Get college assignment help at uniessay writers What is the market value of a bond that has a 4% coupon paid semiarmually, has a $1,000 face value, has 17 years to maturity and has a 16 % yield to maturity. Write down the formula with appropriate numbers inserted to solve the problem along with the correct answer
In theory it makes no difference whether a company in which you hold shares borrows to increase its capital or whether you borrow to buy: 2 more shares that it issues. Why is this not true in the real world?
“Dividends are very important.” Do you agree with this statement? Give your reasons. 3
9. You wish to retire 30 years from now, at which time you want to have accumulated enough money to receive an annuity of $50,000 a year for 20 years to be able to pay for your retirement. During the period before your retirement, you can earn 3 percent annually, while after your retirement, you can earn 6 percent on your money. What annual contribution to your retirement 11 allow you to receive the $50,000 annually?
Chapter iTest Questions (15 ps cue Budgets can serve many purposes. Which of the following is NOT one of them? Ledger: a tool for tracking/recording income and expenditures; b) Statement of programmatic intent: given the constraints of available resources; Reflection of how an agency’s mission is interpreted and operationalized; d) A mechanism for getting governments out of debt; e) Statement of the political priorities of the executive; ) A tool for controlling the bureaucracy; or e) A mechanism to help guide our economy. 1.
2A.How long it would take a sum to triple, if the interest rate is 6%? Select the period that is closest to the correct answer. 2B. The King Arts Company wants to triple its investment in 8 years. What compound annual interest rate will give this company a chance to achieve its goal?
26 Gerard Jones plans to save for his 5-year doctorate degree, which starts 6 years from now. The current annual expenditure is RM7,200 and it is expected to grow by 7 percent annually. Gerard will need to make the first payment 6 years from today. He identifies a savings plan that allows him to eam an interest of 8 percent annually. How much should Gerard deposit each year, starting one year from today? Assume that he plans to make 5 payments [a] RM 8,370. [b] RM 8,539 c] RM 8,730. [d] RM 9,556
Weighing yourself on the scale only gives you limited information about your health. Explain why. How might you obtain more accurate information? 200 words
What are some guidelines to evaluate the safety and efficacy of a new diet plan? Explain your reasoning for choosing these guidelines. 200 words
Dividends are: treated as a tax-deductible expense of the issuing firm only partially taxable to high-income individual shareholders. payable at the discretion of a firm’s president. paid only to preferred stockholders. paid out of net income.
Get college assignment help at uniessay writers 8. When carrying costs increase, the economic order quantity will: a) increase; b) decrease; c) remain constant.
Question 29 Basing the PE ratio on future earníngs is called the: O Progressive PE Prospective PE Forward looking PE O Relative PE
AGALger 7. if fixed assets are financed by long-term financial sources and current assets by short-term financing, then the financing policy is: a) conservative; b) compromise; aggressive.
Indopark is considering a project that has the following cash flow data. The company has a 10% 1 benchmark as discount rate 0 4 Year Cash flows 2 3 -Rp850 Rp300 Rp290 Rp280 Rp270 What is the project’s NPV? Should the project be rejected or accepted? Show your a. calculation What is the projcct’s IRR? Note that a project’s IRR can be less than the WACC (and even negative), in which case it will be rejected b.
200 WORD MINIMUM- – – – Identify common MS Access database terms. How would you explain them to various Access users with little database knowledge? How would the description of these terms vary depending on the experience level of the customer? How would you determine this experience level? Explain your answer.
Indopark is considering a project that has the following cash flow data. The company has a 10% 1. benchmark as discount rate 0 4 Year -Rp850 Rp300 Rp290 Rp280 Rp270 Cash flows What is the project’s MIRR? What is the project’s Payback Period and Discounted PP? Should the firm accept or reject d. the project if it requires maximum 4 year period for the project? c.
MC algo 15-7 Dutch Auction Northern Air would like to sell 3,900 shares of stock using Dutch auction underwriting. The bids received are Bidder Price Quantity 750 $29.30 850 28.95 1,250 28.80 1,450 28.45 1,650 28.25 How much will the company raise in its offer? Ignore all flotation and transaction costs. Multiple Cholce $110,955 $112,320 $114,270 $152.285 $112,905 A3SDE
Practice 3: Bond market 1. What were the bid price, asked price, and yield to maturity of the 5.000 % May 15th, 2037 Treasury bond displayed in Figure below? What was its asked price the previous day? If 30 days have passed since the last coupon payment, what is the sale, or invoice, price of the bond? U.S. Government Bonds and Notes ASK YLD MATURITY COUPON BID ASKED CHG 107:11 107:11-2 0.7792 -2 0.8303 -3 0.8186 -3 0.8118 – 0.9008 -3 08796 -2 0.9555 -2 0.9365 -2 0.9739 -2 10122 -3 1.0235 Jun 30 11 Jul 31 11 Jul 31 11 Aug 15 11 Aug 31 11 Aug 31 11 Sep 30 11 Sep 30 11 Oct 31 11 Nov 15 11 Nov 30 11 May 15 37 Feb 15 38 May 15 38 Feb 15 39 May 15 39 Aug 15 39 5.125 1.000 4.875 5.000 1.000 4.625 1,000 4.500 4.625 1750 4.500 5.000 4.375 4.500 100:09 107:05 107:18 100:06 106:29 100:03 106:28 107:11 101:16 100:10 107:06 107:19 100:06 106:30 100:03 106:29 107:12 101:17 107:09 111:05-214.3049 100:28 21 4.3208 103:00 107:08 111:00 100:24 102:29 -20 4.3161 3.500 4.250 4.500 86:11 98:26 103:02 86:14 -18 4.3197 98:29 103:03 22 43143 -20 4.3156 2.A 30-year maturity, 10% coupon bond paying coupons semiannually is callable in 15 years at a call price ofS1,100. The bond currently sells at a yield to maturity of 8% ( 4 % per half-year) What is the yield to call? a. b. What is the yield to call if the call price is only S1,050? c. What is the yield to call if the call price is S1,100, but the bond can be called in 10 years instead of 15 years? 3. Suppose that the yield to maturity of the 5% coupon, 25-year maturity bond falls to 7% by the end of the first year and that the investor sells the bond after the first year. If the investor’s federal plus state tax rate on interest income is 30% and the combined tax rate on capital gains is 20%, what is the investor’s after- tax rate of retum?
Practice 4: Mortgage market 1. Compute the required monthly payment on a $200.000, 25-year fixed-rate mortgage with a nominal interest rate of 6% 2. Consider a 25-year fixed-rate mortgage for $600,000 at a nominal rate of 8% What is the difference in required payments between a monthly payment and a bimonthly payment (payments made twice a month)? 3. Consider the following options available to a mortgage borrower Loan Amount Interest Rate (%) Type of Mortgage Discount Points $150,000 6.35 30-year fixed Option Option 2 $120,000 6.42 30-year fixed 2 30-year fixed Option 3 $145,000 6.05 What is the effective annual rate for each option? 4. Consider a 25-year fixed-rate mortgage for $250,000 at a nominal rate of 10 %. If the borrower pays an additional $300 with each payment, how fast will the mortgage be paid of? Practice 5: Foreign exchange market 1. Go to the Currencies in Yahoo Finance! o Find your country’s currency. (If Yahoo does not have your country’s currency, use RMB instead) Draw a historical graph (one year) of the exchange rate of dollar and your country’s currency Compare the exchange rate of dollar and your country’s currency on June 1st, 2019 and June 1st, 2018. Tell me that your country’s currency depreciates or appreciates. Based on the answer, how do the export and import of your country change? 2. The interest rate in European bank is 5% now, and the exchange rate is curently 1.05 dollars per If you expect that the exchange rate will be 0.95 dollars per euro one year from now, what is the expected curo. interest rate in the American bank? 3. The interest rates are 4% in Japan and 5 % in the United States. The current exchange rate is 113 yen per dollar. What is the expected forward exchange rate?
1 pts Question 2 BUMMER MAN, INC stock paid a current dividend of $8 per share and this dividend is expected to grow at a ate of 28 % for the first three years and then slow to a rate of 4% for the forseeable future, the interest rate is 10%. What is the current price? Write down the formula with appropriate numbers inserted to solve the problem along with the correct answer
Questron Jake Inc, has invented an iguana extermination/food processing machine and this company has just paid a dividend of $6 per share. This dividend is expected to grow at a rate of 2% for the next 4 years, at which point you sell it for $60. The required return for this company is 17%, what is the current price of Jake Inc.? Write down the formula with appropriate numbers inserted to solve the problem along with the correct answer HTML Editor
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