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!
Maple Aircraft has issued a convertible subordinated debenture at 6.00% interest due 2020. The conversion price is $64.00 and the debenture is callable at 104.00% of face value. The market price of the convertible is 89.25% of face value, and the price of the common is $58.50. Assume that the value of the bond in the absence of a conversion feature is about 63.25% of face value. Assume a face value of $1,000.
a. What is the conversion ratio of the debenture? (Round your answer to 2 decimal places.)
A investor has purchased 10-year bonds, with a face value of $13,000. Interest at 8% is paid quarterly. If she desires to earn 12% nominal interest (compounded quarterly), what would the purchase price have to be?
Company is considering investing in two projects. The first project is the Tumbler project which is expected to cost $50 million and will result in cash flows of $60 million, $90 million and $20 million at the end of 1st, 2nd and 3rd year. Find the c..
Suppose that the standard deviation of returns from a typical share is about 0.55 (or 55%) a year. The correlation between the returns of each pair of shares is about 0.4. Calculate the variance and standard deviation of the returns on a portfolio th..
Photochronograph Corporation (PC) manufactures time series photographic equipment. It is currently at its target debt−equity ratio of 0.80. It’s considering building a new $53 million manufacturing facility. This new plant is expected to generate aft..
Suppose Joe has the choice of two investments. He can invest in a bond, which in 10 years (not accounting for inflation), will have a 50% probability of a 50% return and a 50% probability of a 40% return. On the other hand, he could invest in a mutua..
25556 The Financial System Autumn - What are your thoughts on the growth of house prices in Australia? Are the recent trend in house pricesconsistent with an efficient market?
Neubert Enterprises recently issued $1,000 par value 15-year bonds with a 6% coupon paid annually and warrants attached. These bonds are currently trading for $1,000. Neubert also has outstanding $1,000 par value 15-year straight debt with a 8% coupo..
What additional assumptions (to the main three) are important when applying the Capital Asset Pricing Model and what are the underlying strengths and weaknesses of this application? Discuss the reliability of the model and give examples in your expla..
A portfolio consists of 45% of stock A, 35% of stock B, and the remaining of stock C. The expected rate of return of each stock is 28%, 22%, and respectively. The expected return of this portfolio is
Travel America Coaches currently sells 15,000 motor homes per year at $94,000 each, and 1,500 luxury motor coaches per year at $159,000 each. The company wants to introduce a low-range camper to fill out its product line; it hopes to sell 6,000 of th..
Now I am considering purchasing a whole fleet of new golf carts. The total cost of the new fleet is $2.2 million (yes million!). I can sell my old 10 year old fleet (which I dished out 1 million for) even though it is fully depreciated (has zero book..
Last week, Onboard Co. has announced that the next two annual dividends will be in the amount of $2.3 and $4.19, respectively. After that, the dividends will increase by 3.6 percent annually. The required return on this stock is 12.98 percent. What i..
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