Questions
Due to Coronavirus describe the financial impact of this Pandemic on the health care setting and...

Due to Coronavirus describe the financial impact of this Pandemic on the health care setting and how the Healths Care administrator will manage the budget with this new inquired.

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Reply to this comment ROA (Return on assets) is a rate that measures the net income...

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ROA (Return on assets) is a rate that measures the net income compared to the total assets. In other words, it shows how much the company is generating for each dollar invested. It is helpful to compare the results of the companies in the market. A company can be very lucrative, but not efficient. It can demand too much investment to obtain that profit.

The ROE (Return on equity) is very similar to ROA, but it includes the debt of the company. It is calculated by dividing the Net Income by the Stakeholder's equity. Since the stakeholder's equity is the total assets minus the debt of the company, this index shows the return compared to the own capital of the company

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Stocks A and B have the following historical returns: Year Stock A's returns Stock B's returns...

Stocks A and B have the following historical returns:

Year Stock A's returns Stock B's returns
2003 −19.00% −15.50%
2004 34.00% 23.80%
2005 16.00% 29.50%
2006 −0.50% −6.60%
2007 28.00% 27.30%

(a) Calculate the average rate of return and standard deviation of returns (as percents) for each stock during the 5-year period. (Round your standard deviations to two decimal places.)

stock A average rate of return %

standard deviation %

stock B average rate of return %

standard deviation %

(b) Assume that someone held a portfolio consisting of 50% of stock A and 50% of stock B and that the average annual realized returns and past volatility of each stock are unbiased estimators of their expected returns and future volatility. What is the portfolio's expected return and the volatility of next year's returns (as percents)? The correlation between the returns of the two stock is 90.83%. (Round your answers to two decimal places.)

expected return %

volatility %

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At an output level of 18,500 units, you have calculated that the degree of operating leverage...

At an output level of 18,500 units, you have calculated that the degree of operating leverage is 2.10. The operating cash flow is $44,000 in this case. Ignore the effect of taxes.

a. What are fixed costs? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

b. What will the operating cash flow be if output rises to 19,500 units? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

c. What will the operating cash flow be if output falls to 17,500 units? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

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You have $5,995.14 in a brokerage account, and you plan to deposit an additional $6,000 at...

You have $5,995.14 in a brokerage account, and you plan to deposit an additional $6,000 at the end of every future year until your account totals $280,000. You expect to earn 13% annually on the account. How many years will it take to reach your goal? Round your answer to two decimal places at the end of the calculations.

___ years

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3. You would like to retire at the end of 40 years with an annual pension...

3. You would like to retire at the end of 40 years with an annual pension of $1 million per year for 30 years.

a) How much would you have to deposit every year for the next 40 years to meet your goal? Assume you invest in the stock market at an average return of 12 percent per year (for the entire 70 years).

b) Suppose your annual deposits calculated in part (a) actually earned only 6 percent per year for 40 years, how much would you be able to withdraw every year for 30 years following retirement? Assume the 6 percent return is earned over the entire 70 years.

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A binomial tree with one-month time steps is used to value an index option. The interest...

A binomial tree with one-month time steps is used to value an index option. The interest rate is 3% per annum and the dividend yield is 1% per annum. The volatility of the index is 16%. What is the probability of an up movement?

0.4704

0.5065

0.5592

0.5833

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xkl plans a new project that will generate 187000 of continious cash flow each year for...

xkl plans a new project that will generate 187000 of continious cash flow each year for 8 years and additionally 108000 at the end of the project . if the continiously compounded rate of interest is 4 % estimate the pressent value of the cash flows

answer is 1,358,677.35

but details on how i get there please no excel

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Today’s price of Delta is $150 per share. You are neither bullish nor bearish about Delta,...

Today’s price of Delta is $150 per share. You are neither bullish nor bearish about Delta, but you believe that the share price will not move by a lot in the near future. To implement your view, you decide to sell a straddle with one month until maturity. An option dealer provides you quotes on one-month Delta options. For a call option with a strike of $150, the dealer quotes you a price of $4.32. For a put option with a strike of $150, the dealer quotes you a price of $4.32. The c.c. risk-free rate is zero. What is the profit to the short straddle if Delta trades at $200 per share in one month?

There are 2 breakevens, what is the high and what is the low? (There should be two answers, one for high and one for low)

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2. Mansfield Company makes wiring harnesses for the automotive industry. Its standard costs for each harness...

2. Mansfield Company makes wiring harnesses for the automotive industry. Its standard costs for each harness are 2 direct labor hours per unit at $23 of labor cost per hour, and one pound of plastic harness material at $1.25 per pound. Actual manufacturing data for the period are as follows: Number of Units Manufactured 40,000 Number of Direct Labor Hours Used 79,400 Actual Direct Labor Cost $1,746,800 Number of Pounds of Direct Material Used 40,800 Number of Pounds of Direct Material Purchased 41,000 Actual Direct Material Cost $51,000 Calculate Direct Labor Rate Variance __________ Calculate Direct Labor Quantity Variance __________ Calculate Direct Material Price Variance __________ Calculate Direct Material Quantity Variance __________

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With the growing popularity of casual surf print clothing, two recent MBA graduates decided to broaden...

With the growing popularity of casual surf print clothing, two recent MBA graduates decided to broaden this casual surf concept to encompass a “surf lifestyle for the home.” With limited capital, they decided to focus on surf print table and floor lamps to accent people’s homes. They projected unit sales of these lamps to be 8,100 in the first year, with growth of 5 percent each year for the following four years (Years 2 through 5). Production of these lamps will require $46,000 in networking capital to start. Total fixed costs are $106,000 per year, variable production costs are $12 per unit, and the units are priced at $40 each. The equipment needed to begin production will cost $186,000. The equipment will be depreciated using the straight-line method over a five-year life and is not expected to have a salvage value. The effective tax rate is 40 percent, and the required rate of return is 20 percent. What is the NPV of this project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

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What could a financial manager look at to determine whether his company is successful or in...

What could a financial manager look at to determine whether his company is successful or in distress? Give an example of a success or distress in today's business world.

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A borrower takes out a 30-year price level adjusted mortgage loan for $200,000 with monthly payments....

A borrower takes out a 30-year price level adjusted mortgage loan for $200,000 with monthly payments. The initial interest rate is 4% with 4 points. Assuming that inflation is expected to increase at the rate of 3% for the next 5 years, and a fully amortizing loan is made.

What is the inflation adjusted loan balance at the end of year 2? (Choose the nearest number)

a.

$ 202,372

b.

$ 198,597

c.

$ 196,478

d.

$ 204,555

What is the expected effective yield to the lender if the loan is repaid in 2 years? (Choose the nearest number)

a.

9%

b.

6%

c.

7%

d.

12%

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Scenario Analysis. Automatic Transmissions, Inc., has the following estimates for its new gear assembly project; price...

Scenario Analysis. Automatic Transmissions, Inc., has the following estimates for its new gear assembly project; price = $1,070 per unit; variable cost = $290 per unit; fixed costs = $4.8 million; quantity = 70,000 units. Suppose the company believes all of its estimates are accurate only to within + / - 15 percent. What values should the company use for the four variables given here when it performs the best –case scenario analysis? What about the worst-case scenario? Hint: Use the top part only of the NPV template. Also review the scenario analysis of the presentation within this folder.

Scenario

Pappy's Potato has come up with a new product, the Potato Pet (they are freeze-died to last longer). Pappy's paid $120,000 for a marketing survey to determine the viability of the product. It is felt that Potato pet will generate sales of $725,000 per year. The fixed costs associated with this will be $187,000 per year, and variable costs wil amount to 20 percent of sales. The equipment necessary for production of the Potato pet will cost $835,000 and will be depreicated in a straight-line manner for the four years of the product life (as with all fads, it is felt that sales will end quickly). This is the only intial cost for the production.. Pappy's is in a 40% tax bracket and has a required return of 13 percent. Calculate the payback period, NPV and IRR.

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The Robinson Corporation has $43 million of bonds outstanding that were issued at a coupon rate...

The Robinson Corporation has $43 million of bonds outstanding that were issued at a coupon rate of 12.550 percent seven years ago. Interest rates have fallen to 11.750 percent. Mr. Brooks, the Vice-President of Finance, does not expect rates to fall any further. The bonds have 17 years left to maturity, and Mr. Brooks would like to refund the bonds with a new issue of equal amount also having 17 years to maturity. The Robinson Corporation has a tax rate of 30 percent. The underwriting cost on the old issue was 4.30 percent of the total bond value. The underwriting cost on the new issue will be 2.60 percent of the total bond value. The original bond indenture contained a five-year protection against a call, with a call premium of 6 percent starting in the sixth year and scheduled to decline by one-half percent each year thereafter. (Consider the bond to be seven years old for purposes of computing the premium.) Use Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Assume the discount rate is equal to the aftertax cost of new debt rounded up to the nearest whole percent (e.g. 4.06 percent should be rounded up to 5 percent)

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