Explain the links between stock price, intrinsic value, and executive compensation

Q: Moerdyk Company stock has a beta of 1.40, the risk free rate is 4.30%, and the market premium is 5.5...

A: Beta = 1.40 Risk free rate = 4.30% Market premium = 5.50%

Q: Say stocks of firms which change their logo in a given year tend to outperform (have higher abnormal...

A: Efficient market An efficient market is one where all information is reflected in the stock price. I...

Q: A 6 percent corporate coupon bond is callable in five years for a call premium of one year of coupon...

A: The amount that is received by the bond holder above the par value of the bond when the bond is call...

Q: Liam dreams of starting her own business to import consumer electronics products to the country. she...

A: Starting a business requires many assets and the most important asset is the investment requirement....

Q: For items 16-30, when asked about an amount of money (interest, discount, present value, future valu...

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for...

Q: Annual deposits were made in a fund earning 10% per annum. The first deposit was Php 20,000 and each...

A: Compounding is a method of charging interest in which Interest is charged on the amount including or...

Q: Based on your understanding of Economic Value per Lead, explain which of the below mentioned channel...

A: Economic Value per lead is the Conversion rate multiply by the average order value from that campaig...

Q: What is the present equivalent of a uniform series of annual payments of $2,900 each for five years ...

A:

Q: On 31st March 2016 you saw the following information about bonds.   Name of Security Face Value ...

A:

Q: The buyer of a certain machine may pay either Php 20,000 cash down payment and Php 20,000 annually f...

A: Method 1 Down payment = Php 20000 6 annual payment amount = Php 20000   Method 2 Down payment = Php ...

Q: Overview The purpose of this discussion is to give you practice calculating and interpreting percent...

A: "Since you have asked multiple question we will be solving the first question for you,If you want an...

Q: The average price of the gasoline in 2021 was $3.01 per gallon. In 2001, the average price was $1.46...

A: Average price in 2021 (F) = $3.01 per gallon Average price in 2001 (P) = $1.46 per gallon Period (n)...

Q: Assume that a future and a forward contract written on silver have one day to maturity. Assume that ...

A: Arbitrage opportunity is an investment opportunity in which investor buys a security in one market a...

Q: Douglas purchased a $10,000, 8% quarterly bond at face value. He held the bond for five years, recei...

A: The sales price for bond implies to the consideration amount paid by investor for purchasing bond. I...

Q: bank customer saved 5000 PLN on the savings account. The deposit years. For the first 6 months conti...

A: There are three months of interest calculation one is continuous and other is compounding and last i...

Q: Discuss FIVE (5) duties of an agent towards his principal.

A: Agents act on behalf of principals and hence agents have certain duties towards their principal.

Q: . Miguel agrees to lend you money for a monthly interest of 12%. How much will you pay him next mont...

A: Here we can use the concept of compounding to find the answer. 

Q: Local Co. has sales of $10.3 million and cost of sales of $6.1 million. Its selling, general and adm...

A: Answer -    Part A -  Given,  Sales = $10.30 million Cost of goods sold = $6.10 million   So, Gross ...

Q: An amount of P14,000 is borrowed at a discount rate of 10%, find the proceeds if the length of the l...

A: A bank discount is a discount charged by the Bank on the loan given to the customer. On maturity, th...

Q: 4. Calculating Annuity Present Values An investment offers $6,125 per year for 15 years, with the fi...

A: When the future payments are made at regular intervals with a prescribed rate of interest over a fix...

Q: 11. Calculating Perpetuity Values In the previous problem, suppose Larry's told you the policy costs...

A: Annual payment (A) = $25000 Policy cost = $645000 Let r = Interest rate

Q: Who can issue repurchase agreements?

A: Repurchase agreements are also known as a repo loan.

Q: Brett has almond orchards, but he is sick of almonds and prefers to eat walnuts instead. The owner o...

A: Market value of crops = Production in tons x Market price per ton

Q: Laura wants to buy a delivery truck. The truck costs $76,000 , and will allow her to increase her af...

A: Net Present Value  Net present value is one of the most commonly used methods in capital budgeting t...

Q: What is the present value of P 13,996.80 when the interest rate is 8% compounded annually for 2 year...

A: Given final value (F) = P 13996.80 r = 8% n = 2 years

Q: On December 31, 2015, Martin Corp invested in Marlin’s 5-year, $200,000 bond with a 5% interest rate...

A: Market interest rate is the yield to maturity of the bond. It is the rate which the invetsors will g...

Q: present value of this investment

A: Solution:  Calculation of the present value of the investment  Given information, Amount to invest p...

Q: Classify each of the following in terms of their effect on interest rates (increase or decrease): I....

A: Interest rates Interest rate is referred to as the amount a lender charges to a borrower and is a pe...

Q: KIAN Company is expected to pay a dividend of P8.8 at the end of second year. The expected constant ...

A: Dividend in second year (D2) = P 8.8 Growth rate (g) = 4.4% Current price (P0) = P 75.50 r = Require...

Q: ​Enterprise, Inc. bonds have an annual coupon rate of 13 percent. The interest is paid semiannually ...

A: The annual coupon rate of the bond is 13%. The maturity is 14 years. The face value of the bond is $...

Q: One of the mutually exclusive alternatives below must be selected Base your recommendation on A(Saue...

A: Incremental IRR It is used to analysis return over  investment on two competing investment opportuni...

Q: Explain how the stock market operates, and list the distinctions between the different types of stoc...

A: Introduction to the stock market The stock market refers to the place where buyers and sellers meet ...

Q: Map & describe the bond market in Kenya

A: Bond markets are also known as the debt market or fixed income securities market or credit market an...

Q: What are the functional divisions of the treasure and how are they different?

A: Treasury: It is a  finance function which is important to  success  and financial health of every bu...

Q: Future-looking interest rate expectations for 5 periods are as follows: 3%, 4%, 3.5%, 4.5%, 4%. Addi...

A:

Q: Cleaner’s, Inc., is switching to paying employees every 2 weeks rather than weekly and will therefor...

A: In order to save outflow of cash, payroll system of employees are changed in respect of payment freq...

Q: Question 2 You plan to retire 33 years from now. You expect that you will live 27 years after retiri...

A: Let's first compute the PV of retirement corpus needed and then we will proceed to compute the annua...

Q: How much interest will be owed on a loan of P15,500 at the end of 4 years and 7months using 15 perce...

A: Loan amount (P) = P15500 Period (t) = 4 Years and 7 Months = 4+(7/12) = 4+0.583333333333333 = 4.5833...

Q: Mr. Cruz wanted to buy a house and lot worth P5M ten years from now so he decided to invest his mone...

A: Compounding is a method of charging interest in which Interest is charged on the amount including or...

Q: The WSSU parking garage project: Last we checked, a parking garage costs $7,000 per spot. Suppose ca...

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first t...

Q: A trader buys a European put on a share for K3. The stock price is K42 and the strike price is K40. ...

A: Put options: Put options give the buyer the right, but not the obligation to sell the underlying sec...

Q: Identify the term being referred to: A theory that states that how high or low an entity pays out d...

A: Solution:- There are two theories related to dividend-  Dividend relevance theory and dividend irrel...

Q: You are offered an investment with a quoted annual interest rate of 10% with weekly compounding of i...

A: The effective annual interest rate is the actual interest rate that we get if we take the frequency ...

Q: Which option would you choose using a 12% BCR and cost-benefit analysis? Decide what should be chose...

A: Benefit cost ratio is a part of the cost benefit analysis. This ratio helps in the decision making p...

Q: At the end of the year, Wrinkle Free Laundry (WFL) had $150,000 in total assets. (a)If WFL’s total a...

A: Given: Total assets = $150,000 Total asset turnover ratio = 2 Return on asset = 6%

Q: An investment of 500 will increase to 4000 at the end of 20 years. Find the resent values of three p...

A: We will use the concept of time value of money here. 

Q: The following information is available to a Zambian trader: i. Percentage spread given for Zambian k...

A: In any currency market, bid price can be defined as the price at which a dealer is willing to pay fo...

Q: A man borrows Php 64,000 from a loan association. In repaying this debt, he has to pay Php 4000 at t...

A: Given:

Q: 1. Gian paid an interest of Php 8000 on a salary loan for 5 years at 7 % interest. What was the orig...

A: Interest paid = Php 8000 n = 5 years r = 7% Let the loan = L

Q: A business uses 1,100 kwh of energy, 3,400 ft³ of natural gas, and 8,800 gallons of water in a month...

A: Given, Electricity 1,100 kwh Gas 3400 cubic ft Water 8800 gallons 12 phone lines and 400 internation...

Corporate Ethics

Ethics refers to the moral values and principles that guide an individual. Corporate ethics refers to the moral behavior of a company and its employees while conducting business. Business ethics is another name for corporate ethics. Business ethics reflects the purpose of doing the business. Business ethics is the distinction between what is right and wrong in the workplace and the selection of the right set of actions. Every corporate entity follows business ethics to a large extent in order to survive and compete successfully in the market. Corporate entities that strictly adhere to business ethics gain the trust of their stakeholders and thus gain more customers. An organization follows compliance, i.e., following certain business policies, rules, procedures, and practices to deal with the problem arising from the business environment. Business ethics also ensures that they meet compliance requirements as it was connected with the activities of an organization.