## Project Assignment | Professional Writing homework essay help

You are considering making a movie. The movie is expected to cost $20 million up front (at t=0) and take a year to produce After that, it is expected to generate positive cash flow of $14 million in the year it is released (at t=2). In year 3, the film is expected to generate $4.2 million as a result of DVD sales, with cash flows decreasing by 25% in perpetuity from then on. The timeline for this project is provided below t= 0 1 3 CF ($million) -20 14 4.2 3.15 Question A: If your movie studio makes investment decisions based solely on a required payback period of three years, would you make this movie? O A. YES OB. NO O C.

There is not enough information to answer this question 0; Cas Question B: If your firm’s cost of capital is 10%, what is the NPV of this opportunity? (Choose the most appropriate answer) Cash O A. $3.57 million OB. $26 28 million Cash Cash Click to select your answer. UB. NU O C. There is not enough information to answer this question View page source Inspect Ctrl+Shift+1 Question B. If your firm’s cost of capital is 10%, what is the NPV of this opportunity? (Choose the most appropriate answer) O A. $3.57 million OB. $26.28 million OC. $6.00 million OD. $0.59 million O E. $1.49 million Question C: The profitability index of this film is closest to which of the following? OA 0744 OB. 0900 O C..0675 OD. .0255 O E. 0856 Cash Cash Click to select your answer.

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## Discount Assignment | Professional Writing homework essay help

193 The Production Process and Costs 6. A firm’s fixed costs for 0 units

Imperial Jewelers manufactures and sells a gold bracelet for $406.00. The company’s accounting system says that the unit product cost for this bracelet is $270.00 as shown below: $148 88 Direct materials Direct labor Manufacturing overhead Unit product cost $270 The members of a wedding party have approached Imperial Jewelers about buying 22 of these gold bracelets for the discounted price of $366.00 each. The members of the wedding party would like special filigree applied to the bracelets that would require Imperial Jewelers to buy a special tool for $461 and that would increase the direct materials cost per bracelet by $10. The special tool would have no other use once the special order is completed.

To analyze this special order opportunity, Imperial Jewelers has determined that most of its manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However, $11.00 of the overhead is variable with respect to the number of bracelets produced. The company also believes that accepting this order would have no effect on its ability to produce and sell jewelry to other customers. Furthermore, the company could fulfill the wedding party’s order using its existing manufacturing capacity Required: 1. What is the financial advantage (disadvantage) of accepting the special order from the wedding party? 2. Should the company accept the special order? Juced. The company also believes that accepting this order would have no enel ability to produce and sell jewelry to other customers. Furthermore, the company could fulfill the wedding party’s orderus existing manufacturing capacity. Required: 1. What is the financial advantage (disadvantage) of accepting the special order from the wedding party?

2. Should the company accept the special order? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the financial advantage (disadvantage) of accepting the special order from the wedding party? To analyze this special order opportunity, Imperial Jewelers has determined that most of its manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However, $11.00 of the overhead is variable with respect to the number of bracelets produced. The company also believes that accepting this order would have no effect on its ability to produce and sell jewelry to other customers. Furthermore, the company could fulfill the wedding party’s order using its existing manufacturing capacity. Required: 1. What is the financial advantage (disadvantage) of accepting the special order from the wedding party? 2. Should the company accept the special order? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Should the company accept the special order? Yes No

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## Treasury Bond Assignment | Professional Writing homework essay help

At time 0, the U.S. Treasury auctions off a ten-year bond with a par value of $1000, and semi-annual payment of $25 per share every six months. The auction price was at qo = $950 dollars per share. 1. Draw a timeline of the treasury bond’s cash payouts. Denote the maturity of this treasury bond at time 0, as YTMtreasury. Solve for the yield to maturity. 2. In period 0, a large corporation auctioned off a ten-year bond with par value of $1000. The bond has an annual coupon rate of 6%; it pays out a coupon payment of $30 per share every six months. It is known that the implied yield to maturity of this corporate bond is 250 basis points above YTM treasury, at what price per share (denote it as po) can the company expect to sell the bonds to the public?

3. In period 1, after coupon payments were made, bad news on the US economy breaks out and the stock market took a hit. Bond investors “fly to safety” by selling the corporate bonds and buying treasury bonds. The corporate bonds were traded at P1 = $800 per share, while the treasury bond were traded at qı = $990 dollars per share. (a) What’s the implied interest rate on the treasury bond in period 1? (b) What’s the period 1 YTM on corporate bond? 4. In period 0, an investor short sold 3 shares of the ten-year US treasury bond and use the proceeds to buy 10 shares of Apple at price of $285 per share. In period 1, Apple paid out a dividend of $5 per share, however, its stock price dropped to $240 per share. The investor sold his Apple stocks in period 1, using the proceeds from which along with his own funds to unwind his short position in treasury bonds. How much money did he lose (cash return between period 0 and period 1? (Hint: Do not forget dividends!).

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## Coupon Payments Assignment | Professional Writing homework essay help

1. Company A’s bond has a current price of $950, maturity value of $1,000, and matures in 8 years. If interest is paid semi-annually and the bond is priced to yield 5%, what is the bond’s annual coupon rate? 2. Company B’s bond has a 6% coupon rate (with interest paid semi-annually), a par value of $1,000, and matures in 10 years. If the bond is priced to yield 5%, what is the bond’s current price? 3. Company C’s bond has a 6% coupon rate (semi-annual interest), a maturity value of $1,000, matures in 5 years, and a current price of $9,75.

What is the bond’s yield-to-maturity? 4. A 20-year, $1,000 par value bond has a 10% annual coupon. The bond currently sells for $875. If the yield to maturity remains at its current rate, what will the price be 10 years from now? 5. One year ago a corporation issued 20-year, noncallable, 5% annual coupon bonds at their par value of $1,000. Coupon payments are made every six month. Today, the market interest rate on these bonds is 7.5%. What is the current price of the bonds, given that they now have 19 years to maturity?

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## Finance Assignment | Professional Writing homework essay help

Super Corporation produces a part used in the manufacture of one of its products. The unit product cost is $21. computed as follows: Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Unit product cost An outside supplier has offered to provide the annual requirement of 2,900 of the parts for only $13 each. The company estimates that 60% of the fixed manufacturing overhead cost above could be eliminated if the parts are purchased from the outside supplier.

Assume that direct labour is an avoidable cost in this decision. Based on these data, the financial advantage (disadvantage) of purchasing the parts from the outside supplier would be: Multiple Choice $6 per unit on average the outside supplier. Assume that direct labour is an avoidable cost in this decision. Based on these data, the financial advantage (disadvantage) of purchasing the parts from the outside supplier would be: Multiple Choice ) $6 per unit on average 0 ($3) per unit on average 0 ($8) per unit on average 0 $3 per unit on average

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## Portfolio Assignment | Professional Writing homework essay help

What is the duration of the portfolio outlined below? First, calculate the weighting (proportion) of each position by dividing the market value of each bond by the total value of the portfolio. Next, multiply the duration of each bond by its weighting, then add the weighted duration of each bond together to get the weighted average duration of the portfolio. Bond W: $13 million, 2-year duration Bond X: $27 million, 7-year duration Bond Y: $60 million, 8-year duration Bond Z: $40 million, 14-year duration Assuming a portfolio duration of 10 years, if market interest rates fall by 50 basis points (0.5%), what is the approximate percentage change you expect in the value of the portfolio? If the market value of the portfolio is $1,000,000 how much money would the portfolio lose if rates increase by 100 basis points (1.0%)?

The expected percent change if rates fall by 0.50% is: Choose… For a portfolio worth $1,000,000, the expected money lost if rates increase by 1% is: Choose… – 14a. Calculate the estimated price of a bond with the following characteristics, assuming interest rates increase by 1.25%: • Current price = 89.125 • Credit rating = BB • Duration = 7 years • Convexity measure = 60 % Price change due to duration = -maturation x yield change % Price change due to convexity = 1/2 x convexity measure x yield change 2 14b. How important is the credit rating to this calculation? Select one or more: O a. 81.744 O O b. 80.909 c. 97.34121 O d. Low rated bonds are more sensitive to changing market yields than high rated bonds e. Low rated bonds are less sensitive to changing market yields than high rated bonds f. Credit rating has no impact on the estimated price change for a given change in market yields o

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## Cash Flow Assignment | Professional Writing homework essay help

Project cash flow and NPV. The managers of Classic Autos Incorporated plan to manufacture classic Thunderbirds (1957 replicas). The necessary foundry equipment will cost a total of $4,300,000 and will be depreciated using a five-year MACRS life, . The sales manager has an estimate for the sale of the classic Thunderbirds. The annual sales volume will be as follows: Year one: 230 Year two: 280 Year three: 330 Year four: 380 Year five: 320 If the sales price is $27,000 per car, variable costs are $17,000 per car, and fixed costs are $1,300,000 annually, what is the annual operating cash flow if the tax rate is 30%? The equipment is sold for salvage for $500,000 at the end of year five. Networking capital increases by $600,000 at the beginning of the project (year 0) and is reduced back to its original level in the final year. Find the internal rate of return for the project using the incremental cash flows. First, what is the annual operating cash flow of the project for year 1? $ (Round to the nearest dollar.) What is the annual operating cash flow of the project for year 2? $ (Round to the nearest dollar.) What is the annual operating cash flow of the project for year 3? $ (Round to the nearest dollar.) What is the annual operating cash flow of the project for year 4? $ (Round to the nearest dollar.)

What is the annual operating cash flow of the project for year 5? $ (Round to the nearest dollar.) Next, what is the after-tax cash flow of the equipment at disposal? $ (Round to the nearest dollar.) Then, what is the incremental cash flow of the project in year 0? $ | (Round to the nearest dollar.) What is the incremental cash flow of the project in year 1? $ | (Round to the nearest dollar.) What is the incremental cash flow of the project in year 2? $ | (Round to the nearest dollar.) What is the incremental cash flow of the project in year 3? $ (Round to the nearest dollar.) What is the incremental cash flow of the project in year 4? $ (Round to the nearest dollar.) What is the incremental cash flow of the project in year 5? $ | (Round to the nearest dollar.) So, what is the IRR of the project? % (Round to two decimal places.) MACRS Fixed Annual Expense Percentages by Recovery Class Click on this icon to download the data from this table Year 3-Year 5-Year 1 2 33.33% 44.45% 14.81% 7.41% 3 20.00% 32.00% 19.20% 11.52% 11.52% 5.76% 7-Year 14.29% 24.49% 17.49% 12.49% 8.93% 8.93% 8.93% 4.45% 12. 4 70 10-Year 10.00% 18.00% 14.40% 11.52% 9.22% 7.37% 6.55% 6.55% 6.55% 6.55% 3.28% 6 7 8 10 11

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## Portfolio Assignment | Professional Writing homework essay help

Download monthly adjusted close price data for Apple and Google (Alphabet Inc.). for the period of Jan. 2010 through Jan. 2020 (use Finance.Yahoo.com). Use Excel for this question. Stock returns are computed as _P7+1 – Pt rt+1 = 1 1. Assume that you are constructing portfolios with Apple and Google such that WA+WG = 1. Create a column in Excel and apply a range of weights between -1 and +1 (with step size of 0.1) to Apple (WA) to construct a portfolio consisting of the two shares (remember that the sum of weights should be one; so you can easily calculate the weight for Google once you know the weight for Apple.

Don’t worry if it gets larger than 1!). Plot a scatter-plot graph showing average return and the standard deviation of the portfolio under alternative values of wa. 2. Now apply a constraint on weights: eliminate negative values of weights and change the weight only between 0 and 1 (with step size of 0.05) and re-plot the scatter plot of average return and variance of portfolio 3. Eliminating negative weights is called short sales constraints. Compare the results of parts (1) and (2) and discuss the effects of imposing short-sales constraints on a market. 4. Use the SP500 index as a proxy for the market portfolio. Create a returns scatterplot (the way we did in the class) and calculate Apple’s beta. (Hint: you can either use the “SLOPE” function in excel or apply the procedures described in Question #2).

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## NPV Assignment | Professional Writing homework essay help

You are considering making a movie. The movie is expected to cost $20 million upfront (at t=0) and take a year to produce. After that, it is expected to generate positive cash flow of $14 million in the year it is released (at t=2). In year 3, the film is expected to generate $4.2 million as a result of DVD sales, with cash flows decreasing by 25% in perpetuity from then on. The timeline for this project is provided below: t= 0 2 3 CF ($million) -20 14 4.2 3.15 Question A:

If your movie studio makes investment decisions based solely on a required payback period of three years, would you make this movie? O A. YES OB. NO OC. There is not enough information to answer this question. Question B: If your firm’s cost of capital is 10%, what is the NPV of this opportunity? (Choose the most appropriate answer) O A. $1.49 million O B. $26.28 million OC. $0.59 million OD. $6.00 million O E. $3.57 million Question C: The profitability index of this film is closest to which of the following? O A..0675 OB. 0744 OC. 0255 OD. 0900 O E. .0856

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## Dividends Assignment | Professional Writing homework essay help

4. A U.S. investor is considering purchasing $1 million worth of Canadian stock. The dividend yield is 3% per annum, and the expected percentage change in the Canadian dollar price of the stock is 6% per annum. Expected appreciation of the Canadian dollar is +1% per annum. U.S. interest rates are ½% per annum, while Canadian interest rates are 1% per annum. Local-currency stock returns have an annualized standard deviation of 20%. $/C$ exchange rate percentage changes have an annualized standard deviation of 8%. The correlation between exchange rate and local-currency stock returns is .2.

a) What is the expected return on an uncovered investment in Canadian stock from the perspective of a U.S. investor?

b) How risky is the investment?

c) What approximately is the risk and expected return on a covered investment in Canadian stock? How would you cover?

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## Finance Assignment | Professional Writing homework essay help

This Question: 10 pts 11 20 (12 ) ► This Test: 182 pts possible chance that was on these bond a des d o s expect to serve The Loughran Corporation has issued-coupon corporate bonds with a five-year maturity Investors believe there is a 25% of the promised payoff at manly .

S025 cents per they are promised Hinwestora expected on the band which of the owners must be the c o de OA. This bond is Cada per 100 face value with a YTM 100% OB. This disced at $85.00 per 5100 faces with a YTM 33% OC. This bond is priced at $632 per $100 face value with a YTM of 6.0% OD. This bond is priced at $74.73 per $100 face value with a YTM 6.0% OE. This bodies priced at $5352 per 100 face value with a YTM

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## Finance Assignment | Professional Writing homework essay help

WP Corporation produces products X, Y, and Z from a single raw material input in a joint production process. Budgeted data for the next month is as follows: Units produced Per unit sales value at split-off

Added processing costs per unit sales value if processed further Product product Y Product Z 2,500 3,000 4,000 $20.00 $25.00 $25.00 $ 4.00 $ 6.00 $ 6.00 $28.00 $28.00 $33.00 The cost of the joint raw material input is $88,000. Which of the products should be processed beyond the split-off point? Product Y Product Z A) Product X yes yes yes no no yes Multiple Choice O Choice A o Choice Ao o Choice B o Choice C

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