Required for small project is investment in inventory

Assignment Help Financial Management

Reference no: EM132018494

1. A Treasury STRIPS matures in 20 years and has a yield to maturity of 8.4 percent. Assume the par value is $100,000.

a. What is the price of the STRIPS? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b. What is the quoted price? (Do not round intermediate calculations. Round your answer to 3 decimal places.)

2. The only capital investment required for a small project is investment in inventory. The operating cash flow this year was $8,000, and inventory increased from $6,000 to $9,000. What was the cash flow from the project?

Reference no: EM132018494

Questions Cloud

Discuss different areas of the organization : A security vulnerability report identifies the areas of the organization which are at risk of lost data, outages, etc.

Treasury strips-what is the yield to maturity : A Treasury STRIPS is quoted at 54.789 and has 8 years until maturity. What is the yield to maturity?

Conduct a web search for the key words parallel computing : Use examples from the readings, or from your own research, to support your views, as appropriate. Encouraged to conduct research and use other sources.

Estimated the required rate of return of the stock : Based on the risk level of Ford’s stock, he estimated the required rate of return of the stock was around 15%.

Required for small project is investment in inventory : The only capital investment required for a small project is investment in inventory.

Restrictive covenants in a loan contract : Which banking trend is credited with producing Economies of Scale and Economies of Scope ? Restrictive Covenants in a loan contract.

What is the present value of tuition payments : Tuition increases 5% per year. What is the present value of tuition payments if the interest rate is 5% per year?

Define similarities or differences in your backgrounds : To be considered substantive, your reply should add significantly to the discussion by building on others' comments, pointing out similarities or differences.

Odd dividend policy-how much will you pay for share today : Osbourne, Inc., has an odd dividend policy. If you require a return of 12 percent on the company’s stock, how much will you pay for a share today?

User Account

All Pages