A 10-year bond pays 12% interest on a $1,000 face value annually. If it currently sells for $1,100, what is its approximate yield to maturity?
Question 2. You buy a new piece of equipment for $7,360, and you receive a cash inflow of $1,000 per year for 10 years. What is the internal rate of return?
Question 3. Assume a project has earnings before amortization and taxes of $15,000,
amortization of $25,000, and that the firm has a 30 percent tax bracket. What are the after-tax cash flows for the project?
Question 4. How long does it take $1,000 to quadruple in value if you have an 11% annual return? Assume annual compounding, and express your answer in years (to two decimals).
Question 5. Assume the following spot and forward rates for the euro ($/euro).
Spot rate = $1.6277
30-day forward rate = 1.6330
90-day forward rate = 1.6353
120-day forward rate = 1.6387
a) What is the dollar value of one euro in the spot market?
b) Suppose you issued a 120-day forward contract to exchange 200,000 euros into Canadian dollars. How many dollars are involved?
c) How many euros can you get for one dollar in the spot market?
d)What is the 120-day forward premium?
Question 6. The MacHardee Plumbing Company has common stock outstanding. The stock paid a dividend of $2.00 per share last year, but the company expects that earnings and dividends will grow by 25% for the next two years before dropping to a constant 9% growth rate afterward. The required rate of return on similar common stocks is 13%. What is the per-share value of the company's common stock?
Question 7. Defense Electronics Corporation is considering building an overseas manufacturing facility to produce radar detection systems. As a consultant to DEC, you have the contract to determine the appropriate discount rate for evaluating this project.
Current information regarding DEC includes:
Debt: 25,000 bonds outstanding, each with a coupon rate of 6.5% paid semi-annually, par value of $1,000, maturity of 20 years, and current value of 96% of par.
Common Stock: 400,000 shares outstanding with a current value of $89/share. An annual dividend of $4.74 has just been paid, and dividends are expected to grow by 9% annually into the foreseeable future.
Preferred Stock: 35,000 shares of 6.5% stock with a par value of $100/share, and a current value of $99/share.
Tax rate: DEC’s combined tax rate is 34%.
Other liabilities: DEC has the usual accounts payable and accruals on its balance sheet, but does not regularly utilize any interest-bearing debt other than the bonds described above.
Risk Adjustment: Since the new manufacturing facility is to be built overseas, management is suggesting an adjustment factor of +2% to account for the increased riskiness.
An employee pays no CPP premiums once past $47,200 in gross earnings for the year.40) Like EI, CPP has a maximum deduction per year.41) The CPP premium rate is currently ...Dec 06 2019
Contrast the typical behaviors of those from egalitarian cultures with those from hierarchical ones.55.What do the Japanese mean by the term “banana sale approach”, and h...Jan 24 2020
The following is a classic distributive bargaining scenario, wherein each party is attempting to maximize their gains at the expense of the other. In this situation, Mich...Jun 14 2020
Worksheet data for DeSousa Company are presented in E4-2. In E4-2, The adjusted trial balance columns of the worksheet for DeSousa Company are as follows. Instructions ...May 14 2020
Which of the following is not an upward communication?[A]Cost accounting report[B]Purchase order summary [C]Sales report[D]Corporate policy statementDec 25 2017
A CLOCKWORK ORANGE compared to ANIMAL FARM In a textually supported essay, compare and contrast how the authors of these two texts present visons of dystopian societies ...Mar 17 2020
Which of the following is a Theory Y assumption?[A]The average person prefers to be directed [B]Most people must be threatened and coerced before they put forth adequate...Jan 02 2018
What would you advise Alabama Air to do for the current reservation system based on the original call distribution?Aug 10 2020
Economic systems of Japan as compared to that of USA Writing Style: APA style The topic includes economic growth and development or economic transformation The content...Mar 19 2020
The December 31, 20X1, preclosing trial balance of the St. Louey Independent School District DSF is presented shown below. Prepare the Statement of Revenues, Expenditures...May 06 2020
Welcome to MyCourseHelp Services, World's leading Academic solutions provider with Millions of Happy Students.