## Finance Assignment | Professional Writing homework essay help

Problem 3-12 Suppose that you sell short 400 shares of Xtel, currently selling for $55 per share, and give your broker $15,000 to establish your margin account. a. If you earn no interest on the funds in your margin account, what will be your rate of return after one year if Xtel stock is selling at: (i) $60; (ii) $55; (iii) $50? Assume that Xtel pays no dividends. (Leave no cells blank – be certain to enter “O” wherever required. Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.)

i. ii. iii. Rate of return Rate of return Rate of return b. If the maintenance margin is 25%, how high can Xtel’s price rise before you get a margin call? (Round your answer to 2 decimal places.) Margin call will be made at price or higher c. Redo parts (a) and (b), but now assume that Xtel also has paid a year-end dividend of $2 per share. The prices in part (a) should be interpreted as ex-dividend, that is, prices after the dividend has been paid. (Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.) ii. iii. Rate of return Rate of returnſ Rate of returnſ % Margin call will be made at priceſ or higher

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## Finance Assignment | Professional Writing homework essay help

price level AS – P 1 B B AD 1 AD Y 2 Y

This Question: 1 pt 18 of 20 (6 complete) This Test: 4 Use the simple interest formula to determine the missing value. p = $1725, r = 7, t = 3 years, I $113.85

(Do not round until the final answer. Then round to one decimal place as needed.) lad Enter your answer in the answer box

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## Profit Margin Assignment | Professional Writing homework essay help

Borland, Inc., has a profit margin of 6.4 percent on sales of $22,200,000. Assume the firm has debt of $8,500,000 and total assets of $15,100,000.

What is the firm’s ROA?

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## Discount rate Assignment | Professional Writing homework essay help

As discussed in Chapter 11, the value of a share of stock is determined by calculating the present value of all future dividends. These calculations assume a discount rate that is the required rate of return for the investor. The dividends paid may be either constant, increasing at a constant growth rate, or increasing at a rate that changes over time. Please answer each of the following questions and show all of your work.

a. Assume ABC stock pays a constant dividend of $2 per share per year and the investor has an 8 percent required rate of return. What is the value of a share of ABC stock?

b. Now assume DEF stock has a $2 dividend with a 6 percent growth rate. What is the value of DEF stock?

c. What is the value of DEF stock if the Board of Directors increases the dividend to $3 per share? Assume all other variables remain constant.

d. What is the value of DEF stock if the investor’s required rate of return drops to 7 percent (assume dividend is still at $2)?

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## Liabilities Assignment | Professional Writing homework essay help

December 31, 2018, balance sheet of Justin’s Golf Shop, Inc., showed current assets of $1,015 and current liabilities of $870. December 31, 2019, the balance sheet showed current assets of $1,230 and current liabilities of $905.

What was the company’s 2019 change in net working capital, or NWC?

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## Finance Assignment | Professional Writing homework essay help

A firm that uses short-term financing methods for a portion of permanent current

assets is assuming more risk but expects higher returns than a firm with a normal financing plan. Explain.

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## Compound Interest Assignment | Professional Writing homework essay help

Suppose you want to buy a car and can afford to make payments of $500 a month.

The bank makes three-year car loans at 12% compounded monthly. How much can you borrow toward a new car?

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## Equity Assignment | Professional Writing homework essay help

A fire has destroyed a large percentage of the financial records of the Inferno Company. You have the task of piecing together information in order to release a financial report.

You have found the return on equity to be 16.5 percent. Sales were $1,790,000, the total debt ratio was .34, and total debt was $659,000.

What is the return on assets (ROA)?

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## Finance Assignment | Professional Writing homework essay help

A fire has destroyed a large percentage of the financial records of the Inferno Company. You have the task of piecing together information in order to release a financial report.

You have found the return on equity to be 16.5 percent. Sales were $1,790,000, the total debt ratio was .34, and total debt was $659,000.

What is the return on assets (ROA)?

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## APR Assignment | Professional Writing homework essay help

Which of the following bonds is trading at a premium? O A. a two-year bond with a $50,000 face value whose yield to maturity is 5.2% and coupon rate is 5.2% APR paid monthly OB. a 15-year bond with a $10,000 face value whose yield to maturity is 8.0% and coupon rate is 7.8% APR paid semiannually O

C. a ten-year bond with a $4,000 face value whose yield to maturity is 6.0% and coupon rate is 5.9% APR paid semiannually O D. a five-year bond with a $2,000 face value whose yield to maturity is 7.0% and coupon rate is 7.2% APR paid semiannually

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## Cash Flow Assignment | Professional Writing homework essay help

What is the Profitability Index of a project that costs $21,000 today and is expected to generate annual cash inflows of $5,000 for the following 6 years.

Use discount rate of 10%. Round to two decimal places.

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## Finance Assignment | Professional Writing homework essay help

What is the price of the bond in the following table?

Bond

Coupon Rate

Rating

Price Quote

Callable?

A

2.531%

AA

106.681

Yes

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## Valuation Assignment | Professional Writing homework essay help

Put Option Valuation. Determine the value of a put option on the CAD that has the following characteristics: (a) it is of type European (b) it matures in 6 months (c) the strike price is USD 0.95. In the spot market the CAD is trading at USD 0.92.

The US and Canadian interest rates are 4% and 6% respectively. The CAD has an annual standard deviation of 12%.

a) (4 points) Write out fully the general form of the Black-Scholes formula for a European put.

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