Questions
You are analyzing the U.S. equity market based upon the S&P Industrials Index and using the...

You are analyzing the U.S. equity market based upon the S&P Industrials Index and using the present value of free cash flow to equity technique. Your inputs are as follows:

Beginning FCFE: $90
k = 0.09
Growth Rate:
Year 1–3: 9%
4–6: 8%
7 and beyond 7%
  1. Assuming that the current value for the S&P Industrials Index is 5,500, would you underweight, overweight, or market weight the U.S. equity market? Do not round intermediate calculations. Round your answer to the nearest cent.

    You should -Select-underweightoverweightmarket weightItem 1 the U.S. equity market as the estimated value of the stock of $   is -Select-higher thanlower thanequal torItem 3 the S&P Industrials Index.

  2. Assume that there is a 2 percent increase in the rate of inflation — what would be the market’s value, and how would you weight the U.S. market? Assume that the required return would increase from 9% to 11%, decreasing the value. Also assume that the nominal cash flow growth rates would increase for all time periods by two percentage points. Do not round intermediate calculations. Round your answer to the nearest cent.

    You should -Select-underweightoverweightmarket weightItem 4 the U.S. equity market as the estimated value of the stock of $   is -Select-higher thanlower thanequal torItem 6 than the S&P Industrials Index.

In: Finance

1. The World Bank is concerned about depreciating currencies in developing countries (typically SOEs). What fiscal...

1. The World Bank is concerned about depreciating currencies in developing countries (typically SOEs). What fiscal policy should the Bank advise large foreign countries (that have influence on the world market of loanable funds) to implement in order to reverse the exchange rate depreciation (want ↑e) of the SOEs? For simplicity, assume that the SOE is Mexico and that the large foreign country is the U.S.. The exchange rate e = US$/Peso. Answer the following questions.

a. According to the Mundell-Fleming model, what is the American fiscal policy that should be implemented to promote an appreciation of the Peso? What would happen to the world interest rate (r*) as a result of this policy choice? Explain carefully.

b. Would the change in r* create a net capital inflow (NCI) or a net capital outflow (NCO) for Mexico? Explain using the equation below.

CF = (Amount Mexico lends to U.S.) – (Amount U.S. lends to Mexico)

         (Mexico’s holdings of U.S. assets) – (U.S.’s holdings of Mexican assets)

CF =                             [A]                   -                      [B]

c. Would the NCI or NCO appreciate or depreciate the Mexican US$/Peso flexible exchange rate ( e)? Explain by determining the changes in the demand and the supply of pesos on the foreign exchange market. No graph is needed.

2. Would a protectionist trade policy be effective at increasing income under a fixed exchange rate system? Explain and illustrate your answer with an IS*- LM* graph. Make sure to explain the interaction that takes place between the arbitrageurs and the central bank.

In: Economics

Structure and makeup of Congress in 1789 and in 2020

Structure and makeup of Congress in 1789 and in 2020

In: Operations Management

examine the changes for women in the 1920s U.S

examine the changes for women in the 1920s U.S

In: Economics

What is involved in fair trade with the U.S.?

What is involved in fair trade with the U.S.?

In: Operations Management

What percentage of the U.S. population are overweight?

What percentage of the U.S. population are overweight?

In: Psychology

How will U.S. Healthcare look in 2050?

How will U.S. Healthcare look in 2050?

In: Economics

ABC company has the following financial instruments Owing to expand further its business enterprise, it issued...

ABC company has the following financial instruments

Owing to expand further its business enterprise, it issued 2 years bonds on April 1, 2019. The bond had principal amount of $10 million and carry a fixed interest of 6% per annum. Interest is paid semi-annually on 30 September and 31 March. The market interest rate for similar debts was 8% per annum.

ABC company has invested in the following companies

  1. There was a bonds issued by PHA Trading Ltd. On 1 October 2018, ABC acquired a 10% $400,000 bond with 3 years term at its fair value. The bond will be repurchased at its nominal amount. Interest is payable at end of each year, in arrears. GHI Ltd’s target is to hold such bond to collect cash.

  2. LCD Ltd is a company listed on Hong Kong Stock Exchange and has total 800,000 issued ordinary shares. On 1 August 2019, ABC company invested in 200,000 ordinary shares of LCD Ltd at its listed market price of $80 each, plus transaction costs $100,000.ABC company intended to hold the shares for long term purpose. On 30 September 2019, the share price of LCD Ltd roses to $84 each.

Required
a. Assume ABC company measured its issued bonds at amortized cost. Prepare journal

entries to account for its bond transactions during the year ended 30 September 2019 (Narratives are not required, all workings must be shown)

In: Accounting

Include all the information below about Skin color and sun exposure : ( its genetic mutation(s),...

Include all the information below about Skin color and sun exposure : ( its genetic mutation(s), and the evolutionary mechanisms via which your trait came to differ between populations)

What is the trait called colloquially and scientifically?

What are the hallmarks or characteristics? ?

What mutation(s) causes the trait in your population of interest?

Name of allele? Gene? Type of mutation? ?

What are the differences in frequencies of your trait between the two populations, or, which alleles are characteristic of each population? ?

Are there aspects of this trait that could alter the fitness of the population?

Was the trait selected for or against? What about the environment caused this selection? ?

Did migration, bottlenecking, or the founder effect play pivotal roles in the prevalence of your trait? ?

Were there any types of selective breeding that contributed to the difference in frequency between populations. ?

Is there evidence that interactions with other, pre-existing genes, played a role in the emergence or extinction of your trait within each population?

In: Biology

Include all the information below about Blonde hair (Melanesia vs. Europe) : ( its genetic mutation(s),...

Include all the information below about Blonde hair (Melanesia vs. Europe) : ( its genetic mutation(s), and the evolutionary mechanisms via which your trait came to differ between populations)

What is the trait called colloquially and scientifically?

What are the hallmarks or characteristics? ?

What mutation(s) causes the trait in your population of interest?

Name of allele? Gene? Type of mutation? ?

What are the differences in frequencies of your trait between the two populations, or, which alleles are characteristic of each population? ?

Are there aspects of this trait that could alter the fitness of the population?

Was the trait selected for or against? What about the environment caused this selection? ?

Did migration, bottlenecking, or the founder effect play pivotal roles in the prevalence of your trait? ?

Were there any types of selective breeding that contributed to the difference in frequency between populations. ?

Is there evidence that interactions with other, pre-existing genes, played a role in the emergence or extinction of your trait within each population?

In: Biology