Why is it important that the financial markets are efficient?

Why is it important that the financial markets are efficient?

What is the difference between investment and gambling?

What is the difference between investment and gambling? What is the difference between investment and speculation?

Active vs Passive Portfolio Management Style

What are Active and Passive Portfolio management styles?

The Dunn Corporation is planning to pay dividends of $500,000. a. What should be the repurchase price? b. How many shares should be repurchased? c. What if the repurchase price is set below or above your suggested price in part a? d. If you own 100 shares, would you prefer that the company pay the dividend or repurchase stock?

The Dunn Corporation is planning to pay dividends of $500,000. There are 250,000 shares outstanding, and earnings per share are $5. The stock should sell for $50 after the ex-dividend date. If, instead of paying a dividend, the firm decides to repurchase stock, a. What should be the repurchase price? b. How many shares sh ...continues

Percent of sales forecasting

(Percent of sales forecasting) Which of the following accounts would most likely vary directly with the level of a firm’s sales? Discuss each briefly. Yes No Yes No Cash ___ ___ Notes payable ___ Marketable securities __ ...continues

Risk Seekers

Read the following article: http://www.gametheory.net/Mike/applets/Risk/ Discuss if you believe you are a “risk seeker’, “risk-averse” or “risk neutral” as described by the author’s theory and why you believe what you’ve chosen. Your discussion should be at least 100 words and cite any additional references you might ...continues

17-3 (Indirect quotes)

17-3 (Indirect quotes) Compute the indirect quote for the spot and forward Canadian dollar, yen, and, and Swiss franc contracts. Country Contract $/Foreign Currency Canada-dollar Spot .8437 30-day .8417 90-day .8395 Japan- ...continues

Yield to maturity

Bonds sell for 1,025, they have a 9 year maturity, annual coupon of $80, par value of 1,000. What is their yield to maturity?

Npminal yield to call

Outstanding bond with 12 yrs to maturity, 9% coupon paid semiannually, 1,000 par value, bond has 7% nominal yield to maturity, but it can be called in 3 yrs at a price of 1,045. What is bond's nominal yield to call?

Required rate of return

Real risk free rate is 2.5%, expect a 3.50% future inflation rate, market risk premium is 5.5%, beta is 1.40, What is required rate of return?