Company HDE is expected to pay an interim dividend of $1.00 three months from now and a final dividend of $2.10 one year from now. HDE is then expected to repeat the same pattern every year for the foreseeable future with no growth in dividends. Given that the appropriate effective discount rate is 7.0% p.a., what is the stock price of HDE closest to today? A) $43 B) $44 C) $45 D) $46 E) None of the above

You have just accepted a job offer, which came with a signing bonus of $5,000 to be paid today in your retirement account. Your employer will also contribute an extra $10,000 at the end of each full year (you start work tomorrow!). If this account is expected to earn 10% p.a. compounded semi-annually, which number is closest to the amount of money will you have in that account after five years? (including the payment for that year). A) $59,500 B) $65,500 C) $69,500 D) $72,500 E) None of the above

A bond with 15 years to maturity is paying 6% coupons semi-annually, and the last coupon has just been paid. The face value is $1,000 and the yield to maturity is 8% p.a. What is the price today closest to: A) $827.08 B) $932.95 C) $1,000.00 D) $1,324.32 E) None of the above

1. Suppose that a young couple has just had their first baby and they wish to ensure that enough money will be available to pay for their child's college education. Currently, college tuition, books, fees, and other costs, average $12,500 per year. On average, tuition and other costs have historically increased at a rate of 4% per year.

   Assuming that college costs continue to increase an average of 4% per year and that all her college savings are invested in an account paying 7% interest, then the amount of money she will need to have available at age 18 to pay for all four years of her undergraduate education is closest to:

   A) $97,110
   B) $107,532
   C) $101,291
   D) $50,000
   E) None of the above

10. You invested $1,000 five years ago and that investment is now worth $1,250. Which of the following statements is most correct about the interest earned by your investment: A) Simple interest is 4.56% per annum. B) Compound interest is 5.00% per annum. C) Compound interest is 4.56% per annum. D) We don’t have enough information to compute the simple or compound interest. E) None of the above.

Select a company in your pathway that maintains an inventory. Don't use a company that someone has already used. Please put the company's name as the subject of your post. (No posting the company name only to hold it. You must make a full post or I will delete it.) Access a recent (less than 12 months) annual 10-K report for the company using the SEC Edgar search tool or Yahoo or Google finance. Review the report and in and in a minimum of three paragraphs, tell us the following: 1. When the report was filed and the time period it covers, indicating specific dates. 2. What are the company's major product lines? 3. What inventory methods do they use? (Hint: see the Notes of the financial statements) 4. List the major components of the inventory and their values. 5. Include two other items that you found interesting about the financial statements. Examples of businesses in pathways could be: • AHCD: Dance, Theater, Film production, Social media, Graphics design or architecture business • Business: Accounting office, caterer, advertising firm, dry cleaner, restaurant, any business is acceptable • Education: K-12 tutoring, Child care, Charter schools • Health Sciences: Dr. or Dentist office, PT office, Hospital, Insurance co, • IMCT: Engineering Co., Aviation maintenance, Aviation distribution, Supply Chain Management • Public Safety: Law office, PI, Equipment providers for the industry • STEM: Engineering Co., Vet. Office, Computer Services co. • SGSHS: Psychology office, Non-profit agencies, Social Media

A commonly cited business goal is profit maximization. Why is this not the most precise goal of financial management? Referencing a real-life example, why should a corporation not do anything and everything to maximize owners’ wealth?

explain the primary advantages to investing internationally

?

Diversification in an investment portfolio is a significant concept for creating the highest return for the least amount of risk. To create this diversification portfolio managers consider the correlation of investments. Based on your reading, thoroughly explain how correlation is interpreted and how it can help with the creation of a diversified portfolio.

a.Owners' equity 2017

Owners' equity 2018

b.Change in NW

Cc-1.Fixed assets sold

c-2.Cash flow from assets

d-1.Debt retired

d-2.Cash flow to creditors

(show all workings 60 marks)

This question relates to material covered in Topics 1-5. This question addresses the 1st, 2nd and 3rd subject learning outcomes.

(a) Bradley hates taking risk with his money; "I hate shares and property, I know a lot of people who have lost money in those investments". As a result he will only consider bank guaranteed investments. Bank guaranteed investments are returning 1%. Bradley has a marginal tax rate of 32.5% and pays medicare levy of 2%.

1. Assuming he pays tax at 32.5% plus medicare levy, on the income from his investment, is he preserving the real dollar value of his investment if inflation is 2.5% per annum? Show your workings to justify your answer. (2.5 marks)
2. When considering your calculations, how would you explain the benefits of risk to Bradley? (2.5 marks)

You own a coal mining company and are considering opening a new mine. The mine itself will cost $ 118.1 million to open. If this money is spent​ immediately, the mine will generate $ 21.3 million for the next 10 years. After​ that, the coal will run out and the site must be cleaned and maintained at environmental standards. The cleaning and maintenance are expected to cost $ 1.7 million per year in perpetuity. What does the IRR rule say about whether you should accept this​ opportunity? If the cost of capital is 8.3 %​, what does the NPV rule​ say?

I have bolded the answers I chose. I just need someone to check my work and if I'm wrong possibly explain why, please?

1. If a stock pays a dividend, the owner of a call option will see the value of their option decrease by the amount of that dividend payment.

a. true

b. false

2. DEF stock currently trades for $40. Both American calls and puts are available on the stock. All else being constant, which of the following will occur if the stock price falls to $35?

a. Both the call and put premium will increase.

b. The call premium will increase while the put premium will decrease.

c. Both the call and put premium will decrease.

d. None of the above.

3. PQU stock has two series of European call options. Both series expire in six months, but one series has a strike price of $50, while the other series has an exercise price of $60. If the market is in equilibrium, it must case that the $50 series has a higher premium than the $60 series on any given day prior to expiration.

a. true

b. false

4. A 9-month American call on Smith stock with an exercise price of $20 sells for $1.25. A 9-month European call on Smith stock carries a strike price and premium of $22 and $1.1, respectively. If the American call isn't exercised early, which of the following will occur when the options expire?

a. The American call will have a higher premium than the European call.

b. The American call will have a lower premium than the European call.

c. The premiums for both options will be the same.

d. Cannot be determined.

You are considering making a movie. The movie is expected to cost $ 10.7 million up front and take a year to make. After​ that, it is expected to make $ 4.5 million in the year it is released and $ 2.1 million for the following four years. What is the payback period of this​ investment? If you require a payback period of two​ years, will you make the​ movie? Does the movie have positive NPV if the cost of capital is 10.9 %​?