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!
Philadelphia Electric has many bonds trading on the New York Stock Exchange. Suppose PhilEl's bonds have identical coupon rates of 9.125% but that one issue matures in 1 year, one in 7 years, and the third in 15 years. Assume that a coupon payment was made yesterday.
a. If the yield to maturity for all three bonds is 8%, what is the fair price for each bond?
b. Suppose that the yield to maturity for all of these bonds changed instantaneously to 7%. What is the fair price of each bond now?
c. Suppose that the yield to maturity for all of these bonds changed instantaneously again, this time to 9%. Now what is the fair price of each bond?
d. Based on the fair prices at the various yields to maturity, is interest-rate risk the same, higher, or lower for longer- versus shorter-maturity bonds?
Financial markets assignment
By using above information, what weighted-average direct manufacturing labour rate must you use in making your manufacturing direct labour cost objective?
Dark Day sells for $93.85 per share, and the stock is about to go ex dividend. What do you think the ex-dividend price will be?
You will receive $2,000 at the end of next 12 years, supposing a 6% discount rate, what is the present value of cash flows?
Sheffield Co. shows the following information on its 2010 income statement: sales = $161,500; costs = $80,200; other expenses = $3,500; depreciation expense = $9,200; interest expense = $6,700; taxes = $21,665; dividends = $8,050.
The company's beta is 1.15, the return on the market is expected to be 11%, and the risk-free rate is 4%. What is the company's constant growth rate?
You are trying to assess the value of a small retail store that is up for sale. The store generated cash flow to it owner of $100,000 in the most profitable year of operation and is expected to have growth of about 5 percent a year in perpetuity.
What will the 2006 sustainable growth be? Which change will be more dominant?
The current price of DEF Company stock is $26.50 each share. Earnings next year should be $2 per share and it should pay a $1 dividend. The P/E multiple is fifteen times on average.
Calculate the base-case cash flow and NPV. What is the sensitivity of NPV to changes in the sales figure? Explain what your answer tells you about a 500-unit decrease in projected sales.
A portfolio comprises Coke (beta of 1.4) and Wal-mart (beta of 1.0). The amount invested in Coke is $10,000 and in Wal-mart is $20,000. What is beta of the portfolio?
You have invested in 4 stocks: X, Y, Z, and Fred. Each stock's beta and the dollars you invested in each are given below. What is the beta of this 4-stock portfolio?
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