What is the return that baili earned on this investment

Assignment Help Financial Management
Reference no: EM131354768

1. One year ago, Baili purchased a $1,000 face value corporate bond with an 11 percent annual coupon rate and a 10-year maturity. at the time of the purchase, the bonds had an expected yield-to-maturity of 9.79 percent. Today he sold the bond for $1,069.49. what is the return that Baili earned on this investment?

a-6.05% b-8.88% c-9.05% d-10.31% e-12.22%

2. What is the (1) marginal and (2) average tax rate paid for a firm with taxable income of:

a) $30,000; b) $65,000; c) $125,000; d)$9 million; e)$16 million? need exact steps on how to solve. for a)15% b)25% c)39% d)34% e)38%

Reference no: EM131354768

Questions Cloud

What is price per share of the company stock : Ward Corp. is expected to have an EBIT of $2,300,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $173,000, $101,000, and $123,000, respectively. What is the price per share of the company's st..
Which method of doing business internationally appears : Which method of doing business internationally appears to be the "easiest" method of doing business abroad? Are there specific factors that might make this strategy "problematic" for a MNC? Share your thoughts!
Describe the main drawbacks of pearson''s approach : "Comparing maximum likelihood and parametric method of moments estimators on efficiency grounds is not a very interesting exercise." Discuss.
Masculine or feminine values : Does your selected country appear to be individualistic or collectivist? To what degree is the country individualistic or collectivist (high, medium, or low)? How is that different from the U.S.? Does your selected country appear to have masculine..
What is the return that baili earned on this investment : One year ago, Baili purchased a $1,000 face value corporate bond with an 11 percent annual coupon rate and a 10-year maturity. at the time of the purchase, the bonds had an expected yield-to-maturity of 9.79 percent. Today he sold the bond for $1,069..
Explain nature of conflict and the events which took place : Identify a past conflict in your life. Explain the nature of the conflict and the events which took place. Do you think you could have applied one of the major strategies described to your specific situation?
What is profitability index if the discount rate : Company X is currently considering a project that will produce cash inflows of $9,000 a year for two years followed by $6,500 a year for three more years. The cost of the project is $25,000. What is the profitability index if the discount rate is 8 p..
Emergency support functions to research : After reading Chapters 2 and 3, choose one of the Emergency Support Functions to research. Write a minimum of 2 pages (not including cover page and reference list) on the function and its contents.
How do you deal with risk on a daily basis : Every day we are faced with risks. Take a moment to explain what risk means to you. How do you deal with risk on a daily basis? Why is it important for each person to analyze his or her own personal risks?

Reviews

Write a Review

Financial Management Questions & Answers

  Discuss recent economic conditions in the industry

First, you need to pick a public company to analyze. You should have already informed me of the company you have picked. Discuss recent economic conditions in the industry, as well as prospects for the future

  How does the targeted federal funds rate calculated

How does the targeted federal funds rate calculated using the Taylor rule compare to the actual federal funds rate of 0% to 0.25%?

  Calculate the gross margin and operating margin

You are given the following information for Smashville, Inc. Cost of goods sold: $ 259,000 Investment income: $ 3,100 Net sales: $ 402,000 Operating expense: $ 94,000 Interest expense: $ 7,400 Dividends: $ 11,000 Tax rate: 30 % . Calculate the gross ..

  Dividend is not expected to grow in the future

The current stock price of Largent, Inc., is $41.91. If the required rate of return is 23 percent, what is the dividend paid by this firm if the dividend is not expected to grow in the future?

  Based solely on the internal rate of return rule

A project has an initial cost of $68,300 and cash flows of $38,700, $102,300, and -$18,100 for Years 1 to 3, respectively. If the required rate of return for this investment is 8.7 percent, should you accept it based solely on the internal rate of re..

  Prepare the stockholders equity section of balance sheet

Quick Fix-it Corporation was organized in January 2014 to operate several car repair businesses in a large metropolitan area. The charter issued by the state authorized the following capital stock: Prepare the stockholders’ equity section of the bala..

  Commercial banks moved heavily into equipment leasing

Commercial banks moved heavily into equipment leasing during the early 1970s, acting as lessor. One major reason for this invasion of the leasing industry was to gain the benefits of accelerated depreciation and the investment tax credit on leased eq..

  Its dividend is expected to grow by the same amount

Suppose Pale Hose, Inc. has just paid a dividend of $1.50 per share. Sales and profits for Pale Hose are expected to grow at a rate of 7% per year. Its dividend is expected to grow by the same amount. If the required return is 14%, what is the value ..

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Interest on deposits and compound bank

Basic bank pays 4% simple interest on deposits and compound bank pays 4% compounded montly. If you deposit $10,000 in each bank how much interest will you have earned at each bank at the end of five years?

  Estimate the enterprise value of heavy metal

Heavy Metal Corporation is expected to generate the following free cash flows over the next five? years: Thereafter, the free cash flows are expected to grow at the industry average of 3.7% per year. Using the discounted free cash flow model and a we..

  What is the expected price of wheat on the spot market

What is the expected price of wheat on the spot market in December?- Show how the futures price is related to the spot price.

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd