1. Evaluate the difference between the primary market and the secondary market.

     Explain how financial intermediaries channel household savings into financial     investment. (300 words)

thank you

Assume you are 25 and earn ​$31,000 per​ year, never expect to receive a​ raise, and plan to retire at age 55. If you invest 5 percent of your salary in a​ 401(k) plan returning 11 percent​ annually, and the company provides a​ $0.50 per​ $1.00 match on your contributions up to 3 percent of​ salary, what is the estimated future value of your​ 401(k) account? Once you​ retire, how much can you withdraw monthly if you want to deplete your account over 30 ​years? 

You can buy a car that is advertised for $24,600 on the following terms: (a) pay $24,600 and receive a $4,600 rebate from the manufacturer; (b) pay $410 a month for 5 years for total payments of $24,600, implying zero percent financing.

a. Calculate the present value of the payments for option (a) if the interest rate is 1.25% per month.

b. Calculate the present value of the payments for option (b) if the interest rate is 1.25% per month. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

c. Which is the better deal? Option a or Option b

Consider the following assets available for investment:

1. A stock index fund

2. A corporate bond fund

3. A utility fund

4. A global fund

5. A treasury fund

You have research on the funds that has projected out the expected returns (in percent) for the funds

along with the probabilities of those returns occurring. The following table shows the expectations:

Your assignment is to analyze the risk and return metrics of these assets and answer the following questions:

1. What is the expected return of each asset?

2. What is the standard deviation of each asset?

3. What is the Sharpe Ratio of each asset, using the treasury fund as the risk free asset? (Note, the treasury fund will not have Sharpe ratio because it is the risk free asset)

4. Using the stock index fund as the “market”, what is the Beta of each asset?

5. If you were only going to invest in one of these assets, would it be more appropriate to use standard deviation or Beta as your measure of risk, and why?

6. Which asset, if held as a single investment, gives you the best reward for the risk you have taken?

7. Diagram the Security Market Line (assuming the stock index fund is the market and the treasury fund is the risk free asset), plotting the assets in their appropriate places.

8. Which assets are considered “underpriced” and which are considered “overpriced” based on the SML?

An antique automobile is depreciating, i.e. losing value i.e. going down in price at a rate of 7% per annum compounded annually. Betty and Bob have an account, which earns interest at a rate of 12% per annum continuously compounded. They originally had $9,000 in the account and withdrew $2000 after the second year and $2,500 after the third year. They had enough money (exactly) to buy the automobile after 6 years.
Algebraically find the original value of the automobile.

(I need a step-by-step explanation of the formulas used. Thanks)

You are going to value Lauryn’s Doll Co. using the FCF model. After consulting various sources, you find that Lauryn's has a reported equity beta of 1.5, a debt-to-equity ratio of 0.6, and a tax rate of 30 percent. Assume a risk-free rate of 5 percent and a market risk premium of 9 percent. Lauryn’s Doll Co. had EBIT last year of $48 million, which is net of a depreciation expense of $4.8 million. In addition, Lauryn's made $5.5 million in capital expenditures and increased net working capital by $1.8 million. Assume the FCF is expected to grow at a rate of 3 percent into perpetuity. What is the value of the firm?

Firm Value: Millions.

A company issues a 25-year $6500 bond, redeemable at 95 with bond interest at j1= 6%. The bond is callable at the end of 15 years for $5425 or at the end of 20 years for $6870. Determine the price to guarantee the investor a yield of j1 = 10%.

What are the benefits of ratio analysis? What are the limitations of ratio analysis? What can be done to minimize the limitations on ratio analysis? Explain. Cite any references used.

You have a borrowing capacity of 5 million USD, and 500 million JPY. You observe that the bid/ask interest rate quote on USD is 1%/3%. The bid/ask interest rate quote on the JPY is 0.5%/2%. The spot exchange rate is 87.3 JPY/USD, and you expect that the USD is going to appreciate to 97.4 JPY/USD over the next 6 months (180 days). If you conduct a speculative trade on your expectations of exchange rate change, and your expectations are correct, what will be your total profit, as measured in USD?

You plan to purchase a $270,000 house using a 15-year mortgage obtained from your bank. The mortgage rate offered to you is 5.00 percent. You will make a down payment of 20 percent of the purchase price.

a. Calculate your monthly payments on this mortgage.
b. Construct the amortization schedule for the mortgage. How much total interest is paid on this mortgage?

Construct the amortization schedule for the mortgage? (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))

How much total interest is paid on this mortgage?

Q1) A(n) 6.1% bond with 10 years left to maturity has a YTM of 9.1%. The bond's price should be $__________. You should assume that the coupon payments occur semiannually.

Q2) A 10-year 4.8% coupon bond was issued 2 years ago. Similarly risky bonds are yielding 6%. Assume semi-annual coupon payments. The bond's price should be $___________.

If you can, please complete both! Thank you so much.

At year-end 2018, Wallace Landscaping’s total assets were $2.09 million, and its accounts payable were $390,000. Sales, which in 2018 were $2.4 million, are expected to increase by 25% in 2019. Total assets and accounts payable are proportional to sales, and that relationship will be maintained. Wallace typically uses no current liabilities other than accounts payable. Common stock amounted to $425,000 in 2018, and retained earnings were $205,000. Wallace has arranged to sell $135,000 of new common stock in 2019 to meet some of its financing needs. The remainder of its financing needs will be met by issuing new long-term debt at the end of 2019. (Because the debt is added at the end of the year, there will be no additional interest expense due to the new debt.) Its net profit margin on sales is 6%, and 35% of earnings will be paid out as dividends. What was Wallace's total long-term debt in 2018? Do not round intermediate calculations. Round your answer to the nearest dollar. $ What were Wallace's total liabilities in 2018? Do not round intermediate calculations. Round your answer to the nearest dollar. $ How much new long-term debt financing will be needed in 2019? (Hint: AFN - New stock = New long-term debt.) Do not round intermediate calculations. Round your answer to the nearest dollar. $

If I deposit $5,000 a year for 10 years, age 25 to 35, at 10% interest, and then let the sum/accumulation sit for 30 years, also earning 10% per year that might be an astute investment. But my older brother who graduated from the “school down south,” says that I should wait until I am 35 and making a ton of money and then I can deposit $7,500 a year for 30 years at 10% and I will be much better off…….since you are a University of Utah grad, and unlike some other universities (Tempe Normal) you can walk and chew gum at the same time, which of the following is correct? Group of answer choices

Both would yield virtually the same sum, within $1,000 of each other without rounding off.

The $5,000 a year would give about $979,258 more because of the power of compound interest.

The $7,500 scenario would provide me with at least $156,786 more.

The $7,500 scenario would provide me with about $156,786 less.

1. Draw a curve showing the balance of carrying costs and ordering costs. Specifically show the EOQ point and explain it.
2. What are the assumptions for EOQ to hold true?
3. AMS Ltd is engaged in sale of footballs. Its cost per order is Tsh 400 and its carrying cost per unit is Tshs 10 per unit per annum. The company has a demand for 20,000 units per year. Find EOQ, No. of order per year, Ordering Cost and Carrying Cost and Total Cost of Inventory