Why are stocks categorized in terms of market capitalization

Q: You purchase a call option for $10.74 with 24 months to expiration on a stock you expect to increase…

A: We can find the price of the call option using a Black Scholes Formula which is as follows:C =…

Q: Assume that you are a consultant to Broske Inc., and you have been provided with the following data:…

A: Next dividend (D1) = $0.80 Current price (P0) = $32.50 Growth rate (G) = 8.00%   Formula Cost of…

Q: weigh up the advantages and disadvantages of Exchanges Traded Funds (ETF) and explain why they are…

A: There are many types of funds available in the market and each fund has own advantages and…

Q: I am currently 42. If you are going to retire at 65, post-retirement living expenses are $20,000…

A: Time Value of money: The time value of money (TVM) theory states that because of its potential for…

Q: You're evaluating various investment opportunities and you have the following information about five…

A: The Sharpe ratio is used to measure the return of a portfolio that has been adjusted for risk. An…

Q: The price of a stock on February 1 is $124. A trader sells 200 put options on the stock with a…

A: Put option is a right to sell particular security. The option buyer will have the right to sell the…

Q: Access Enterprise Limited is a private company and has been in operation for over five years. The…

A: Capital Market-It is a place  for raising funds by corporate, government etc., by issuing financial…

Q: Mickey & Minnie have $41 million in cash. Before they retire, they want the $41 million to grow to…

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

Q: Zeta Printers is considering replacing the existing press with a more efficient press. The new press…

A: After tax salvage value of the fixed asset is calculated as shown below. After tax salvage…

Q: Two treasury bonds (with semi-annual coupons) are traded. The first bond matures in six months, has…

A: Bond 1: Annual coupon rate = 6% Semi-annual rate = 6%/2 = 3% Dirty price “P” = $99.50 Let Face Value…

Q: Caspian Sea Drinks is considering the production of a diet drink. The expansion of the plant and the…

A: The NPV analysis provides the investor with information about the profitability of a project. It is…

Q: Market Data Risk-Free Rate Alpha Beta Market Data Company Data Residual standard deviation, o(e)…

A: Risk adjusted measures are used to determine the reward an investor would get for taking that amount…

Q: All rates in this question use semi-annual compounding. You observe a two year spot rate of 6.00%,…

A: Pure Expectation theory of interest rate states that the return of holding two year bond is the same…

Q: Find the value of annuity  at the end of indicated number of years. Assume the interest is…

A: We need to future value of ordinary annuity formula to calculate future value at end of indicated…

Q: What is the (a) present value and (b) compound interest earned for 3 years and 9 months of P84,500…

A: Given,  The future amount is P84,500 Rate is 20% Term is 3 years and 9 months

Q: Financial analysis is very important factor for a successful project, discuss its strength and…

A: Financial controls are rules and procedures developed by an organization to manage its financial…

Q: The project's IRR?   Year 0     1     2     3     4     5     Cash flows -$8,750 $2,000…

A: Internal Rate of Return (IRR) of the project is the rate which the the Net Present Value (NPV) of…

Q: What are the difference between public and private finance?

A: Public finance is the study of revenues and expenses on a macro level. This mean the finances of a…

Q: Kohwe Corporation plans to issue equity to raise $50 million to finance a new investment.   After…

A: As per the given information: Investment amount - $50 millionFree cash flows - $10 millionShares…

Q: College Station Bandwagon is the sole provider of the internet in the College Station area. T…

A: Loans are paid by installments these installment carry the payment for interest and also payment of…

Q: As assistant to the CFO of Boulder Inc., you must estimate the Year 1 cash flow for a project with…

A: Sales revenues = $11,900 Operating costs = $5,430 Tax rate = 20% Year 1 cash flow = ?   Free cash…

Q: Required Rate of Return Stock R has a beta of 1.4, Stock S has a beta of 0.45, the expected rate of…

A: Beta is one of the measure of volatility or risk of the stock. More beta means more risk and less…

Q: Suppose the marginal benefit of writing a contract is $50, independent of its length. Find the…

A: Data given: MB(L)=Marginal Benefit =$50   At optimal, Marginal Benefit = Marginal Cost

Q: explain with detailed reason.

A: NCAA stands  for National Collegiate Athletic Association.  NCAA is a nonprofit organization that…

Q: Hi there, a Bartleby tutor just helped me answer this question but it was monthly compounding. I now…

A: The Future Value: The value of an investment made at present at some time in the future or at the…

Q: A P28,000 debt at 15% interest compounded semi-annually is to be amortized at P2,250 every 6 months.…

A: The following is the amortization table. From this we can answer the 3 questions. Please note the…

Q: 4. Kangaroo and Kimiti Co.Ltd is attempting to evaluate the feasibility of investing tshs 95 million…

A:

Q: Financial analysis is very important factor for a successful project, discuss its strength and…

A:

Q: Advice the Directors of Access Business Enterprise Limited how the capital market can help the firm…

A: The business needs capital to fund the operation, The business can raise funds in various ways like…

Q: Evaluate the failure of intermediaries to rectify the behaviour to reduce the effects of the crisis…

A: Financial intermediaries refer to the procedure that channels funds for the third parties who are…

Q: Category Prior Year Current Year Accounts payable ??? ??? Accounts receivable 320,715 397,400…

A: Return on assets refers to the profit attained by the company through generating income. It is…

Q: You are cautiously bullish on the common stock of the Wildwood Corporation over the next several…

A: Bull spread  A bull call spread is made up of one long call at a lower strike price and one short…

Q: 1.Discuss why might a director argue reliance as a defence to a breach of duty and care?2.Explain…

A: Share helps in representing the unit of an equity ownership in corporation. Shareholders used to…

Q: Marissa borrowed $1,010 today and is to repay the loan in two equal payments, one in 3 months and…

A: A loan is an agreement between two parties where one party gets a set amount from the other party in…

Q: What is the net present value of this project

A: Information Provided: Fixed asset cost = $157,000 Project Annual Sales = $98,000 Variable cost =…

Q: Edison wants to have Php900,000 in 4 years. He makes semi-annual deposits in a savings account…

A: Here, Desired Amount (FV) is Php 900,000 Time Period (n) is 4 years  Interest Rate (r) is 8%…

Q: Upon graduating from college 35 years​ ago, Dr. Nick Riviera was already planning for his…

A: Given: Payment made in retirement account as annuity “PMT” = $250 Number of quarters of payment =…

Q: A stock price is currently $100. It is known that at the end of 1 month it will be either $90 or…

A: Current Stock Price is $100 Time period is 1 month Stock price at the end of 1 month can be $90 or…

Q: 3) A project $200,000 requires an initial inve and is expected to gen following net cash inflows:…

A: As per the given information: Initial investment - $200,000Net cash inflows:Year 1: 60,000Year 2:…

Q: Table 1 shows market data of Smith PLC. Calculate the on Balance Volume. Table 1 Date Open…

A: On balance volume (OBV) is cumulative volume calculated on the following formulaIf current closing…

Q: Develop an amortization schedule for the loan described. (All answers should be entered in dollars.…

A: Given: Loan (PV) $90,000 Interest rate 10% Years 2.5

Q: You found the perfect car but costs $30,000. How much is your monthly payments if your bank charges…

A: Principal loan amount (P0) = $30,000 Monthly interest rate (r) = 0.00208333333333333 (i.e. 0.025 /…

Q: company borrowed P45,200 from a savings and loan association that charges 14% converted quarterly.…

A: Loan are paid by the equal periodic payments that carry the payment for interest payment and also…

Q: Caspian Sea Drinks is considering the production of a diet drink. The expansion of the plant and the…

A: The internal rate of return is defined as the discount rate at which the project's return equals the…

Q: The DISADVANTAGES of equity finance are KELEMAHAN kewangan ekuiti     i.            Entrepreneur…

A: A firm can obtain financing mainly in two ways. One is equity financing and the other one is debt…

Q: b) Ameena borrowed a certain sum of money from a financial institution that charged 4.5% compounded…

A: Monthly payment (a) = RM725 Monthly interest rate (r) = 0.00375 (i.e. 0.045 / 12) Monthly period (n)…

Q: Two treasury bonds (with semi-annual coupons) are traded. The first bond matures in six months, has…

A: Bond 1: Annual coupon rate = 8% Semi-annual rate = 8%/2 = 4% Dirty price “P” = $99.49 Let Face Value…

Q: part-a: What is the difference between direct finance and indirect finance?  part-b: What are the…

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

Q: what is russia's currency name and exchange rate country's central bank how its organized how…

A: Russian ruble The ruble serves as the Russian Federation's legal tender. The bank's main office is…

Q: 4.    Suppose, the INR65.4015/USD in the FX Market.  The selling price of the basic SONY LED TV is…

A: The PPP that purchasing power parity says that prices of goods should be equilibrium that means…

Portfolio Management

Portfolio management is the process by which an investor decides that how the person will invest in a variety of assets in order to get a desired return in the future. A portfolio means a pool of assets that includes securities, bonds, and other investment instruments which helps in risk minimization of the money that has been invested. In other words, it can be said that a portfolio means a combination of assets in which an investor decides to invest their money in order to get a lump sum return in the future or even a series of cash flow that the person is expecting at the end of their job life.