Suppose that the year-end prices for one ounce of gold is the same as that of the data shown in the following table. What is the 5-year HPR for the periods 2011 to 2015 and 2016 to 2020? What is the 10-year HPR over that span? 2010 2011 2012 2013 2014 $1,400 $1,500 $1,615 $1,235 $1,250 What is the 5-year HPR for the period 2011 to 2015? The 5-year HPR for the period 2011 to 2015 is -26.67 What is the 5-year HPR for the periods 2016 to 2020? The 5-year HPR for the period 2016 to 2020 is What is the 10-year HPR for the periods 2011 to 2020? The 10-year HPR for the period 2011 to 2020 is 2015 2016 2017 2018 2019 $1,035 $1,120 $1,275 $1,265 $1,470 2020 $1,810 %. Round your answer to the nearest two decimal places. %. Round your answer to the nearest two decimal places. %. Round your answer to the nearest two decimal places.
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- A6) Finance A financial instrument provides three future cash flows: $1,710.00 at the end of 3 years $1,051.74 at the end of 8 years $2,105.93 at the end of 14 years Calculate the duration (D) of the financial instrument at a yield of 6% pa compounded yearly. Give your answer in years to 2 decimal places. D = yearsQuestion EXHIBIT 1: ANNUAL RETURNS (%) YEAR ALUWORKS AGA Lyxor USDJIA Lyxor World 2009 2.00 5.86 5.56 7.69 2010 4.25 22.40 6.11 5.79 2011 -29.40 -27.07 7.94 -3.28 2012 13.23 0.60 18.29 20.75 2013 8.86 -6.84 17.09 14.14 2014 2.31 33.87 14.20 15.06 2015 -2.96 -9.28 -4.71 -4.28 EXHIBIT 2: PORTFOLIO WEIGHTS (%) ASSETS EXISTING PORTFOLIO NEW PORTFOLIO ALUWORKS 60 40 AGA 40 30 LYXOR 30 Required1.Using the annual return data provided in Exhibit 1 of the case for ALUWORKS and AGA,calculate their mean returns, standard deviations, covariance, and correlation. With these numbers,calculate the standard deviation and return for Desiree Mofakye’s entire portfolio. 2. After adding Lyxor USDJIA, what is the portfolio’s new standard deviation and return? Howdoes the new portfolio compare with the calculation in Question 1? 3. Based on your data analysis, should Desiree Mofakye diversify her portfolio or remain invested in SA and GHANA only? 4. Calculate the…PART 1 COMPOUND INTEREST a. In order to accumulate 20,000 on January 1, 2016 how much must be invested on January 1, 2011 at 6% compounded annually? b. What is the present worth of 200,00 payments at the end of the 14th and 15th year? The annual interest rate is 7%. c. If money is invested at 5 ½% compounded quarterly, find the present value of 20,500 due at the end of 3 years and 9 months?
- Problem 10-10 (Algo) Interest capitalization; weighted-average method [LO10-7] On January 1, 2021, the company obtained a $3 million loan with a 12% interest rate. The building was completed on September 30, 2022. Expenditures on the project were as follows: January 1, 2021 $ 1,230,000 March 1, 2021 720,000 June 30, 2021 380,000 October 1, 2021 670,000 January 31, 2022 990,000 April 30, 2022 1,305,000 August 31, 2022 2,340,000 On January 1, 2021, the company obtained a $3 million construction loan with a 12% interest rate. Assume the $3 million loan is not specifically tied to construction of the building. The loan was outstanding all of 2021 and 2022. The company’s other interest-bearing debt included two long-term notes of $5,600,000 and $7,600,000 with interest rates of 8% and 10%, respectively. Both notes were outstanding during all of 2021 and 2022. Interest is paid annually on all debt. The company’s fiscal year-end is…Question content area top Part 1 Calculate the percentage return on a 1-year Treasury bill with a face value of $10 comma 00010,000 if you pay $9 comma 764.359,764.35 to purchase it and receive its full face value at maturity.4. How much must be invested today, at 8% APR semi-annually compounded, to accumulate enough to retire $10,000 debt due seven years from today? The amount that must be invested today is closest to: A. $5,774. B. $5,835. C. $5,923. D.$6,794 13. Both real and financial assets have four principal attributes that are significant factors in the investment decision process. These are: I. liquidity II. capital gain III. risk IV. return or yield V. time pattern of future cash flows VI. price and cash flow volatility A. I, III, IV, V B. I, II, III, IV C. I, III, IV, VI D. II, III, IV, V
- Question 5 of 5 View Policies Current Attempt in Progress Suppose in its 2025 annual report that McDonald's Corporation reports beginning total assets of $28.46 billion, ending total assets of $30.22 billion, net sales of $22.74 billion, and net income of $4.55 billion. (a) Compute McDonald's return on assets. (Round return on assets to 2 decimal places, e.g. 5.12%.) McDonald's return on assets % (b) Compute McDonald's asset turnover. (Round asset turnover to 2 decimal places, e.g. 5.12.) McDonald's asset turnover timesQuestion 6 Consider a series of cash flows as follows: £750 received one year from now, £1,200 received three years from now, and £1,250 received six years from now. If the discount rate is 6%, to the nearest £0.01 what is the (i) present value of the cash flows and (ii) the future value in ten years of the cash flows? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a (i) £2,596.29 and (ii) £4,386.38 b (i) £2,395.41 and (ii) £4,289.41 (i) £2,596.29 and (ii) £4,649.56 None of the above (1) £2,395.41 and (ii) £4,046.99Question content area top Part 1 Assuming a 1-year, money market account investment at 2.282.28 percent (APY), a 1.391.39 percent inflation rate, a 2525 percent marginal tax bracket, and a constant $50 comma 00050,000 balance, calculate the after-tax rate of return, the real rate of return, and the total monetary return. What are the implications of this result for cash management decisions? Question content area bottom Part 1 Assuming a 1-year, money market account investment at 2.282.28% (APY), a 2525% marginal tax bracket, and a constant $ 50 comma 000$50,000 balance, the after-tax rate of return is 1.711.71%. (Round to two decimal places.) Part 2 Assuming a 1-year, money market account investment at 2.282.28% (APY), a 2525% marginal tax bracket, and a constant $ 50 comma 000$50,000 balance, the after-tax monetary return is $855855. (Round to the nearest dollar.) Part 3 Given an after-tax return of 1.711.71% and an inflation rate of…
- Question Description From year 3 on the unlevered cash flow is expected to perpetually grow at 3.00% (that is, the unlevered cash flow of year 4 will be 5% higher than in year 3 and so on). The depreciation will stay equal to 0 from year 3 on, and also debt will stay perpetually at 15,000,000 starting at the beginning of year 3. The debt variations are all scheduled beforehand, hence there is no uncertainty about them. The interest rate is 2.55%, the unlevered return on equity is 7.50% and the depreciation tax shield is as risky as the company’s debt. The tax rate is 40%. a) What is the levered cash flow to equity holders in each one of the first three years? b) What is the levered value of the company’s assets?Question 6 (this question has 2 parts) Gordon Industries Ltd has provided you with the following information: 2019 2020 2021 Debt to Equity 10.5% 23.4% 36.2% Gross Profit margin 30.2% 36.5% 35.3% Net profit margin 19.5% 17.6% 13% Return on Equity 15.1% 17.5% 16.2% Asset Turnover (times) 0.71 0.82 1.41 Return on Assets 13.8% 14.4% 18.3% Interest coverage ratio 4 times 3 times 2.5 times a) Advise Gordon Industries of the relationship between Return on Assets, Asset Turnover and Net Profit Margin. Comment on the profitability position of Gordon and any advice you consider relevant. b) Advise the shareholders of Gordon Industries on the financial structure of the company.Problem 8-13 Calculating Profitability Index [LO 6] Consider the following cash flows: Year Cash Flow 0 −$ 29,700 1 14,000 2 14,900 3 11,300 What is the profitability index for the cash flows if the relevant discount rate is 12 percent? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161. What is the profitability index if the discount rate is 17 percent? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161. What is the profitability index if the discount rate is 24 percent? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.