Given the following information, calculate the weighted average cost of capital for Skelly Corp.   Percent of capital structure:     Debt……………………….       25%   Preferred stock………..       15   Common equity……….       60         Additional information:         Bond coupon rate………………………….        14%   Bond yield to maturity……………………        13%   Dividend, expected common…………..    $  5.00   Dividend, […]

5. You own 200 shares of Shamrock Enterprises that you bought at $25 a share. The stock is now selling for $45 a share. a. You put in a stop loss order at $40. Discuss your reasoning for this action. b. If the stock eventually declines in price to $30 a share, what would be your rate of re- turn with and without the stop […]

Case Study: Mortgage Application    Principal: $500,000   Assume that the loan is an ‘interest-only’ loan.   Option 1: Variable Rate   a) The current rate of the loan (fixed for 2 years): 4.12%b) The interest rate is unknown after Year 2.c) The duration of the loan is 7 Years.   Option 2: Fixed Rate   a) Refinance the current loan and pay pre-payment penalty […]

keys corporation’s 5-year bonds yeild 7.00% and 5-year T-bonds yields 5.15%. The real risk-free rate is r* = 3.0%, the inflation premium for 5-year bonds is IP = 1.75%, the liquidity premium for Keys bonds is LP = 0.75% verss zero for T-Bonds, and the maturity premium for all bonds is found with the formula MRP = (t-1) x .1%, where t = number of […]

A hostile takeover generally occurs when an organization is underperforming, and members of the top management team are not taking appropriate action to correct known issues. An individual or group may take advantage of the organization’s low stock price in these situations to purchase a large enough number of shares to gain control. While these types of buyouts are referred to as hostile, this doesn’t […]

Referencing this week’s readings and lecture, what are the limitations of financial ratios?  Classify your answer into at least the following categories: liquidity ratios, activity ratios, leverage ratios, and profitability ratios.      LECTURE   After review of financial statements, managers can use basic financial ratio analysis tools to establish trends within the financial results of a company through comparing the result of different periods […]

a) the firm has a lower P/E ratio than the other firms in the industry   b)the firm is less likely to avoid insolvency in the short run than other firms in the industry   c)the firm may be more profitable than other firms in the industry   d)the firm has a lower P/E ratio than other firms in the industry and the firm is […]

This weeks assignment is broken down into three sections – a breakeven calculation, a multiple choice question and an essay. Your essay should be at least two pages in length, 12 point font, double spaced. Please complete question 1-6 below.  Please show all of your work to receive credit. Breakeven Analysis: Brandon’s home health care agency is considering a new product with a fixed cost of $2,000, a […]

 I need help with a written assignment, any article related to the topics such as: supply, demand, interest rate, taxes, subsides, inflation, unemployment . this article must be 1-2 pages summary/analysis, APA format.      1) Introduce your article summary. 2) What is the article’s main idea. Explain / Summarize in your own words what is the article writing about.  3) What it the issue at […]

FIN 534 Midterm Exam 3 1. Which of the following statements is CORRECT? 2. You are considering two equally risky annuities, each of which pays $25,000 per year for 10 years. Investment ORD is an ordinary (or deferred) annuity, while Investment DUE is an annuity due. Which of the following statements is CORRECT? 3. Which of the following statements is CORRECT? 4. A $150,000 loan […]