Your friend promises you an investing opportunity that she claims has no risk but will provide a guaranteed 20% annual return. (Note: U.S. Treasuries are providing a return of 2%.) What should you do? Group of answer choices Split the difference: put half of your investment in your friend's investing opportunity and half in U.S. Treasuries. This is possible but you should at least check out your friend's track record and if there are investors who have been receiving 20% return anually, go ahead and invest. Don't invest. This sounds like a scam because it is not consistent with the relation between risk and return. This sounds like a sweet deal. Invest $100,000 with your friend.

In 2017, there is a move to repeal the estate and gift tax. This tax, which impacts families with asset transfers exceeding $22 Million, impact few families in the U.S. discuss why so many people, who are not even impacted by this tax, strongly oppose it. Provide an example from your research on a case (different from your peers) regarding death or gift taxes and provide an analysis of the outcome of the case.

explain difference between Operating and Terminal Cash Flow 250 words

Market Top Investors, Inc., is considering the purchase of a $365,000 computer with an economic life of four years. The computer will be fully depreciated over four years using the straight-line method, at which time it will be worth $114,000. The computer will replace two office employees whose combined annual salaries are $95,000. The machine will also immediately lower the firm’s required net working capital by $84,000. This amount of net working capital will need to be replaced once the machine is sold. The corporate tax rate is 24 percent. The appropriate discount rate is 9 percent. Calculate the NPV of this project. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Please help figure out where I am making a mistake:

Show all steps and equations.

2) You are evaluating two different aluminum milling machines. The Alumina I costs $240,000, has a three-year life, and has pretax operating costs of $63,000 per year. The Alumina II costs $420,000, has a five-year life, and has pretax operating costs of $36,000 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $40,000. If your tax rate is 35 percent and your discount rate is 10 percent, which do you prefer? Why?

Consider a company that issues a dual-currency bond with a face value of €45
million, which pays an interest rate of 3.5 percent a year in dollars. Indicate
how the company can manage the risk on this bond issue and calculate the net cash
flows associated with the transactions. A bond with a face value of €45 million
that pays 5 percent annual interest in euros is available for purchase. The fixed
rates on a currency swap are 4 percent in dollars and 4.75 percent in euros and
the exchange rate is €1.15/$. (8)

A fund manager expects to receive a cash inflow of R50,000,000 in three months.
The manager wishes to use futures contracts to take a R30,000,000 synthetic
position in shares and a R20,000,000 in bonds today. The share would have a beta
of 1.05 and the bond a modified duration of 8.25. A share index futures contract
with a beta of 0.80 is priced at R300,000 and a bond futures contract with a
modified duration of 7.50 is priced at R200,000. Calculate the number of share
index futures contracts and bond futures contracts that the manager would have to
trade in order to synthetically take the desired position in the shares and bonds
today. Indicate whether the futures positions are long or short.

Assume​ you've generated the following information about the stock of​ Bufford's Burger​ Barns: The​ company's latest dividends of ​$4.17 a share are expected to grow to ​$4.55 next​ year, to ​$4.96 the year after​ that, and to ​$5.41 in year 3. After​ that, you think dividends will grow at a constant 6​% rate. a. Use the variable growth version of the dividend valuation model and a required return of 15​% to find the value of the stock. b. Suppose you plan to hold the stock for three​ years, selling it immediately after receiving the ​$5.41 dividend. What is the​ stock's expected selling price at that​ time? As in part a​, assume a required return of 15​%. c. Imagine that you buy the stock today paying a price equal to the value that you calculated in part a. You hold the stock for three​ years, receiving dividends as described above. Immediately after receiving the third​ dividend, you sell the stock at the price calculated in part b. Use the IRR approach to calculate the expected return on the stock over three years. Could you have guessed what the answer would be before doing the​ calculation? d. Suppose the​ stock's current

price is actually ​$50.91. Based on your analysis from part a​, is the stock overvalued or​ undervalued? e. A friend of yours agrees with your projections of​ Bufford's future​ dividends, but he believes that in three​ years, just after the company pays the ​$5.41 ​dividend, the stock will be selling in the market for ​$55.10. Given that​ belief, along with the​ stock's current market price from part d​, calculate the return that your friend expects to earn on the stock over the next three years.

I have figured out the risk premium and average risk premium for the question below. I'm having trouble figuring out what the standard deviation of the risk premium is. 2006 18.67 7.50 2007 9.01 7.16 2008 −39.83 2.80 2009 30.90 0.80 2010 20.56 0.92 The average risk premium is 4.03% but can't figure out how to calculate standard deviation of the risk premium.

Yes, an excel function will do.

Thank you.

$100,000 Amortizing Loan

9% Stated Rate

20 Year amortization

Annual payments

-Calculate annual payments

- Prepare amortization table

1) On March 1, 2016 an amount of $2100 was invested in an account which earns 7.5%. Determine the balance on September 1, 2019, if the interest is compounded: a) quarterly AND b) monthly?

2) How much should be invested at 6% compounded semiannually to acquire $2000 in eight years?


3) On July 15th, 2013, $800 was invested in an account paying 10% compounded semiannually. Then on July 15, 2017 the money was reinvested in an account paying 8% compounded daily. Determine the balance on October 20, 2017 using the Banker's Rule.

United Airlines plan to buy 34 airplanes for $120,000,000. Flight operations and ground costs are expected to be $7,000,000 per year and $4,000,000 per year respectively. United expects to sell 300,000 tickets and variable costs are expected to be 20 percent of revenue. With a 14 percent required rate of return, what minimum price per ticket are needed to justify the purchase of the airplanes? (Assume a 20- year life and no salvage value for the airplane at the end of 20 years)(Hint: Income = Rev. - Variable cost-Fixed Cost, find annual revenue).