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 sure rate of 5.0%. The probability distributions of the risky funds are:   

The correlation between the fund returns is .0500.

Suppose now that your portfolio must yield an expected return of 9% and be efficient, that is, on the best feasible CAL.

a. What is the standard deviation of your portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b-1. What is the proportion invested in the T-bill fund? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b-2. What is the proportion invested in each of the two risky funds? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

As the financial manager of Corton Inc., you are investigating a possible acquisition of Denham. You have the basic data given in the following table.

You estimate that investors expect a steady growth of about 6% in Denham’s earnings and dividends. Under new management, this growth rate would be increased to 8.53% per year without the need for additional capital.

Required:

1. What is the gain from the acquisition?
2. What is the cost of the acquisition if Corton pays $25 in cash for each share of Denham?
3. What is the cost of the acquisition if Corton offers one share of Corton for every three shares of Denham?
4. How would the cost of the cash offer change if the expected growth rate of Corton was not changed by the merger?
5. How would the cost of the share offer change if the expected growth rate was not changed by the merger?

(For all requirements, do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places.)

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 4.0%. The probability distribution of the risky funds is as follows:

The correlation between the fund returns is 0.13.

Solve numerically for the proportions of each asset and for the expected return and standard deviation of the optimal risky portfolio. (Do not round intermediate calculations and round your final answers to 2 decimal places. Omit the "%" sign in your response.)

Refer to the following information:

a. The ATAM bond was issued on June 1, 2011, at 101.00%. How much would you have to pay to buy one bond delivered on June 15? Don’t forget to include accrued interest. Assume a 365-day year. (Do not round intermediate calculations. Enter your answer as a percent of par rounded to 3 decimal places.)

b-1. When is the first interest payment on the bond?

b-2. What is the total dollar amount of the payment? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

c-1. On what date do the bonds finally mature?

c-2. What is the amount to be paid on each bond at maturity? (Do not round intermediate calculations. Enter your answer to 2 decimal places.)

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 sure rate of 4.6%. The probability distributions of the risky funds are:

The correlation between the fund returns is 0.0800.

What is the expected return and standard deviation for the minimum-variance portfolio of the two risky funds? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

  Using a cost of capital of 10​%, calculate the net present value for the project shown in the following table and indicate whether it is​ acceptable

Initial investment   $-1,147
Year   Cash inflows
1   $84
2   $138
3   $187
4   $257
5   $311
6   $375
7   $274
8   $98
9   $49
10   $24

The net present value​ (NPV) of the project is ____

You are considering a new product launch. The project will cost $810,000, have a 4-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 200 units per year; price per unit will be $16,375, variable cost per unit will be $11,250, and fixed costs will be $550,000 per year. The required return on the project is 11 percent and the relevant tax rate is 23 percent. Based on your experience, you think the unit sales, variable cost, and fixed cost projections given here are probably accurate to within ±10 percent. a. What are the best-case and worst-case NPVs with these projections? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. What is the base-case NPV? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the sensitivity of your base-case NPV to changes in fixed costs? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

opinion, which is more critical to a healthcare facility’s financial success, proper analysis of the balance sheet, or proper analysis of the income statement? Explain your answer in detail.

Hi, I have a question for this problem

You have been offered four different financing schemes for a $30,000 car. Which one should you choose?

The answer choices are, can you please let me know what the right answer is and how to do it. Thank you.

Hankins Corporation has 7.8 million shares of common stock outstanding, 290,000 shares of 4.3 percent preferred stock outstanding, par value of $100; and 175,000 bonds with a semiannual coupon rate of 5.9 percent outstanding, par value $2,000 each. The common stock currently sells for $59 per share and has a beta of 1.05, the preferred stock has a par value of $100 and currently sells for $97 per share, and the bonds have 16 years to maturity and sell for 103 percent of par. The market risk premium is 6.8 percent, T-bills are yielding 3.5 percent, and the company’s tax rate is 22 percent. a. What is the firm’s market value capital structure? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616.) b. If the company is evaluating a new investment project that has the same risk as the firm’s typical project, what rate should the firm use to discount the project’s cash flows? (Do not round intermediate calculations enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

What are two assumptions when one applies the constant growth model to analyze stock price?

Obs: Please be detailed.

Hook Industries is considering the replacement of one of its old metal stamping machines. Three alternative replacement machines are under consideration. The relevant cash flows associated with each are shown in the following​ table:

Initial investment   $84,600   $59,700   $129,900
Year          
1   $17,900   $12,500   $50,000
2   $17,900   $14,500   $30,100
3   $17,900   $15,500   $20,500
4   $17,900   $18,200   $20,500
5   $17,900   $19,800   $19,900
6   $17,900   $24,800   $29,600
7   $17,900   $0   $39,500
8   $17,900   $0   $49,900

a.  Calculate the net present value ​(NPV​) of EACH press.

b.  Using​ NPV, evaluate the acceptability of EACH press.

c.  Rank the presses from best to worst using NPV.

d.  Calculate the profitability index​ (PI) for EACH press.

e.  Rank the presses from best to worst using PI.

The​ firm's cost of capital is 12​%.