What are two techniques that you could use to develop a rough estimate for each divisions cost of
Corporations often use different costs of capital for different operating divisions. Using an example,
calculate the weighted cost of capital (WACC). What are some potential issues in using varying
techniques for cost of capital for different divisions? I
Financial Risk and Reward
I learned what causes financial risk and risk associated with owning an investment. I found the
explanation behind the reason companies incurs debt is to speed up time which I found very
informative. When companies take on debt,
Investment and Consumption
They were helpful in making it easier to understand risk and reward. The first thing that came to mind
after watching these videos were playing the lottery. Thinking about playing the lottery, I will always see
that second pictu
Imagine you can interview the presenters and ask one question about financial risks and rewards. What
question would you ask? Why do you feel that is an important question?
What is Financial Risk (Links to an external site.)Links to an external site.
I would like speak with you briefly today to share some information about capital budgeting
decision making. Management needs to understand the process of allocating their funds into the
right long-term investments. The topics I would li
Imagine the producers of this video ask you to appear in the video to offer two additional considerations
in capital budgeting decisions. One consideration must be quantitative (numeric). The other must be
qualitative (non-numeric). Which provides some fa
Assume you are planning to start a new business that will sell innovative consumer products via an
online store. You will be pitching your idea to potential investors with the goal of securing funding. Your
investors are very savvy and want to review a we
Explain why cash flows occurring at different intervals should be adjusted for a common date in order to
allow for a proper comparison.
Write a script to describe capital budgeting considerations that you think are important for managers to
consider. Your script should be 200 to 250 words.
So today weve touched upon the process known as capital budgeting. Capital budgeting is a critical p
Cash Flows and Financial Forecast
I represent Fake WoodWork Company ZYX. Fake WoodWork Company ZYX takes pride in
selling innovative consumer products to consumers worldwide through our online store
platform. Our primary area of expertise, as the title wo
NET PRESENT VALUE
AND THE FUTURE VALUE
According to Kahraman, C., Ruan, D., & Tolga,
E. (2002), the Net Present Value is the
difference between the present value of cash
inflows and the present value of cash
The quantity of periods required in the calculation of the qualities, self-multiplying dividends
over a timeframe, the counts need to consider yearly loan costs, show value, payments and future
The significance o
Go to the FINRA Bonds Quick Search (Links to an external site.)Links to an external site.Click the
Corporate check box under Bond Type then click Show Results.
ACORDA THERAPEUTICS INC, here is some sampling of my work below. This companys
bonds are sellin
Choose any bond.
Assume interest rates for bonds today is 5% for an AAA rated bond. Calculate the price of the bond you
have selected relative to the 5%. Is the bond selling at a premium or a discount? Why? Be sure to show
how you arrived at your answer.
Investing in Bonds
PENNEY J C INC.
Assume interest rates for bonds today is 5% for an AAA rated bond. Calculate the price of the
bond you have selected relative to the 5%.
JC PENNEY INC issues bonds with coupons.
RETURN ON INVESTMENT: EDUCATION FUNDING 1
Return on Investment: Education Funding
Return on Investment: Education Funding
Five years from now I want to have made progressive steps towards a bright future.
Financial stability, professional advancement, and
1.Wealth is created when a company:
makes investments that are expected to create value greater than their cost.
has a high stock price.
pays regular dividends.
obtains additional assets.
2. Opportunity costs can vary over time and:
are almost al
1. Debt financing is called leverage because, like a lever in mechanics, it:
makes the company stronger.
magnifies the influence a company has.
has a magnifying effect on financial performance.
can lift a company out of mediocre performance.
1. Which of the following best describes a pure-play?
a private firm that is held in isolation in a one-company investment portfolio
a publicly traded firm that is similar to the company or project being analyzed
Both a and b are correct.
10 out 10
1. We would expect that, all else being equal, investors would pay more for a stock with a higher dividend
growth rate. Assume a stock has just paid a $2.00-per-share dividend. Analysts believe that future dividends
will grow at a 6% rate. The r
Homework chapter 15
1 - The Tire Rack, Americas leading online distributor of tires and wheels, conducts extensive testing to
provide customers with products that are right for their vehicle, driving style, and driving conditions. In
addition, the Tire Ra
1. When the number of trials becomes large, evaluating the binomial
probability function by hand or with a calculator is difficult. In these
cases, the normal distribution provides as easy-to-use approximation of
2. The continuous
1. Using functions, create a frequency distribution of the states which includes the frequency, relative frequency, cum
2. Insert a pie chart and a bar chart showing the frequencies of the states.
Week 3 Homework
5. a) mean= sum of all hotel rooms divided by the total number of hotels
b) median = 162 + 160 / 2 = $161
d) i= (25/100)20= 5
e) i= (75/100)20= 15
9. a) $181.3 th
Homework 4 Question Chapter 3 promblems 35,44,51,69
a) mean = 3.99 median= 4.185
b) first quartile= 4 third quartile= 4.5
c) Variance = .656 so SD = .646 squared root = .81
d) a -1.67 means that the data is skewed to the left. This means
Chapter 4 Problems: 29, 50, 52, and 53
a) E= 1033 R= 854 D= 174
b) Yes E and D are not mutually exclusive because the amount of D depends on how many E are accepted
and how many R are rejected
c) 1033/2375 the probability= .43
d) Early admitted= .43 L
Week 8 Homework: Due to the D2L drop box by 11:59pm on Sunday, March 5, 2017.
Complete the following problems from the textbook.
Chapter 4 Problems: 1 (draw a tree diagram of this experiment and list the experimental
outcomes as well), 3, 13, 21.