Why is the NPV method considered by finance specialists to be the best method for capital budgeting? What does the NPV of a project tell managers?

Question 2: You are to calculate the price a European call option considered “at the money” on a stock index with a current level of 300, a risk free rate of interest of 9% per annum, volatility of 16% per annum, 6 months until expiration, and has an annual dividend yield of 2.5%.

A portfolio to the right of the market portfolio on the CML is ___________.  

Which of the following statements about CML and SML is FALSE?

Which of the following portfolios most likely fall below the efficient frontier? The risk-free rate is 5%.

A corporate bond matures in 14 years. The bond has an 8 percent coupon and a par value of $1,000. Interest is paid semiannually. The bond is priced to yeild 6.0%. What is the bond's current price? Hint: Should it be above or below the face value?

Group of answer choices

$987.52

$1,006.57

$1,187.64

$1,199.35

$1,212.24

10. What are some concerns you might have about owning stocks and 10-year government bonds over the next 12 months? Support your outlook and concerns with citations from primary sources such as economist’s reports or investor surveys.

A newly issued bond pays its coupons once annually. Its coupon rate is 8%, its maturity is 20 years, and its yield to maturity is 10%.

a. Find the holding-period return for a 1-year investment period if the bond is selling at a yield to maturity of 9% by the end of the year. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b. If you sell the bond after one year, what taxes will you owe if the tax rate on interest income is 40% and the tax rate on capital gains income is 30%? The bond is subject to original-issue discount tax treatment. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

c. What is the after-tax holding-period return on the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

d. Find the realized compound yield before taxes for a 2-year holding period, assuming that (1) you sell the bond after two years, (2) the bond yield is 9% at the end of the second year, and (3) the coupon can be reinvested for one year at a 3% interest rate. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

e. Use the tax rates in (b) above to compute the after-tax 2-year realized compound yield. Remember to take account of OID tax rules. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

1. What is the current level of annualized inflation, unemployment rate, and annual real GDP growth in the U.S.? What is the five-year historical high and low for each variable? What is the outlook for each variable for the next year? Cite your sources.
2. How does each variable compare to other developed nations and emerging markets? Cite your sources.

Doug​ Klock, 56 just retired after 31 years of teaching. He is a husband and father of three​ children, two of whom are still dependent. He received a $140,000​lump-sum retirement bonus and will receive 2,700 per month from his retirement annuity. He has saved $151,000 in a​ 403(b) retirement plan and another​$93,000 in other accounts. His​ 403(b) plan is invested in mutual​ funds, but most of his other investments are in bank accounts earning 2 or 3 percent annually. Doug has asked your advice in deciding where to invest his​ lump-sum bonus and other accounts now that he has retired. He also wants to know how much he can withdraw per​ month, considering he has two children in college and a nonworking spouse. His current monthly expenses total $6,000. He does not intend to begin receiving Social Security until age 67​,and his monthly benefit will amount to ​$1,500.He has grown accustomed to some risk but wants most of his money in​ FDIC-insured accounts.

a. Assuming Doug has another account set aside for​ emergencies, how much can he withdraw on a monthly basis to supplement his retirement annuity if his investments return is 4 percent annually and he expects to live 25 more​ years?

Answer all the questions below
I have select a business topic which is based on cycling retail shop we sell bicycles in following shop and do repairing as well so thats the business which i have select below are the questions which have to be answered in regards to cycling business

Financial Plan Format
1. Project cost

2. Financing plan and loan requirements

3. Security for loan

4. Profit and loss statement

5. Cash flow statement

6. Balance sheet

7. Loan repayment schedule

8. Break-even point (BEP)

9. Return on investment (ROI)

10. Financial analysis

our division is considering two investment projects, each of which requires an up-front expenditure of $17 million. You estimate that the investments will produce the following net cash flows:

Answer all the questions below
I have select a business topic which is based on cycling retail shop we sell bicycles in following shop and do repairing as well so thats the business which i have select below are the questions which have to be answered in regards to cycling business

Guide Questions
1. What is the total capital requirement?

2. Is a loan needed? What will be the equity contribution of the entrepreneur? And how much?

3. What security (collateral) can be given to the bankers?

4. What does the profit and loss statement indicate?

5. What does the cash flow statement indicate?

6. What does the balance sheet indicate?

7. What is the loan repayment schedule?

8. What is the break-even point (BEP)?

9. What is the return on investment (ROI)?

10. Is the project feasible?