You are long 24 gold futures contracts, established at an initial settle price of $864 per ounce, where each contract represents 100 troy ounces. Your initial margin to establish the position is $12,000 per contract, and the maintenance margin is $11,200 per contract. Over the subsequent four trading days, gold settles at $853, $849, $859, and $869, respectively. Compute the balance in your margin account at the end of each of the four trading days, and compute your total profit or loss at the end of the trading period. Assume that a margin call requires you to fund your account back to the initial margin requirement. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)
In: Finance
ABC’s the most recent free cash flow (FCF0) is $200 million. The free cash flow is expected to grow at a rate of 40 percent, and 20 percent in the second year. After two years, it is expected to grow forever at a constant rate of 5 percent. The cost of common stock (rs) is 12% and the weighted average cost of capital (WACC) is 9%. ABC balance sheet shows $20 million in short term investments that are unrelated to operations. The balance sheet also shows $100 million in debt, $50 million in preferred stocks, and $250 million in common stocks.If the company has 40 million shares of common stocks, what is your best estimate for the stock price per share today? Assume that company's book values of debt and preferred stocks are very close to the market vales.
In: Finance
C program:
1, Make two parallel arrays, one to keep track of food names and
another to keep track of the food prices. There will be a total of
10 items, with a total of about 100 characters for each food name
title (i think we can use malloc for the strings and allocate it
accordingly)
Basically it will be something like a menu:
1, we will enter the food information
2, it will list all the food names and prices
3,then it will show a total value of the food inventory
Thanks!
To clarify, this is basically an inventory tracking. The user is the one inputting the food names, like for example the user inputs Donut and the price for Donut $3.00 that would be tracked, then the user enters 9 more items+ their prices(this is where the parallel array comes in). giving us 10 food items in the inventory.
In: Computer Science
Wood County Hospital consumes 1000 boxes of bandages per week. The price of bandages is $35 per box, and the hospital operates 52 weeks per year. The cost of processing an order is $15, and the cost of holding one box for a year is 15% of the value of the material.
In: Operations Management
Corporate bonds offer a series of fixed payments consisting of interest payments and face value at maturity. As so, managers of financial intermediaries like pension funds and insurance companies frequently utilize such instruments to achieve their financing objectives.
Questions for discussion:
What is assumed the interest payments can be reinvested at?
What is interest rate risk and what would happen to the price of a bond given interest rates increase?
Assume the manager of a $100 million portfolio of corporate bonds predicts interest rates will rise in the near future.
What adjustments should be made to the portfolio assuming the market has not already adjusted for this prediction?
Will a long-term zero coupon bond have more or less interest rate risk than a comparable coupon paying bond?
In: Finance
Your task is to find the cost of capital (WACC) for a company. The company has three sources of capital available. The marginal tax rate for the company is 35%.
Common stock: 100 000 shares outstanding with the book value of $20 but currently trading at P/B=2.0. One may apply CAPM to estimate the cost of equity. Inputs for estimations are: risk free rate 2.8%, market risk premium 10.0% and the stock beta is 1.20.
Debt: 2 000 discount bonds with $1 000 par value, with 4 year to maturity. Bonds currently offer 6% yield to bondholders.
Preferred stock: 14 000 shares outstanding with $90 market price and 7% yield.
Find the cost of each financing source, capital structure weights for each source and the WACC.
In: Finance
ou are given the following information on Parrothead Enterprises: Debt: 9,200 7.3 percent coupon bonds outstanding, with 22 years to maturity and a quoted price of 108.5. These bonds pay interest semiannually and have a par value of $2,000. Common stock: 315,000 shares of common stock selling for $66.30 per share. The stock has a beta of 1.08 and will pay a dividend of $4.50 next year. The dividend is expected to grow by 5.3 percent per year indefinitely. Preferred stock: 9,800 shares of 4.65 percent preferred stock selling at $95.80 per share. The par value is $100 per share. Market: 10.2 percent expected return, risk-free rate of 4.5 percent, and a 23 percent tax rate. Calculate the company's WACC.
In: Finance
After reading this chapter, it isn’t surprising that you’re becoming an investment wizard. With your newfound expertise, you purchase 100 shares of KSU Corporation for $37 per share. Assume the price goes up to $45 per share over the next 12 months and you receive a qualified dividend of $0.50 per share. What would be your total return on your KSU Corporation investment? Assuming you continue to hold the stock, calculate your after-tax return. How is your realized after-tax return different if you sell the stock? In both cases, assume you are in the 25 percent federal marginal tax bracket and 15 percent long-term capital gains and qualified dividends tax bracket and there is no state income tax on investment income.
In: Finance
a. A bond that has a $1 comma 000 par value (face value) and a contract or coupon interest rate of 10.5 percent. Interest payments are $52.50 and are paid semiannually. The bonds have a current market value of $1 comma 122 and will mature in 10 years. The firm's marginal tax rate is 34 percet.
b. A new common stock issue that paid a $1.83 dividend last year. The firm's dividends are expected to continue to grow at 7.4 percent per year, forever. The price of the firm's common stock is now $27.35.
c. A preferred stock that sells for $122, pays a dividend of 8.1 percent, and has a $100 par value.
d. A bond selling to yield 11.7 percent where the firm's tax rate is 34 percent.
In: Finance
Crown Co. can produce two types of lamps, the Enlightner and Foglighter. The data on the two lamp models are as follows:
| Enlightner | Foglighter | |||||||
| Sales volume in units | 570 | 470 | ||||||
| Unit sales price | $ | 300 | $ | 400 | ||||
| Unit variable cost | 200 | 240 | ||||||
| Unit contribution margin | $ | 100 | $ | 160 | ||||
It takes one machine hour to produce each product. Total fixed costs for the manufacture of both products are $125,000. Demand is high enough for either product to keep the plant operating at maximum capacity.
Assuming that sales mix in terms of dollars remains constant, what is the breakeven point in dollars? (Round intermediate calculations to 4 decimal places and final answer up to the nearest whole number.)
Multiple Choice
$383,459.
$213,089.
$401,237.
$339,489.
$1,040,391.
In: Accounting