A stock will pay a dividend of $4 at the end of the year. It sells today for $100 and is expected to sell in one year for $105. What is the implied rate of return on this stock? Enter in percent and round to two decimal places. Please show work.

Creditworthy corporate customers for short-term loans : Which one of the following is the interest rate that the largest commercial banks charge their most creditworthy corporate customers for short-term loans? |

Based on effective interest rates : The First City Bank pays 6.6 percent interest, compounded annually, on time deposits. The Second City Bank pays 6.5 percent interest, compounded monthly. Based on effective interest rates, in which bank would you prefer to deposit your money? |

Firm sells for cash only-it is thinking of offering credit : Your firm sells for cash only; but it is thinking of offering credit, allowing customers 90 days to pay. Customers understand the time value of money, so they would all wait and pay on the 90th day. To carry these receivables, you would have to borro.. |

What is the implied rate of return on this stock : A stock will pay a dividend of $4 at the end of the year. It sells today for $100 and is expected to sell in one year for $105. What is the implied rate of return on this stock? Enter in percent and round to two decimal places. Please show work. |

Increase dividends at rate-what is the value of the stock : A stock will pay dividends of $1, $3, and $4 over the next three years, and then increase dividends at a rate of 10% afterwards. Its required rate of return is 20%. What is the value of the stock? Round to the penny. Please show work. |

Liquidity premium are zero for treasury securities : A 5-year Treasury bond has a 4.85% yield. A 10-year Treasury bond yields 6.3%, and a 10-year corporate bond yields 8.65%. The market expects that inflation will average 2.1% over the next 10 years (IP10 = 2.1%). (Hint: Remember that the default risk .. |

Performance evaluation and compensation formulas : Explain how a firm may have to change its performance evaluation and compensation formulas for managers if it adopts a “real options” approach |

## Mk robe-stones mk-r-s is a big manufacturing firm which wasmk robe-stones mk-r-s is a big manufacturing firm which was set up as a limited company 6 years ago in 2009 by a family |

## Criticism that a proposed it architectureHow would you respond to the criticism that a proposed IT architecture is not feasible based on today's technology? |

## Treasury bond-what is the present value of the bondA 10-year U.S. Treasury bond with a face value of $10,000 pays a coupon of 6.5% every six months. The semi annually compounded interest rate is 5.0%. What is the present value of the bond? |

## How much will you pay for the stockThe Sleeping Flower Co. has earnings of $1.75 per share. If the benchmark PE for the company is 18, how much will you pay for the stock? and If the benchmark PE for the company is 21, how much will you pay for the stock? |

## Jim roberts is in the personal tax bracketJim Roberts is in the 35% personal tax bracket. He is considering investing in FPC bonds that have an interest rate of 9.3%. 2 .a. What is his after-tax yield (interest rate) on the bonds? 2 .b. Suppose Mercy Hospital (a not for profit) is offer.. |

## Source of capital market valueAs a consultant to GBH Skiwear, you have been asked to compute the appropriate discount rate to use in the evaluation of the purchase of a new warehouse facility. You have determined the market value of the firm’s current capital structure (which the.. |

## Use discounted payback period methodThe Dallas Electronics Company is considering replacing an old, 1,000-pound-capacity industrial forklift truck. The truck has been used primarily to move goods from production machines into storage. If Dallas decided to purchase the truck, it would g.. |

## What are temporary differencesWhat are temporary differences? What gives rise to temporary differences? Some accountants believe that deferred taxes should be recognized only for some temporary differences. The FASB requirement states that deferred taxes should be recognized for .. |

## Calculate icy treats minimum and peak funding requirementsIcy Treats Inc. is a seasonal business that sells frozen desserts. At the peak of its summer selling season, the firm has $35,000 in cash, $125,000 in inventory, $70,000 in accounts recieveable, and $65,000 in accounts payable. During the slow winter.. |

## Is there a difference between price and valueWhat is the right price for a stock? Is it book value, liquidation value or simply its market price at a given moment in time? Would you value a privately-owned company where there is no market value differently than a publicly owned company where th.. |

## What are divas projected profits for the fiscal year endingwhat are divas projected profits for the fiscal year ending september 1995?what factors affect a firms exposure to |

## What would be the hedge ratio for the optionYou would like to be holding a protective put position on the stock of Avalon Corporation to lock in a guaranteed minimum value of $50 at year-end. Avalon currently sells for $50. Over the next year, the stock price will increase by 10% or decrease b.. |

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