Economics Homework Solutions

Cumulative Voting, Dividends, Convertible

problem 4 is cumulative voting problem 16 is preferred stock in arrears problem 7 is stock split and stock dividend problem 16 is dividends and stockholder wealth maximization problem 19-4 price of a convertible bond See attached file for full problem description.

If you were given $100,000 as a gift

If you were given $100,000 as a gift and "as a condition for accepting the gift" you have to invest all of the money in securities (stocks, bonds, or mutual funds), what two factors (there are many, select two) would you consider in determining where you would invest your $100,000 gift? Explain why you would consider the fac ...continues

Corporate Finance Problems: price of bonds, return on investing in bonds, convertible bond, price of stock, return on investment, risk and expected return, pricing of assets, CAPM, merger, beta, diminishing marginal utility, efficient market

1. Price a 3% coupon, $1000 face value bond with 3 years to maturity if the appropriate discount rates over the next three years are 12%, 10% and 9% respectively. Show in dollars and percent what you make if you hold the bond for two years. Suppose there is a bond that is convertible at the end of the first year for 100 share ...continues

What is the present value of each bond?

You are the owner of 100 bonds issued by Euler, Ltd. These bonds have 8 years remaining to maturity, an annual coupon payment of $80, and a par value of $1,000. Unfortunately, Euler is on the brink of bankruptcy. The creditors, including yourself, have agreed to a postponement of the next 4 interest payments (otherwise, the ne ...continues

Stocks, bonds options and futures calculation problems

1. How much will you have after 6 years if you invest $15,000 at 8% per year compounded annually? Quarterly? 2. How much you need to invest now at 8% interest rate compounded semiannually in order to have $10,000 in 5 years from now? 3. Find the present value of $12,000 due four years from now if rate of interest is 6.0% p ...continues

Market Value Ratios

Given the attached financial statements, what figures would be used to compute the following Market Value Ratios? 1. Price/earnings (P/E) ratio = Price per share / earnings per share 2. Price/cash flow = Price per share / Cash flow per share 3. Book value per share = Common equity / Shares outstanding

PV, FV Bond concepts

PV versus FV 4. If the "discount" (or interest) rate is positive, the present value of an expected series of payments will always exceed the future value of the same series. a. True b. False The discounting is the process of finding the PV of a future cash flow and is the reciprocal, or reverse of compounding. 5. ...continues

GM and Ford

1. Do you think GM or Ford could have been more on top of market trends? How much is just foreign competition and how much is just bad management? Also, how much of it is government policy? Foreign producers do not pay health costs--over $1000 per US made vehicle--because foreign government fund health care, not the industry, fo ...continues

Find the Total Cost and show proof

Given: Marginal Cost = (δTC)/( δq) = a - [(b)/((c-q)^x)] Find the Total Cost and show proof.

Financal Analysis of a Company

Looking for some analysis of the company Harley Davidson looking at the following areas: 1. What is the background information on them? 2. What is your opinion, observation, or recommendation on this company? For example ...what types of strategy's do they use, do the use them correctly, what are their shortfalls, how do ...continues

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