company currently has 150k shares outstanding, selling at $64
per share. The firm intends to raise $565k through a rights
offering. Management suggests that a discount cannot fall below 11%
as outlined in the previous issue, to which existing shareholders
did not respond with much enthusiasm. They believe that a 37%
discount offer is more appropriate. Also, the CEO is rejecting
calls for raising capital through debt or preferred stock.
Net earnings after taxes (EAT) are $649k. Furthermore, a recent
corruption scandal involving a number of senior figures in the firm
has come to light in the press; soon after the rights offering was
announced – in other words, it was already too late. Among the
immediate consequences were a fall in stock price by 17.09% and
increased capital requirements by 62%. Required: In percentage
terms, determine by how much did the dollar value of one right
change before and after the consequences described above, together
with the 37% discount offer which was simultaneously taking place.
Answer
In: Finance
1.If a stock is purchased for $100 per share and held one year, during which time a quarterly dividend of $1.5 is paid, each quarter, and the price climbs to $130 per share. What is the rate of return?
2.What should be the price for a common stock paying $1.35 annually in dividends if the dividend will remain constant (zero growth of dividend), indefinitely, and the expected return is 5.5%?
3.If the dividend yield for year one is expected to be 4% based on the current price of $80, what will year seven dividend (DIV7) be if dividends grow at a constant 2%?
4.What dividend per share would be reported in the financial press for a stock that currently has 4.5% dividend yield and the most recent stock price was $75?
5.What would be the stock price today if you know you will sell the stock in 2 years from today at $55/share and you expect annual dividends $2/share in year 1 and $3/share in year 2, given the discount rate is 10%?
In: Accounting
Dorothy Santosuosso does a lot of investing in the stock market and is a frequent user of stock-index options. She is convinced that the market is about to undergo a broad retreat and has decided to buy a put option on the S&P 100 Index. The put carries a strike price of 906 and is quoted in the financial press at $14.51. Although the S&P Index of 100 stocks is currently at 900.43, Dorothy thinks it will drop to 851 by the expiration date on the option. How much profit will she make, and what will be her holding period return if she is right? How much will she lose if the S&P 100 goes up (rather than down) by 25 points and reaches 925 by the date of expiration?
A stock trades for $44 per share. A call option on that stock has a strike price of $52 and an expiration date six months in the future. The volatility of the stock's returns is 47%, and the risk-free rate is 6%. What is the Black and Scholes value of this option?
In: Finance
Please assist with the following:
The National Highway Traffic Safety Administration (NHTSA) conducted a survey to learn about how drivers throughout the United States are using seat belts (Associated Press, August 25, 2003). Sample data consistent with the NHTSA survey are as follows:
probability estimate in part (a) might be too high? Explain.
In: Statistics and Probability
BUSINESS ANALYSIS
select business that publicly trades on the New York Stock Exchange or NASDAQ
1. the company`s name on its name history if the name changed
since the company was originally formed ( consider mergers
etc.)
2. company`s trademark(s)
3. location of the company`s home office and whether they have offices located outside the US (if so, identify location(s))
4. description of the company`s general products or serviced
5. the company`s mission statement or business philosophy
6. whether the company is publicly traded and if so, the stock exchange on which the company`s shares are traded
7. the current CEO and summary of his/her business background
8. the identity on one of the company`s primary competitors
9. summary of the company`s corporate ethics policy and the URL to this policy
10. summary of company press release dated July 1, 2017 or later
11. summary of lawsuit in which the company has been involved as a plaintiff or as a defendant
In: Economics
C language <stdio.h> use double and const
Write a program that asks the user for the radius of a circle (as a double) and displays the diameter, circumference, and area of the circle.
Use a constant of 3.14159 as the value of pi. Have a blank line between the input and the output. Follow the 3 steps in the Information Processing Cycle - Input, Processing, and Output. The formulas needed are:
diameter = 2 * radius
circumference = 2 * pi * radius
area = pi * radius * radius
Have a blank line at the end of your program to separate the last line of output from your program from the "Press any key to continue . . .", and do this for all programs that you write.
Example Run #1:
(bold type is what is entered by the user)
Enter the radius of the circle (in inches): 5
The diameter of a circle with a radius of 5.00 inches is xx.xx
inches.
The circumference of a circle with a radius of 5.00 inches is xx.xx
inches.
The area of a circle with a radius of 5.00 inches is xx.xx square
inches.
The example run shows EXACTLY how your program input and output will look.
In: Computer Science
Step 1:
Select a news article about a product or market which interests you and ties to concepts introduced in the macroeconomics. The article MUST come from a reputable media source ( See embedded file for list of suitable sources). The article should count at least 750 words and be dated after May 1, 2019. At this stage, you don't need to attach the article or embed a link. That will occur during Step 2 of the assignment. At this point you want to insure you've picked a valid topic/source. Please include the following in your submission:
Title of Article
Newspaper/Magazine/Source
Date of Article
Sources:
Associated Press Reuters NPR BBC Wall Street Journal Washington Post The Guardian Economist Time Christian Science Monitor Time PBS USA Today National Review Weekly Standard Reason.com Raleigh News & Observer Vox.com The New Yorker The Atlantic Monthly
The deadline to submit this portion of the assignment is June 30th.
In: Economics
The Great Financial Crisis (GFC) in the United States: Causes and Policy Responses
Goal
Analyze the recent (2008-2009) episode in the United States – the Great Financial Crisis (or Great Contraction). Your job is to write a 500-word essay that will: (a) discuss the antecedents to the episode – seeds of the crisis that were previously sown. Then, using the IS-LM model, show both (b) the shocks to the economy which occurred and (c) the government policy response. Also, provide a short discussion of the implications for health care business/industry.
Background
Although it happened some time ago, the Great Financial Crisis (GFC) of 2008-2009 continues to be heavily discussed, including in the popular press. For this assignment, you should read the article “A warning from the almost-depression” by Robert Samuelson, Washington Post, September 16, 2018. For several reasons, this episode is well-suited to the IS-LM model. Your job is to discuss that episode using the model.
PLEASE PROVIDE THE REFERENCES THAT YOU USED AND NO Plagiarism.
In: Economics
On August 27, 2015, Celgene Corporation acquired all of the outstanding stock of Receptos, Inc., in exchange for $7.6 billion in cash. Referring to Celgene’s 2015 financial statements and its July 14, 2015, press release announcing the acquisition, answer the following questions regarding the Receptos acquisition.
Why did Celgene acquire Receptos?
What accounting method was used, and for what amount, to record the acquisition?
What amount did Celgene include in pre-combination service compensation in the total consideration transferred? What support is provided for this treatment in the Accounting Standards Codification (see ASC 805-30-30, paragraphs 9-13)?
What allocations did Celgene make to the assets acquired and liabilities assumed in the acquisition? Provide a calculation showing how Celgene determined the amount allocated to goodwill.
Describe the nature of the in-process research and development product rights acquired by Celgene in its acquisition of Receptos.
How will Celgene account for the in-process research and development product rights acquired in the Receptos combination?
In: Accounting
Problem 4-10
Present and Future Values of Single Cash Flows for Different
Interest Rates
Use both the TVM equations and a financial calculator to find the following values. Round your answers to the nearest cent. (Hint: Using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown variable. Then, without clearing the TVM register, you can "override" the variable that changes by simply entering a new value for it and then pressing the key for the unknown variable to obtain the second answer. This procedure can be used in parts b and d, and in many other situations, to see how changes in input variables affect the output variable.)
In: Finance