You have two options of paying for your new dishwasher, you can either make a single payment of $400 today, or you can pay $70 for the next 6 months, with the first payment made today. what is the effective annual interest rate (EAIR) of the second option?

About the zero growth : Zero growth: A communications company pays annual dividends of $8.50 with no possibility of it changing in the next several years. If the firm's stock is currently selling at $60.71, what is the required rate of return? (Round to nearest whole number.. |

What is the cash flow to stockholders : The State News had net income of $357 of which 40% was distributed to shareholders as dividends. During the year, the company issued new common stock, amounting in $93. What is the cash flow to stockholders? |

Mortgage rate-what would be your monthly payment : On June 1, you borrowed $195,000 to buy a house. The mortgage rate is 2.5%. The loan is to be repaid in equal monthly payments over 15 years. All taxes and insurance premiums are to be paid separately. What would be your monthly payment? |

The correlation of returns between asset is zero : Consider two assets, A and B. The correlation of returns between asset A and B is zero. Starting with the formula for the variance of a portfolio composed of the two assets, derive an expression for the weight placed in asset A and the weight placed .. |

What is the effective annual interest rate : You have two options of paying for your new dishwasher, you can either make a single payment of $400 today, or you can pay $70 for the next 6 months, with the first payment made today. what is the effective annual interest rate (EAIR) of the second o.. |

Two bond issues outstanding : Crawford Inc. has two bond issues outstanding, both paying the same annual interest of $55, called Series A and Series B. Series A has a maturity of 12 years, whereas Series B has a maturity of 1 year. What would the value of each of these bond when .. |

The cost of equity and flotation costs : Suppose a company will issue new 25-year debt with a par value of $1,000 and a coupon rate of 10%, paid annually. The tax rate is 35%. If the flotation cost is 5% of the issue proceeds, then what is the after-tax cost of debt? Disregard the tax shiel.. |

In order to decide upon a corporate stock investment : In order to decide upon a corporate stock investment, most analysts would first perform a industry analysis. What is an industry and why is this step important? Make sure to discuss the potential problems with defining an appropriate industry for com.. |

What is an industry and why is this step important : In order to decide upon a corporate stock investment, most analysts would first perform a industry analysis. What is an industry and why is this step important? Make sure to discuss the potential problems with defining an appropriate industry for com.. |

## Differences between preferred stock and common stock-bondsIn what ways is preferred stock similar to long-term debt? In what ways is it similar to common stock? Discuss the similarities and differences between preferred stock and common stock & bonds. |

## Simple interest on its investment accountsFirst Simple Bank pays 8 percent simple interest on its investment accounts. If First Complex Bank pays interest on its accounts compounded annually, what rate should the bank set if it wants to match First Simple Bank over an investment horizon of 8.. |

## Compute the expected share priceSuppose the dividends for the Seger Corporation over the past six years were $1.04, $1.12, $1.21, $1.29, $1.39, and $1.44, respectively. Compute the expected share price at the end of 2014 using the perpetual growth method. |

## Risk-free interest rateThe common stock of the C.A.L.L. Corporation has been trading in a narrow range around $140 per share for months, and you believe it is going to stay in that range for the next 6 months. The price of a 6-month put option with an exercise price of $14.. |

## Current debt-equity ratio-risk level of projectKelly's uses the firm's WACC as the required return for some of its projects. For other projects, the firms uses a rate equal to WACC plus 1 percent, while another set of projects is assigned rates equal to WACC minus some amount. Which one of the fo.. |

## Standard deviation of that starting salaryYou have chosen biology as your college major because you would like to be a medical doctor. However, you find that the probability of being accepted into medical school is about 10 percent. If you are accepted into medical school, then you’re starti.. |

## Existing bond that annual coupon paymentsBond Valuation Assume the following information for an existing bond that provides annual coupon payments: What is the present value of the bond? If the required rate of return by investors were 14 percent instead of 11 percent, what would be the pre.. |

## Why is an investor willing to pay more than exercise valueIf the price of the underlying stock changes to $33 per share, will the market value of the option increase, decrease, or remain the same? Why |

## A stock index with a dividend yield of 22nbsp pera stock index with a dividend yield of 2.2nbsp per annum with continuous compounding is currently standing |

## What is the net present value of the freezer if the requiredJoe Meat Corp. is considering replacing its old freezer with a new one that has more capacity. The company estimates that it can sell more meat products with and estimated increase of $15,000. What is the net present value of the freezer if the requi.. |

## What is price of zero-coupon bond paying interestWhat is the price of a zero-coupon bond paying interest semi-annually that matures in 10 years? The bond has a total par value of $1 million and its current yield to maturity is 8%. |

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