Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. Stock C splits two-for-one in the last period. |
P0 | Q0 | P1 | Q1 | P2 | Q2 | |
A | 83 | 100 | 88 | 100 | 88 | 100 |
B | 43 | 200 | 38 | 200 | 38 | 200 |
C | 86 | 200 | 96 | 200 | 48 | 400 |
a. |
Calculate the rate of return on a price-weighted index of the three stocks for the first period (t = 0 to t = 1). (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
Rate of return | % |
b. |
What will be the divisor for the price-weighted index in year 2? (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
Divisor |
In: Finance
Projecting revenues, cost of goods sold, and inventory
use the following data for Walgreens in years 11 and 12 to project revenues, cost of goods sold, and inventory for year +1. Assume that Walgreen's year +1 revenue growth rate, gross profit margin and inventory turnover will be identical to year 12. Project the average inventory balance in year+1 and use it to compute the implied ending inventory balance.
Walgreens (data in millions) Year 11 Year 12
Sales revenues $53,762 $59,034
Cost of goods sold $38,518 $42,391
Ending inventory $ 6,791 $ 7,249
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What is the difference between primary and secondary market
Need 100-120 words with atleast 1 refrences
In: Finance
An investor is provided with the following information on American put and call options on a share of a company listed on the London Stock Exchange:
Draw a graph showing the prices at expiry of a fiduciary call and another one showing a protective put, including all of their components, in relation to the price of the stock in a range between 350p and 600p.
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Ayasha, age 30, is beginning to contemplate her financial future. Right now, she lives in a large city where she rents a one-bedroom apartment. Although she loves the excitement of the city, she knows that someday she would like to move to the country and live in a farmhouse. Her goal is to begin saving for this objective right away. Ayasha has identified three possible portfolios that might be appropriate choices as she begins investing to reach her objective. Each portfolio consists of the following stocks, bonds, and cash assets.
Portfolio 1 |
Portfolio 2 |
Portfolio 3 |
10% cash |
10% cash |
15% cash |
20% bonds |
40% bonds |
50% bonds |
70% stocks |
50% stocks |
35% stocks |
Instructions:
In: Finance
PLEASE NOTE: I POSTED THIS QUESTION BEFORE BUT ONE EXPERT SIMPLY COPIED THE ANSWER TO ANOTHER QUESTION THAT WAS USING THE SAME INFORMATION.
WHAT I'M LOOKING FOR ARE 2 GRAPHS.
An investor is provided with the following information on American put and call options on a share of a company listed on the London Stock Exchange:
Draw a graph showing the prices at expiry of a fiduciary call and another one showing a protective put, including all of their components, in relation to the price of the stock in a range between 350p and 600p.
In: Finance
ABC Paper stock was $36per share at the end of last year. Since then, it paid a $1.50 per share dividend in the last year. The stock price is currently $35. Suppose you own 300 shares of ABC Paper. Which of the following statements is (are) correct?(x)Your dollar return on ABC Paper stock was $150 for the year.(y)Your percent return on ABC Paper stock was 1.39 percent for the year.(z)If you had owned more stock then you would have experienced a dollar return greater than $150 but the same percent return.
A.(x), (y) and (z)B.(x) and (y) onlyC.(x) and (z) onlyD.(y) and (z) onlyE.(z) only
You have a portfolio of fivestocks.You invested $5,150 in Intel(INTC), $6,520 in Tenneco(TEN), $10,345 in Alibaba(BABA), $4,370 in Aurora Cannabis (ACB)and $8,435in Occidental Petroleum(OXY). Which of thefollowing statements is (are) correct?(
x)The portfolio weight on the Intel stock is less than 0.146 and the portfolio weight on Occidental Petroleum (OXY) stockismore than 0.243.
(y)The combined portfolio weight of theTenneco and Aurora Cannabis stock is more than 0.308 but less than 0.316
z)If you sold off $1,000 of Alibaba stock and used that $1,000 to purchase Aurora Cannabis stock then the portfolio weight of Alibaba would fall from 0.297 to below 0.269and the portfolio weight of Aurora Cannabis stock would rise above 0.152.
A.(x), (y) and (z) B.(x) and (y) only C.(x) and (z) only D.(y) and (z) only E.(y) only
In: Finance
It's always fun to get together with family, friends and other acquaintances to share some great fun, food and fellowship. So, lets have ourselves a virtual potluck and you are all invited.
For this Discussion Board assignment, we have all agreed to have a virtual Thanksgiving dinner and split the cost. Everyone has to select and bring their favorite recipe to the potluck. We all agreed to split the cost equally and we'll say that there are 20 of us going to attend. That means that we may need to made several batches of certain recipes to serve 20.
Here's what you need to do:
1.) Provide the detailed recipe that you are going to make.
2.) Price out and show the calculations for the cost of the ingredients required to make the recipe.
3.) Provide the calculations you used to determine the direct labor cost required to make it (this includes the time it tale to go to the store to buy the ingredients, the time it takes to prep and prepare it, and any time required for it to bake or set up in the refrigerator) and the time it takes to clean up. Assume labor costs are $15 per hour.
4.) Don't forget the overhead costs which include gasoline in the car, electric used to bake or cool your dish, detergent to wash the dishes, and others. Assume that the pre-determined overhead rate is $2.50 per direct labor hour. Show how you calculated this as well.
5.) Compute and show your calculations for the total cost of to make the dish and then also the per person cost.
Post all of this to the Discussion Board and then make an additional post stating which recipe (other than your own) you would select and tell us why.
In: Finance
Create a line chart for the closing prices for all years, and a stock chart for the high/low/close prices for August 2013 in the Excel file S&P 500. (Show all steps in excel)
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Which of the following statements is (are) correct?(x)A major economic downturnis a source of systematic riskand the departure of a firm's chief executive officer(CEO) is a source of unsystematic risk.(y)During a recession, systematic risk will increase and unsystematic risk will decrease.(z)Adding more unrelated securities to a portfolio reduces unsystematic risk.
A.(x), (y) and (z
)B.(x) and (y) only
C.(x) and (z) only
D.(y) and (z) only
E.(z) only
Which of the following statements is correct?
A.The dollar return is a more useful measure to compare performance than percentage return because it more accurately reflects the change in wealth of the investor.
B.It is necessarily true that when an investment achieves a high return it is a risky investment
.C.By adding stocks to your portfolio, it is possible toeffectively eliminate nearly all of the market risk.
D.A low standard deviation means that the investment is less likely to achieve high returns; which means that it is more risky.
E.None of these statements are correct
In: Finance
Briefly explain mortgage securitization and how it contributed to the economic crisis.
In: Finance
Question 1
-You are a member of the Partmerships Victoria Team managing the
procurement of the Footscray Hospital. It has been announced that
this project will be delivered as a PPP.
-You have been asked to provide a briefing note to the Treasurer
addressing the following questions from his Chief-of- Staff:
-Why is this hospital being delivered as a PPP?
-The Northern Beaches Hospital PPP appears to have faced some
problems and is now subject toa Parliamentary Inquiry. Will we
encounter the same difficulties and how are we approaching the
scoping of the project?
-It is understood that based on previous precedent, the private
sector is likely to use non-recourse project finance and set up a
special purpose company; what does this mean, what risks does it
present for government and how will we protect ourselves?
In: Finance
You have been asked to assess the impact of possible changes in reserve requirement components on the dollar amount of reserves required. Assume the reserve percentages are currently set at 2 percent on the first $50 million of traction account amounts; 4 percent on the second $50 million; and 10 percent on transaction amounts over $100 million. The First National Bank has transaction account balances of $100 million, while the Second National Bank’s transaction balances are $150 million and the Third National Bank’s transaction balances are $250 million.
a. Determine the dollar amounts of required reserves for each of the three banks.
b. Calculate the percentage of reserves to total transactions accounts for each of the three banks.
c. The Central Bank wants to slow the economy by raising the reserve requirements for member banks. To do so, the reserve percentages will be increased to 12 percent on transaction balances above $100 million. Simultaneously, the 2 percent rate will apply on the first $25 million. Calculate the reserve requirement amount for each of the three banks after these changes have taken place.
d. Show the dollar amount of changes in reserve requirement amounts for each bank. Calculate the percentage of reserve requirement amounts to transaction account balances for each bank.
e. Which of the two reserve requirement changes discussed in (c) causes the greatest impact on the dollar amount of reserves for all three of the banks?
f. Now assume that you could either: (1) lower the transactions account amount for the lowest category from $50 million down to $25 million, or (2) increase the reserve percentage from 10 percent to 12 percent on transactions account amounts over $200 million. Which choice would you recommend if you were trying to achieve a moderate slowing of economic activity?
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ou are given the following stream of cash flows: Year 1 Year 2 Year 3 Year 4 Year 5 $100,000 $110,000 $120,000 $130,000 $140,000 A. If you thought the appropriate discount rate was 10%, what would be the present value of this cash flow stream today at t=0? B. If you thought the appropriate interest/discount rate was 10%, what would be the future value of this cash flow stream in five years at t=5 years?
In: Finance