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!
In March 2012, Daniela Motor Financing (DMF), offered some securities for sale to the public. Under the terms of the deal, DMF promised to repay the owner of one of these securities $400 in March 2052, but investors would receive nothing until then. Investors paid DMF $200 for each of these securities; so they gave up $200 in March 2012, for the promise of a $400 payment 40 years later.
Required:
(a) Assuming that you purchased the bond for $200, what rate of return would you earn if you held the bond for 40 years until it matured with a value $400?
Rate of return: %
(b) Suppose under the terms of the bond you could redeem the bond in 2022. DMF agreed to pay an annual interest rate of .9 percent until that date. How much would the bond be worth at that time?
Bond value: $
(c) In 2022, instead of cashing in the bond for its then current value, you decide to hold the bond until it matures in 2052. What annual rate of return will you earn over the last 30 years?
Compute the effective interest rate on this bond. Provide an amortization table over the bond's lifetime.
Cost Trade-Offs in Short-Term Financial Management Geet Industries wants to install a just-in-time (JIT) inventory system in order to significantly reduce its in-process inventories. The annual cost of the system is gauged to be $91,000.
Data, Inc. purchased some fixed assets four years ago at a cost of $19,800. It no longer needs these assets, so it is going to sell them today at a price of $3,500. The assets are classified as 5-year property for MACRS. The MACRS table values .2000,..
Compute the expected share price at the end of 2014 using the perpetual growth method.
Reversing Rapids Co. purchases an asset for $141,128. Calculate accumulated depreciation over 4 years.
calculate the discounted payback period for LISKLs comedy club
Toyohashi Co common stock has market price $85 per share and its sigma is 0.30. Find the value of a European put option, with an exercise price of $75 and expiring after 110 days, on the Toyohashi stock. The riskless rate is 3.5%.
Blackrock Capital is an investment firm that focuses on opportunities in South America.
Suppose that the rate of return on the market portfolio is 12% and the risk-free rate is 4%. Find the fundamental value of the stock.
What is the intrinsic value of this share? the required rate of return or cost of equity capital is 15%.
The next dividend payment by Halestorm, Inc., will be $1.76 per share. What is the dividend yield? What is the expected capital gains yield?
What interest rate would the investment have to yield in order for Stanley’s brother to deliver on his promise?
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