Question 1
A
1127000/1503000=0.75

(1127000-472000)/1503000=0.44
234000/1503000=0.16

12870000/8355000=1.54

9070000/472000=1.92

12870000/421000=30.57

8355000-4257000/8355000=0.49

8355000-425700/4257000=0.96

8355000/4257000=1.96

1842000/231500=7.96

1842000+420000/231500=9.77

966300/12870000=0.08

966300/8355000=0.12

966300/4257000=0.23
B
NO. Because of the finance of commercial aircraft company is highly different of the finance light airplane manufacturer. Also S&S needs a longer time to produce an aircraft to meet an order. In other way the inventory period and the receivable period are quite long for Boeing. To the data, Boeing’s cash cycle was a negative 146 days.

Question 2
a:
That is the principal 185000-3000=155000
by monthly 155000/48*(1+9%/12)^4*12=46222

b:
$155000*(1 + 9%)^2

=$184156

PMT=8350
($184156 – 155000) + (8350*24 – 184156)

= $45400

C

 I think alternative I is the best choice because alternative II need to pay one more year interest rate

QUESTION 3”
Bondx
A
Bondx
80*PVIFA(6%,7)+1000*PVIFA(6%,7)=1111.65
80/1111.65=7.197%

Bondy:
50*PVIFA(5%,7)+1000*PVIFA(5%,7)=944.18   
50/944.18=5.296%

B:
Bondx
80*PVIFA(6%,6)+1000*PVIFA(6%,6)=1098.35
(1,098.35 – 1,111.65) / 1,111.65 =-1.19

Bondy
50*PVIFA(5%,6)+1000PVIFA(5%,6)=950.83

(950.83 – 944.18) / 944.18 =0.704%
C:
No I think  she is made a bad choice . It is Bond X is higher current yield, the expected capital gain of Bond Y is higher ,I suggest choose to short trem

Question 4
a:
stock H:(16%*0.02)+(8%*0.3)+(-6%*0.5)=0.026=2.6%
Stock L:(14%*0.2)+(16%*0.3)+(12%*0.5)=0.136=13.6%

b
stock H(16%-2.6%)^2*0.2+(8%-2.6%)^2*0.3+(-6%-2.6%)^2*0.5=0.008164

√0.008164=9.04%
0.00904/0.026*100%=36.15%

stock L
(14%-13.6%)^2*0.2+(16%-13.6%)^2*0.3+(12%-13.6%^2*0.5=0.000304
√0.000304=1.74%
0.0174/0.136=12.79%

c:
stock H
expecting return :300000*(1+0.026)=304500
300000*(1+0.3615)=408450
stunding deviation :408450-300000=108450

stockL
600000*(1+13.6%)=681600
stunding deviation :

681600-600000=81600
600000*(1+0.1279)=676740
expecting return:676740-60000=76740

D: There are differences as the Boom of the Stock L is lower than the Normal of it. The Capital Asset Pricing Model which is the Equation of Security Market Slope with Beta provides the concept of risk and return. We better know how to measure risk, and how to reduce risk by diversify our investment.