futures and Options Markets, 7th Ed, Ch 5, Copyright John C. Hull 2010
1
Consumption vs Investment Assets
Investment
assets are assets held by
significant numbers of people purely for
Interest Rate Futures
Chapter 6
Fundamentals of Futures and Options Markets, 7th Ed, Ch 6, Copyright John C. Hull 2010
1
Day Count Conventions
in the U.S. (Page 131-132)
Treasury Bonds: Actual/Actual (in period)
Corporate Bonds: 30/360
Money Market Instru
Mechanics of Options
Markets
Chapter 9
Fundamentals of Futures and Options Markets, 7th Ed, Ch 9, Copyright John C. Hull 2010
1
Types of Options
A
call is an option to buy
A put is an option to sell
A European option can be exercised only
at the end of
Trading Strategies
Involving Options
Chapter 11
Fundamentals of Futures and Options Markets, 7th Ed, Ch 11, Copyright John C. Hull 2010
1
Three Alternative Strategies
Take
a position in the option and
the underlying
Take a position in 2 or more
options
Valuing Stock Options:
The Black-Scholes-Merton
Model
Chapter 13
Fundamentals of Futures and Options Markets, 7th Ed, Ch 13, Copyright John C. Hull 2010
1
The Black-Scholes-Merton
Random Walk Assumption
Consider
a stock whose price is S
In a short perio
Introduction
Chapter 1
Fundamentals of Futures and Options Markets, 7th Ed, Ch 1, Copyright John C. Hull 2010
1
The Nature of Derivatives
A derivative is an instrument whose value
depends on the values of other more
basic underlying variables
Fundamentals