1. How to company's value a foreign project?

2. What is the difference between Project and Parent valuation?

3. Shall we use discounted cash flow valuation or real options analysis?

Suppose you purchase 900 shares of stock at $74 per share with an initial cash investment of $33,300. The call money rate is 5 percent and you are charged a 1.5 percent premium over this rate. Ignore dividends.

a. Calculate your return on investment one year later if the share price is $82. Suppose instead you had simply purchased $33,300 of stock with no margin. What would your rate of return have been now? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

b. Calculate your return on investment one year later if the share price is $74. Suppose instead you had simply purchased $33,300 of stock with no margin. What would your rate of return have been now? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

c. Calculate your return on investment one year later if the share price is $58. Suppose instead you had simply purchased $33,300 of stock with no margin. What would your rate of return have been now? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

how do we value a stock and decide if it is reflective of the actual price we are going to pay for the stock? is there any benchmarks that help measure the risk and associate a return?

answer please

The Startracks corporation is considering the purchase of new equipment to replace some old, existing equipment. The old equipment is fully depreciated and has a current market value of $1.2M. The new equipment costs $10.4M and will be depreciated using the 5 year MACRS class. The equipment is used to produce items with constant annual revenues of $18M. Current costs (using the old equipment) are $3M per year. The new equipment will not change the expected revenues (they will remain at $18M per year), but will allow the company to cut costs by $1M per year. The project is expected to last for 4 years, at which time the new equipment would be worth $6.0M. If the old equipment is kept, it will be worthless in 4 years. The company's marginal tax rate is 35%. The company is financed with $50M of preferred stock and $150M of common stock. The preferred stock has a current value of $20 and pays constant dividends of $2 annually. The expected return on the common stock is 14.4%. Should the project be accepted?

Consider a 10 year bond which pays 6% coupon annually and has a yield-to-maturity of 7%. How much would the price of bond change if investors required return increases to 8% per year?

Explain at least one practical value of classifying an organization's total costs into direct and indirect costs.

I plan on retiring at 70 years of age, I want to retire with a net income of $105,000 a year, total. I anticipate that social security will fund $20,000 of this total, but the social security will be taxable at 25%. The other portion is a ROTH IRA and not taxable at retirement.

How much will I need to have earned to fund this retirement at age 70 if I believe that I can retire for 30 years, to age 100, (no money left at 100, so it will be an annuity type investment, not perpetuity). I plan on earning 3.9% on my nest egg, or retirement savings for those 30 years. (lump sum). Round to the nearest dollar.

Is there a risk of negatively impacting the revenue for the company by creating tighter credit standards? Why or why not?

1. Consider the stock XYZ, which pays no dividends. It is currently trading at $15.025 per share. The following questions refer to options and futures on this stock that expire on 9/24/2020. You may assume that this is exactly 6 months or .5 years from now in calculations.

a. Zero-coupon T-bills expiring on 9/24/2020 are currently selling for 98.5222. What is the risk-free spot interest rate?

b. What is the futures price of XYZ?

c. You want to mimic the payoff of a short future with a contract price of $16/share. How can you do this using only puts and calls? You may assume any strike is available.

1. A graph, plotting a the relationship between a bond’s modified duration and its tenor for a (10) zero, (10) discount bond, (10) premium bond and (10) perpetuity

2. In (10 per) writing, and by (5 per) showing numerical analysis, explain what drives the shape of the four curves you plotted in part 1

You are considering an investment in either individual stocks or a portfolio of stocks. The two stocks you are researching, Stock A and Stock B, have the following historical returns:

1. Calculate the average rate of return for each stock during the 5-year period. Do not round intermediate calculations. Round your answers to two decimal places.

   Stock A:   %

   Stock B:   %

2. Suppose you had held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would have been the realized rate of return on the portfolio in each year? What would have been the average return on the portfolio during this period? Do not round intermediate calculations. Round your answers to two decimal places. Negative values, if any, should be indicated by a minus sign.

   Year	Portfolio
   2014	%
   2015	%
   2016	%
   2017	%
   2018	%
   Average return	%

3. Calculate the standard deviation of returns for each stock and for the portfolio. Do not round intermediate calculations. Round your answers to two decimal places.

   			Portfolio
   Std. Dev.	%	%	%

4. Suppose you are a risk-averse investor. Assuming Stocks A and B are your only choices, would you prefer to hold Stock A, Stock B, or the portfolio? Why?

   A risk-averse investor should choose -Select-Stock AStock BPortfolioItem 12 , since it offers -Select-lesshigherthe sameItem 13 expected return with -Select-lesshigherthe sameItem 14 risk.

What was the monetary policy and strategy used by the Federal Reserve in 2008, to overcome the financial crisis?

Discuss a management strategy used to retain or increase cash. Share an example of a time when you’ve used a similar strategy in your personal finances. How are the applications of these strategies similar or different for businesses and individuals?

Price the following option using the binomial method. Show all work

Stock price = 10

Strike price = 15

Volatility = 0.4

T = 1

r = 0.3

Type : Put

In what ways has the 2008 global financial crisis affected the world, U.S. and WI?