An investor owns a bond with a modified duration of 0,5. At the moment YTM for that bond is equal to 3,28%. What will be the magnitude of bond price change if YTM for the bond changes to 3,58%. Explain how can you improve accuracy of estimation of a bond price change resulting from the change of market interest rates
In: Finance
You have gather this information on it for $500,000 sells $10,000 cash dividends $300,000 cost of good sold $20,000 administrative expenses $20,000 depreciation expense is $40,000 interest expense $10,000 purchase a product of equipment no changes in what capital and tax rate is 21% what is the free cash flow
In: Finance
In: Accounting
A stock has a required return of 16.00%, the risk-free rate is
8.20%, and the market risk premium is 12.20%.
a) What is the stock's beta?
b) If the market risk premium changes to 5.50%, what would happen
to the stock's required rate of return? Assume that the risk-free
rate and the beta remain unchanged.
In: Finance
Propose a factor that captures the effect of a financial shock
(e.g., the subprime crisis) as a leftward
shift of the Aggregate Demand in the P-Y space.
You should clearly state the factor, how the factor changes
(increase or decrease) and explain how it
shifts the Aggregate Demand Curve to the left in the P-Y space.
In: Economics
Let L be a linear map between linear spaces U and V, such that L: U -> V and let l_{ij} be the matrix associated with L w.r.t bases {u_i} and {v_i}. Show l_{ij} changes w.r.t a change of bases (i.e u_i -> u'_i and v_j -> v'_j)
In: Advanced Math
In considering what happened to Enron and the financial regulations prior to SOX, discuss the necessity of financial regulations in order to affect social forces to influence analysts and investors to behave altruistically. In your response, discuss the changes that have been made to financial regulations and the effects this has had on the structure of business ownership
In: Finance
What role do financial institutions play within the global marketplace?
How can policies and regulations impact financial institutions?
What role does the central banking system play within the global marketplace? Would you recommend any changes to the central banking system? Why or why not?
In: Finance
In: Nursing
You are working in Human Resources for a large corporation. The Chief Risk Officer (CRO) mentions to you that the cost of providing employee benefits continues to trend higher, and is seeking solutions. What are some possible changes that can be made to the employee benefits package that would help keep costs under control?
In: Finance