FIN 6301-Unit III Essay-C

The Financial Sector-End of Chapter Problem a. You are contemplating buying stock in JP Morgan Chase (JPM). What pieces of information would you use to assess the company's fundamental value? Information needed to assess fundamental value stock prices of other bank stocks P/E ratios Answer Bank Information not needed to assess fundamental value sum of discounted future profits for JPM total number of shares outstanding for JPM A 27

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Q3 Which of the following statements is CORRECT? a. Capital market instruments include both long-term debt and common stocks. b. An example of a primary market transaction would be your uncle transferring 100 shares of Wal-Mart stock to you as a birthday gift. c. The NYSE does not exist as a physical location; rather, it represents a loose collection of dealers who trade stocks electronically. d. If your uncle in New York sold 100 shares of Microsoft through his broker to an investor in Los Angeles, this would be a primary market transaction. e. While the two frequently perform similar functions, investment banks generally specialize in lending money, whereas commercial banks generally help companies raise large blocks of capital from investors.

Hello please help me answer this problem. With a clear proper format. Thank youuu! On January 1, 2021, Trade Company purchased 40,000 shares at P 100 per share to be held for trading . Brokerage fees amounted to P 120,000. No other transactions occurred in 2021 affecting the investment.What is the initial measurement of the investment? a. P 4,120,000 b. P 4,000,000 c. P 3,920,000 d. P 3,800,000

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37. Golden fisheries LLC has a long history in the business world. They started their operation in 2001 and captured the whole market in few years. But then due to some economic problems the company stopped their operations. Now in 2018, the company again started functioning with a new name and business. The company has decided to issue new securities in the financial market to raise capital for its new business. Which of the following market can the company issue its shares? a.Secondary market b.Money market c.None of the options d.Bond market

MS-24. Assessing the Financial Statement Effects of a Stock Split The following is taken from a Motley Fool article dated June 15, 2018, concerning Aflac Ins LO4 AFL Quacking about a split. Supplemental-insurance giant Aflac is best known for the white duck it has as its spokesperson, but the insurance products it provides to workers in the U.S. and Japan help millione get the coverage they need in areas that few insurance companies cover. Thats been a successful model, and the insurer has seen its share price rise substantially over the years. In February. Aflac announced that it would do a 2-for-1 split effective March 16, putting it in the form of a 100% stock dividend. CEO Daniel Amos celebrated the announcement, noting that "this is the ninth split of the company's common stock since listing on the NYSE in 1974 and the first in 17 years." Aflac pointed to improving liquidity as a key reason for the move. a. Aflac's common stock has a par value of $0.10. What adjustments will it…

If an investor invested OMR 10,000 in Equity Share and OMR 8,000 in Bonds of an SAOG company in Muscat Stock Exchange and unfortunately that company is closing down / getting liquidated due to its mismanagement of funds. With the above information, how much money does he recovered from his investments if the company is settling only debt? Select one: A. OMR 18,000 B. OMR 2,000 C. OMR 10,000 D. OMR 8,000

Question 1 Rashid Al Balushi SAOG company is specialized in the manufacturing of plastic bottles for the domestic market in Oman. Currently the company is debt free and hence capital structure is ungeared. The organization is planning to change its capital structure into a leverage capital structure as they believe having a debt component in its capital structure will be beneficial to the shareholders. The company total capital (equity-based capital structure) is RO 50 million at book value. The company has two share buyback options available to move into a leverage(geared) capital structure. Option 1 – RO 15 million at an interest rate of 7%. Option 2 – RO 25 million at an interest rate of 7.5% The company makes an estimation of profit before interest and tax (PBIT) under three different scenarios in the coming year. If the market is weak the PBIT is RO 4 million, if the market is average the PBIT is RO 6 million and if the market is strong the PBIT RO 8 million. The probability for…

Q.1 Answer the following: a. PNB Bank publishes Investment Monthly magazine, which highlights a specific stock in each issue. Publication of the magazine invariably causes the highlighted stocks to rise significantly in value. Rachel Cummings, CFA, manager of PNB's marketing department, often trades in the securities mentioned in the Investment Monthly articles before publication of the magazine. Cummings has access to the recommendations before the magazine's publication because the magazine was created in her department and edited by her. PNB's Code of Ethics restricts trading by all the bank's analysts and portfolio managers and requires their trades to be pre-cleared by the Compliance Department. Which of the following CFA Institute Standards of Professional Conduct is Cummings least likely to have violated? (only one possible answer) Priority of Transactions Diligence and Reasonable Basis Material Nonpublic Information None is correct b) Jimmy Connor, CFA, was a technology analyst…

Activity 3: Read “How to make money investing in the stock market?” then answer the questions givenbelow.How to make money by investing in the stock market? The first thing you should know about stocks is they are ownership shares of businesses. What in the world does that mean?  Let’s explain.There are over 200 stocks that trade on the Philippine stock exchange. Each of those stocks has a number of shares. For example, San Miguel Corporation has over two billion shares of stock! The owners of those two billion shares literally own the company. If you were somehow able to buy ALL two-plus billion shares of San Miguel Corporation on the stock market, you would have control of the entire company. Of course, this is nearly impossible, considering how much money it would take, and the number of shares available to buy. But think about it. If you buy as little as one share of San Miguel Corporation, you’re now a part-owner of the company.   Yes, it’s a very small part of the company, but…

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Hi there can you please assist on the following question below You are the financilal manager of competitive investment company in south africa. you have been presented with two possible investments: Pink limited and purple limited as shown below. you have been supplied with the following information regarding the two companies   Pink Limited Purple Limited Earnings before interest and tax R 3 000 000 R 4 000 000 Long term interestbearing debt R 500 000 R 800 000 Earnings attribute to shareholders R 2 124 000 R2 822 400 Tax rate 28% 28% Share capital R 2 00 000 R 5000 000 Number of ordinary shares issued 200 000 400 000 Number of ordinary shares authorised 1 000 000 500 000 Current market price of the share R 30 R 20 Dividend per share R 5 R 3 As a financial manager you are very concerned about the dividend yiled and dividend payout ratioas these will be your indicator of return on your investments Q.1.1 Calculate the dividend yiled for both companies Q.1.2.…

LL R You are considering a stock investment in one of two firms (LotsofDebt, Inc. and LotsofEquity, Inc.), both of which operate in the same industry, LotsofDebt, Inc. finances its $36.00 million in assets with $33.00 million in debt and $3.00 million in equity. LotsofEquity, Inc finances its $36.00 million in assets with $3.00 million in debt and $33..00 million in equity. Calculate the debt ratio. (Round your answers to 2 decimal places.) LotsofDebt, Inc. LotsofEquity. Ino Calculate the equity multiplier. (Round your answers to 2 declmal places.) Equity multiplier LotsofDebt, Inc. LotsofEquity. Ine. Calculate the debt-to-equity. (Round your answers to 2 declmal places.) Debt-to-equity LotsofDebt. Inc. LotsofEquity, Inc. Mc <. Prev MED Type here to search DOOH F2 F4 F5 F7 F10 F11 F12 PrtScr 8- & 23 24 2 ) 4. 5. 9. 7. 8. %3D } 1

Explain why you believe you made a profit/loss based on the investments in the picture.

H3. Consider company Macrosoft, whose current stock price is 542. The board of directorsof Macrosoft has decided to engage a spin-off. Each shareholder of Macrosoft willreceive 3.50232 shares of Coco Colo, whose stock price is 8.34, for each share ofMacrosoft owned. Consider an investor who currently owns 152 shares of Macrosoft.What is the amount of cash that this investor will receive after that spin-off?A) 4436.88B) 2.941C) 4439.821D) 636.781    Please show proper step by step calculation

Initial Public Offering (IPO) - In the chapter we are provided with an example of the Industrial and Commercial Bank of China offering shares of their corporation to the public. The biggest pro of a firm based in Mexico taking this route, would be the gain of capital. A con that comes with this is a loss of control of your company. IF you were to lose majority control over your business, this could have potentially catastrophic impacts.  The Global Bond Market - "Companies will issue international bonds if they believe it will lower their cost of capital" Foreign bonds - On the pro side of foreign bonds, the firm can raise capital in foreign currencies. This opens up more potential investors to the firm. A con of foreign bonds would be the exposure of foreign exchange risk. Foreign exchange risk can be risky, and if the Mexican peso depreciates significantly on the foreign exchange market, this could potentially crush the Mexican capital market. Eurobonds - Eurobonds are another and…

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Hi there can you please assist on the following below You have just graduated and landed a job as a junior analyst in the Equities Division of Waya WayaBank Ltd. Your manager has presented you with the following information.   Company A Company B Share price R 50 R 40 No. of ordinary shares in issue 10 Million 12 Million Annual Earining per share R 50 Million R 50 Million Earnings per share R 5.00 R 4.17 Dividend payout ratio 30% ? dividend yield ?       5%       Q.1.1. Calculate the price earnings ratio for both companies  Q1.2. Assiming that company a has dividend payout ratio of 30%; calculate the dividend per share for company A Q.1.3. Calculate the dividend yield for company A

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What is the expected return on the firms stock

Topic: ISLAMIC INVESTMENT Answer all the following question?. Assume that you are the President of ABC Investments, a firm that invests in stock exchange markets worldwide. As president, you appointed investment Managers, Alam and Anas, to select shares that you would invest RM215,000 in each in January next year. Then, managers will manage shares and advise when to sell them, bearing in mind the objective to maximize return. Table 1 shows the data collected in the subsequent year.   Investment manager Alam Anas Initial investment      RM215,000 RM215,000 Sale value RM229,000 RM235,000 Holding period          4 months 7 months Dividends collected RM6,000 RM9500   Calculate the HPR for the stock of both Investment managers.   What is the annualize HPR for Alam and Anas?     Note: that the consumer price index (CPI) is a measure taken from examining the average of prices from a hypothetical basket of goods and services purchased by…

May I ask for an explanation and solution to the question for a better understanding. Thank you! What is Moore's rate of return on average shareholders' equity for 2021?   a. 16.0% b. 20.0% c. 23.5% d. 26.0%

Question 1: 5 marks You are an investor in Borrow-Happy Ltd., which has a debt-equity ratio of 3:1. Though you have had a good experience thus far, you are influenced by an expert's advice published in media and decide to move your investment to a firm called Equity-Safe Inc. which is completely equity financed. You will do this by selling off your shares worth $35,000 and use the sales proceeds to partly finance your share purchase in the new firm. If you wish to retain the same earnings that you enjoyed with Borrow-Happy Ltd. how many dollars' worth of shares you will need to buy in Equity-Safe Inc.? Provide supporting computations to your response. Question 2: 5 marks

Your friend, Leo, is considering investing in a newly listed company on the JSE, known as Abital Ltd. She comes to you for advice about whether to invest in their bonds or shares, and has collected the following information from the recently published financial statements: Number of outstanding shares 10 000 000 Earnings after tax 25 000 000 Retention ratio 35% Cost of equity 15% Current market price of one share R10 Number of Bonds outstanding 4 000 000 Abital Ltd recently acquired a patent that expires in 3 years. Their earnings are therefore expected to grow at 20% during these 3 years, after which it will decline to a constant 5%. What is the intrinsic value of Abital ltd?