a)
The stock prices.xls Excel spreadsheet shows the change in stock market indices between 2005 and 2006
as a percentage of the 2005 indices. It also shows the change in interest rates between 2005 and 2006 as
a percentage of 2005 interest rates. Use Exce
Financial Options and Weighted Average Cost of Capital (WACC)" Please respond to the
following:
1) Determine two to three (2-3) methods of using stocks and options to create a riskfree hedge portfolio. Support your answer with examples of these methods be
1.
What is the present value of the following uneven cash flow stream $50, $100, $75, and $50
at the end of Years 0 through 3? The appropriate interest rate is 10%, compounded annually.
2.
Suppose that on January 1 you deposit $100 in an account that pays
Q.1. value of investment $100,000 after 5 years at the rate of 2.5%
Solution: We have present value today (PV) = $100,000
Time Horizon (t) =5 years
Rate of interest earned (r) = 2.5%
Here Compounding Period (m) =1 (Annually)
Now use the formula for the pr
Capital Budgeting and Risk Analysis
* From the e-Activity, analyse the reasons why the short-term project that you have chosen
might be ranked higher under the NPV criterion if the cost of capital is high, while the longterm project might be deemed better
Problem 1 - Future Value of Investment
If a firm has $250,000 to invest and can earn 8.5%, compounded annually, how much will the fir
Rate
Nper
PMT
PV
Type
FV
8.50%
2
$0
($250,000)
0
$294,306.25
Firm will have $294306.25 after two years
, how much will th
The Goodman Industries and Landry Incorporateds stock prices and dividends, along with the Market Index, are shown be
data are adjusted to include dividends
Goodman Industries
Landry Incorporated
Year
Stock Price
Dividend
Stock Price
2013
2012
2011
2010
2
Solution:
b
f ( x ) dx
We have defined
as the area of the region bounded by curve
y=f ( x) between the
a
ordinates x = a and x = b and x axis.
x
Then
f ( x ) dx
represents the area of the shaded region as shown in the diagram above as A(x)
a
x
Then
A (
QUESTION 1
Find the derivative of the function.
y
= 4e-2 cos 6
3e-2(4 cos 6 - 2
cos 6 + 6 cos 6)
3e-2(4 cos 6
- 2 cos 6 - 6
sin 6)
-63e-2 sin 6
-563e-2 sin 6
4 points
QUESTION 2
Given y
y
= f(u) and u = g(x), find dy/dx = f'(g(x)g'(x).
= sin u, u = cos x
Selected Economic Statistics for 2005 and 2006 by Country*
Country
Australia
Belgium
Canada
France
Germany
Indonesia
Italy
Japan
Malaysia
Mexico
Netherlands
Singapore
Spain
Sweden
Switzerland
Thailand
United Kingdom
United States
2005
Market
Index*
312.5
Dow Jones Industrial Average
Company
Ticker Symbol
Apple
(NASDAQ:AAPL)
American Express
Boeing
Caterpillar
Cisco Systems
Chevron
Coca-Cola
DuPont
ExxonMobil
General Electric
(NYSE:AXP)
(NYSE:BA)
Goldman Sachs
Home Depot
IBM
Intel
Johnson & Johnson
JPMorga
Need now
In responses to your peers, indicate what you think it is about their examples that clarify the concept
mean of the sampling distribution. The concept is abstract, but how do their examples make it
concrete and more understandable? As an alternat
Solution: We get mean of sample = 72.8
Sample standard deviation = 13.0367
Since population variance is unknown and data size is less than <30, we use t distribution
95% interval will be
72.8
2.26213.0367
2.26213.0367
< <72.8+
10
10
So, answer is 63.4747
1. A corporate bond having at least 10 year to mature and compute
CHESAPEAKE & POTOMAC TEL CO MD
As of 4-Aug-2016
OVERVIEW
Price:
139.56
Coupon (%):
Maturity Date:
Yield to Maturity (%):
8.3
1-Aug-31
4.818
Current Yield (%):
5.947
Fitch Ratings:
Coupon Pa
PERMUTATIONS/COMBINATIONS
1. Some Oregon license plates have 3 letters followed by three numbers. How many license
plates are possible using this configuration of numbers and letters?
Solution: We know, there is 26 alphabets (a-z) and 10 numbers (0-10)
No
HYPOTHESIS TESTING
This Assignment requires you to use Excel only in Question 3. Follow all
instructions carefully. Questions 1, 2, and 3 have specific requirements.
Question 1
Suppose a study reports that the average price for a gallon of self-serve regu
Homework #4
From a recent Wall Street Journal, pick up a quotation of each of the following securities and answer the questions
Journal at the top of every question. Everyone is expected to work individually with different quotations. Copyin
Gold (CMX)-10
(Question 4 is composed of two parts.) The DuPont formula defines the net return on shareholders equity as a f
Operating margin
Asset turnover
Interest burden
Financial leverage
Income tax rate
Using only the data in the table shown below:
a. Calculate ea