Yachting America

roaring_leo asked:


If they are wrong can you let me know why they are wrong and include the correct formula and answer please

1.

Q) Allied Manufacturing opened the day at $12.23 and closed the day at $12.44. The all ordinaries opened at 4,320.8 and closed at 4,367.8.

a) Calculate the rate of return (r) on Allied Manufacturing over the last day as a daily percentage to 2 decimal places.

r = 1.72%

b) Calculate the rate of return on the all ordinaries index (r m) over the last day as a daily percentage to 2 decimal places:

r m =1.09%

c) Calculate the return of the company relative to the market over the market over the last day as a daily percentage to 2 decimal places:

r excess =0.63%

2.

Today, Allied Motors, reported they had surpassed their year to date earning expectations. The company CEO, Ebenezer McDuck said:

‘Over the last year, Allied Motors (AM) has produced fantastic returns for shareholders. Our share price has risen from $34.79 to $43.68. Perhaps this return will finally silence nay-sayers, who have continually criticised my remuneration. How can I be expected to skilfully navigate the company to sucess without my luxury yacht?’

AM paid one dividend of $1.41 this year.

Calculate the Rate of Return (r) on AM over the last year as a percentage to 2 decimal places

r =……..%

Therefore,

Stock went from 34.79 to 43.68 = $8.89 profit
Add the dividend 8.89 + 1.41 = $10.30 total return

As a percentage (10.30/34.79) X 100 = 29.60% Rate of return

So Rate of Returns is 29.60%

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dark lord asked:


Suppose that you are a banker responsible for approving corporate loan. 9 firms are seeking secured loans. They offer the following assets as collateral:
a.Firm A, a refiner offers a storage tank full of jet fuel.
b.Firm B, a wine wholesaler offers 1,000 cases of Beaujolais Nouveau, located in a warehouse
c.Firm C, a stationer, offers an Accounts Receivable for office supplies sold to the city of Bordeaux
d.Firm D, a bookstore, offers its entire inventory of 15,000 used books
e.Firm E, wholesale grocer, offers 20,000 kilos of bananas
f.Firm F, a retail chain, offers its inventory of television sets
g.Firm G, a jeweler, offers 100 ounces of gold
h.Firm H, securities dealer, offers its portfolio of French Government Bonds
i.Firm I, a boat builder, offers a half completed luxury yacht. The yacht will take four months more to complete.

Which of the assets are most likely to be good collateral? Which are likely to be bad collateral? Please explain thoroughly.

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