Cranston Industries just issued $1,000 par 30-year bonds. The bonds sold for $1,107.20 and pay interest semi-annually. Investors require a rate of 7.75% on the bonds. What is the bonds' coupon rate?

Low risk exposure through international diversification : An investor who wishes to achieve high returns and low risk exposure through international diversification would probably look for |

Merger valuation-shares outstanding-target capital structure : Hastings Corporation is interested in acquiring Vandell Corporation. Vandell has 1 million shares outstanding and a target capital structure consisting of 30% debt. Vandell's debt interest rate is 7%. Assume that the risk-free rate of interest is 6% .. |

Unsophisticated capital budgeting techniques : Unsophisticated capital budgeting techniques do not: a. examine the size of the initial outlay b. take into account unconventional cash flow patters c. explicitly consider the time value of money d. use net profits as a measure of return |

What is the value of the unlevered firm and tax shield : Hastings Corporation is interested in acquiring Vandell Corporation. Vandell has 1 million shares outstanding and a target capital structure consisting of 30% debt; its beta is 1.25. Vandell's debt interest rate is 7.9%. What is the value of the unle.. |

What is the bonds coupon rate : Cranston Industries just issued $1,000 par 30-year bonds. The bonds sold for $1,107.20 and pay interest semi-annually. Investors require a rate of 7.75% on the bonds. What is the bonds' coupon rate? |

What are arithmetic and geometric average returns for stock : What are the arithmetic and geometric average returns for a stock with annual returns of 21 percent, 9 percent, –2 percent, and 13 percent? List the arithmetic answer first. |

By using dollar cost averaging : By using dollar cost averaging |

Federal income tax on investment income and capital gains : Federal income tax on investment income and capital gains of a mutual fund |

Portfolio return-mutual fund is greater than market return : If the portfolio return on a mutual fund is greater than the market return, but the Sharpe and Treynor measures are equal, then the fund manager's performance is |

## Account earns compounded monthlyHow much will you have in an account after 25 years if you put $1300 per month in the account earns 8% compounded monthly? |

## Calculate present value of the retirement benefitStan elects to receive his retirement benefit over 10 years at the rate of 2000 per month beginning one month from now. The monthly benefit increases by 5% each year. At an annual nominal interest rate of 6% compounded monthly, calculate the present .. |

## A discussion of how the value of the option changesUsing the option pricing models, go into the marketplace and select an option. Using the option pricing models, value the option. Then discuss if the market value of the option is reflective of where the option is currently trading. Include a discuss.. |

## What type of housing is most likely living inJames Monroe lives in a structure that resembles a home, but has only one similar and separate structure attached to his dwelling. What type of housing is James most likely living in? |

## Prepare a new contribution format income statementMiller Company’s most recent contribution format income statement-The number of units sold increases by 13%. The selling price decreases by $1.50 per unit, and the number of units sold increases by 23%. The selling price increases by $1.50 per unit, .. |

## Substitute for risk-free assetStock A expected return 8%, standard deviation 40%; stock B expected return is 13%, standard deviation is 60%.The correlation between these two stocks is -1. Can a particular portfolio constructed by stock A and stock B be a substitute for risk-free .. |

## Planning to issue a stock dividendMr. R. owns 20,000 shares of ABC Corporation stock. The company is planning to issue a stock dividend. Before the dividend Mr. R. owned 10 percent of the outstanding stock, which had a market value of $200,000, or $10 per share. Upon receiving the 10.. |

## Expected interest rateThe real risk-free rate is 2.25%. Inflation is expected to be 2.35% this year, 4% next year, and then 2.75% thereafter. The maturity risk premium is estimated to be 0.05(t - 1)%, where t = number of years to maturity. What is the yield on a 7-year Tr.. |

## What is the possible dividend per share for common stockCompany Wii gives you the following information for its operation. The expected income available for dividends is $42 million next year before the firm has any debts. Suppose there is a 25% corporate income tax imposed on the company. What is the pos.. |

## Calculate the present value of discounted costs and revenuesThese are the forecasts of revenues over the lifetime of a project. Assume all cash flows occur at the end of the year. In the first part of this question, you are asked to only calculate the present value of the discounted costs and revenues. What i.. |

## Revenues and operating costs are expected to be constantTemple Corp. is considering a new project whose data are shown below. The equipment that would be used has a 3- year tax life, would be depreciated by the straight-line method over its 3-year life, and would have a zero salvage value. No change in ne.. |

## What is the receivables turnover-annual credit salesEvil Pop, Inc., has an average collection period of 54 days. Its average daily investment in receivables is $43,800. Assume 365 days per year. What is the receivables turnover? What are annual credit sales? |

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