Mathematical finance

Whirlpool Europe Analysis Please answer the following question about the NPV analysis: 1. What are the key assumptions of this analysis? Average salary per employee is equal to 100k and a number of participating employees which has 50 employees per each of the 4 waves. The consulting cost is that 15400 per month._ 2. The current NPV is negative. One way to save money would be to reduce consulting costs. Please set the average consulting cost per month in cell b33 to $5000. At

Joseph Taj Ahn Nyguyen J Yu Fin 423 Haddad Nov 18, 2014 Philip Morris Inc.: Seven Up Acquisition (A) This case discusses Philip Morris Inc. intentions to acquire the Seven-up Company in an effort to diversify their consumer goods. The decision has already been made, however they must decide on an offer price to buy out the company. This report will discuss PM’s acquisition strategy and its appropriateness, along with whether or not 7up fits the criteria of PM’s strategy. The report will further

Essay: Using Perfect pay for Performance Plan to enhance Blue Line Management approach It has long been a problem for a company to effectively manage its business. For a corporation to survive, compete and grow, it must consistently deliver value to customers at least as well as its competitors. While value-drive company focus on long- term profitability and survival, many organizations were observed to be involved in value reducing decisions, such as sacrificing the long-term sustainability to

*Find the compound amount for each deposit and the amount of interest earned Ex22 15ooo$ at 6% compounded monthly for 10 years The principle is P=$15000 The interest rate per month is i=r/12=0.06/12 The number of years is t=10 so the future value is A=P(1+r/n)^n.t= 15000(1+0.06/12)^12.10= 27290.95$ With n is number payment period of the year GENERAL FOMULAR I=A-P SIMPLE INT: I=Prt A=P(1+rt) COMPOUND INT: A=P(1+i)^m=P(1+r/n)^nt with m=n.t *Find the interest rate for the given deposit

I interned as a Quantitative Analyst at American Century Investment this summer, working with the Disciplined Equity Research team to test, construct, and maintain a research library of stock selection and design quantitative tools for evaluating and analyzing stocks during merger and acquisition transactions. I took on significant responsibility, which provided me with a depth of knowledge and expanded mu skills. My main project is focused on infrastructure, process, and factor analysis of Factor

In this paper, a study on the Dividends Discount Model (DDM) will be explored and explained. The four main topics that this essay will be based around include what two common share valuation techniques are used, the dividend discount model and the use of a multiples approach, a discussion on the relative advantages and disadvantages of dividend discount model and a look into which model would produce the most accurate results and Why? With the relevant content, research, and analysis of these specific

In this chapter, we construct stochastic model for energy spot price by using e of Ordinary Least Square Regression Model. At this point, it is imperative to discuss seasonality, which is a commonly observed characteristic in energy markets. In order to assess whether there is actually an underlying pattern prevailing in the return an autocorrelation test can be easily carried out for verification. As explained in [10], the evidence of high autocorrelation manifests an underlying seasonality. On

Financial Condition Analysis, Chapter 9 Problems: P 9.1-9.4, 9.8 & 9.11 HM 707 Health Management Foundations II Problem 9.1 Find the following values for a lump sum assuming annual compounding: a) The future value of $500 invested at 8 percent for one year: FVN = FV1= PV × (1 +I)N = $500 x (1 + 0.08) = $500 x 1.08 = $540 b) The future value of $500 invested at 8 percent for five years: FVN = FV5= PV × (1 +I)N = $500 x (1 + 0.08)5 = $500 x (1.08)5 = $734.66 c)

Most people who have invested or are considering investing in any financial asset, ask at some point in time the following question: What is the most I can loose on my investment? The Value at Risk, commonly known as VaR, tries to answer this question within a reasonable bound. VaR is used in financial mathematics and financial risk management as a risk management tool to measure the risk of loss of an individual asset or a whole portfolio. Although it provides a good sense of risk one is undertaking

Executive summary Blue Arrow is a publicly held firm and the leading UK employment agency. The management is thinking about expanding further in to the US by buying the largest temporary help company in the world, Manpower. The bid was to be made by a cash tender offer funded by a fully underwritten rights issue of £837 million. In this report we calculate the value of one right and the value of the underwriter's put as of August 3 by using the Black-Scholes and put-call parity valuation approach