Review “Mini Case: Planning for Growth at S&S Air” in your textbook on page 129, also found at the end of Chapter 4 in your textbook. Then, answer the following questions: Calculate the internal growth rate and sustainable growth rate for S&S Air. What do these numbers mean? How do you know? S&S Air is […]
Category Archives: Finance
Which bond would have a higher percentage price change if interest rates go up? Explain.
Two bonds A and B have the same credit rating, the same par value, and the same coupon rate. Bond A has 30 years to maturity and bond B has 5 years to maturity. Explain which bond will trade at a higher price in the market and why? What happens to the market price of […]
Calculate the expected return on a venture fund given specific parameters and assumptions.
Fund Return Calculation You will be requested to calculate the expected return on a venture fund given specific parameters and assumptions. The deliverable is an excel sheet model and a 1-2 page document with the description of your analysis. Assumptions The management fee is calculated on total committed capital, not remaining capital. 2.5% annual management […]
What is the duration of the portfolio after the drop in interest rates without rebalancing?
Week 7 – Bond Portfolios Round your answers to two decimal points, and don’t round intermediate calculations. Problem 1. Suppose that you have decided to fund a three-year liability with a portfolio consisting of positions in a two- interest rate level is 10%. a) Compute the price of both bonds. b) Since our liability is […]
Explain current and long term assets and current and long term liabilities. G
Discussion Post Explain current and long term assets and current and long term liabilities. Give at least one example of each.
Reflect on how creating a step-by-step and organized approach to the assignment helps you adjust the financial priorities in your plan.
Touchstone 2: Creating a Personal Financial Plan SCENARIO: Imagine that you are in a position where you need to move – this could be because of a change in job, a need to modify your living arrangements, or something else. In addition to searching for different housing, you want to begin saving for a specific […]
What is the company’s current financial position, and how might this impact the attractiveness of each of the financing options?
You are a financial advisor working with a $6 billion public corporation that is looking to raise an additional $200 million in equity (you are free to choose industry and project). There are three alternative ways to raise this capital: a bond issue (15 years maturity), a seasoned equity offering (SEO), and a rights offering. […]
Evaluate the risks and benefits of leveraging a mobile app to allow borrowers to complete a site visit using geofencing technology through a mobile app and upload videos, images and financial information as part of the annual review process for commercial property loans under $10mm
Risks of leveraging mobile apps to allow self service site visits for borrowers Evaluate the risks and benefits of leveraging a mobile app to allow borrowers to complete a site visit using geofencing technology through a mobile app and upload videos, images and financial information as part of the annual review process for commercial property […]
If the company repurchases 25 percent of the common stock and substitutes an equal value of debt yielding 6 percent, what is the expected value of earnings per share after refinancing?
Corporate Finance 10 MCQ Question 1 Firm A has a value of $100 million and Firm B has a value of $70 million. Merging the two would enable cost savings with a present value of $20 million. Firm A purchases Firm B for $75 million. What is the gain from this merger? $75 million $30 […]
Which stock/fund has the highest alpha and which stock/fund has the lowest alpha?
Single Factor Model Estimation Part I: Single Factor Model Estimation Go to finance.yahoo.com and download monthly historical price data over the 5 year period from March 1, 2018 to February 28, 2023 of the following stocks or fund: a. S&P 500 index ETF (ticker: SPY) b. Delta (ticker: DAL) c. Amazon (ticker: AMZN) d. Apple […]
