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.

Select the right formula for the straight-line a mortization method: Amortization = (Residual value - Acquisition value) / Asset's lifespan Amortization = Asset's lifespan / (Residual value - Acquisition value) Amortization = Asset's lifespan / (Acquisition value - Residual"value) Amortization = (Acquisition value - Residual value) / Asset's- lifespan

The transaction related to disposing of long-term assets (forexample, selling plant and equipment), is recorded as: Cash inflow from investing activity. Cash outflow from financing activity Cash outflow from investing activityC. Cash inflow from financing activity

Which of the following bonds has the greatest price risk? a. A 10-year $100 annuity. b. A 10-year, $1,000 face value, zero coupon bond. c. A 10-year, $1,000 face value, 10% coupon bond with annual interest payments. d. All 10-vear bonds have the same price risk since they have the same maturity, e. A 10-year, $1,000 face value, 10% coupon bond with semiannual interest payments.

Which of the following statements is CORRECT? a. If a coupon bond is selling at par, its current yield equals its yield to maturity. b. If a coupon bond is selling at a discount, its price will continue to decline until it reaches its par value at maturity. c. If interest rates increase, the price of a 10-year coupon bond will decline by a greater percentage than the price of a 10-year zero coupon bond. d. If a bond's yield to maturity exceeds its annual coupon, then the bond will trade at a premium. e. If a coupon bond is selling at a premium, its current yield equals its yield to maturity.

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.

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