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Get college assignment help at uniessay writers Hi Rachel, could you please help me in elaborate four pages report APA format about a case study in finance which I already did but I need more financial support, put all things in Word in orderly way as well explaining the results and the decision I made based on my results. I’ll send you the attachments with the excel, the case study and the word file I already did. Right now I’m sending you the excel file. How can I send the other attachments? Thank you
1. Your consulting firm was recently hired to improve the performance of Shin-Soenen Inc, which is highly profitable but has been experiencing cash shortages due to its high growth rate. As one part of your analysis, you want to determine the firm’s cash conversion cycle. Using the following information and a 365-day year, what is the firm’s present cash conversion cycle? Average inventory = $75,000 Annual sales = $600,000 Annual cost of goods sold = $360,000 Average accounts receivable = $160,000 Average accounts payable = $25,000
Interest Rate Risk Laurel, Inc., and Hardy Corp. both have 8 percent coupon bonds outstanding, with semiannual interest payments, and both are priced at par value. The Laurel, Inc., bond has 2 years to maturity, whereas the Hardy Corp. bond has 15 years to maturity. If interest rates suddenly rise by 2 percent, what is the per- centage change in the price of these bonds? If interest rates were to suddenly fall by 2 percent instead, what would the percentage change in the price of these bonds be then? Illustrate your answers by graphing bond prices versus YTM. What does this problem tell you about the interest rate risk of longer-term bonds?
Based on the corporate valuation model, the value of a company’s operations is $900 million. Its balance sheet shows $70 million in accounts receivable, $50 million in inventory, $30 million in short-term investments that are unrelated to operations, $20 million in accounts payable, $110 million in notes payable, $90 million in long-term debt, $20 million in preferred stock, $140 million in retained earnings, and $280 million in total common equity. If the company has 25 million shares of stock outstanding, what is the best estimate of the stock’s price per share?
six month ago. the singleton co. issued 20-year bonds with a 14% annual coupon rate and selling at par of Rm1,000. the bonds had a 9% call premium, with 5 years of call protection. today, singleton called the bonds. compute the realized rate of return for an investor who purchased the bonds when they were issuedand held them until they were called.
Liz earned a 3.1 percent real rate of return on her investments for the past year. During that time, the risk-free rate was 3.7 percent and the inflation rate was 2.9 percent. What was her nominal rate of return?
what percentage of Alcoa’s total sales for the most current year was from operations in the United States?
1. Bond. What is the value of a $1,000 par value bond with annual payments of an a. 11% coupon with a maturity of 20 years and a 15% required return?
2. What is the yield to maturity of a $1000 par value bond with an a. 10% semiannual coupon and 20 years to maturity and a $1,000 price? b. What is the yield to maturity of a $1000 par value bond with a 6.5% semiannual coupon and 13 years to maturity and a $890 price? I will also need the formula used for these questions. Thank you.
Shortroad Inc. has the following target capital structure: Debt 30% Preferred stock 15% Common stock 55% Total capital 100% Stockholders expect earnings and dividends to grow at a constant rate of 8 percent in the future. Shortroad’s tax rate is 34 percent. Treasury bonds yield 5 percent and the market risk premium is 8 percent. Shortroad has a beta of 1.4. The following information is also available: Common stock: It is assumed that no new common stock would be issued. Preferred stock: New preferred stock could be sold to the public at a price of $100 per share, with a dividend of $10. Flotation costs of $5 per share would be incurred. Debt: Shortroad’s 15-year 10% semiannual coupon bonds ($1,000 par value) are currently selling for $1,207.50. a) Find the component cost of debt b) Find the component cost of preferred stock c) Find the component cost of common equity using the CAPM model d) Find the firm’s WACC
Get college assignment help at uniessay writers 2) You are saving for the college education of your two children. One child will enter college in 5 years, while the other child will enter college in 7 years. College costs are currently $20,000 per year and are expected to grow at a rate of 5 percent per year. All college costs are paid at the beginning of the year. You assume that each child will be in college for four years. You currently have $50,000 in your educational fund. Your plan is to contribute a fixed amount to the fund over each of the next 5 years. Your first contribution will come at the end of this year, and your final contribution will come at the date at which you make the first tuition payment for your oldest child. You expect to invest your contributions into various investments which are expected to earn 8 percent per year. How much should you contribute each year in order to meet the expected cost of your children’s education? 3) In this problem, you will need to go to yahoo finance. Find the information for Ford Motor Company, and then click on statistics. Get the current beta value, current stock price, dividend information and next five years PEG growth rate. The current 10 year US treasury rate is about 2.5%. Use this as your risk-free rate and determine the current required rate of return for Ford. Then, determine the expected rate. Is Ford overpriced or underpriced based on your analysis? Be sure to show all work and discuss. Also, make sure you note the date from which you draw your information from yahoo and include a copy of those pages.”
Suppose you buy a 7 percent coupon, 20-year bond today when it’s issued. If interest rates suddenly rise to 15 percent, what happens to the value of your bond? Why?
Bayberry $1,000 par bonds have a 4.6% coupon and come due in 7 years. Interest is paid annually. If your required rate of return was 6.8%, what is the most you would be willing to pay for this bond?
Using Stock quotes. You have found the following stock quote for RJW Enterprise,Inc., In the financial pages of today’s newspaper. What was the closing price for this stock that appeared in Yesterday’s paper? If the Company currently has one million shares of stock oustanding, what was net income for the most recent four quarters?
Arjay Company has issued perpetual preferred stock with a par of $100 and a dividend of 6.5 percent. If the required rate of return is 8.75 percent, what is the stock’s current market price? $12.90 $74.29 $53.27 $62.14
The expected return of the market portfolio is equal to that of the risk-free risk security. True False
Which of the following tools would be most appropriate for understanding which of two stocks to invest in a single holding portfolio? the coefficient of variation for each of the two stocks the correlation coefficient between the two stocks the covariance between the two stocks the beta of the two stocks
Suppose you hold a diversified portfolio consisting of a $7,500 investment in each of 20 different common stocks. The portfolio’s beta is to 0.75. Now, suppose you decided to sell one of the stocks in your portfolio with a beta equal to 1.0 for $7,500 and to use these proceeds to buy another stock for your portfolio. Assume the new stock’s beta is equal to 1.85. Calculate your portfolio’s new beta.
Cellular Systems paid a $3 dividend last year. The dividend is expected to grow at a constant rate of 5 percent over the next two years. The required rate of return is 12 percent (this will also serve as the discount rate in this problem). Round all values to three places to the right of the decimal point where appropriate.
Storico Co. just paid a dividend of $3.50 per share. The company will increase its dividend by 20 percent next year and will then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5 percent dividend growth, after which the company will keep a constant growth rate forever. a. If the required rate of return on Storico stock is 13 percent, what will a share of stock sell for today?
You expect IBM to hit $120 per share with expected dividends of $2.50 in one year, Its current price is $105 and your research estimates the beta at 1.15. Market risk premium is .07 and the U.S. T-bill is expected to yield .05. Is the IBM a good investment? Conduct security analysis using the CAPM. Explain your answer
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