This is one question, please do not respond with only part a. If you do this...
This is one question, please do not respond with only part a. If you do this I will mark your answer as incorrect.
1. Describe the sample space in the following situations: a) The price of a stock tomorrow. b) The number of companies that will default on their debt in March 2013. c) Stock of company A is currently selling for $100 a share. The time until the stock reaches $300. d) Price of stock of companies A and B.
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This is one question, please do not respond with only part a. If
you do this...
Describe a general sample space for the following situations: a) Stock of company A is currently...
Describe a general sample space for the following situations: a) Stock of company A is currently selling for $100 a share. The time until the stock reaches $300. b) Price of stock of companies A and B.
magine that you have placed a limit order to buy 100 shares of Sallisaw Tool at...
magine that you have placed a limit order to buy 100 shares of Sallisaw Tool at a price of $39.00, although the stock is currently selling for $41.93. Discuss the consequences, if any, of each of the following situations. a. The stock price drops to $40.17 per share 2 months before cancellation of the limit order b. The stock price drops to $39.00 per share. c. The minimum stock price achieved before cancellation of the limit order was $39.64. When...
Consider The president of Dronavation, Inc. has hired you to determine the firm's cost of debt...
Consider The president of Dronavation, Inc. has hired you to determine the firm's cost of debt and cost of equity capital. The stock is currently selling for $40 a share and the dividend per share is expected to be around $2. The company has total liabilities of $16 million and interest expense for the year of $2 million. Discuss The president makes the statement that it will cost $2 per share to use the stockholders' money, so the cost of...
(a) Imagine that you have placed a limit order to 100 shares of Sallisaw Tool at...
(a) Imagine that you have placed a limit order to 100 shares of Sallisaw Tool at a price of $38, although the stock is currently selling for $41. Discuss the consequences, if any, of each of the following situations. (i) The stock price drops to $39 per share two months before cancellation of the limit order. (ii) The stock price drops to $38 per share (iii) The minimum stock price achieved before cancellation of the limit order was $38.50. When...
magine that you have placed a limit order to buy 100 shares of Sallisaw Tool at...
magine that you have placed a limit order to buy 100 shares of Sallisaw Tool at a price of $38.00, although the stock is currently selling for $39.77. Discuss the consequences, if any, of each of the following situations. a. The stock price drops to $39.22 per share 2 months before cancellation of the limit order b. The stock price drops to S38.00 per share. c. The minimum stock price achieved before cancellation of the limit order was $38.59. When...
Imagine that you have placed a limit order to buy 100 shares of Sallisaw Tool at...
Imagine that you have placed a limit order to buy 100 shares of Sallisaw Tool at a price of $38.00, although the stock is currently selling for $39.92. Discuss the consequences, if any, of each of the following situations a. The stock price drops to $39.11 per share 2 months before cancellation of the limit order. b. The stock price drops to $38.00 per share. c. The minimum stock price achieved before cancellation of the limit order was $38.53. When...
Through excel please Do not change data in the green shaded areas. Only enter formulas and...
Through excel please
Do not change data in the green shaded areas. Only enter formulas and cell references in the blue shaded areas. INPUT DATA Common Stock Information $100.00 Common shares outstanding (000) Beta risk-free rate required return on market Flotation cost on new common stock Preferred Stock Information 1.30 2.00% 8.00% 0.25% $42.16 $3.60 15 $0.35 Preferred shares outstanding (000) Flotation cost on preferred per share Debt Information Total market value of debt ($000) Price of existing bond Number...
You want to invest in the stock market. You are willing to pay $100 per share...
You want to invest in the stock market. You are willing to pay $100 per share of stock of a well- run and profitable company. However, if the company is badly run, you are only willing to pay $10 per share of stock. You read a report that 80% of companies in the market are well run and 20% are badly run. Answer the following questions: a. Calculate your expected value of a stock chosen randomly among those for sale....
stuck on plan 2, for plan one i did: (but when i do that for plan...
stuck on plan 2, for plan one i did: (but when i do that for
plan 2 it is incorrect)
87,000 * 0.07 = 6,090
100,000 - 6,090 = 93,910
27,000 / 93,910 = 0.2875 *100 = 28.75
Bellwood Corp. is comparing two different capital structures. Plan I would result in 27,000 shares of stock and $87,000 in debt. Plan II would result in 21,000 shares of stock and $261,000 in debt. The interest rate on the debt is 7...
Question 4 - (20 Points) You are a broker and you think that the Google share...
Question 4 - (20 Points) You are a broker and you think that the Google share price will rise in the next three months. The current price of 1 Google share is $55. A 3-month European call options on Google shares with a strike price $58 are currently selling for $2.75. Each option contract is written on 100 shares. You have to choose your investment, between buying 50 shares and buying 1000 call options. Both strategies involve an investment of...
magine that you have placed a limit order to buy 100 shares of Sallisaw Tool at a price of $39.00, although the stock is currently selling for $41.93. Discuss the consequences, if any, of each of the following situations. a. The stock price drops to $40.17 per share 2 months before cancellation of the limit order b. The stock price drops to $39.00 per share. c. The minimum stock price achieved before cancellation of the limit order was $39.64. When...
magine that you have placed a limit order to buy 100 shares of Sallisaw Tool at a price of $38.00, although the stock is currently selling for $39.77. Discuss the consequences, if any, of each of the following situations. a. The stock price drops to $39.22 per share 2 months before cancellation of the limit order b. The stock price drops to S38.00 per share. c. The minimum stock price achieved before cancellation of the limit order was $38.59. When...
Imagine that you have placed a limit order to buy 100 shares of Sallisaw Tool at a price of $38.00, although the stock is currently selling for $39.92. Discuss the consequences, if any, of each of the following situations a. The stock price drops to $39.11 per share 2 months before cancellation of the limit order. b. The stock price drops to $38.00 per share. c. The minimum stock price achieved before cancellation of the limit order was $38.53. When...
Through excel please
Do not change data in the green shaded areas. Only enter formulas and cell references in the blue shaded areas. INPUT DATA Common Stock Information $100.00 Common shares outstanding (000) Beta risk-free rate required return on market Flotation cost on new common stock Preferred Stock Information 1.30 2.00% 8.00% 0.25% $42.16 $3.60 15 $0.35 Preferred shares outstanding (000) Flotation cost on preferred per share Debt Information Total market value of debt ($000) Price of existing bond Number...
You want to invest in the stock market. You are willing to pay $100 per share of stock of a well- run and profitable company. However, if the company is badly run, you are only willing to pay $10 per share of stock. You read a report that 80% of companies in the market are well run and 20% are badly run. Answer the following questions: a. Calculate your expected value of a stock chosen randomly among those for sale....
stuck on plan 2, for plan one i did: (but when i do that for
plan 2 it is incorrect)
87,000 * 0.07 = 6,090
100,000 - 6,090 = 93,910
27,000 / 93,910 = 0.2875 *100 = 28.75
Bellwood Corp. is comparing two different capital structures. Plan I would result in 27,000 shares of stock and $87,000 in debt. Plan II would result in 21,000 shares of stock and $261,000 in debt. The interest rate on the debt is 7...
Question 4 - (20 Points) You are a broker and you think that the Google share price will rise in the next three months. The current price of 1 Google share is $55. A 3-month European call options on Google shares with a strike price $58 are currently selling for $2.75. Each option contract is written on 100 shares. You have to choose your investment, between buying 50 shares and buying 1000 call options. Both strategies involve an investment of...
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