Give reasons for the following statements (4 – 5 lines)

1. Underwriting is not compulsory; despite this, a number of reputed companies for their public issue go in for at least partial underwriting

2. While the percentage allotment for non-retail investors in a book-built issue is the maximum, the % allotted to retail investors is the minimum

3. Any VCF wants to exercise exit option say after 5 years of funding

4. VCF does not do angel funding or incubation funding in India whereas this is being done regularly by them in foreign countries

5. A sharebroker is the only common service intermediary between the primary and secondary markets; his role is different. What are his roles in these two segments?

Suppose $90,000 was invested on January 1, 1980 at an annual effective interest rate of 4% in order to provide an annual (calendar-year) scholarship of $5,000 each year forever, the scholarships paid out each January 1.

(a)

In what year can the first $5,000 scholarship be made?

(b)

What smaller scholarship can be awarded the year prior to the first $5,000 scholarship? (Round your answer to the nearest cent.)

USE THE INFORMATION BELOW FOR PROBLEMS 1-4

An analyst wishes to estimate the share price for Ashley Corporation. The following information

is made available:

Estimated profit margin = 15%

Total asset turnover = 2

Financial leverage = 1.2

Estimated dividend payout ratio = 75%

Required rate of return = 14%

Estimated EPS = $2.50

1. Calculate the firm's ROE.

2. Calculate the firm's sustainable growth rate.

3. Calculate the firm’s P/E multiple.

4. Calculate the firm’s estimated share price.

USE THE INFORMATION BELOW FOR PROBLEMS 5-8

At the end of the year 2004 the Office Equipment Industry had free cash flow to equity (FCFE)

of $2.50 per share. The following annual growth rates in FCFE are projected:

Year

Growth Rate

2005

10%

2006

15%

2007

20%

2008

25%

2009

20%

2010

15%

2011

10%

2012

7%

From year 2013 onward growth in FCFE is expected to remain constant at 5% per year. The

industry has a beta of 0.90 and the current industry price is $105. Currently the yield on 10-year

Treasury notes is 5% and the equity risk premium is 4%

5. Calculate the required rate of return on equity. (Hint: derived from CAPM)

6. Calculate the present value now (Year 2004) of FCFE during the period of increasing growth

(that is for years 2005 to 2008).

7. Calculate the present value now (Year 2004) of FCFE during the period of constant growth

(that is for years 2013 onwards).

8. Calculate the intrinsic value of the industry now (Year 2004).

Question #4 A. [1 point] Explain briefly the factors affecting the magnitude of the induced emf in an electricity generating station. B. [4 Points] A rectangular coil of 10 turns with dimensions 10 ?? × 8 ?? sides is held perpendicular to the uniform magnetic field, with half the area of the loop in the field, as shown the following figure. The loop contains an ideal battery with emf E = 1.5 ?. The magnitude of the magnetic field varies with time according to ? = − 4?2 + 3? + 3.0 , with B in teslas and t in seconds. (a) Calculatethemagnitudeanddirectionoftheemfinducedaroundtheloopat?=15???. (b) Find the net current with appropriate direction in the loop at ? = 15 ??? if the loop has a resistance of 2 ohm

QUESTION 4 1. In an effort to persuade customers to reduce their electricity consumption, special discounts have been offered for low consumption customers. In Florida, the EPA estimates that 70% of the residences have qualified for these discounts. If we randomly select four residences in Florida, what is the probability exactly two of the four will have qualified for the discounts?

#1) Mrs. Lucas owns a number of properties in . She also has a large investment portfolio which contains a variety of shares in Canadian companies. In the current year, she is considering selling one of her properties (land and building) and shares in Beta Inc. Mrs. Lucas would like you to advise her on the tax consequences of these sales. The information regarding the property and shares are below.

Property – Mrs. Lucas has land and a building that she is willing to sell. The original cost of the land was $90,000 and can be sold at $140,000. The building’s original cost was $100,000 and can be sold for $105,000.

Shares – The Beta Inc. shares were purchased for $65,000 in 2005, but have been dropping in value the last few years. They are currently worth $30,000. Mrs. Taylor believes the value of the shares will continue to drop and wishes to sell soon.

REQUIRED:

A) Advise Mrs. Lucas of the tax consequences of selling the land, building, and shares this year. Show all calculations.

B) If Mrs. Lucas had a Net Capital Loss of $12,000 from 2014, explain what she can do on her 2017 tax return.

1. A bank has an average asset duration of 4 years and an average liability duration of 1.5 years. This bank has total assets of $500 million and total liabilities of $450 million. Currently, market interest rates are 10 percent. If interest rates rise by 1 percent (to 11 percent), what is this bank's change in net worth?

a. net worth will decrease by $12.05 million

b. net worth will decrease by $15.45 million

c. net worth will increase by $12.05 million

d. either the net worth will not change at all, or none of these options are correct

e. net worth will increase by $15.45 million

2. The principal goal of an interest-rate hedging (risk management) strategy is to hold fixed a bank's:

a. net interest margin

b. noninterest spread

c. value of loans and securities

d. none of the options are correct

e. net income before taxes

4 questions:

1). A 5 cm spring is suspended with a mass of 2.417 g attached to it which extends the spring by 2.409 cm. The same spring is placed on a frictionless flat surface and charged beads are attached to each end of the spring. With the charged beads attached to the spring, the spring's extension is 0.259 cm. What are the charges of the beads?

2). Two equally charged, 1.862 g spheres are placed with 3.188 cm between their centers. When released, each begins to accelerate at 261.446 m/s². What is the magnitude of the charge on each sphere? Express your answer in microCoulombs.

3).A +3 nC charge is located at (0,11.90) cm and a -8nC charge is located (3.38, 0) cm.Where would a -8 nC charge need to be located in order that the electric field at the origin be zero? Find the distance r from the origin of the third charge.

4). Two equally charged, 1.862 g spheres are placed with 3.188 cm between their centers. When released, each begins to accelerate at 261.446 m/s². What is the magnitude of the charge on each sphere? Express your answer in microCoulombs.