Finance Essay Examples

Student’s name Teacher’s name Student’s group 01 February 2018 Problem-solving Problem (a) The expected value of the unhedged firm is: 0.5*200/(1+0.05)+0.5*(500-(500-300)*0.4)/(1+0.05)=95.24+200=295.24 Problem (b) Let’s buy put options for gold pricing at 500 with premium P. The expected value of the hedged firm is: (500-(500-300)*0.4)/(1+0.05)-P=420-P Problem (c) The safe debt is the one that pays off not more than 200 in a year. The value of the firm is:0.5*(200-200)/(1+0.05)+0.5*(500-200-(500-200-300)*0.4)/(1+0.05)=142.86 Problem (d) The safe debt is the one that pays off not more than 200 in a year. Let’s buy put options for gold pricing at 500 with premium P. The value...

Q.2 Given the function V (t, z) lim V( t, z ) / (t, z) = ∞ is said to is said to be decreasing in convex and in z if and only if V < 1. Q.3 V(t,x,y) = dXt = rXt dt + t(µ-r) + tdWt – Ct dt + Yt dtdXt = rXt dt + t(µ-r) + tdWt – Ct dt + Yt dt = stochastic differential equation let f(t, x, y) = logeXft = 0, fx = 1/x, fxx = -1/x2 df = 0 dt + ½ dx - 1/2x * 1/2 (dx)2 = 1/x (dXt = rXt dt + t(µ-r) + tdWt – Ct dt + Yt dt) – 1/2x * ½ (2x2 dt) HJB = V( x,t,y) / t = ½ ydW2t + rXt –2 (V(x, t, y)/ x) + 2/2 * 2V(x, t, y) /...

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Revenue Recognition for Advance Payments Name: Institution: Revenue Recognition for Advance Payments Hamilton Company should record the revenue six months after the receipt of the $630,000 from the sale tickets for the upcoming season of six Broadway musicals. According to the principle of revenue recognition, a company is required to record its revenue only when it has been earned CITATION Cam16 l 1033 (Merritt, 2016). Accrual method accounting distinguishes revenue recognition from cash flow CITATION Cam16 l 1033 (Merritt, 2016). The Company, in this case, will earn its revenue after it has fulfilled its obligation of delivering the performance, and can therefore lay claim to the advanced...

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Finance Centre of the Ping A part of the skyscraper was finished in December 2017, after seven years of continuous construction work. The architectural firm felt shy of the structure reaching the category of the mega tall when it was 599 meters. However, the KPF has a current plan of constructing a 68-story skyscraper called Brooklyn Point Tower. It will be the second-tallest structure in the New York borough. Work cited Kohn, A. Eugene, and Paul Katz. Building type basics for office buildings. John Wiley & Sons,...

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The Asset Turnover Ratio Student’s Name: Institutional Affiliation: Abstract The asset turnover is a concept that explains the total assets in relation to the total sales held by a firm. The asset turnover concept basically explains the reason that a certain amount of sales is generated by a certain proportion of assets. This ratio is an example of an efficiency ratio which shows how efficiently a firm operates on the premise of the number of sales or business that are generated. The asset turnover concept is represented by a ratio which is percentage form computed as net sales divided by the total value of assets as indicated in the balance sheet or statement of a company’s financial...

Student Name: Professor: Course: Submission Date: Introduction CPI Card Group, Inc. participates in scheming, manufacturing, branding, packaging, and tracking of smart cards. It emphasizes on providing commercial, marketable, and credential card production and related services. The CPI Card Group Inc. made an IPO filing on August 7, 2015, for $100m. The company also participates in offering different products as well as services and is located in United States, United Kingdom, and Canada. The company provides services for banks, retailers, the government, security and entertainment groups. Members are from the United States as well as internationally. This paper seeks to analyze CPI Card...

finance their education. 2. Other students are always under pressure to attain higher grades. 3. Finally, students often have to balance between studying and other tasks which call for their attention. Main Ideas Some students lack enough resources to finance their education. Tuition fees have been soaring progressively over the last few years. Furthermore, the gap between the rich and the poor is continuously widening. The top 20% control around 51% of national income. This situation forces students from poor backgrounds to seek employment to raise fees. Some of them are even forced to pause their studies or drop out. An investigation conducted by the University of Michigan revealed that...

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Finance Student’s Name Institutional Affiliation 11.3. a. Systematic risk b. Unsystematic risk c. Appears to be a systematic risk, but can be an unsystematic risk to a particular degree. d. This scenario can best be described as unsystematic risk. e. The scenario describe here in can only be an unsystematic risk. f. The scenario described in this question is systematic risk 11.4 a. A change in the systematic risk as a result of high inflation announcement leads to the prices in the market falling. b. When Big Widget’s earnings fell within analysts’ expectations, then there is no change in unsystematic risk, which mean that price of Big Widget will probably remain...