A trading desk trades a strategy with 2% mean return and 10% stdev PER day. a. What is the 1% daily VaR in $ term, if the desk has $100M of trading capital b. as the corporate chief risk officer you want to limit 0.1% daily VaR to 10M. What is the most capital you can allocate to the trading desk
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Need Help Solving Part B. Thanks!
Q 10. A trading desk trades a strategy with 2% mean return and 10% stdev PER day.
a. What is the 1% daily VaR in $ term, if the desk has $100M of trading capital
b. as the corporate chief risk officer you want to limit 0.1% daily VaR to 10M. What is the most capital you can allocate to the trading desk
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- A trading desk trades a strategy with 2% mean return and 10% stdev PER day. a. What is the 1% daily VaR in $ term, if the desk has $100M of trading capital b. as the corporate chief risk officer you want to limit 0.1% daily VaR to 10M. What is the most capital you can allocate to the trading deskFast pls solve this question correctly in 5 min pls I will give u like for sure Surbh Assume the firm has a constant dividend payout ratio and a projected sales increase of 10 percent. All costs, assets, and current liabilities vary directly with sales. The firm is currently at full production. What is the external financing need? Currently, the firm’s sales =$5,700, net income is $520, total assets=8890, dividends=156, A/P =990, LTD= 3730, and common stock=2980, and retained earnings =1200. $146.00 $251.20 $379.60 $421.60 $550.30Please solve the problem max in 30-60 minutes thank u 4. For its investment plan, Padlock Company requires funds, all of which will be financed with ordinary shares that have a nominal value of IDR 10,000. Currently, the company distributes dividends for the shares amounting to IDR 2000 and is expected to grow at a constant rate of 5%. If the current market price of the stock is IDR 8000, what is the cost of equity for the stock?
- Q4 A firm is expected to generate a single risky cash flow in one year. The CF will be either $90 (with probability 0.5) or $30 (with probability 0.5). All investors are risk neutral. The interest rate is 0. If the firm decides to borrow $50 and pay the amount as a dividend to shareholders, how much will be the promised return to creditors? A. 60% B. 17.1% C. 40% D. 26.7% E. 50%Fast pls solve this question correctly in 5 min pls I will give u like for sure Svtrik Stock in Lowery Company has a beta of 0.71. The market risk premium is 9.5 percent, and T-bills are currently yielding 4 percent. The company's most recent dividend was $1.6 per share, and dividends are expected to grow at a 4.5 percent annual rate indefinitely. If the stock sells for $35 per share, what is your best estimate of the company's cost of equity?Suppose you invest Rs 600 in IBM and Rs 400 in Merc for a month. If the realized return is 2.5% on IBM and 1.5% on Merc over the month, what is the return on your total portfolio? a. 3.4% b. 1.4% c. 8.7% d. 2.1%
- A firm needs $200,000 to start and expects Sales $300,000Expenses $285,000Tax rate 40%a. What are earnings if the owners invest the $200,000?b. If the firm borrows 40% of the $200,000 at an interest rate of 10%, what are the firm's net earnings?c. What is the return on the owners' investment in each case? Why do the returns differ?Wal-Mart plans to open a new store near Campus. Wal-Mart is going to finance via bond market and stock market. Total capital required is 10 million dollars. 3 million dollars are going to be financed via stock market. Wal-Mart’s beta is 0.70. Three month Treasury Bill rate is 2% (risk free rate) and the S&P500 index return is 8% (market return). How much is the cost of equity to Wal-Mart stockholders? 2% 5% 2% 1%Quantitative Problem: You are given the following information for Wine and Cork Enterprises (WCE): rRF = 4%; rM = 9%; RPM = 5%, and beta = 1 What is WCE's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. ? % If inflation increases by 1% but there is no change in investors' risk aversion, what is WCE's required rate of return now? Do not round intermediate calculations. Round your answer to two decimal places. ? % Assume now that there is no change in inflation, but risk aversion increases by 2%. What is WCE's required rate of return now? Do not round intermediate calculations. Round your answer to two decimal places. ? % If inflation increases by 1% and risk aversion increases by 2%, what is WCE's required rate of return now? Do not round intermediate calculations. Round your answer to two decimal places. ? %
- G Corps’ free cash flow was just FCF0 = $1.32 (Millions) Analysts expect the company's free cash flow to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The WACC for this company 9.00%. D has $4 million in short-term investments and $14 million in debt and 1 million shares outstanding. What is the stock price at year 2? What is the best estimate of the stock's current intrinsic price? If the market price is $33, do you buy or sell?Please solve subpart A,B max 30-45 minutes thank u AmN companies will get capital from several options where the total funds must be obtained of 1.1 billion rupiah. The following is currently available market information:1. Debt interest rate is 12% per year2. State Bonds with minimal risk (risk free) of 5%3. JCI has a market return of 8%4. The company tax applied is 25%5. The company's performance is good so it has a stock Beta of 1.12The available options relate to the source of AmN's company capital, namely from Debt (direct tobank) and Equity (through ordinary shares) with the following explanation:1. Fully capital obtained from debt2. Fully capital obtained from equity3. The DER policy applied is 1/3 (or DER = 0.3333) Based on the narrative above you are asked to:A. Calculate WACC from the three available optionsB. Decide on the best choice with the reasons.Start with the partial model in the file Ch07 P27 Build a Model.xlsx on the textbook’s Web site. Hamilton Landscaping’s dividend growth rate is expected to be 30% in the next year, drop to 15% from Year 1 to Year 2, and drop to a constant 5% for Year 2 and all subsequent years. Hamilton has just paid a dividend of $2.50, and its stock has a required return of 11%. What is Hamilton’s estimated stock price today? If you bought the stock at Year 0, what are your expected dividend yield and capital gains for the upcoming year? What are your expected dividend yield and capital gains for the second year (from Year 1 to Year 2)? Why aren’t these the same as for the first year?
