In a 22-year period, a particular location was hit by 38 major hurricanes. Assume that major hurricanes are independent of each other and that the mean number of hurricanes per year has not changed.
a) What's the probability of no hurricanes next year?
b) What's the probability that during the next year, there is exactly one hurricane?
c) What's the probability that during the next year, there is more than one hurricane?
In: Statistics and Probability
URGENT
.The following data are available for a bond.
Face value 3,000
Coupon Rate 12%
Years to Maturity 5
Redemption with 10% premium
Repayable in the 1st year 10%, 2nd year 30%
3rd year 25%, 4th year 25%, 5th year 10%
Yield to maturity
a.12% b. 10% c. 16%
Calculate the market value of the bond for each
case?
In: Finance
•You are looking at a new project and you have estimated the following cash flows:
Year 0: CF = -$150,000
Year 1-2: CF = $80,000
Year 3-4: CF = $50,000
Year 5-6: CF = $30,000
Year 7: CF = -$180,000
Your cost of capital is 10%
Please calculate NPV and IRR, and decide whether we should take this project?
In: Finance
Using Python 3
In 2017, the tuition for a full time student in a university is $6,450 per year. The tuition will be going up for the next 7 years at a rate of 3.5% per year. Write your program using a loop that displays the projected year tuition for the next 7 years. You should display the actual year (2018, 2019, through 2024) and the tuition amount per year.
In: Computer Science
In the current year Jose, a cash basis taxpayer, was offered $5 million for signing a professional baseball contract. He countered asking that he receive $1,100,000 a year for 5 years beginning in the current year. The team accepted the counteroffer. In accordance with the contract Jose received $1,100,000 in the current year. For tax purposes, how much income is he treated as constructively receiving in the current year?
In: Accounting
The Dry Wall Division reports the following operating data for
the past two years:
| Year 1 | Year 2 | |||||||
| Margin | 15 | % | ? | |||||
| Turnover | 2.6 | 3 | ||||||
| Average operating assets | ? | $ | 150,500 | |||||
| Net operating income | $ | 40,500 | ? | |||||
| Stockholders’ equity | $ | 80,500 | $ | 125,500 | ||||
| Sales | ? | ? | ||||||
The return on investment at the Dry Wall Division was exactly the
same in Year 1 and Year 2.
The margin in Year 2 was:
In: Accounting
There is a bond with FV = 1000, coupon rate of 10% paid annually and 5 year maturity. At year 0, YTM = 8%.
Given constant YTM, what is the bond price at time 1?
What is capital gain yield and current yield?
What are the prices of the bond in year 2, 3, 4, and 5?
If at year 1, YTM becomes 12%, what is a bond price in year 1?
In: Finance
Consider a project that has a 10% cost of capital that requires an initial investment of $10,000. The year 1 net cash inflow is $2,450; the year 2 net cash inflow is $2,850; the year 3 net cash inflow is $3,350; the year 4 net cash inflow is $3,750; and the year 5 net cash inflow is $5,250. What is the project's discounted payback? NPV? AND IRR?
In: Finance
Richter Manufacturing has a 10% unlevered cost of equity. Richter forecasts the following free cash flows (FCFs), which are expected to grow at a constant 3% rate after Year 3. Year 1 Year 2 Year 3 FCF $715 $750 $805
a. What is the horizon value of the unlevered operations?
b. What is the total value of unlevered operations at Year 0?
In: Finance
Assume that 25 years ago your dad invested $340,000, plus $25,000 in years 2 through 5, and $49,000 per year from year 6 on.
At a very good interest rate of 14% per year
A) determine the CC value.
B) The annual retirement amount the he can withdraw forever starting next year (year 26), if no additional investments are made.
In: Finance