Decision making is the process of choosing a course of action for dealing with a problem or opportunity. Discuss how you have gone about making a major decision, such as which college or university to attend. Remember to relate your discussion to the five basic steps involved in systematic decision.
1. ElectronicsForAll (EFA) is a firm with assets valued at $10,000 and with 400 shares of stock outstanding. EFA has a capital structure that contains $2,500 in debt financed at 10% interest. Which of the following comes closest to EFA’s leverage factor?a.1.000b.1.250c.1.333d.1.667e.4.0002.Ninety Nine Inc. is a firm with a stock price of $50 per share….
Questions 1The yield curve is flat at 6% per annum. What is the value of a Forward Rate Agreement where the holder receives interest at the rate of 8% per annum for a six-month period on a principal of $1,000 starting in two years? All rates are compounded semi-annually. Explain your answer.Questions 2A)trader has a…
Createa 1,050-word report, and include the following: Describe the role of the financial institutions and financial markets in our economyDifferentiate between primary and secondary markets.Differentiate between money and capital markets.Post your assignment to the Assignments tab.Format your paper consistent with APA guidelines. Please run your paper through WritePoint in the Center for Writing Excellence. Additionally,…
You are asked to compute an internal rate of return (IRR) on a new piece of equipment. You do so and the IRR indicates that the investment will never pay for itself. However you feel strongly that the investment should be made anyways. Under what circumstances would you advocate for the new equipment even though…
You have been offered a unique investment opportunity. If you invest$15,000 today, you will receive $ 750 one year from now,$2,250 two years from now, and $ $15,000 ten years from now.a. What is the NPV of the investment opportunity if the interest rate is 10% per year? Should you take the opportunity?b. What is…
Assume that you just won 0 million in the Powerball lottery, and hence the lottery will pay you 25 annual payments of $10 million each year beginning immediately. If the rate of return on securities of similar risk to the lottery earnings (e.g., the rate on 25-year U.S. Treasury bonds) is 3.75 percent, what is…
