XYZ stock price and dividend history are as follows:

An investor buys three shares of XYZ at the beginning of 2010, buys another one shares at the beginning of 2011, sells one share at the beginning of 2012, and sells all three remaining shares at the beginning of 2013.

a. What are the arithmetic and geometric average time-weighted rates of return for the investor? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

b-1. Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2010, to January 1, 2013. (Negative amounts should be indicated by a minus sign.)

b-2. What is the dollar-weighted rate of return? (Hint: If your calculator cannot calculate internal rate of return, you will have to use a spreadsheet or trial and error.) (Negative value should be indicated by a minus sign. Round your answer to 4 decimal places.)

Rate of return             %

Question 3: Textbook

• Product: Textbook
• Selling price: $60
• Sales in January: 500
• Price elasticity: 5

The information above is provided by a bookstore. The store manager wants to determine if $50 is the profit maximization price for this textbook. He also provides the following information:

• Purchase price from publisher: $40

Question 3.1: Please create a linear demand curve based on the given information.

[Please type the equation of the linear demand curve]

Question 3.2: Use Excel Solver to find out the profit maximizing price of this textbook.

XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End 2010 $ 140 $ 4 2011 $ 159 $ 4 2012 $ 132 $ 4 2013 $ 137 $ 4 An investor buys five shares of XYZ at the beginning of 2010, buys another three shares at the beginning of 2011, sells one share at the beginning of 2012, and sells all seven remaining shares at the beginning of 2013. a. What are the arithmetic and geometric average time-weighted rates of return for the investor? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Arithmetic mean 2.93 % Geometric mean 2.08 % b-1. Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2010, to January 1, 2013. (Negative amounts should be indicated by a minus sign.) Date Cash Flow 1/1/2010 $ -700 1/1/2011 -457 1/1/2012 164 1/1/2013 987 b-2. What is the dollar-weighted rate of return? (Hint: If your calculator cannot calculate internal rate of return, you will have to use a spreadsheet or trial and error.) (Negative value should be indicated by a minus sign. Round your answer to 4 decimal places.) Rate of return %

A treasury bond futures price is 103-24. The price of three deliverable bonds are 110-06, 138-12 and 155-28. Their conversation factors are 1.0067, 1.2598, and 1.4367, respectively which bond is the cheapest to deliver?

Number of Shares Outstanding (000's) 300

Share Price as of 12/31/2017 $11

Share Price as of 12/31/2016 $9

Tax Rate 40%

Total Dividends Paid In 2017 (000's) $ 60

Capital Expenditures in 2017 (000's) $70

Net Income 2016 $171

Net income 2017 $189

Sold old equipment for $20,000 with an original cost of $25,000 and A/D of $10,000

- Find total stakeholder return ( Dividends + SPA) for year ended 2016 and 2017

XYZ stock price and dividend history are as follows:

An investor buys three shares of XYZ at the beginning of 2015, buys another one shares at the beginning of 2016, sells one share at the beginning of 2017, and sells all three remaining shares at the beginning of 2018.

a. What are the arithmetic and geometric average time-weighted rates of return for the investor? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

b-1. Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2015, to January 1, 2018. (Negative amounts should be indicated by a minus sign.)

b-2. What is the dollar-weighted rate of return? (Hint: If your calculator cannot calculate internal rate of return, you will have to use a spreadsheet or trial and error.) (Negative value should be indicated by a minus sign. Round your answer to 4 decimal places.)

No explanation only Answers(Thums up for all answer)

18.) The Price-Earnings valuation model estimates the price of a share of stock today as the ______.

a. sum of a forward looking P/E multiple and the EPS in the next period

b. product of the firm’s historic P/E multiple and the EPS in the next period

c. product of a forward looking P/E multiple and the EPS in the next period

d. product of a forward looking P/E multiple and the current EPS

19.) Which of the following statements about economic value added (EVA) is NOT true?

a. EVA is a measure of value creation.

b. EVA is a process for attempting to create value.

c. If a firm generates positive EVA then it increases shareholder value.

d. all of the above are true

20.) Which of the following is NOT a factor that would be analyzed by a firm as part of an external SWOT analysis?

a. expected inflation

b. expected growth of firm-wide sales

c. expected changes in GDP

d. political uncertainty

21.) If a firm is projected to increases revenues by 10% AND net income by the same amount, which of the following must be TRUE?

a. there can be no variable costs

b. there can be no fixed costs

c. there can be no taxes

d. the change in expenses must be exactly equal to the change in revenues

22.) Rogue River Retail Inc. has a before-tax cost of debt of 8.00%, a cost of equity of 12.00%, a tax rate of 30.00% and no preferred stock outstanding. If the firm is made up of 50% debt and 50% equity, what is the firm’s after-tax cost of borrowing?

a. 12.00%

b. 11.60%

c. 8.00%

d. 5.60%

23.) Which of the following is likely to lead to an increase in a firm’s cost of debt financing?

a. an increase in expected inflation

b. an increase in the riskiness of assets

c. an increase in the average age of debt financing

d. all of the above

24.) Which of the following equations for the book value plus adjustment method is correct? a. value of equity (VE) = market value of equity - adjustments

b. value of equity (VE) = book value of equity + adjustments

c. value of equity (VE) = book value of equity - adjustments

d. value of equity (VE) = market value of equity + adjustments

Izzy Ice Cream has the following price and cost information:

Required:

1. Determine Izzy’s break-even point in units and sales dollars.

2. Determine how many sundaes must be sold to generate a profit of $16,200.

3. Calculate Izzy’s new break-even point for each of the following independent scenarios:

a. Sales price decreases by $0.50.

b. Fixed costs decrease by $300 per month.

c. Variable costs increase by $0.50 per sundae.

4. Based on the original information, how many sundaes must Izzy sell to generate a profit of $44,000, if sales price increases by $0.50 and variable costs increase by $0.30?

• Required 1

Determine Izzy’s break-even point in units and sales dollars.

Determine how many sundaes must be sold to generate a profit of $16,200.

Calculate Izzy’s new break-even point for each of the following independent scenarios: (Do not round your intermediate calculations.)

a. Sales price decreases by $0.50.
b. Fixed costs decrease by $300 per month.
c. Variable costs increase by $0.50 per sundae.

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Based on the original information, how many sundaes must Izzy sell to generate a profit of $44,000, if sales price increases by $0.50 and variable costs increase by $0.30? (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number.)

1.a.In words, what does the cross price elasticity of demand measure?

b.Would the cross price elasticity of demand between Evian bottled water and Fiji bottled water be positive or negative? Explain.

c.Which would be larger (in absolute value), the cross price elasticity of demand between Evian and Fiji water or that between Evian water and Sprite soda? Explain briefly.

1. Use the following information to answer the following 3 questions

Direct Market for C$/INR                                   Bids                       asks

Deutsche Bank’s quote:                               C$.0855/INR       C$.0865/INR

Barclays’ quote:                                             C$.0857/INR       C$.0864/INR

CSFB’s quote:                                                  C$.0860/INR     C$.0871/INR

Markets for INR/$ and C$/$

                                                                    dollar bids           dollar asks           dollar bids               dollar asks

Deutsche Bank’s quote:                        INR 13.04/$        INR 13.36/$        C$1.125/$        C$1.131/$  

Barclays’ quote:                                     INR 13.11/$        INR 13.52/$        C$1.126/$         C$1.130/$

CSFB’s quote:                                          INR 13.22/$        INR 13.35/$        C$1.123/$        C$1.134/$

1. What is the best direct C$/INR ask price? Compute the best indirect C$/INR bid price.    (These are the clockwise numbers)

2. What is the best direct C$/INR bid? Compute the best indirect C$/INR ask price. (These are the counter-clockwise numbers)

3. Determine if there is a triangular arbitrage opportunity. (Look clockwise and counter-clockwise) If there is an arbitrage opportunity, do it! How much risk-free arbitrage profit is there if you start with $1,000,000 and make one trip around the triangle?