2. (30 marks) Module 6 related The following information is taken from recent annual reports and 10-K filings of six publicly traded retailers. All financial information is in $ Millions. Required a. Compute the Inventory turnover ratio and days inventory outstanding for each company. b. Compute the gross profit margin for each company. c. Based on your calculations above, how would you rank the performance of the six companies? Explain. d. Although all six firms are retailers, it could be argued that they exist in different market spaces. Group them into three groups of two similar competitors. Identify what the three sub industries are that you have chosen. Does this affect your analysis from part (c)? e. Compute the following non-financial ratios for each company: Revenue per square foot and revenue per store. What do you observe? f. For each of the three groups which competitor would you consider is doing better? Explain.

Lulu and City Center both own an identical storage building in Sitra valued at BD 10.000. It was estimated that there is a 8 percent chance in any year each storage will be destroyed (loss to either of the building are independent). Both Lulu and City Center agreed to share the risk and agrees to pay equal amount of share in case of a loss. Calculate the expected loss for each of the parties involved. Estimate the objective risk before pooling. Estimate the objective risk as a result of the pooling.

The ROI ... shows the return on equity shows the profitability of sales d shows the operating profitability shows the return on assets

The FAMA Company has two bond issues outstanding. Both bonds pay $100 annual interestplus $1000 face value at maturity. Bond L has a maturity of 15 years, and Bond S has a maturityof 1-year. What will be the value of each of these bonds when the going rate of interest (yield to maturity)is: A) 8% B) 12% Why does the longer-term (15-year) bond fluctuate more when interest rates change than does the shorter-term bond (1-year)?

Suppose Dillard Manufacturing sold an issue of bonds with a 10-year maturity, a $1,000 face value, a 10% coupon rate, and semiannual interest payments. a) Two years after the bonds were issued, the going rate of interest on bonds such as these fell to 6%. At what price would the bonds sell? Suppose that further that the interest rate remained at 6% for the next 8 years. What would happen to the price of the bonds over time? Explain after the issue date (as in part a) interest rates fell to 6%. Suppose

What does it mean when the solvency ratio is 4,5? the company can meet its short-term obligations, but not the long-term obligations. the company may possibly have some underperforming asset. the company is not able to pay its long-term obligations d.the company's indebtedness level is excessive

6. X-Co's Gross and Operating margins contracted by 160 basis points and 70 basis points respectively to 47.4% and 24.0%. What were those margins before they declined?***

19. If interest is paid more than once a year, APR or EAR will be > APR or EAR.

a. Consider the Mundel-Fleming (M-L) model with a fixed exchange rate. The exchange rate S is defined as x units of domestic currency for 1 unit of foreign currency, hence,a rise in S implies a depreciation of the domestic currency. In the diagram below, insert labels for the vertical axis, the horizontal axis, the downward sloping line and the upward sloping line. Add the line that indicates the balance of payments (BP), assuming that cross-border capital mobility is limited,and the BP is in surplus (BP>0). How would the BP line change if capital mobility increased? b. The balance of payments is defined as: CA (current account) + K (net capital flows,excluding changes in the central bank's foreign exchange reserves). The exchange rate is fixed and the BP (as defined) is in surplus. How does this affect the central bank's foreign exchange reserves and the money supply? c. What could the central bank do to avoid a change in the money supply? Describe the central bank's actions. d. Consider the main assumptions and policy conclusions of the Monetary Approach to the balance of payments and the Mundell-Fleming model. Which has become obsolete? Which is still relevant today?

1. Portfolio Beta =1.17 Ch 02: End-of-Chapter Problems - Risk and Return: Part I Back to Assignment Attempts Keep the Highest/1 2. Problem 2-02 (Required Rate of Return) Required Rate of Return AA Corporation's stock has a beta of 0.4. The risk-free rate is 2%, and the expected return on the market is 12%. What is the required rate of return on AA's stock? Do not round intermediate calculations. Round your answer to one decimal place. Grade it Now Save & Continue Continue without saving