User Account

All Pages

What is the bonds expected rate of return

Assignment Help Accounting Basics
Reference no: EM131774504

Question 1 - (Bond valuation) ExxonMobil 20-year bonds pay 9 percent interest annually on a $1,000 par value. If bonds sell at $945, what is the bonds' expected rate of return?

Question 2 - (Common stock valuation) the common stock of NCP paid $1.32 in dividends last year. Dividends are expected to grow at an 8 percent annual rate for an indefinite number of years.

a. If NCP's current market price is $23.50 per share, what is the stock's expected rate of return?

b. If your required rate of return is 10.5 percent, what is the value of the stock for you?

c. Should you make the investments?

Reference no: EM131774504

Questions Cloud

Implement in a business environment : Is this principle feasible to implement in a business environment? Why or why not?
What approaches can we use to increase our odds of success : If the economy is growing slowly or not at all, do we have any chance of achieving success as a nation with each of these 4 supply growth factors below?
Company is attempting to set the customer service level : A food company is attempting to set the customer service level (in-stock probability in its warehouse) for a particular product line item.
Discuss frank regarding his qualified moving expenses : What are the federal income tax consequences to Frank regarding his qualified moving expenses
What is the bonds expected rate of return : ExxonMobil 20-year bonds pay 9 percent interest annually on a $1,000 par value. If bonds sell at $945, what is the bonds' expected rate of return
The goal of media plan should be to maximize reach : The goal of a media plan should be to maximize reach. The tools of radio copywriting include voice, music, and sound effects.
Discuss what is adjusted basis of mr. ds stock on december : No distributions were made in 2015 or 2016 by the corporation. What is the adjusted basis of Mr. D's stock on December 31, 2016
Calculate the required rate of return for the stock : The Capital Asset Pricing Model (CAPM). Finally, calculate the required rate of return for the stock that you are tracking for this course
Foot candles are needed for the lobby of nursing home : How many foot candles are needed for the lobby of a nursing home? Indicate which lighting category and correction factor you use to answer the question.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd