Financial statement of McPre Ltd. at the end of financial year 2018-2019 has the following information:-

Sales of $955000 cost of goods sold of $642000 selling expenses of $12000 administrative expenses of $6000, depreciation expenses of $45000 interest expenses of $13,000 and corporate tax rate of 30%.

A) Calculate the gross profit and operating profit (EBIT) of the company.

B) Identify tax payment and not profit of the company.

C) If the current outstanding ordinary shares of the company is 60,000 selling for $12. Each compute the PE ratio of the McPre.

D) Determine the dividend amount if the any can be paid out to shareholders by applying the residual theory.

E) Calculate the dividend payout Ratio.

( gave answer with formula and without excel calculation)

Jospeh is considering to invest in the black stone Ltd. within currently has the following capital structure.

Debt:- $4500000 per value of outstanding bond that pays semi-annually 9% coupon rate with an annual before tax yield to maturity of 10%. The bond issue has face value of $1000 and will mature in 25 years.

Ordinary Shares:- 6500000 book value of outstanding ordinary shares. Nominal value of each share is $100. The firm just paid a $7.50 dividend per share last year and is experiencing a 4% annual growth rate in dividends, which the company expects to continue indefinition.

Preferred share :- 50,000 shares, 15% fixed dividend and market price of $115.39 each share.

The firm marginal tax rate is 30%.

Required: Help Josph to complete the following risk,

A) Calculate the current price of the corporate bond?

B) Calculate the current price of the ordinary share of the average return of the shares in the some industry is 12%.

C) Calculate the rate of return of the preferred share i.e. the face value of preferred share is $100.

D) Calculate the current total market value of firm.

E) Calculate the capital structure of the firm and identify the total weight of the equity trending.

F) Compute the weighted average cost of capital (WACC) under the traditional tax system for the firm, using dividend constant growth model calculation cost of equity of organization.    ( gave answer of full question with formula and without using excel)

9. Bond T is a 3 year, 8% annual coupon bond with a par value of $1000 and current value of $1000. The discount rate is equal to the coupon rate. What is the duration of Bond T?

10. Using the information in #9 and considering an expected rise of interest rates by 1%, calculate the modified duration for Bond T.

13. Daniels Company’s preferred stock is expected to pay a $1.25 dividend at the end of each year. The required rate of return on this stock is 8.5 %. What is the price of Daniels Company’s preferred stock?

From 1997-2006, the returns on Magni were as follows, Using Blume's Formula:

A. What would be the 1-year average forecast?

B. What would be the 2-year average forecast?

C. What would be the 6-year average forecast?

D. What would be the 10-year average forecast?

Examine the growth of passive investing over the past twenty years, particularly in contrast to active investing, and identify possible reasons for this pattern. You should consider researching the size of assets under management, fund flows to active and passive investing, and the relative performance of active and passive investments

Your friend David has just bought a futures contract on a stock index, and the contract specifies one year to expiration. The current share price is $80, and the annually compounded interest rate is 10%. The stock will pay quarterly dividends of $2 during the next year, with dividends payments on the following dates:

• January 25
• April 25
• July 25
• October 25

Assume that this is a non-leap year.

1. What is the futures price on this contract on January 3?

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 4.5%. The probability distributions of the risky funds are:

The correlation between the fund returns is .0517.

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.)

Company Z’s earnings and dividends per share are expected to grow by 3% per year for the next 4 years, then stop growing. In year 5 and after, it will pay out all earnings as dividends. Assume next year’s dividend is $3, the market capitalization rate is 10%, and next year’s EPS = $10. What is Company Z’s stock price?

Please explain answer and solution clearly

Assume a market index represents the common factor and all stocks in the economy have a beta of 1. Firm-specific returns all have a standard deviation of 34%.

Suppose an analyst studies 20 stocks and finds that one-half have an alpha of 2.1%, and one-half have an alpha of –2.1%. The analyst then buys $1.4 million of an equally weighted portfolio of the positive-alpha stocks and sells short $1.4 million of an equally weighted portfolio of the negative-alpha stocks.

a. What is the expected return (in dollars), and what is the standard deviation of the analyst’s profit? (Enter your answers in dollars not in millions. Do not round intermediate calculations. Round your answers to the nearest dollar amount.)

b-1. How does your answer change if the analyst examines 50 stocks instead of 20? (Enter your answer in dollars not in millions. Do not round intermediate calculations. Round your answer to the nearest dollar amount.)

Standard deviation            $

b-2. How does your answer change if the analyst examines 100 stocks instead of 20? (Enter your answer in dollars not in millions.)

Standard deviation            $

why does the financial sector have such low asset turnover ratios compared to other industries?
why is the asset turnover ratio important for financial companies?

John makes regular $2000 deposits in his savings account every year for the next 10 years, starting today(total 11 deposits). The bank will pay annual intrest rate of 5% for the next 10 years and will increase the intrest rate to 10%, thereafter. When will John have $100,000 in his account?

Please show all working with formulas. Don't solve it through excel.

ABC is considering purchasing a smaller chain, XYZ software. ABC’s financial analysts project that the merger will result in incremental net cash flows of $5.5 million in Year 1, $6.5 million in Year 2, $8.5 million in Year 3, and $15.5 million in year 4. Interest tax savings after the merger are estimated to be $1.8 million for each of the next 4 years. The expected cost of capital will be 10.5%, and the company expects to experience a normal growth of 6% starting at the beginning of the fifth year. XYZ’s outstanding debt is estimated to be $40 million, and the post-merger beta is estimated to be 1.50. The risk-free rate is 3.5 percent, and the market returns are 10 percent. What is the value of XYZ Software to ABC software? in excel spreadsheet please

rookie quarterback is negotiating his first NFL contract. His opportunity cost is 8%. He has been offered three possible 4-year contracts. Payments are guaranteed, and they would be made at the end of each year. Terms of each contract are as follows:

As his adviser, which contract would you recommend that he accept?

Select the correct answer.