Indicate whether the following instruments are examples of money market or capital market securities:

a. U.S. Treasury Bills

b. Long - Term corporate bonds

c. Common stocks

d. Preferred stocks

e. Dealer Commercial Paper

A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a rate of 5%. The probability distribution of the risky funds is as follows:

Expected Return Standard Deviation

Stock Funds (S) 17% 38%

Bond Funds (B) 13 18

The correlation between the fund returns is 0.12. What is the Sharpe ratio of the best feasible CAL?

I have tried this multiple times and I can't get the right answer.

Caspian Sea Drinks is considering the purchase of a plum juicer – the PJX5. There is no planned increase in production. The PJX5 will reduce costs by squeezing more juice from each plum and doing so in a more efficient manner. Mr. Bensen gave Derek the following information. What is the NPV of the PJX5?

a. The PJX5 will cost $2.17 million fully installed and has a 10 year life. It will be depreciated to a book value of $158,814.00 and sold for that amount in year 10.

b. The Engineering Department spent $19,133.00 researching the various juicers.

c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $16,816.00.

d. The PJX5 will reduce operating costs by $402,119.00 per year.

e. CSD’s marginal tax rate is 27.00%.

f. CSD is 71.00% equity-financed.

g. CSD’s 11.00-year, semi-annual pay, 6.43% coupon bond sells for $992.00.

h. CSD’s stock currently has a market value of $21.08 and Mr. Bensen believes the market estimates that dividends will grow at 3.98% forever. Next year’s dividend is projected to be $1.60.

Thanks!

Brazil and Peru sell coffee in the U.S. for $10 per pound. The Brazilian Real falls from R$4:$1 to R$6:$1 while the Peruvian Sol stays at the same level of Sol 3:$1. It cost 20 R$ per pound to get the coffee to the store shelf. You are the head of Brazil Coffee Co. When the currency falls, your marketing chief tells you that if you lower the price to $8 per pound, you could sell 50% more pounds of coffee. Should you follow the advice from marketing? Assume your costs per pound do not change. Note: Brazil can pursue two strategies: Margin (make more money per pound) or Market Share (lower price to make same profit)

The question came from a book called Computers in the Medical Office (9th Edition)

illustrates the medical documentation and billing cycle. Some of the steps in the cycle, such as Step 2, Establish Financial Responsibility, focus more on billing activities. Explain how Step 4 includes a focus on both billing and clinical functions.

Consider the following three bonds:

Assume that coupons are paid every 6 months and the face values of all the bonds are $1,000.

(a) Determine the spot rate curve. (That is, determine s_0.5, s₁, and s_1.5 in yearly terms.) (Keep 4 decimal places, e.g. 0.1234)

     s_0.5:          s₁:            s_1.5 :

(b) Suppose that the 0.5- and 1.5-year zero-coupon bonds are available. Determine their respective prices. (Keep 2 decimal places, e.g. xxx.12)

     P_Z0.5:               P_Z1.5:

(c) Determine the forward rate f _0.5,1 (in yearly term) on a 6-month Treasury bill 6 months from now. (Keep 4 decimal places, e.g. 0.1234)

(d) Determine the forward rate f_0.5,1.5 (in yearly term) on a 12-month Treasury bill 6 months from now. (Keep 4 decimal places, e.g. 0.1234)

(e) Price the 1.5-year coupon bond 6 months from now. (Keep 2 decimal places, e.g. xxx.12)?

Halliford Corporation expects to have earnings this coming year of $ 2.84 per share. Halliford plans to retain all of its earnings for the next two years.​ Then, for the subsequent two​ years, the firm will retain 46 % of its earnings. It will retain 17 % of its earnings from that point onward. Each​ year, retained earnings will be invested in new projects with an expected return of 20.62 % per year. Any earnings that are not retained will be paid out as dividends. Assume​ Halliford's share count remains constant and all earnings growth comes from the investment of retained earnings. If​ Halliford's equity cost of capital is 8.1 %​, what price would you estimate for Halliford​ stock?

NB: Kindly mention the excel formulae separately if solving on excel.

Suppose that the current 1-year rate (1-year spot rate) and expected 1-year T-bill rates over the following three years (i.e., years 2, 3, and 4, respectively) are as follows: 1R1 = 2.54%, E(2r1) = 3.80%, E(3r1) = 4.30%, E(4r1) = 5.80% Using the unbiased expectations theory, calculate the current (longterm) rates for 1-, 2-, 3-, and 4-year-maturity Treasury securities. Plot the resulting yield curve.

An interest rate collar has a cap strike rate of 10.00% and a floor strike rate of 9.50%. If the reference interest rate moves from 9.50% to 9.75%, what is the effective rate of the collar? a. 9.50% b. 9.625% c. 9.75% d. 9.875%

A company is considering buying a new bottle-capping machine. The initial cost of the machine is $325,000 and it has a 10-year life. Monthly maintenance costs are expected to be $1200 per month for the first 7 years and $2000 per month for the remaining years. The machine requires a major overhaul costing $55,000 at the end of the 5th year of service. Assume that all these costs occur at the end of the appropriate period. What is the future value of all the costs of owning and operating this machine if the nominal annual interest rate is 7.2%?

Pl show all the forumalas to get a thumbs-up.

The New York downtown is planning to develop a piece of land and three mutually exclusive projects were proposed. A playground with 4 years of project life, a swimming pool with 5 years of project life and a volleyball court with 6 years of project life. All three projects each have initial capital costs of $200 and annual net benefits of $140, $120, $110 respectively. Assuming a 10% cost of capital, how would you rank them?

Excel format would be the best

International Business Opportunities

With a rationalization of why you would go to Germany to do business, evaluate the competitive environment within the country.

Which one would you rather have:

a) The future value of $5,000 per year for 10 years to be given to you in year 10 (that is 10 years from now) when the interest rate is 6%?

b) The present value of $12,500 per year from year 11 to year 35 when the interest rate is 6%?