estimate an equity beta of 1.33. Given this information‚ estimate the beta of HHI’s investment in the hockey team. HHI Equity = 32 × 20 = $640 HHI debt = $64 HHI asset beta = (640/(640+64)) 1.33 + (64/(640+64)) 0 = 1.21 Holdings of Hotdogs = 850/2 = 425 Value of Hockey Team = (640+64)-425 = $279 Hotdog equity beta : (850/1050) × Be + (200/1050) × 0 = 0.75 Be = 0.75 × 1050/850 = 0.93 for hotdog equity So‚ if B = hockey team beta‚ (425/(425+279)) 0.93 + (279/(425+279)) × B = 1.21 B = 1.64
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Monique Moore FIN 534 Homework Chapter 16 1. Swim Suits Unlimited is in a highly seasonal business‚ and the following summary balance sheet data show its assets and liabilities at peak and off-peak seasons (in thousands of dollars): Peak Off-Peak Cash $ 50 $ 30 Marketable securities 0 20 Accounts receivable 40 20 Inventories 100 50 Net fixed assets 500 500 Total
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1 What changes when an ion is formed from an atom? A. Neutrons are lost or gained. B. Protons are lost or gained. C. The nucleus disintegrates. D. Electrons are lost or gained. E. Either protons or electrons are lost or gained. 2 When comparing a 10.00 g sample of iron with a 10.00 g sample of lead: A. each sample has the same number of atoms. B. there are more iron atoms than lead atoms. C. there are more lead atoms than iron atoms. D. it is not possible to tell which sample contains
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Problem 20-6 on Call Options based on Chapter 20 (Excel file included) You own a call option on Intuit stock with a strike price of $40. The option will expire in exactly 3 months’ time. a. If the stock is trading at $55 in 3 months‚ what will be the payoff of the call? • Payoff-max=(50-s) = max (55-40)=15 the Ford owner will gain $15 b. If the stock is trading at $35 in 3 months‚ what will be the payoff of the call? • Payoff-max=(35-s) = max (35-40)=-5 the owners will gain $-5 c. Draw
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dividend payout ratios. Despite its drawbacks‚ following the residual dividend policy will tend to stabilize actual cash dividends‚ and this will make it easier for firms to attract a clientele that prefers high dividends‚ such as retirees. 2 points Question 2 In the real world‚ dividends Answer are usually more stable than earnings. fluctuate more widely than earnings. tend to be a lower percentage of earnings for mature firms. are usually changed every year to reflect earnings changes‚ and these
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Question 1 . 2 out of 2 points Your bank account pays a 6% nominal rate of interest. The interest is compounded quarterly. Which of the following statements is CORRECT? Answer Selected Answer: The periodic rate of interest is 1.5% and the effective rate of interest is greater than 6%. Correct Answer: The periodic rate of interest is 1.5% and the effective rate of interest is greater than 6%. . Question 2 . 2 out of 2 points Which of the following statements regarding a 15-year (180-month)
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FIN 534 Midterm Exam 1 1. Of the following investments‚ which would have the lowest present value? Assume that the effective annual rate for all investments is the same and is greater than zero. 2. You plan to analyze the value of a potential investment by calculating the sum of the present values of its expected cash flows. Which of the following would increase the calculated value of the investment? 3. Which of the following statements regarding a 20-year monthly payment amortized mortgage with
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Chapter 8 Supplemental Homework/Practice Problems Solutions may be found on the FIN 380 site of i-Tunes U near the bottom of the file list under "Supplemental Homework - Chapter 8" 8-1. AEH‚ Inc. just paid a $1.00 dividend and is expected to pay a $1.06 dividend next year. What is AEH’s capital gains yield (growth rate‚ “g”)? 8-2. XYZ‚ Inc. stock sells for $50.00 and is expected to sell for $54.50 next year. What is XYZ’s capital gains yield (Hint: the percentage change in stock price is
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of consumable products each day (7 Reasons Coca-Cola Is A Buy. (n.d.)). Coca Cola has been a strong company for many decades‚ and has been able to innovate and change with their consumers needs and wants. Ko’s business volume has grown 6% in the Page 2 of 17 first half of 2014‚ as the company has been moving away from it’s reliance solely on carbonated soft drinks and more towards loIr calorie “natural”
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In this document of FIN 515 Week 2 Homework Assignment Problems you will find the next information: Prob 3-1 Prob 3-2 Prob 3-3 Prob 3-4 Prob 3-5 Prob 3-6 Prob 3-7 Prob 4-1 Prob 4-2 Prob 4-6 Prob 4-13a Prob 4-14 Business - Finance FIN-515 Managerial Finance - Weekly Assignments - All 7 Weeks‚ got A+ Week 1 Homework Assignment Complete the following graded homework assignment in a Word document named “ FIN515_Homework1_yourname
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