Financial Management and Markets SEE ATTACHMENT

We're the ideal place for homework help. If you are looking for affordable, custom-written, high-quality and non-plagiarized papers, your student life just became easier with us. Click either of the buttons below to place your order.


Order a Similar Paper Order a Different Paper

Financial Management and Markets

SEE ATTACHMENT

Financial Management and Markets SEE ATTACHMENT
BUS3062 Week 1 Assignment Template Respond to the following questions using grammatically correct language. Martha Stewart was accused of insider trading for selling ImClone stocks a day before the stock went down in value. The charges of securities fraud were thrown out but she served 5 months in prison for obstruction of justice and lying to investigators. Do you think what Martha did (insider trading) was unethical from financial management point of view? Explain. [Answer here.] Explain why wealth maximization is more desirable than profit maximization as a goal for any company. [Answer here.] Classify the following transactions as taking place in the primary or secondary markets by placing an “X” in the appropriate cells for questions 3 and 4. Markets Transactions Primary Market Secondary Market IBM issues 200 million dollars of new common stock. The New Company issues 50 million dollars of common stock in an IPO. IBM sells 5 million dollars of GM preferred stock from its marketable securities portfolio. The Magellan Fund buys 100 million dollars of previously issued IBM bonds. Prudential Insurance Co. sells 10 million dollars of GM common stock. Classify the following financial instruments as money market securities or capital market securities: Financial Instruments Transactions Money Market Capital Market Federal Funds. Common Stock. Corporate Bonds. Mortgages. Negotiable Certificates of Deposit. U.S. Treasury Bills. U.S. Treasury Notes. U.S. Treasury Bonds. State and Government Bonds. Explain the shape of the yield curve with respect to the unbiased expectations and liquidity premium theories. [Answer here.] Imagine a particular security’s default risk premium is 2 percent. For all securities, the inflation risk premium is 1.75 percent and the real risk-free rate is 3.50 percent. The security’s liquidity risk premium is 0.25 percent and maturity risk premium is 0.85 percent. The security has no special covenants. Calculate the security’s equilibrium rate of return. Show your work. [Answer here; show your work.] 3

Writerbay.net

Do you need academic writing help? Our quality writers are here 24/7, every day of the year, ready to support you! Instantly chat with a customer support representative in the chat on the bottom right corner, send us a WhatsApp message or click either of the buttons below to submit your paper instructions to the writing team.


Order a Similar Paper Order a Different Paper
Writerbay.net