Ashes Divide Corporation has bonds on the market with 12 years to maturity, a YTM of 6.6 percent, and a current price of $1,296.50. The bonds make semi annual payments. What must the coupon rate be on these bonds?
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Negus Enterprises has an inventory conversion period of 73 days, an average collection period of 43 days, and a payables deferral period of 35 days. Assume that cost of goods sold is 80% of sales. What is the length of the firm's cash conversion cycl..
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The Berndt Corporation expects to have sales of $11 million. Costs other than depreciation are expected to be 60% of sales, and depreciation is expected to be $2.2 million. Suppose Congress changed the tax laws so that Berndt's depreciation expenses ..
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Describe how you, as an analyst, would estimate the potential impact of the Huntingdon Ingalls Industries spin-off on the long-term value of Northrop Grumman’s share price?
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Wine and Roses, Inc. offers a 6 percent coupon bond with semiannual payments and a yield to maturity of 6.73 percent. The bonds mature in 9 years. What is the market price of a $1,000 face value bond?
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Guided Response: Review several of your classmates’ posts. Respond to at least two classmates by sharing your view of their conclusion. Are there any other factors that you can offer that may explain why the bond is selling at a premium or discount? ..
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Winston Electronics reported the following information at its annual meetings. The company had cash and marketable securities worth $1,235,660, accounts payables worth $4,160,310, inventory of $7,122,700, accounts receivables of $3,488,660, notes pay..
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Messman manufacturing will issue common stock to public for $30. The expected dividend and the growth in dividends are $3.00 per share and 5%, respectively. If the flotation cost is 10% of issue's gross proceeds, what is the cost of external equity, ..
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A firm has $80 million in debt and 60% of its capital structure consists of common equity. The firm has no preferred stock. The firm’s bonds have YTM of 8.5%, and the firm is subject to a 30% corporate tax rate. The firm has common stock with a beta ..
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A project has the following cash flows: Year Cash Flow 0 $ 40,500 1 – 19,500 2 – 30,500 What is the IRR for this project? (Round your answer to 2 decimal places. (e.g., 32.16)) IRR % What is the NPV of this project, if the required return is 10 perce..
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Ramon needs $25,000 at the end of 6 months for a down payment on a new house. What amount should he deposit today in an account paying 3.6% simple interest in order to reach his goal? Find the amount Jose should deposit today in order to have $5,000 ..
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Consider two stocks, Stock D, with an expected return of 16 percent and a standard deviation of 31 percent, and Stock I, an international company, with an expected return of 9 percent and a standard deviation of 19 percent. What are the expected retu..
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