You bought one of Mastadon Manufacturing Co.’s 6.6 percent coupon bonds one year ago for $1,056. These bonds make annual payments, mature eleven years from now, and have a par value of $1,000. Suppose you decide to sell your bonds today, when the required return on the bonds is 4.5 percent. If the inflation rate was 3.2 percent over the past year, what would be your total real return on the investment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

## What is the present value of your winningsIf the appropriate discount rate is 6.6 percent, what is the present value of your winnings? |

## Should the investment be acceptedA loss of $80,000,000 would be awkward but the firm could probably survive. Should the investment be accepted? |

## What is the smallest expected loss for portfolioTyler Trucks stock has an annual return mean and standard deviation of 9 percent and 28 percent, respectively. Michael Moped Manufacturing stock has an annual return mean and standard deviation of 20 percent and 64 percent, respectively. What is the .. |

## What is the present value of perpetuityWhat is the present value of a perpetuity that pays $1,200 every six months forever? |

## What is total cash flow to investor in month one of securityWhat is the total cash flow to investors in month 1 of this security? What is the month 1 ending pool balance for this security? |

## Repayments at maturity at current spot exchange ratefirms agree to swap initial borrowings and principal repayments at maturity at the current spot exchange rate |

## Compounded annually and the repeated projects approachMachine Acosts $9000 to purchase and $5000 per year to operate. It lasts for 6 years, and has nosalvage value at the end of its life. Machine B costs $16,000 to purchase and $4000 per year to operate.It lasts for 9 years and has a salvage value of $4.. |

## Compute the call price and put priceSuppose the spot exchange rate for Narnianly currency is trading for $2/N and one year later it can go up to $2.5/N, an increase of 25 percent, or down to $1.80/N, a decrease of 10 percent. assume intiallly that the U.S. interest rate is 1 percent an.. |

## Calculate the alternative estimating esteema. Calculate the alternative estimating esteem (and show the formula) b. Estimate the value of financial flexibility as a percent of firm value on an annual basis. c. Based on (b), would you recommend that Skates use its excess debt capacity? |

## Calculate the market price per shareAssume the cash level is zero, calculate the market price per share? |

## What is the earnings per share or eps and figureWhat is the earnings per share, or EPS, figure? What is the dividends per share figure? |

## Estimate of terminal value based on the gordon growth modelCompute terminal value (V3) based on comparables. Contrast your answer in Part A to an estimate of terminal value based on the Gordon growth model. |

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