Reference no: EM131623789

Assignment 1: Financial Analysis

General Questions:

Respond to the following questions thoroughly, in 150-300 words for each question. Use your textbook as your first and major reference.

1. Describe the differences between the yield to maturity (YTM) and the yield to call (YTC) on a bond. Why would the return to the investor be different if a bond is called? Why?

2. What are bond ratings and how do they affect the ability of the firm to raise funds? Are these ratings similar to the ratings for a country or a company?

3. What are the differences between common stock and preferred stock? Explain your answers.

Deliverables:

1. Answer the General Questions and post your responses to the Discussion Area. Be sure to explain your answers thoroughly, use specific examples, and cite your sources.

2. Participate in the discussions, responding to at least two other responses.

Title: Fundamentals of Financial Management, Concise Edition
Author: Eugene F. Brigham; Joel F. Houston
Edition: 9
Copyright Date: 2017-01-01
Publisher: Cengage South-Western
ISBN: 9781305635937.

Assignment 2: Quantitative Exercises and Valuation

Part One: Application, Time Value of Money Calculations

Required:

Complete the assignment using the formulas embedded in Microsoft Excel and/or a financial calculator. Include an Excel document that shows your calculations.

Deliverable:

Submit the completed assignment using the Microsoft Excel template provided. Show all your calculations.

Part Two: Time Value of Money Problem

You would like to buy a new car in five years for cash. The price of the car today is $56,000 and you expect that the price will increase by 6% per year. You plan to save for this car starting today with a deposit in your savings account, which currently has a balance of $1,800 and earns 4% compounded annually.

You know that you will be receiving an inheritance of $3,500 three years from today, which you will deposit in your savings account for the car. If you make a deposit every month for the next five years beginning one month from today, how much will the deposit have to be in order for you to be able to pay cash for the car?

Required:

Complete the assignment using the formulas embedded in Excel and/or a financial calculator. Include an Excel document that shows your calculations.

Deliverables:

Submit the completed assignment using a Microsoft Excel spreadsheet. Show all your calculations.