1 ASSIGNMENT02: RSK4803 Question 1 [50 Marks] Question 1 consists of 5 sub-questions, with a total of 50 marks. All the questions are based on the following case study. Big Boy Ltd is a successful transport company with a network of customers mainly based in Gauteng, but has recently started to expand its operations nationally. The board of directors of Big Boy Ltd has decided […]

Dothan Inc.’s stock has a 25% chance of producing a 28% return, a 50% chance of producing a 12% return, and a 25% chance of producing a -18% return. What is the firm’s expected rate of return? Mikkelson Corporation’s stock had a required return of 12.25% last year, when the risk-free rate was 3% and the market risk premium was 4.75%. Then an increase in […]

QuestionEmbellished Resume You are the ethics officer at Friendly Digits, a respected and profitable social media company in Colossal Corporation’s technology group. Friday morning, you arrive at your office to find you’ve received a voicemail from Ernst Blofeld. Blofeld has been a vice president at Friendly Digits for several years, and was recently considered for promotion to a senior vice president position. Ultimately, the promotion […]

Baldwin plans to spend an additional $500 beyond the extra amount above the $1000 recruiting base it spent this year. The goal of this additional investment is to improve the quality of applicants. What would the total recruiting cost be for Baldwin next year? Select: 1 $168,535 $202,242 $185,389 $219,096 Next year Baldwin plans to include an additional performance bonus of 0.25% in its compensation […]

Fin week 4 assignment Do  5-1, 5-2, 5-3, 5-4, 5-5, 5-6, 5-7, 5-8, 5-9, 5-10 Due date: On Saturday at 10:00a.m. Easy Problem 1-8 5-1 PROBLEMS FUTURE VALUE if you deposit $10,000 in a bank account that pays 10% interest annually, how much will be in your account after 5 years? 5-2 PRESENTS VALUE what is the present value of a security that will pay $5,000 […]

Q1 : Brite Lighting Corporation wants to investigate the effect on its cost of capital based on the rate at which the company is taxed. The firm wishes to maintain a capital structure of 30% debt, 10% preferred stock, and 60% common stock. The cost of financing with retained earnings is 14% (i.e., rs = 14%), the cost of preferred stock financing is 9% (rps = 9%), […]

P1. From the information below, compute the average annual return, the variance, standard deviation, and coefficient of variation for each asset. Asset Annual Returns A 5%,10%,15%,4% B -6%,20%,2%,-5%,10% C 12%,15%,17% D 10%,-10%,20%,-15%,8%,-7%   Asset A Asset B Asset C Asset D   5% -6% 12% 10%   10% 20% 15% -10%   15% 2% 17% 20%   4% -5%   -15%     10%   […]

Baldwin’s turnover rate for this year is 6.29%. This rate is projected to remain the same next year and no further downsizing will occur from automating. Baldwin plans to spend an additional $500 beyond the extra amount above the $1000 recruiting base it spent this year. The goal of this additional investment is to improve the quality of applicants. What would the total recruiting cost […]

Q1 : Brite Lighting Corporation wants to investigate the effect on its cost of capital based on the rate at which the company is taxed. The firm wishes to maintain a capital structure of 30% debt, 10% preferred stock, and 60% common stock. The cost of financing with retained earnings is 14% (i.e., rs = 14%), the cost of preferred stock financing is 9% (rps = 9%), […]

Assignment 1:   There are some risks involved with international transactions due to fluctuations of the foreign currency exchange rates. One way to mitigate those risks is through hedging. Discuss the hedging options: forward contracts and option contracts. What are the advantages and disadvantages of each alternative? What are the costs of each alternative? When is one alternative preferred over the other alternative?  Assignment 2:  It […]