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Assume that your friend Mr. Aslam resides in USA and send you $20,000 to purchase

Question: Assume that your friend Mr. Aslam resides in USA and send you $20,000 to purchase a plot that costs Rs.2200,000 in 2015 at spot rate Rs.110/$1. What should be the price of the plot at today spot rate Rs.185/$1 to cover the initial amount invested ($20,000). How he can avoid the expected loss due to variations in future spot rate, give your options. WhatAssume that your friend Mr. Aslam resides in USA and send you $20,000 to purchase a plot that costs Rs.2200,000 in 2015 at spot rate Rs.110/$1.
What should be the price of the plot at today spot rate Rs.185/$1 to cover the initial amount invested ($20,000).
How he can avoid the expected loss due to variations in future spot rate, give your options.
What should be the either today value of the plot (if spot exchange rate is Rs.190/$1) or today spot rate to make this investment profitable in terms of US$.
a) To cover the initial amount invested…View the full answer

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Corporate FInance Assignment/ Professional Essay Writers homework essay help

Consider a multiplicative binomial model with N = 3, r = 0, U = 1.2, d = 0.8 and S O = 100. At time t = 1 when S 1 = 120 a (European) call option with maturity at T = 3 and struck at 100 is quoted at 25. Is that a fair value? If yes explain why? If not explain why and explicitly define an arbitrage strategy (you have to give details of the arbitrage strategy.)  Get Finance Help Today

Corporate FInance Assignment/ Professional Essay Writers homework essay help

Assume that your friend Mr. Aslam resides in USA and send you $20,000 to purchase

Company C: C is a quoted, fashion retailer. Daniels believes that the current share price of 2.58 € undervalues the company significantly, making it a suitable target. He is also interested in Company C as he feels it would have a good fit with his existing fund portfolio and would diversify away some risk.

Which one of the following statements concerning Daniel’s opinion that Company C is undervalued is true?

Select one:

a. Daniels believes that the stock market is strong-form efficient and he has access to secret inside information.

b. Daniels believes that the stock market is semi-strong form efficient and he has access to secret inside information.

c. Daniels believes that the stock market is semi-strong form efficient and he has analyzed financial statements and press releases to form his opinion.

d. Daniels believes that the stock market is weak-form efficient and he has produced graphs of historic share prices to form his opinion.  Get Finance Help Today

Corporate FInance Assignment/ Professional Essay Writers homework essay help

C: C is quoted, a fashion retailer. Daniels believes that the current share price of 2.58 € undervalues the company significantly, making it a suitable target. He is also interested in Company C as he feels it would have a good fit with his existing fund portfolio and would diversify away some risk.

Which of the following statements concerning whether Daniels should buy Company C to diversify away portfolio risk are true?

(i) The shareholders on Investio Inc are unlikely to value such diversification.

(ii) Daniels should always try to reduce the average beta of his portfolio.

(iii) Daniels should seek to diversify away any systematic risk in his portfolio.

Select one:

a. (i), (ii), and (iii.)

b. (i) and (ii) only.

c. (i) only.

d. None of them.  Get Finance Help Today

Corporate FInance Assignment/ Professional Essay Writers homework essay help

Company B: B is an unquoted shoe manufacturer. It has also suffered in the recent recession but the directors are confident that the company is past the worst and growth lies ahead:

– Earnings are expected to be 12.5 million € next year and expected to grow at 2% p.a.

– Dividends will be 5 million € for each of the next three years and then expected to grow at 3% thereafter.

Daniels has located a similar listed company that has an earnings yield of 12% and a cost of equity of 14%.

Calculate the value of Company B using the dividend valuation model:

Select one:

a. 42.3 m €.

b. 43.2 m €.

c. 46.8 m €.

d. 47.3 m €.  Get Finance Help Today

Corporate FInance Assignment/ Professional Essay Writers homework essay help

Filer Manufacturing has 9,039,298 shares of common stock outstanding. The current share price is $35.65, and the book value per share is $6.29. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $77,693,790, has a 0.05 coupon, matures in 10 years, and sells for 83 percent of par.

The second issue has a face value of $78,423,965, has a 0.06 coupon, matures in 20 years, and sells for 92 percent of par. The most recent dividend was $2.56 and the dividend growth rate is 0.03. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 0.39.

What is Filer’s WACC? Enter the answer with 4 decimals (e.g. 0.2345.)  Get Finance Help Today

Insurance Assignment | Professional Writing homework essay help

Kristen Lu purchased a used automobile for $20,650 at the beginning of last year and incurred the following operating costs Depreciation ($20,650 + 5 years) Insurance Garage rent Automobile tax and license Variable operating cost $ 4,130 $ 2,200 $1,100 $ 57e $ 0.12 per nile The variable operating cost consists of gasoline, oil, tires, maintenance, and repairs. Kristen estimates that, at her current rate of usage, the car will have zero resale value in five years, so the annual straight-line depreciation is $4,130. The car is kept in a garage for a monthly fee. Required: 1. Kristen drove the car 20,000 miles last year.

Compute the average cost per mile of owning and operating the car. (Round your answers to 2 decimal places.) Average fixed cost per mile Variable operating cost per mile Average cost per mile 2. Kristen is unsure about whether she should use her own car or rent a car to go on an extended cross-country trip for two Average fixed cost per mile Variable operating cost per mile Average cost per mile 2. Kristen is unsure about whether she should use her own car or rent a car to go on an extended cross-country trip for two weeks during spring break. What costs above are relevant in this decision? Assume that there is no decrease in the resale value of the car due to its use. (You may select more than one answer. Single-click the box with the question mark to produce a checkmark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) 2 Variable operating costs 2 Depreciation 2 Automobile tax ? License costs 2 Insurance costs

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IRR Assignment | Professional Writing homework essay help

MIL ME his Question: 1 pt 27 of 30 (26 complete) Which of the following statements regarding bonds and their terms is FALSE? O A. The internal rate of return (IRR) of a bond is given a special name, the yield to maturity (YTM). O B.

Unlike the case of bonds that pay coupons, for zero-coupon bonds, there is no formula to solve for the yield to maturity. O C. One advantage of quoting the yield to maturity rather than the price is that the yield is independent of the face value of the bond. O D. Because we can convert any bond price into a yield, and vice versa, bond prices and yields are often used interchangeably. Click to select your answer.

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Bond Assignment | Professional Writing homework essay help

Hooper Printing Inc. has bonds outstanding with 9 years left to maturity. The bonds have an 9% annual coupon rate and were issued 1 year ago at their par value of $1,000. However, due to changes in interest rates, the bond’s market price has fallen to $905.35. The capital gains yield last year was – 9.465%.

What is the yield to maturity? Round your answer to two decimal places.
For the coming year, what is the expected current yield?
For the coming year, what is the expected capital gains yield?
Will the actual realized yields be equal to the expected yields if interest rates change? If not, how will they differ? (This question is MC)

I. As rates change they will cause the end-of-year price to change and thus the realized capital gains yield to change. As a result, the realized return to investors will differ from the YTM.

II. As long as promised coupon payments are made, the current yield will change as a result of changing interest rates. However, changing rates will cause the price to change and as a result, the realized return to investors will differ from the YTM.

III. As long as promised coupon payments are made, the current yield will not change as a result of changing interest rates. However, changing rates will cause the price to change and as a result, the realized return to investors should equal the YTM.

IV. As long as promised coupon payments are made, the current yield will change as a result of changing interest rates. However, changing rates will cause the price to change and as a result, the realized return to investors should equal the YTM.

V. As long as promised coupon payments are made, the current yield will change as a result of changing interest rates. However, changing rates will not cause the price to change and as a result, the realized return to investors should equal the YTM.

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Dividend Assignment | Professional Writing homework essay help

Assume that a firm’s common stock can be valued using the constant dividend growth model. As an analyst, you expect that the return on the market will be 15% and the risk-free rate is 5%.

You have estimated that the dividend next period will be $50, the firm will grow at a constant 6%, and the firm beta is 0.70. The common stock is currently selling for $45.00 in the market place. The firm’s stock is overpriced or not.

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