A pension fund manager is considering the following 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 5.2%. The probability distribution of the risky funds are:

The correlation between the fund returns is .0222.

Suppose now that your portfolio must yield a return of 12% 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 answer to 2 decimal places.)

You own a 10-year, $1,000 par value bond paying 8 percent interest annually. The market price of the bond is $850 and your required rate of return is 12 percent.

a. Compute the​ bond's expected rate of return.

b. Determine the value of the bond to​ you, given your required rate of return.

c. Should you sell the bond or continue to own​ it?

The manager of Walmart’s in Arkansas is considering the possibility of providing flower delivery service. She hires you as consultant for this project. You suggested that Walmart should do some marketing research to understand the market needs. Walmart has conducted a survey. The major findings include:  The estimated number of customers is 400.  An average customer is willing to buy $30 worth of flowers per order and pay $5 for delivery.  An average customer tends to place 10 flower orders per year. To ensure on-time delivery Walmart’s needs to invest $30,000 on a new van, which will be straight line depreciated over 10 years with $0 salvage value. The expenses of gas, repair, maintenance, and other operating costs incurred by this van will be $2,000 a year. Staff compensation will cost $50,000 a year. Advertising, promotion and other sales expenses will cost $10,000 a year. The average variable cost of flowers is 60% of the flower sales. There is no variable cost assigned to delivery. (4) Please answer the following questions 1. What is unit contribution (per customer per year)? 2. What is BEV in each year?

18. Comparing Investment Criteria Consider the following cash flows of two mutually exclusive projects for A-Z Motorcars. Assume the discount rate for both projects is 10 percent.

1. page 225Based on the payback period, which project should be taken?

2. Based on the NPV, which project should be taken?

3. Based on the IRR, which project should be taken?

4. Based on the above analysis, is incremental IRR analysis necessary? If yes, please conduct the analysis.

Please give me the excel formulas for these so i can study them

I don't need calculations just the formula and the name of it. maybe a brief sentence.

an investment pays 7710.02 (F51)

at the end of every year for 39 years (F52)

interest rate is 13.17% (F53)

what is this investment worth today?

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you hope to earn a "ly" (yearly?) income of 701.38 (F59)

interest rate you will earn on yor investments is 14.39% (F60)

You expect to live for 21 years (F61)

How much should you have invested at the beginning of retirement so you achieve your target income and it lasts as long as you live?

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You want to know the price of a security

the security makes payments of $887,422.24 (F67)

Once every year for 46 years (F68)

Interest rate is 11.43% (F69)

how much should the security cost?

Thanks so much. I'll upvote

Produce a well-labeled Line chart that illustrates the difference in obtaining fixed annual compound interest rates of 5%, 10%, and 15% on an investment of $100,000 over the course of 10 years. Your chart should show three curves: the value of the investment growing at 5% per year, 10% per year, and 15% per year.

*Must complete in excel

Market Value Capital Structure

Suppose the Schoof Company has this book value balance sheet:

The notes payable are to banks, and the interest rate on this debt is 11%, the same as the rate on new bank loans. These bank loans are not used for seasonal financing but instead are part of the company's permanent capital structure. The long-term debt consists of 30,000 bonds, each with a par value of $1,000, an annual coupon interest rate of 8%, and a 15-year maturity. The going rate of interest on new long-term debt, r_d, is 12%, and this is the present yield to maturity on the bonds. The common stock sells at a price of $70 per share. Calculate the firm's market value capital structure. Do not round intermediate calculations. Round the monetary values to the nearest dollar and percentage values to two decimal places.

HW 12, Problem 1, parts a and b

1. You are considering an investment in two projects, A and B. Birth projects will cost $115,000, and the projected cash flows are as follows:

1. Assuming that the WACC is 9.4%, calculate the payback period, discounted payback period, NPV, PI, IRR and MIRR. If the projects are mutually exclusive, which project should be selected?
2. Create an NPV profile chart for projects A and What is the exact crossover rate for these two projects?

Suppose you purchase one WM May strike=102 call contract at $5 and write one WM May strike=107 call at $2. If the price of WM stock is $105 at expiration, your profit would be _____.

The three call options issued by Tesla Inc are listed below. Suppose that the current price of Tesla is $247.89.

Which option has the highest time value? Discuss the determinants of the time value based on the moneyness and time to expiration.

Beasley Ball Bearings paid a $4 dividend last year. The dividend is expected to grow at a constant rate of 6 percent over the next four years. The required rate of return is 20 percent (this will also serve as the discount rate in this problem). Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods.

a. Compute the anticipated value of the dividends for the next four years. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)

b. Calculate the present value of each of the anticipated dividends at a discount rate of 20 percent. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)

c. Compute the price of the stock at the end of the fourth year (P4). (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

d. Calculate the present value of the year 4 stock price at a discount rate of 20 percent. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

e. Compute the current value of the stock. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

f. Use the formula given below to show that it will provide approximately the same answer as part e. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) P0 = D1 Ke − g g. If current EPS were equal to $5.70 and the P/E ratio is 20% higher than the industry average of 5, what would the stock price be? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

h. By what dollar amount is the stock price in part g different from the stock price in part f? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

i. With regard to the stock price in part f, indicate which direction it would move if: This is the last question in the assignment. To submit, use Alt + S. To access other questions, proceed to the question map button.Next Visit question mapQuestion 19 of 19 Total19 of 19 Prev

Noting that there has been an increasing interest in organic foodstuffs with increasing affluence, Mr Tommy Tan is considering starting an organic food retail business in Singapore. He targets to have 8 retail outlets island-wide by end 2021. To maintain its target capital structure, the firm estimates that it will need to borrow $10 million to finance this growth. As the firm is tight on cash, it prefers to repay the loan in full only at the end of 10 years and only wants to service the interest on an annual basis.

The firm has approached several banks in the Singapore and 2 banks have signalled interest to be its main financier. JuneBank proposes an annual interest rate of 6.9% and the underwriting spread is 2%. BHR Bank offers the loan at an annual interest rate of 6.5% and the underwriting spread is 2.9%.

1. (a) What is the effective cost of borrowing from JuneBank?

2. (b) What is the effective cost of borrowing from BHR Bank?

(c) Using the estimations in (a) and (b), determine the bank that the firm should borrow from