take data from morningstar and solve using Excel

estimate the weighted average cost of capital, listing the necessary inputs at the top of your sheet, calculate Boeing’s cost of equity and beta.

2. use the capital asset pricing model to estimate Boeing’s cost of equity, assuming 3.5% risk-free rate and 5.5% market risk premium. Link to a separate sheet with beta estimation.

3. where you estimated Boeing’s beta, using historical prices with WEEKLY frequency for the most recent 5 YEARS. Use the SLOPE function to estimate beta. Insert a scatter chart that shows the trendline from regressing returns of BA on the VFINX returns, displays the estimated equation, and the R-squared (check the boxes to display the equation and the R-squared).

4. In the context of your regression analysis shown on the chart, using the specific numbers that you estimated. Explain the meaning of the slope coefficient from the estimated equation and discuss what your estimate implies about the risk of holding BA stock. Explain the meaning of the R-squared from the estimated equation.

Finally, Is Boeing’s cost of equity smaller or larger than Boeing’s cost of debt? Is that what we would expect? Explain!

1.) In the U.S. when does a company use the current rate method as opposed to the temporal method?

2.) What is an interest rate swap?

Please help me answer these international financial management questions. Thank you!

Explain how ROA ratio would be affected if a retail company was able to negotiate a better purchase price for a line of clothes for inventory.

Give a BRIEF, general overview of the Annual Budget Cycle, from the president's budget through budget implementation. Brief means to provide only a couple sentences on each major part of the cycle.
What are your top three areas of concern that you think should be addressed in the federal budget and why?

7. A stock will pay a dividend of amount Y at the end of each year for the next 14 years. At the end of the 15-th year the dividend increases by 1:5% and increases by 1:5% each year thereafter. Assuming an annual e?ective interest rate of 5%, the price of this stock is 123. Determine the value ofY.

Why do many companies prefer to use debt to provide capital for their operations?

Kolby’s Korndogs is looking at a new sausage system with an installed cost of $670,000. This cost will be depreciated straight-line to zero over the project’s 5-year life, at the end of which the sausage system can be scrapped for $88,000. The sausage system will save the firm $213,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $41,000. If the tax rate is 23 percent and the discount rate is 11 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.)

1.) Explain the concept of mismatched maturities? Give an example. What is the purpose of this technique?

2.) What is a Balance Sheet hedge? Why would a firm use one?

Please help me answer these international financial management questions. Thank you!

On January 1st, 2019 the 1-year Hungarian Government Bonds are offered at 1% yield. An investor is interested in investing in the Hungarian capital market. He has the following information about the expected annual returns, variances and correlations for two Hungarian cargo airlines (assuming these are the only stocks traded on this market): ASL Airlines and Fleet Air.

a) i) Do the 1-year Hungarian Government bonds bear any risk? Explain any assumptions you made in arriving at your answer. [2 marks]

ii) Find the annual risk free rate in this economy. [1 mark]

iii) Calculate the annual risk premium of ASL Air. [1 mark]

b) In order to decide his optimum portfolio, the investor needs to know the tangency portfolio in this market. Find the weights of the tangency portfolio. then calculate the expected return and variance of this tangency portfolio [4 marks]

c) Calculate the expected annual return and variance of the tangency portfolio. [3 marks]

1.) Explain how multilateral netting works. Why would a company do this?

2.) What is a functional currency?

3.) Explain the various ways one part of a firm could use to transfer money to another part of the same company?

Please help me answer these international finance questions.

Consider a project to supply Detroit with 40,000 tons of machine screws annually for automobile production. You will need an initial $5,400,000 investment in threading equipment to get the project started; the project will last for 5 years. The accounting department estimates that annual fixed costs will be $850,000 and that variable costs should be $440 per ton; accounting will depreciate the initial fixed asset investment straight-line to zero over the 5-year project life. It also estimates a salvage value of $380,000 after dismantling costs. The marketing department estimates that the automakers will let the contract at a selling price of $560 per ton. The engineering department estimates you will need an initial net working capital investment of $540,000. You require a return of 12 percent and face a marginal tax rate of 23 percent on this project.

a-1

What is the estimated OCF for this project? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

a-2

What is the estimated NPV for this project? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.)

b.

Suppose you believe that the accounting department’s initial cost and salvage value projections are accurate only to within ±15 percent; the marketing department’s price estimate is accurate only to within ±10 percent; and the engineering department’s net working capital estimate is accurate only to within ±5 percent. What is the worst-case NPV for this project? The best-case NPV?

The purchase price is $2,000,000

There are 30 units and the market rent is $850/month

Market rents are expected to increase 4% per year

Vacancy and collection loss is 10%

Real Estate Taxes are expected to be $20,000 in year 1 and increase 5% per year

Insurance is expected to be $10,000 in year 1 and increase 7% per year

Utilities are expected to be 9% of EGI each year

Repairs and Maintenance costs are expected to be 7% of EGI each year

Grounds and Security costs are expected to by 6% of EGI each year

The market value of the investment is expected to increase 6% each year

Selling expenses will be 5%

The holding period is 5 years

80% of the purchase price can be borrowed on a 30-year, monthly payment mortgage

The annual interest rate on the loan will be 8%.

Loan origination fees will be 1% of the loan amount (paid in the year the loan is taken out - Year 0)

There are no prepayment penalties if you pay the loan early.

Tenant Improvements are expected to be $3,000/year

Leasing Commissions are expected to be $1,000/year

A roof repair totaling $15,000 will be completed in year 3

The required rate of return for the investor is 12%.  

Assume taxes are 30% of BTCF.

Assignment:

Fill out the income statement.

Calculate the monthly mortgage payment to find debt service.

What is the IRR and NPV of the property? (CF0 = equity investment + loan origination fees)

Calculate the ratios for one or five years as indicated on the worksheet

To find the mortgage balance, principal and interest payments:

Enter key strokes to find payment on the loan

FCOJ, Inc., a prominent consumer products firm, is debating whether or not to convert its all-equity capital structure to one that is 30 percent debt. Currently, there are 13,000 shares outstanding and the price per share is $43. EBIT is expected to remain at $72,800 per year forever. The interest rate on new debt is 6.5 percent, and there are no taxes. a. Melanie, a shareholder of the firm, owns 200 shares of stock. What is her cash flow under the current capital structure, assuming the firm has a dividend payout rate of 100 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What will Melanie’s cash flow be under the proposed capital structure of the firm? Assume she keeps all 200 of her shares. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. Assume that Melanie unlevers her shares and re-creates the original capital structure. What is her cash flow now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

You have looked at the current financial statements for Reigle Homes, Co. The company has an EBIT of $2,850,000 this year. Depreciation, the increase in net working capital, and capital spending were $225,000, $90,000, and $415,000, respectively. You expect that over the next five years, EBIT will grow at 16 percent per year, depreciation and capital spending will grow at 21 percent per year, and NWC will grow at 11 percent per year. The company has $15,100,000 in debt and 345,000 shares outstanding. You believe that sales in five years will be $22,600,000 and the price-sales ratio will be 2.4. The company’s WACC is 8.5 percent and the tax rate is 21 percent. What is the price per share of the company's stock?

You bought one of Great White Shark Repellant Co.’s 11 percent coupon bonds one year ago for $780. These bonds make annual payments and mature 5 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 13 percent. If the inflation rate was 3.3 percent over the past year, what was your total real return on investment?