Finance Answers

Describe how the annual bond valuation formula is changed to evaluate semi-annual coupon bonds.Then write out the revised formula.

Springfield Ironworks (SI) recently had their furnace break down, and need to quickly purchase a new one to minimize the disruption in their production. They can choose a high quality furnace (H) that costs $110,000 with $4,000 of annual maintenance costs for the 7-year life of the furnace, or a low quality furnace (L) that costs $60,000 with $7,500 in annual maintenance costs for the 4-year life of the furnace. Which furnace should SI choose? What is the annualized cost of their choice? Assume a discount rate of 6%, and ignore all taxes.

how do you file for taxes step by step process

What do you mean by pre-shipment and post-shipment advances?Discuss.

What is a better measure of risk if assets have different expected returns:
(1) the standard deviation or
(2) the coefficient of variation? Why?

2. Knickerdoodles, Inc.
Sales COGS Interest Dividends Depreciation Cash Accounts receivables Current
liabilities
2004 $ 740 430 33 16 250 70 563 390
2005 $ 785 460 35 17 210 75 502 405
Inventory Long-term debt Net fixed assets Common stock Tax rate
2004 662 340 1,680 700 35%
2005 640 410 1,413 235 35%
What is the operating cash flow (NOPAT + depreciation) for 2005?

a) $143 b)$285 c)$325 d) $353 e)$365

1. Knickerdoodles, Inc.

Sales COGS Interest Dividends Depreciation Cash Accounts receivables Current liabilities

2004 $ 740 430 33 16 250 70 563 390

2005 $ 785 460 35 17 210 75 502 405

Inventory Long-term debt Net fixed assets Common stock Tax rate
2004 662 340 1,680 700 35%
2005 640 410 1,413 235 35%


What is the free cash flow (FCF) for 2005?
a) $50 b) $245 c) $295 d) $435 e) $515

Here are two questions about an economy that has six states,a through f, and six securities, G through L. The securities payoff matrix is X. Some securities may have negative payoffs in some states, you can think of these as forward contracts

G H I J K L
a 18 21 28 5 9 10
b 14 19 8 23 5 -5
Payoff(matrix) X c 8 11 14 -3 27 20
d 6 23 19 -1 26 14
e 19 -4 25 25 20 -10
f 1 -10 22 18 -1 7

1) Is the market complete?
Yes or No?
2)Sam wants a guaranteed income of 25$.Can you create a portfolio from the six securities to do that? If so how many units of securities H must you include in the portfolio?
a) -0.498 b) 0.200 c)4.39 d)4.57207

Is it good for the US economy that the price of the American dollar goes up in other countries?

BGE takes out a loan at j1=.12 (=12%) on which BGE makes semiannual payments of $4500 with the first payment starting six months after taking the loan. If the loan is repaid at the end of ten years, what was the amount of the loan?