Cullumber Communication Corp. is investing $9,882,700 in new technologies. The company’s management expects significant benefits in the first three years after installation (as can be seen by the following cash flows), and smaller constant benefits in each of the next four years.

What is the discounted payback period for the project assuming a discount rate of 10 percent? (Round answer to 2 decimal places, e.g. 15.25. If discounted payback period exceeds life of the project, enter 0 for the answer.)

Do we have a duty of loyalty to our employer(s)? Drawing on at least two of the readings from Chapter 10, explain why or why not, being sure to support your conclusion with reasoned argument. If we do have a duty of loyalty, what kinds of actions does this duty make it unethical to perform (e.g., whistleblowing)? Explain why. What criticism(s) might someone raise against your view/conclusion? What argument(s) would you offer in response?

A project has the following cash flows: Year Cash Flow 0 $ 71,500 1 –51,000 2 –28,800 What is the IRR for this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Internal rate of return 8.4 % What is the NPV of this project if the required return is 5 percent? (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.) Net present value $ What is the NPV of the project if the required return is 0 percent? (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.) Net present value $ What is the NPV of the project if the required return is 23 percent? (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.) Net present value

• Discuss the three most common depreciation methods used in business practice. Why would a company choose one method over another? Why might a company choose to depreciate some assets using one method and another method for others? Why is recording depreciation and choosing the appropriate method an important topic for businesses to consider?
• Intangible assets can add significant value to a companies balance sheet. What are some common intangible assets? How do they add value to a company? Why are some intangible assets amortized and others are not?

Gregory is an analyst at a wealth management firm. One of his clients holds a $10,000 portfolio that consists of four stocks. The investment allocation in the portfolio along with the contribution of risk from each stock is given in the following table:

Gregory calculated the portfolio’s beta as 0.878 and the portfolio’s expected return as 12.59%.

Gregory thinks it will be a good idea to reallocate the funds in his client’s portfolio. He recommends replacing Atteric Inc.’s shares with the same amount in additional shares of Transfer Fuels Co. The risk-free rate is 6%, and the market risk premium is 7.50%.

According to Gregory’s recommendation, assuming that the market is in equilibrium, how much will the portfolio’s required return change?

0.73 percentage points

1.07 percentage points

1.15 percentage points

0.93 percentage points

Analysts’ estimates on expected returns from equity investments are based on several factors. These estimations also often include subjective and judgmental factors, because different analysts interpret data in different ways.

Suppose, based on the earnings consensus of stock analysts, Gregory expects a return of 13.16% from the portfolio with the new weights. Does he think that the revised portfolio, based on the changes he recommended, is undervalued, overvalued, or fairly valued?

Undervalued

Fairly valued

Overvalued

Suppose instead of replacing Atteric Inc.’s stock with Transfer Fuels Co.’s stock, Gregory considers replacing Atteric Inc.’s stock with the equal dollar allocation to shares of Company X’s stock that has a higher beta than Atteric Inc. If everything else remains constant, the portfolio’s beta would

increase or decrease

PART 1) An investor estimates that next​ year's sales for​ Dursley's Hotels,​ Inc., should amount to about 105 Million.The company has 3.1 million shares​ outstanding, generates a net profit margin of about 8.1​%, and has a payout ratio of 41​%. All figures are expected to hold for next year. Given this​ information, compute the following.

a. Estimated net earnings for next year.

b. Next​ year's dividends per share.

c. The expected price of the stock​ (assuming the​ P/E ratio is 28.3 times​ earnings).

d. The expected holding period return​ (latest stock​ price: ​$48.93 per​ share).

Part 2) Melissa Popp is thinking about buying some shares of R.H. Lawncare​ Equipment, at $53.35 per share. She expects the price of the stock to rise to $ 56.17 over the next 3 years. During that time she also expects to receive annual dividends of $ 6.81 per share.

a. What is the intrinsic worth of this​ stock, given a required rate of return of 9%​?

b. What is its expected​ return?

Which of the following statements is correct, assuming positive interest rates and holding other things constant? Group of answer choices

Banks A and B offer the same annual rate of interest, but A pays interest quarterly and B pays semiannually. A deposit in Bank A will have a higher value in five years.

Banks A and B offer the same nominal annual rate of interest, but A pays interest weekly and B pays quarterly. A deposit in Bank B will have a higher value in five years.

Banks A and B offer the same nominal annual rate of interest, but A pays interest daily and B pays semiannually. A deposit in Bank B will have a higher value in five years.

Banks A and B offer the same nominal annual rate of interest, but A pays interest quarterly and B pays monthly. A deposit in Bank B will have a higher value in five years.

Question 1 Part I

The capital structure of a company with relevant market information are shown as below:

Common stock: There are 55 million shares outstanding of $10 par. The stock has a beta coefficient of 1.8. The management of the company just paid an annual dividend of $1.5 per share and the market expects that the dividend growth rate to be 20 percent for coming three years and grow by 5 percent per year thereafter in the foreseeable future. The required rate of return on your company’s stock is 15 percent.

Preferred stock: 12 million shares currently selling at $96 per share, with dividend rate of 6 percent and face value of $100.

Debt: Three years ago, the company issued 9 million 15-years 8% semi-annual coupon bonds with par value of $1,000 that are still outstanding. The yield-to-maturity (in terms of an effective rate of return) on the bond is 16% per annum.

Market: The current Treasury bill yields 3 percent and the expected return on the market is 12 percent. The company is in the 40% corporate tax bracket. Required:

(a) Estimate the current common stock value using the Dividend Growth Model. (b) Calculate the bond price today. [answers in a whole dollar amount]

(c) Based on answers in above (a) and (b), determine the company’s capital structure weights (WE, WP, WD) for equities and debt. [answers in %]

(d) Compute the cost of equity (RE) using CAPM, cost of preferred stock (RP), and pre-tax cost of debt (RD). [answers in %]

(e) Assuming that the company is going to maintain the current capital structure, calculate the weighted average cost of capital (WACC) of the company. [answer in %]

Richard Miyashiro purchased a condominium and obtained a 30-year loan of $198,000 at an annual interest rate of 8.15%. (Round your answers to the nearest cent.)

(a) What is the mortgage payment? $1473.61

(b) What is the total of the payments over the life of the loan? $

(c) Find the amount of interest paid on the mortgage loan over the 30 years. $

رؤى ديلويت.
في العصر الصناعي الرابع ، سيتعين تحويل الشركات القديمة رقميًا إلى شركة
4.0 للبقاء في النظام البيئي الصناعي الرابع. "التحول الصناعي الرقمي (المرجع 1)"
في Deloitte Insights يصف التحول الرقمي
لشركة / Business ليصبح شركة / Business 4.0.

1.Define 'the 4th Industry' to be created by the technologies of the 4th Industrial revolution.

2.Explain ‘P2D2P Loop’, the core concept of the 4th Industry. (Reference 2).
3.What are the factors that affect the existing business by the 4th Industrial ecosystem
that enables 'P2D2P Connection'? Or why should an existing business be digitally
transformed? (Reference 1 & 2).
4. Define what 'XaaS' is, and how this concept related to P2D2P Loop? (Reference 2 & 3).
5.Explain three macro forces shift of the nine big shifts that required at digital
transformation. (Reference 4)

The 4 most fundamental factors that affect the cost of money are

(1) production opportunities, (2) time preferences for consumption, (3) risk, and (4) opportunity cost.

a. True b. False

A company has granted 2,000,000 options to its employees. The stock price and strike price are both $70. The options last 8 years and vest after 2 years. The company decides to value the options using an expected life of 6 years and a volatility of 30% per annum. Dividends on the stock are $1.50 per year, payable halfway through each year, and the risk-free is 5%. What will the company report as an expense for the options on its income statement?

1. (10 pts) The intrinsic value of a share of stock is equal to today’s value of all expected future cash flows to be received by an investor. The more risk the stock exposes the investor to, the less the investor shall be willing to pay. Support this thought with only two principles of finance.

Please show all work.

Currently YL trading at $54. Lee bought YL April $55 call option for $1.25. At expiration, YL’s price is 55.75, What is the option payoff? Profit?

Solution:
ITM Call Long Position Payoff = $0.75
Profit/Loss = 0.75 -1.25 = -$0.50   

Above is the question and the solution but, I am confused on how they came to this solution. Any help would be appreciated!

1. You’ve inherited $10,000. You’d like to have $20,000 in 5 years. What rate of return do you need to make on your investment to reach your savings goal?

2. You’re interested in buying a house and need a $5,000 down payment. How much do you need to set aside today if you can make 5% on your money to make sure you have $5,000 in three years.

3. You’ve decided you want to get your MBA, which will cost you $15,000. If you have $10,000 now and can make 7.5% on your money, how soon can you attend classes?

4. You’ve just been hired on your first job! Congratulations. The company has a 401(k) plan and you’ve decided to put 10% of your $45,000 salary away each year. If you can earn 8% annually on your money, how much will you have 35 years from now when you’re ready to retire?

5. You’re aunt Edna just retired at the age of 65 years old. She has an annuity with $750,000 and wants to begin taking payments until she’s 90 years old. If the annuity can earn 4.5% annually, how much can she take each year before the account gets to $0?

6. You have to choose between investing your $1000 in a band CD that pays 2.5% annually, or into a 20 year treasury bond that pays 2.2% semi-annually. Which investment pays a better rate of return?