Finance Answers

Many entrepreneurs today are eager to start a business but lack the knowledge on how to embark on it.Think of yourself as an entrepreneur and explain on how you would develop your business based on your own business plan.You need to list all the essential elements of your business plan in detail.

Spot EUR/USD: 0.7940/0.8007 Spot USD/GBP: 1.8215/1.8240
Three months swap: 25/35
Calculate three month EUR/USD rate.

I am trying to understand what a financial ratio shows.

It's the ratio "Interest cost as a percentage of sales = interest expense/sales"

Can you explain what this shows for a company.

Thank you

Differentiate between the charactaristics and features of debt and capital (both common and preffered stock).

A firm has a weighted average cost of capital of 10 percent. The firm's aftertax cost of debt is 5.8 percent and the cost of equity is 11.8 percent. The tax rate is 34 percent. What is the firm's debt-equity ratio?

Which of the following statements about interest rate swaps is FALSE?
A) A plain vanilla interest rate swap is a fixed rate for a variable rate swap
B) The parties agreeing to a swap typically make no margin deposit
C) The notional principal amount is used to determine the amount of the interest payments
D) The counterparties exchange the notional principal at initiation and termination while only net
interest rate payments are exchanged on the settlement dates

Company 1 is planning two new issues of 25-yr bonds. Bond Par will be sold at its $1000 per value, and it will have a 10% semiannual coupon. Bond OID will be an original issue discount bond and it will also have a 25-yr maturity and a $1000 par value, but its semiannual coupon will be 6.25%. If both bonds are to provide investors with the same effective yield, how many of the IOD bonds must the company issue to raise $3,000,000? Disregard floatation costs.

Who guarantees that a futures contract will be fulfilled?

2. Commodity futures pricing
A) must be related to spot prices
B) includes cost of carry
C) converges to spot prices at maturity
D) all of the above are true
E) none of the above are true

Valero will pay a $5.00 dividend in one year. It now sells for $50.00 per share with other oil companies in the same industry providing an average return of equity of approximately 15%. What must be the opportunity cost of capital if Valero is plowing back 70% of their earnings back into Retained Earnings?