Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Bond valuation
Callaghan Motors' bonds have 19 years remaining to maturity. Interest is paid annually, they have a $1,000 par value, the coupon interest rate is 6%, and the yield to maturity is 8%. What is the bond's current market price? Round your answer to the nearest cent. please show the numbers you would compute in excel.
A corporations has 10,000,000 shares of stock outstanding at a price of $60 per share. They just paid a dividend of $3 and the dividend is expected to grow by 6% per year forever. The stock has a beta of 1.2, the current risk free rate is 3%, and the..
You are considering investing in a project that increases annual costs by 25,000 per year over the projects 5 year life. The project has an initial cost of 500,000 and will be depreciated straight line over 5 years to a salvage value of 0. Assume a 3..
Erna Corp. has 7 million shares of common stock outstanding. The current share price is $86, and the book value per share is $5. Erna Corp. also has two bond issues outstanding. The first bond issue has a face value of $70 million, has a coupon rate ..
Dinklage Corp. has 10 million shares of common stock outstanding. The current share price is $82, and the book value per share is $5. The company also has two bond issues outstanding. Suppose the most recent dividend was $5.40 and the dividend growth..
Staples Business Solutions is considering the purchase of a high volume photocopier. The new machine will cost $150,000 and will last for 5 years at which time it will have a salvage value of $35,000. The new machine will result in before-tax cost sa..
Using the rule of 72 answers the following questions. a. In how many years will it take income to double if it is rising each year by 1 percent? 2 percent? 4 percent? b. A country’s income begins at $10,000 and rises to $20,000 in 18 years. What is t..
A bond has a Macaulay duration of 6.25 years. What will be the percentage change in the bond price if the yield to maturity increases from 6 percent to 6.4 percent?
Howard Hane had taken out a $130,000 fire insurance policy for his new restaurant at a rate of $.82 per $100. Nine months later, Howard canceled the policy and decided to move his store to a new location. The cost of the premium to Howard is (use the..
You must evaluate a proposal to buy a new milling machine. The base price is $117,000, and shipping and installation costs would add another $13,000. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $46,800. What ..
Bank A has $100 million of mortgages with an adjustable rate of HIBOR + 2%. These assets are financed with $100 million of fixed-rate deposits costing 5%. Bank B has $100 million investment of fixed-income notes with a fixed rate of 7%, which are fin..
Three years ago your return was 4%. Two years ago your return was 14%. One year ago your return was -11%.. Which statement is correct? The geometric average return is 1.81% and the annual arithmetic average return is 2.3%
During the year, Belyk Paving Co. had sales of $2,394,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,431,000, $435,600, and $490,600, respectively. In addition, the company had an interest expense of $2..
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd