Question 1
Using the Harvard Business Case Study, Savings & Loans and the Mortgage Markets attached, answer the following questions by creating a Word document. Your answers should be a maximum of 1 page per question (and very possibly less) 1. What are the similarities and differences of the problems encountered by the S&L industry and the more recent problems of the mortgage / housing industry? 2. The US the government has created several agencies ? the FHA, FHLB, Fannie Mae, Freddie Mac, Ginnie Mae ? to provide assistance to the housing market and essentially took over Fannie and Freddie in mid 2008 to assure that it could continue to operate. Why has this sector attracted so much attention and assistance? 3. What policy actions and changes to the marketplace undermined a solid position of savings and loans in the 1970s? Could the effects of these changes have been anticipated and foreseen? 4. Many actions were taken by Congress and regulators to try to address the weakening position of savings and loans. Why would these not effective?,Pls elaborate more as the max per question is one pg though it can be less and should have full sentences in the paragraphs.,I need the progress late today. How are you doing with this?,Question 1 is asking for similarities and differences, which is not provided. Pls be more specific with providing details from the case.,Pls try later today.,Any updates? If its not done by tomorrow, I don't need it and will not be satisfied.,Any updates?,Ok thank you do much cause today is the cut off and I like to dissect and and cut things and need time for that too.,Only if needed of course.,K no prob
Question 2
Thomson One-BSE Discussion Questions: THOMSON ONE | Business School Edition Calculating 3M?s Cost of Capital In this chapter we described how to estimate a company?s WACC, which is the weighted average of its costs of debt, preferred stock, and common equity. Most of the data we need to do this can be found in Thomson One. Here, we walk through the steps used to calculate Minnesota Mining & Manufacturing?s (MMM) WACC. Discussion Questions 1. As a first step we need to estimate what percentage of MMM?s capital comes from long-term debt, preferred stock, and common equity. If we click on FINANCIALS, we can see immediately from the balance sheet the amount of MMM?s long-term debt and common equity (as of mid-2004, MMM had no preferred stock). Alternatively, you can click on FUNDAMENTAL RATIOS in the next row of tabs below and then select WORLDSCOPE?S BALANCE SHEET RATIOS. Here, you will also find a recent measure of long-term debt as a percentage of total capital. Recall that the weights used in the WACC are based on the company?s target capital structure. If we assume that the company wants to maintain the same mix of capital that it currently has on its balance sheet, what weights should you use to estimate the WACC for MMM? (In the Capital Structure and Leverage chapter, we will see that we might arrive at different estimates for these weights if we instead assume that MMM bases its target capital structure on the market values of debt and equity, rather than the book values.) 2. Once again, we can use the CAPM to estimate MMM?s cost of equity. Thomson One provides various estimates of beta?select the measure that you believe is best and combine this with your estimates of the risk-free rate and the market risk premium to obtain an estimate of its cost of equity. (See the Thomson One exercise for Chapter 6 for more details.) What is your estimate for the cost of equity? Why might it not make much sense to use the DCF approach to estimate MMM?s cost of equity? 3. Next, we need to calculate MMM?s cost of debt. Unfortunately, Thomson One doesn?t provide a direct measure of the cost of debt. However, we can use different approaches to estimate it. One approach is to take the company?s long-term interest expense and divide it by the amount of long-term debt. This approach only works if the historical cost of debt equals the yield to maturity in today?s market (that is, if MMM?s outstanding bonds are trading at close to par). This approach may produce misleading estimates in years in which MMM issues a significant amount of new debt. For example, if a company issues a lot of debt at the end of the year, the full amount of debt will appear on the year-end balance sheet, yet we still may not see a sharp increase in interest expense on the annual income statement because the debt was outstanding for only a small portion of the entire year. When this situation occurs, the estimated cost of debt will likely understate the true cost of debt. Another approach is to try to find this number in the notes to the company?s annual report by accessing the company?s home page and its Investor Relations section. Alternatively, you can go to other external sources, such as www.bondsonline.com, for corporate bond spreads, which can be used to find estimates of the cost of debt. Remember that you need the after-tax cost of debt to calculate a firm?s WACC, so you will need MMM?s tax rate (which has averaged about 37 percent in recent years). What is your estimate of MMM?s after-tax cost of debt? 4. Putting all this information together, what is your estimate of MMM?s WACC? How confident are you in this estimate? Explain your answer.,Hey Expert, Here is another version of the questions written in Word format. Thank you in advance!,Thank you so much. Do you want me to provide you with pass-code and user name for Thomson ONE? Once again, thank you,Hello Rachel, I'm so glad with what you have done. They look neat and excellent. It's now 4:00 am in the morning here just I need to discuss them tomorrow Morning with my Prof to get his feedback. I might ask you to do the rest questions if they don't bother your time! Thank you :)
Question 3
Can we please halfway between 45 and 80......say. At 65.00 can have 24 hours or longer..... Pls this is reasonable I will be back and refer other people,TERRIBEL...THE ANSWER are wrong, out of the whole document .. I only got 12 right and the rest are wrong......I AM DISHEARTENED.. pls advise about refund,I don't have any way to share the report. All I know I received a 30 pts out of 100. Only 10 or were correct and the rest are wrong.....kindly pls I will resubmit questions or attachment with different set if questions and kindly pls do these correctly. I received a offer to re-do and these are different se of questions I need help.....pls respond and I will resubmit attachment......,Please provide a response. Unhappy with the previous results. Pls accept or redo different set of questions and provide correct answers. Pls advise,No need for cross check . There's not much I can do now. Only option is to redo different set of questions ( was given to redo assignment ) w different questions. If you can fix this mistake u can send the attachment. But I will require to to work on this....... Like I said your service and tutor are great, just didn't workout well I dint want my money back just want you to fix it can you accept the attachement it got 30 questions can you work on please provide feedback accept and I will attach you can have 24 hrs I really appreciate and definitely past experiences have been great except this has become a issue and hope you can fix it.
Question 4
1). Six-month call options with strike prices of $45 and $50 cost $7 and $4, respectively. 1. What is the maximum gain when a bull spread is created from the calls? 2. What is the maximum loss when a bull spread is created from the calls? 3. What is the maximum gain when a bear spread is created from the calls? 4. What is the maximum loss when a bear spread is created from the calls?
2). Calculate the price of a three-month European put option on a stock with a strike price of $60 when the current stock price is $60, a dividend of $1.50 is expected in two months, the risk-free interest rate is 10% per annum, and the volatility is 30% per annum. Show PV of dividend and calculated values of d1 and d2. 1. Calculate PV of dividend. 2. Show value of d1. 3. Show value of d2. 4. Calculate the price of the put option.
3) A portfolio manager in charge of a portfolio worth $8 million is concerned that the market might decline rapidly during the next six months and would like to use options on the S&P 100 to provide protection against the portfolio falling below $7 million. The S&P 100 index is currently valued at 400 and each contract is on 100 times the index. 1. If the portfolio has a beta of 1, how many put option contracts should be purchased? 2. If the portfolio has a beta of 1, what should the strike price of the put options be? 3. If the portfolio has a beta of 0.5, how many put options should be purchased
4) A call option on an asset has a delta of 0.3. A trader has sold 3,000 options and wants to create a delta-neutral position. 1. Should the trader take a long or short position in the asset? 2. How many units of the asset should be bought or sold?
5) Some investor/speculators recognized the weaknesses inherent in the usage of CDOs during the time of the Crisis and made profits on the order of tens or hundreds of millions of dollars by betting against the markets. Briefly describe how they did this. What was the ultimate source of their profits? Should the U.S. government have instituted a “Windfall Profits Tax” on these individuals and used the money to repair the financial damage caused during the crisis?
Question 5
Here is more information on the question. In addition to the questions above. Answer this as if you're the CPA and clients consisting primarily of professionals, entrepreneurs, and small business owners. John Smith, Esq., a practicing attorney, who received an influx of cash esulting from winning a large jury verdict on behalf of his client in a personal injury case. His wife Jane Smith accompanies him during your meeting because she has some additional tax planning advice to ask of you. Role After reviewing John and Jane Smith?s points of view, it will be your turn as a tax professional to decide on the best course of action from a tax perspective on their issues. issues presented. Cite all resources 1. John Smith tax issues: a. How is the $300,000 treated for purposes of Federal tax income? b. How is the $25,000 treated for purposes of Federal tax income? c. What is your determination regarding reducing the taxable amount of income for both (a) and (b) above? 2. Jane Smith tax issues: a. What are the different tax consequences between paying down the mortgage (debt) and assuming a new mortgage (debt) for Federal income tax purposes? b. Can John and Jane Smith utilize a 1031 tax exchange to buy a more expensive house using additional money from John?s case? c. Does Jane have a business or hobby? Why is this distinction important? d. Would Jane (and John) realize better tax benefits if she had a separate business for her jewelry making activities? e. What tax benefits would John realize if he invested $15,000 in Jane?s jewelry making? f. Can Jane depreciate her vehicle or jewelry making equipment? How? 3. John and Jane Smith tax issue: a. Should John and Jane file separate tax returns or jointly? Key Players John Smith, Esq. I worked on this case for over two years. The jury awarded my client $2,000,000 in damages, of which my fee was $300,000 plus recovery of expenses paid up front in the amount of $25,000. How is the $300,000 taxed? What about the $25,000? What can I do to minimize the tax consequences of each? Also, I am thinking about buying the building that I currently lease my office space in. My current lease is $3,500 per month. How is this lease reported on my income tax returns (either personally or for my business which is a separate law practice established as an LLC)? Do I get better tax benefits for paying the lease or for buying the building? What are the differences? Jane Smith I think that the fees would be better used for paying off our house and buying a new, bigger house that I?ve had my eye on. Does it make better tax sense for us to pay off the mortgage, sell the house, and buy a new house, or should we just use the money to buy the new house after selling the old house? Also, I sell handcrafted jewelry which earned me $20,000 last year. Do my business activities constitute a trade or business for federal income tax purposes? Or, is this just a hobby? Should I establish a separate trade or business to get tax benefits on these earnings? Does it make any difference that I use my car primarily for transporting my jewelry to different shops around town? Finally, I think I can earn more money if John were willing to invest $15,000 for new jewelry making equipment since my original equipment, which cost $10,000 five years ago, is almost obsolete. Does this make sense from a tax perspective?,Has this request been submitted?
