Suppose your employer offers you a choice between a $4,800 bonus and 100 shares of the​ company's stock. Whichever one you choose will be awarded today. The stock is currently trading at $62.26 per share. A. If you receive the stock bonus and you are free to trade​ it, which form of the bonus should you​ choose? What is its​ value?B. If you receive the stock bonus and you are required to hold it for at least one​ year, what can you say about the value of the stock bonus​ now? What will your decision depend​ on?

1A. If you receive the stock bonus and you are free to trade​ it, which form of the bonus should you​ choose? What is its​ value?If you are free to trade the​ stock, the value of the stock bonus today is? (Round to the nearest​ dollar.)

2B. The value of the cash bonus is ?Round to the nearest​ dollar.)

3C Which bonus should you​ choose? Stock or Cash?

2 . If you receive the stock bonus and you are required to hold it for at least one​ year, what can you say about the value of the stock bonus​ now? What will your decision depend​ on?  ​(Choose all the answers that​ apply)

A.You might decide that it is better to take the $ 4, 800 in cash than to wait for the uncertain value of the stock in one year. This would be especially true if you believed you could invest the $4,800 today in another equally risky asset that would be worth more than the stock one year from now.

B.Since you work for this company you are considered to be a stakeholder. This implies​ that, for​ you, the​ company's shares are worth more than $6,226 today.​ Therefore, you should take the stock bonus.

C.Because you could buy the stock today for $6,226 if you wanted​ to, the value of the stock bonus cannot be more than $6,226. But if you are not allowed to sell the​ company's stock for the next​ year, its value to you could be less than $6,226.

D.The​ stock's value will depend on what you expect it to be worth in one​ year, as well as how you feel about the risk involved. There is no​ clear-cut answer to which alternative is​ best, because taking the stock today and having to hold it for a year involves risk.

Compute the value of a share of common stock of Lexus Hotel Berhad whose most recent dividend was RM2.50 and is expected to grow at 3.50 percent per year for the next 5 years, 5 percent per year for the next 3 years, after which the dividend growth rate will increase to 6 percent per year indefinitely. Assume 10.00 percent required rate of return.

A local finance company quotes an interest rate of 18 percent on one-year loans. So, if you borrow $35,000, the interest for the year will be $6,300. Because you must repay a total of $41,300 in one year, the finance company requires you to pay $41,300/12, or $3,441.67, per month over the next 12 months.

a. what rate would legally have to be quoted?

b. what is the effective annual rate?

1.       What additional factors are encountered in international as compared with domestic financial management? Discuss each briefly.

2.       hat risks are associated with direct foreign investment? How do these risks differ from those encountered in domestic

2. A What is the monthly payment amount on a $100,000 home loan if the rate is 8.0% APR, and the loan is made for a 15-year period?

B A four-year investment requires annual deposits of $300 at the beginning of each year. The deposits earn 6% per year. What is the investment’s future value? Remember, the deposits are made at the beginning of each year (annuity due).

Assume that the 1-year zero-coupon bond is sold at $89.78 and the yields to maturity for the coupon bonds selling at market prices equal to their face values are 11% and 13% for 1-year and 1.5-year issues respectively. Coupons are paid every 6 months and face values are $100 for all the bonds.

(a) Calculate the spot rate curve (s_0.5, s₁, s_1.5).

(Keep your answer in decimal format 4 decimal places, e.g. 0.1234. Do not give in percent format e.g. 12.34%.)

     s_0.5: _______________ s₁: ____________________ s_1.5 :__________________

(b) Compute the quasi-modified duration for each of these bonds. (Keep 2 decimal places, e.g. xx.12.)

     Zero-coupon bond: ______________

11% coupon bond: ______________

    13% coupon bond: ______________

(c)  Determine the current price of an 14% coupon bond with face value $100 and 18 months to maturity. (Keep 2 decimal places, e.g. xx.12.)

________________

You are analyzing a project with 5-year life. The project requires a capital investment of $10000 now, and it will generate uniform annual revenue of $6000 at the end of each year. Further, the project will have a salvage value of $2500 at the end of the fifth year and it will require $3000 each year for the operation. What is the net value of the project using year 1 as the basis, considering a 10% annual interest rate._________(round your answer to the nearest integer, e.g. enter 12345 if your answer is 12,345.2; enter 12346 if your answer is 12,345.7)

Last​ year, InDebt Company paid ​$67 million of interest​ expense, and its average rate of interest for the year was 10.0​%. The​ company's ROE is 15.8​%, and it pays no dividends. Estimate next​ year's interest expense assuming that interest rates will fall by 19​% and the company keeps a constant equity multiplier of​ 20%.

Next​ year's estimated interest expense is

Sun Brite has a new pair of sunglasses it is evaluating. The company expects to sell 5,900 pairs of sunglasses at a price of $154 each and a variable cost of $106 each. The equipment necessary for the project will cost $310,000 and will be depreciated on a straight-line basis over the 6-year life of the project. Fixed costs are $200,000 per year and the tax rate is 34 percent. How sensitive is the operating cash flow to a $1 increase in variable costs per pairs of sunglasses?

Each year you need to power wash your deck.
You can rent a power washer for $38 per day. If you go with this option, you will pay $38 each year starting today up to and including year 5 .
If you buy the power washer, you will pay $100 today and the power washer will last up to and including year 5 .

If your investments earn 4% compounded annually, how much does it save you in present value terms to own the power washer?

Group of answer choices

$113

$102

$118

$97

$107

You are trying to decide whether to keep your current car or buy a new car. If you keep your current car you will pay $350 per month (starting next month) on average for maintenance, gas, property tax and insurance. You will make these payments for 10 years. Alternatively, you can buy a new car and pay $28,000 today and $300 per month (starting next month) on average for maintenance, gas, property tax and insurance. You will make these payments for for 10 years. If your investments earn 4% APR (compounded monthly), which alternative is cheaper in present value terms and by how much? get new car, saves $24,395 keep existing car saves $23,061 keep existing car saves $22,390 keep existing car saves $25,215

Question 1

Trevi Corporation recently reported an EBITDA of $31,200 and $9,700 of net income. The company has $6,600 interest expense, and the corporate tax rate is 35 percent. What was the company’s depreciation and amortization expense? Round to the nearest cent.

Question 2

Working capital: Winston Electronics reported the following information at its annual meetings. The company had cash and marketable securities worth $1,236,268, accounts payables worth $4,160,826, inventory of $7,121,886, accounts receivables of $3,488,415, notes payable worth $1,151,930, and other current assets of $121,634. What is the company’s net working capital?

Question 3

The difference between FIFO and LIFO is FIFO refers to the practice of firms, when making sales, assuming that the inventory that came in last (at a higher price) is being sold first. LIFO implies that a firm is selling the lower cost, older inventory first, leaving the higher cost, newer inventory on the balance sheet.

Question 3 options:

Question 4

Which of the following balance sheet items generally takes the longest time to convert to cash?

Question 4 options:

Question 5

A firm’s net income may be greater than its net cash flows because the firm

Question 5 options:

Question 6

The average tax rate is

Question 6 options:

Stocks A and B have the following probability distributions of expected future returns: Probability A B 0.1 (11 %) (37 %) 0.2 5 0 0.5 12 24 0.1 24 28 0.1 33 35 Calculate the expected rate of return, , for Stock B ( = 11.60%.) Do not round intermediate calculations. Round your answer to two decimal places. % Calculate the standard deviation of expected returns, σA, for Stock A (σB = 20.31%.) Do not round intermediate calculations. Round your answer to two decimal places. % Now calculate the coefficient of variation for Stock B. Do not round intermediate calculations. Round your answer to two decimal places. Is it possible that most investors might regard Stock B as being less risky than Stock A? If Stock B is less highly correlated with the market than A, then it might have a higher beta than Stock A, and hence be more risky in a portfolio sense. If Stock B is more highly correlated with the market than A, then it might have a higher beta than Stock A, and hence be less risky in a portfolio sense. If Stock B is more highly correlated with the market than A, then it might have a lower beta than Stock A, and hence be less risky in a portfolio sense. If Stock B is more highly correlated with the market than A, then it might have the same beta as Stock A, and hence be just as risky in a portfolio sense. If Stock B is less highly correlated with the market than A, then it might have a lower beta than Stock A, and hence be less risky in a portfolio sense. Assume the risk-free rate is 2.5%. What are the Sharpe ratios for Stocks A and B? Do not round intermediate calculations. Round your answers to four decimal places. Stock A: Stock B: Are these calculations consistent with the information obtained from the coefficient of variation calculations in Part b? In a stand-alone risk sense A is less risky than B. If Stock B is less highly correlated with the market than A, then it might have a lower beta than Stock A, and hence be less risky in a portfolio sense. In a stand-alone risk sense A is less risky than B. If Stock B is less highly correlated with the market than A, then it might have a higher beta than Stock A, and hence be more risky in a portfolio sense. In a stand-alone risk sense A is more risky than B. If Stock B is less highly correlated with the market than A, then it might have a lower beta than Stock A, and hence be less risky in a portfolio sense. In a stand-alone risk sense A is more risky than B. If Stock B is less highly correlated with the market than A, then it might have a higher beta than Stock A, and hence be more risky in a portfolio sense. In a stand-alone risk sense A is less risky than B. If Stock B is more highly correlated with the market than A, then it might have the same beta as Stock A, and hence be just as risky in a portfolio sense.