Financial analysis代写 required rate of return for IBM stock is 12%; 1 year Treasury bills are yielding 5%; inflation rate is 2%.
Questions 1 and 2 are based on the following information: required rate of return for IBM stock is 12%; 1 year Treasury bills are yielding 5%; inflation rate is 2%.Financial analysis代写
The risk premium on IBM is ___.
The real rate of interest is ___.
Explain the relationship between interest rates and the value of existing bonds.
What does duration tell you about this relationship?Financial analysis代写
Calculate the duration and modified duration of the following:
i. GE’s AAA-rated zero coupon bond with 10 years to maturity. Other AAA rated 10 year bonds are yielding 5%.
ii. WMT’s 3 year 6% coupon bond. The bond’s Par value is 1000 and its YTM is 5%.
What is the modified duration of an equally weighted portfolio of GE and WMT bonds (from 4)?
What does this number represent to fixed-income portfolio managers?Financial analysis代写
The Slipperyrock Bank has money-market deposit rate of 3 percent compounded quarterly.
It will take ________ years to double your money.
I bought a 30 year coupon bond this morning at $1000 (par value is $1000).
At what price can I sell it this afternoon, if yields on these bonds have fallen from 7% this morning to 6.5% this afternoon?Financial analysis代写
Find the value of the following stocks:
i. The Preferred stock of SBAS Corp. pays an annual dividend of $2.5. The required rate of return on the stock is 18%.
ii. The Common stock of SBAS Corp. pays an annual dividend of $3.0. Dividends are expected to grow at 4%. The beta of SBAS is 1.3, the average return on the S&P500 over the past 70 years is 9%, and the 30 year T-bond yield is 3.5%.
Find the value of a 15 year bond issued by Webbedfoot & Co. given the following information: Coupon: 7.5%
- Payment of coupon: Annual
- Risk free rate of return: 3%
- Risk premium on Webbedfoot bonds: 8%.
Find the yield to maturity of a 10% annual coupon bond maturing in 25 years with a current market price of $1,300.
You have just financed a Jaguar priced at $42,000.
The loan requires annual repayments over 3 years. The annual percentage rate on the purchase is 10%. Write out the amortization schedule for the purchase. The schedule should contain annual total payments, annual interest payments, annual principal payments and end of year balances.Financial analysis代写
Questions 12-14 are based on the following Income Statement data for RuNutz Corp: Revenues = $50 million; Cost excluding depreciation = $7 million; Depreciation = $3 million; Interest Expense = $0.5 million; Tax rate=30%; Preferred Dividends = $1 million; Common Dividends = $2 million. The company has 7 million common stocks outstanding, and 1 million stock options that are likely to be exercised; the current stock price is $10 and the Strike price is 2.Financial analysis代写
The undiluted EPS for the year is____, and the fully diluted EPS is______.
If the company increased its receivables by $3 million, and its payables by $5 million, the change to cash flows from operations for the year is________.
The retained earnings of the company is ________.
Pekoe Corporation has a Market/Book ratio of 3 and a current stock price of $20.
Its book value of assets is $200 million, and its liabilities are stated at $100 million. Pekoe has____ stocks outstanding.Financial analysis代写
The Dow was at 80 in 1930 and is at 10,000 80 years later.
The annually-compounded geometric rate of return is_________, and the continuously compounded rate of return is _____________.
* Nike Corporation is paying 7% APR on their senior notes with interest due on a quarterly basis.
The company faces an effective rate of interest of _________.
*I invested $1000 in a stock portfolio 5 years ago.
I contributed another $1000 3 years ago. The current value of the portfolio is $6000. What is my dollar weighted rate of return (internal rate of return)?Financial analysis代写
Answer both parts of this question:
i. An asset will start paying annual dividends 5 years from today. The first ten dividends will be $1000 each. Starting on the 15thyear, the asset will pay $2000 annually per year forever. The beta of this asset is 1 and the expected return on the Market portfolio is 10%. Establish the fair value of this asset.Financial analysis代写
ii. You expect to put away (invest) 10% of your income every year. Your income was $100,000 last year, and it is expected to grow at 5% annually. You will put your money in a fund that mimics the S&P 500 index whose historic return is 10%. How much do you expect to have at the end of 25 years (when you retire)?Financial analysis代写
20. Systematically present the elements of the 3 key financial statements.
For each, indicate the problems that a financial analyst would run into when dealing with accounting treatment of R&D.
Using a Bloomberg Terminal, download (at least some) relevant financial information for fundamental analysis and/or technical analysis for the firms you are analyzing.
Please show evidence that that information gathered is from a Bloomberg Terminal. (You could take a snapshot of the screen or submit a Bloomberg/Excel file)
Using a Bloomberg Terminal or Yahoo Finance, download 3 years of daily price history for the S&P 500 and for the companies you are analyzing for your final report. Run appropriate regressions (having checked for data synchronicity) to obtain:
a. Regression R2for the two regressions.
b. α and β for the two companies.
Use the Sharpe Ratio and Treynor Ratio to assess whether your 2 stocks outperformed the S&P 500 over the interval in the “risk-return sense.”Financial analysis代写
Using the “amortization” file provided on Moodle as guide, please produce in Excel an amortization schedule for the following loan:
15 year loan
Loan amount: $540,000
Equal Monthly payments
Show how the payment schedule will change if you decide to make a single lumpsum payment of $20,000 over and above your scheduled monthly payment on the 24th month. Financial analysis代写