Hertz Questions

Directons: Answer each of the questions below. 1.Use a real-life example to describe the following allocation methods. Hint: Use family, friends, teams, church, and/or clubs for examples. ·         Brute Force ·         Market ·         Queuing ·         Random Selection ·         Tradition ·         Equal Shares ·         Need ·         Planned 2. Explain the Market System. Give an in-depth example of a Market System. 3. Explain the Planned System. Give an in-depth example of a Planned System. 4. Which allocation system do you think is the most productive or the fairest? Explain. 5. Compare and contrast the Market…

Which of the following theory is applicable to the following situation? A manager needs to raise funds to finance a new project and prefers to use internal financing. Group of answer choices signaling theory trade off theory MM Proposition pecking order theory

Further suppose that the same Firm XYZ from Question 1 is considering investments in two projects. Assume that the projects are mutually exclusive. Further assume the following information for the two projects (values are in 1000s): Project A -5,600 1,325 2,148 4,143 Project B -8,400 1,325 2,148 8,055 Year 1 3 Assume that the required return for the two projects is 8%. Show all work for each part of the problem that requires computation. a) What is the NPV for Project A? b) What is the NPV for Project B? c) What is the IRR for Project A? d) What is the IRR for Project B?

Firm A wants to acquire Firm B. Firm B’s management agrees that themerger is a good idea. Might a tender offer be used? Why or why not?

Answer to question 1?

Please help asap

Describe investors’ use various investment selection methods. Concentrate on the top-down, three-step approach and the bottom-up decision-making processes. Discuss these approaches. Which do you believe provides better results? Why?

4. Introduction to real options Consider the following statement about real options: Sometimes real options can give managers the flexibility to decide to invest in a project or wait to make a more calculated decision.   True or False: The preceding statement is correct. False   True     Which type of real option allows the output and/or inputs in the production process to be altered, depending on how market conditions change during a project’s life? A. Expansion option   B. Flexibility option   C. Abandonment option   D. Timing option     Consider the following example:   Clemens Inc. is considering a $100 million investment in a new line of soft drinks. However, $100 million is a huge investment for Clemens; if things turn bad, it could wipe out the company. A few senior managers have suggested a smaller investment of $20 million to see if the market is as strong as they hope it is. If demand is strong and the opportunity is still…

help  please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working

A project should only be accepted if its return is above what is Blank______. Multiple choice question. mandated by law required by competitors required by the investors socially acceptable

for each question below, write a short answer Summarise the key criticisms that are made to the DCF model and as an analyst, how do you think you could circumvent some of these problems? Think about a firm’s valuation process and take a step back. Do you believe it is more about models accuracy or negotiation and instinct? Think about further issues with the DCF model and Discuss them.

Explain how the possible profit and loss possibilities arise for an individual who invests in a: a. A Call Option i. Be sure to explain what a Call Option is. ii. Be sure to incorporate the cost of the Call Option in your analysis. b. A Put Option i. Be sure to explain what a Put Option is. ii. Be sure to incorporate the cost of the Put Option in your analysis.

A) There are times when accepting a negative or zero NPV project makes sense. Explain what a zero NPV means and give an example of when this choice makes sense for a Company. B) Given our discussion on Amazon's decision to buy Wholefoods, if you were setting up an NPV analysis of this decision, what types of benefits and/ or costs would you include in this analysis? Do you see this as a positive or negative NPV decision by Amazon? Why or why not?

Question A  Explain why firms choose to decentralize and give an example.  Question B  Explain why NPV is generally preferred over IRR when choosing among competing or mutually exclusive projects. Why would managers continue to use IRR to choose among mutually exclusive projects?

Consider the following statement about real options: Sometimes real options can give managers the flexibility to decide to invest in a project or wait to make a more calculated decision.   True or False: The preceding statement is correct. True   False     Which type of real option allows a project to be expanded if demand turns out to be greater than expected? Expansion option   Flexibility option   Abandonment option   Timing option     Consider the following example: King Snowplows began operations in New York City two years ago. As an independent contractor, the company does the majority of its business working for the city. The company also had offers from surrounding cities in New Jersey and Long Island, but these offers would have required the company to invest in additional snowplows—which have high up-front costs. King Snowplows decided to purchase only the snowplows necessary to handle its contract with New York City. The company…

Define Weak, Semi-Strong and Strong forms of the Efficient Market Hypothesis (EMH). Please answer C and D!!!!! a. How would you construct a test of the Weak form of the EMH? b. What have researchers found when testing the Weak form of the EMH? c. Outline how you would conduct an event study. What efficient market hypothesis are you trying to test? d. Give an example where researchers have used an event study and what did they find? Was it consistent with the EMH?

(a) If you apply the payback decision rule, which investment will you choose? Why? (b) If you apply the NPV decision rule, which investment will you choose? Why?  (c) If you apply the IRR decision rule, which investment will you choose? Why? (d) Based on your answers of (a) to (c), which project will you (eventually) choose? Why?