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cestrela7 [59]
3 years ago
6

You decide to invest $100,000 in cryptocurrencies and you use that amount to buy bitcoin. Your bitcoin appreciate by 30% in one

month, at which point you liquidate half your position for cash, which you do not reinvest. Bitcoin appreciates by another 25% during the second month and you sell an additional 40% of your holdings. The cryptocurrency then falls by 60% in the third month, at which point you liquidate your entire position for cash.
What is your dollar weighted monthly return?
Business
1 answer:
Dmitry_Shevchenko [17]3 years ago
3 0

Answer: 19%

Explanation:

Dollar weighted monthly return = (w1 * r1) + (w2 * r2) + (w3 * r3)

Weight is the amount withdrawn.

r is the rate earned prior to withdrawal.

= (0.5 * 30%) + (0.4 * 25%) + (0.1 * -60%)

= 19%

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Management in the News In April 2010, the explosion of British Petroleum’s (BP) Deepwater Horizon oil drilling rig and the accom
Firlakuza [10]

Answer:

Event Dimension BP stock prices falling 25% during the first month after the oil spill. <u>ECONOMIC. </u>

The Economic dimension of the environment deals with production in the economy which means that it deals with business entities and the financial system. Dimension BP stock price falling therefore falls under her.

Using deep-se submersibles to take pictures of the oil leak a mile below the surface of the water. <u>TECHNOLOGICAL. </u>

The Technological dimension of the environment refers to anything related to the use of technology and using deep-sea submersibles to take pictures of the leak below the surface of the water will definitely fall under technology.

People moving from Louisiana to Oklahoma to avoid the effects of the spill. <u>SOCIOCULTURAL. </u>

Sociocultural dimension deals with human beings and how they relate with themselves and the environment around them. People therefore moving from Louisiana to Oklahoma will fall under here.

3 0
3 years ago
FinCorp’s free cash flow to the firm is reported as $205 million. The firm’s interest expense is $22 million. Assume the tax rat
Monica [59]

Answer:

$2,152.22

Explanation:

Given that,

FinCorp’s free cash flow (FCFF) = $205 million

Firm’s interest expense, i = $22 million

Tax rate, t = 35%

Growth rate, g = 3%

Cost of equity, e = 12%

Net debt of the firm increases by $3 million

Interest expense (Net of tax) = -i × (1 - t)

                                                = -$22 × (1 - 35%)

                                                = -$22 × 0.65

                                                = -$14.3

FCFE = FCFF + Debt + Interest expense (Net of tax)

         = $205 million + $3 - $14.3

         = $193.7

Therefore,

Market value of equity = FCFE ÷ (e - g)

                                      = $193.7 ÷ (0.12 - 0.03)

                                      = $2,152.22

                   

3 0
4 years ago
When lisa and loretta santiago ran away from home a second time, frank haines made temporary arrangements for them to receive ca
Lana71 [14]

D. The child protective service unit.

In this case study, the arrangements were made through CPS because the children had been absent from school for years and then ran away from home.

8 0
3 years ago
What the term economic environment means​
ivolga24 [154]

Answer:

gracias por los puntosdssss

8 0
3 years ago
Read 2 more answers
Storico Co. just paid a dividend of $3.15 per share. The company will increase its dividend by 20 percent next year and then red
Elanso [62]

Answer:

$61.29

Explanation:

Calculation for what Storico Co. Share of stock will sell today.

Since we have a stock that has a normal growth in which the dividend growth changes every year for the first four years. We can therefore find the price of the stock in Year 3 because the dividend growth rate is constant after the third dividend, which means the price of the stock in Year 3 will be the dividend we are going to use in Year 4, we shall then divide it by the required return less the constant dividend growth rate.

Therefore the price in Year 3 will be calculated as :

P3= $3.15(1.20)(1.15)(1.10)(1.05) / (.12 – .05)

P3= $5.020785/0.07

P3=$71.72

Let find the price of stock today using the PV of the first three dividends in addition with the PV of the stock price in Year 3:

Hence,

P0= $3.15(1.20)/(1.12) + $3.15(1.20)(1.15)/1.12^²+ $3.15(1.20)(1.15)(1.10)/1.12^³+ $71.72/1.12^³

P0=$3.78/1.12+$4.347/1.2544+$4.7817/1.404928+$71.72/1.404928

P0=$3.375+3.465+3.4035+$51.048

P0= $61.29

Therefore if the required return on the company’s stock is 12% what the share of stock will sell for today will be $61.29

8 0
3 years ago
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