A corporate bond with a 5.75 percent coupon has 15 years left to maturity. It has had a credit rating of BB and a yield to maturity of 6.25 percent. The firm has recently gotten more financially stable and the rating agency is upgrading the bonds to ..
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ELC Electrical Services is considering the construction of a plant to manufacture a new energy saving device for small offices. The company recently commissioned a $100,000, two-year study to assess the market demand for the proposed product.
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The Savoy Corporation Income Statement Accounts for the year ending December? 31, 2014 Account Balance Cost of goods sold ?$345,000 Interest expense ?$79,000 Taxes ?$57,100 Revenue ?$836,000 ?Selling, general, and administrative expenses ?$93,000 Dep..
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Given a MPT with a starting pool balance of $1,000,000, whose underlying collateral is a group of 10 year FRMs with annual payments, interest rate on the underlying mortgages=10%, servicing fees=0.5%, and prepayment projected to be 10% annually, what..
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National Property Casualty has $9,500,000 in premiums on its auto insurance line. The line’s losses amount to $6,245,900, expenses are $2,906,430, and dividends are $189,650. The insurer earns $397,110 in the investment of its premiums. Calculate the..
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Find the duration of a bond with settlement date June 1, 2012, and maturity date November 25, 2021. The coupon rate of the bond is 8%, and the bond pays coupons semiannually. The bond is selling at a yield to maturity of 9%. Macaulay duration Modifie..
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Which of the following statements is true of a perpetuity
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One thousand dollars is borrowed for one year at an interest rate of 1% per month. If the same sum of money could be borrowed for the same period at an interest rate of 12% per year, how much could be saved in interest charges?
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Use the information learned in class set up a mock portfolio of securities (investments) You will invest $100,000 of imaginary money, and track the performance of your investments over the last eight weeks of class. Your investments can consist of mu..
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Pendergast, Inc., has no debt outstanding and a total market value of $180,000. Earnings before interest and taxes, EBIT, are projected to be $23,000 if economic conditions are normal. Calculate return on equity (ROE) under each of the three economic..
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You are considering two mutually exclusive projects. Project A has cash flows of -$72,000, $21,400, $22,900, and $56,300 for years 0 to 3, respectively. Project B has cash flows of -$81,000, $20,100, $22,200, and $74,800 for years 0 to 3, respectivel..
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Working Capital Cash Flow Cycle Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Strickler's sales last year were $140,000 (all on credit), and it earned a net profit of 6%. Calculate Strickl..
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