Beagle Beauties engages in the development, manufacture, and sale of a line of cosmetics designed to make your dog look glamorous. Below you will find selected information necessary to compute some valuation estimates for the firm. Assume the values provided are from year-end 2015. Also assume that the firm’s equity beta is 1.40, the risk-free rate is 2.20 percent, and the market risk premium is 6.4 percent.

a. Using these values, estimate the current share price of Beagle Beauties stock according to the constant dividend growth model. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b. If The required return is 12.82 percent. Use the clean surplus relationship to calculate the share price for Beagle Beauties with the residual income model. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Compensating balance versus discount loan   Weathers Catering​ Supply, Inc., needs to borrow $ 145,000 for 6 months. State Bank has offered to lend the funds at an annual rate of 9.1 % subject to a 9.9 % compensating balance.  ​(​Note: Weathers currently maintains $ 0 on deposit in State​ Bank.) Frost Finance Co. has offered to lend the funds at an annual rate of 9.1 % with​ discount-loan terms. The principal of both loans would be payable at maturity as a single sum.

a.  Calculate the effective annual rate of interest on each loan.

b.  What could Weathers do that would reduce the effective annual rate on the State Bank​ loan?

You own a lot in Key West, Florida, that is currently unused. Similar lots have recently sold for $1,370,000. Over the past five years, the price of land in the area has increased 5 percent per year, with an annual standard deviation of 28 percent. You have approached a buyer and would like the option to sell the land in 12 months for $1,520,000. The risk-free rate of interest is 3 percent per year, compounded continuously. What is the price of the put option necessary to guarantee your sales price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

a. Calculate the future sum of 8,000​, given that it will be held in the bank for 77 years at an APR of 66 percent.

​b. Recalculate part (a) using compounding periods that are​ (1) semiannual and​ (2) bimonthly​ (every two​ months).

c. Recalculate parts (a​) and (b​) for an APR of 12percent.

d. Recalculate part (a​) using a time horizon of 14 years​ (the APR is still 66 percent).

e. With respect to the effect of changes in the stated interest rate and holding periods on future sums in parts (c​) and (d​), what conclusions do you draw when you compare these figures with the answers found in parts (a​) and (b​)?

Using the stock prices in Problem 3, calculate the exponential three-month moving average for both stocks where two-thirds of the average weight is placed on the most recent price.

Suppose you are going to receive $13,600 per year for five years. The appropriate interest rate is 8.5 percent. a-1 What is the present value of the payments if they are in the form of an ordinary annuity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value $ a-2 What is the present value if the payments are an annuity due? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value $ b-1 Suppose you plan to invest the payments for five years. What is the future value if the payments are an ordinary annuity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future value $ b-2 Suppose you plan to invest the payments for five years. What is the future value if the payments are an annuity due? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future value $

Develop a business case for using blockchain for asset and wealth management

A German bond that pays annual coupons of 4.5%, has a par value of €1,000, and a YTM of 3.9%. Assuming there are 19 years until maturity, what is the current price of this bond?

AVZ is a​ start-up company who is using all its cash to growth so it does not plan to pay dividends for the next 5 years. The company then plans to start paying annual cash dividends starting in year 6 of ​$4.00 for 14years. ​Thereafter, the company will assume a constant growth dividend policy and the estimated growth rate in dividends forever after that point is 4​%. The price of the stock is set to yield a return of 10​%. What is the price of this stock​ today?

The price today is ​$  

MMM Inc. has an annual cash dividend policy that raises the dividend each year by 10.00%. Last​ year's dividend was ​$1.70 per share. Investors want a 17​% return on this stock. What is the price today of this stock if the company will be in business for five years and not have a liquidating dividend​ (there is no selling price​ - stock simply cease to exist with no value​ then)?

The price of this stock today is?

G-2 Inc. expects the following dividend pattern over the next seven​ years:

The company will then have a constant dividend of ​$1.97 forever. What is the price of this stock today​ (year 0) if an investor wants to earn 14% rate of​ return?

________________ by one party to a contract entitles the other party to sue immediately for damages or other remedies.

If an employer is charged with violating anti-discrimination laws, the employer could defend itself by claiming its action was based on

According to the textbook, the term ‘ethics’ refers to _________ .

According to the textbook, the term ‘ethics’ refers to _________ .

1. It is January 1 2020 and you have recently started a new company, GreenDrone, that produces flying drones for garden maintenance. You are still at the product development stage but would like to evaluate the financial feasibility of the project. Here are some information about the company: - R&D expenditures. In order to develop the drones, you need to hire an engineer for 5 years at an annual salary of $96,000. The salary is paid monthly at the end of the month in equal amounts, i.e. 96,000/12 per month for the first year. To stay competitive, you expect you will have to grow the annual salary at a rate of 3%, starting the next year. The engineer contract starts today, i.e., on January 1 2020. - Production cost. Once the product is developed in 5 years (January 1 2025), you will start the production of your drones. Each product is expected to cost $265 to produce. The cost is to be paid to the supplier at the beginning of a month. - Pricing and sales. You plan to sell the drones for $325 a unit over the next three years, i.e., until January 1 2028. All sales for products produced in a month are collected at the end of the month. The appropriate discount rate r is 5%, annually compounded. Denoting the quantity of drones sold in a month by Q. How many drones do you need to sell per month to make this project profitable (i.e., generate a positive NPV)?

Burlington has tracked daily sales of coats for the three locations below:

Question Set 1. Using only the Chicago sales data, generate the following sales forecasts:

1. Naïve forecasts (using the deseasonalized sales data) for January 5th through January 30^th. You will need to adjust the sales data to remove the seasonality effects. (6pts)

2. Four-day moving average forecasts for January 8^th through January 30^th. (3pts)

3. Twelve-day moving average forecasts for January 16^th through January 30^th. (3pts)

Note that, for example, you will not be able to make a four-day moving average forecast for January 7^th since four previous sales figures are required.

Suppose you have $30,000 to invest. You’re considering Miller-Moore Equine Enterprises (MMEE), which is currently selling for $50 per share. You notice that a put option with a $50 strike is available with a premium of $3.00. Calculate your percentage return on the put option for the six-month holding period if the stock price declines to $46 per share. (A negative value should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Enter your 6-month return as a percent rounded to 2 decimal places.)   

Percentage Return _________%