A person purchases a company for $50,000 now. This company will lose $2,200 each year the first four years. At the end of the fourth year, he/she will invest additional $16,000 in the company which will result in a profit of $11,000 each year from the fifth year through the fourteenth year. At the end of 15 years, the company can be sold for $66,000. Compounding is annual. (a) Determine the IRR. (b) Calculate the future worth if MARR = 12%. (c) Calculate the ERR when = 10%.

How would you describe the "shadow banking system" and its connection with the traditional banking system?

What is securitization and why did it arise?

Suppose that you have inherited an annuity that will pay $1000 one year from now,

A) And a payment that is 5% larger than the prior payment each of the next 49 years. Assuming that the first payment occurs exactly one year from now and that the annual opportunity cost of capital is 10%, What is the value of this annuity today? Round your final answer to two decimals.

B) Each of the following payments will be 5% larger than the prior payment. Assuming that the annual opportunity cost of capital is 10%, What is the value of this perpetuity today? Round your final answer to two decimals.

Jamie Lee and Rose Lee are both 36 years old. They have been married for six years, and they have a

son who is 3 years old and a daughter who is almost 2 years old. Rose Lee is expecting, and the family

just found out from their doctor that, instead of them being a family of three with the new baby, they

are now going to be a family of five because Rose is expecting triplets.

Jamie and Rose currently have Toyota Corolla, a compact car and they are planning to purchase a van

that can convey them to everywhere they go with the new additions.

Jamie and Rose are now worried about being able to provide for the growing family: diapers, formula,

college expenses times five. What if something happened to Jamie and Rose Lee? How would the

surviving parent be able to provide for such a large family?

Jamie and Rose Lee are your neighbors and they have approached you after learning that you are taking

Fundamental of Risk Management Course at University.

Jamie and Rose Lee got their prior auto insurance online. Among the questions Jamie and Rose Lee

were asking you were:

Please explain the following to the Lees:

a. Stock Insurers
b. Mutual Insurers
c. Blue Cross and Blue Shield Plans

d. Managed Care Plans

A "buy and hold" investor purchases a fixed-rate bond at a discount and holds it until it matures. Discuss the sources of return for the investor and mention the one that is least likely to contribute to the investor's return over the investment horizon, assuming all payments are made as scheduled?

What is the difference between the Pipe Business model and The Platform Business model? Can you name a example

Suppose that you have inherited an annuity that will pay $1000 for 50 years.

A) Assuming that the first payment occurs exactly one year from now and that the annual opportunity cost of capital is 10% , what is the value of this annuity today? Round your final answer to two decimals.

B) Assuming that the first payment occurs immediately and that the annual opportunity cost of capital is 10%, What is the value of this annuity today? Round your final answer to two decimals.

What's the difference between working capital and net working capital? Between net working capital and net operating working capital?

How do banks differ from other financial institutions? Critically explain the key functions of banks.

Daisy Hill Hospital is planning to replace its CT scan machine. The machine system costs approximately $2,500,000, and an additional $500,000 for installation. Estimated charges per scan is $600. There is an estimated weekly utilization (volume) of 30 scans. Each scan will cost the hospital $35 in supplies. The system is expected to operate for $50 weeks per year. Associated annual labor costs for purchasing the CT scan machine is an estimated $100,000. Maintenance costs are estimated to be $80,000, and the machine is expected to be in operation for a period of 5 years. The machine may sell for approximately $500,000 salvage value. Daisy Hill has an 8% corporate cost of capital, and inflation is expected to average 3% over the period.

A $18000 bond redeemable at par on October 25, 2016 is purchased on August 25, 2007. Interest is 7.9% payable semi-annually and the yield is 6.8% compounded semi-annually.

(a) What is the cash price?

(b) What is the accrued interest?

(c) What is the quoted price?

CITATIONS on 7PS

Please supply citations on problem 7PS

Subject is financial management

What can behavioural finance teach us about finance ?

i need unique answer please

In table 1.1 below, information on three stocks (X, Y and Z) in the next period is stated. The stocks are traded on a financial market, where the usual assumptions for a normal market are satisfied. It is assumed, that a risk-free asset is traded on the financial market as well, which has a return of 5% (rf) in the next period.

Problem: Determine the tangent portfolio of the three stocks (i.e. determine the weights that the three stocks have in the portfolio)
Hint 1: Recall, that the tangency portfolio (T) is given as the portfolio that has the largest Sharpe Ratio. To find T, you therefore have to write up the expression for Sharpe Ratio and maximize this in Excel or another program.
Hint 2: Recall (cf. formula 11.11), that the variance of a portfolio’s return is given by: Var( RP ~ )= ∑= N i 1 ∑= N j 1 xixjCov( ir ~ , j r ~ ) Where xi and xj denotes de respective portfolio weights, i,j = 1,2...N.

Whether economic, social and sustainability are interconnected and whether companies which recognize an interconnection in their strategy perform better than companies which do not.