Determine current stock price, Corporate Finance

Assignment Help:

Determine current stock price:


1) IBM issued 10-year bonds with a par value of $1,000 and a coupon rate of 10%, paid semiannually. The yield to maturity on this bond is 12%. What is the present value of the coupon? Is the bond price greater or less than the face value ($1,000)?


2) Microsoft will pay its dividends of $6 in 2014 and $7.2 in 2015. It plans to pay its dividends of $24 after 2015 permanently. If the required return is 20 percent, what is the stock price in 2015? And what is the current stock price in 2013?


Related Discussions:- Determine current stock price

IRR, Hello, can you help me to calculate the Discount rate and Internal Rat...

Hello, can you help me to calculate the Discount rate and Internal Rate of Return?

Activity quota, A minimum level of sales-oriented activities that must be m...

A minimum level of sales-oriented activities that must be meet up by a salesperson in the given time period. An activity quota may need a salesperson to create a certain number of

Payback rule, one director asks only for the cash flow figures upto and inc...

one director asks only for the cash flow figures upto and including year 2 and applies a 2-year payback rule

Agency conflict and value added, how would the use of the concept of value ...

how would the use of the concept of value added reduce the problem of agency conflict

Core principles for effective banking supervision, Question: a) The ne...

Question: a) The new capital management framework provides an upgrade of the old version in terms of new risk management techniques. What is the scope of application for the n

Determine the lease rate, Robert Shapprio Leasing CO (40% tax rate) I deter...

Robert Shapprio Leasing CO (40% tax rate) I determining leae rate for a number of equipment . it is allowed to use the following accelerated depreciation rate 3 years: 25%   38%

Solve it please, Question 1 If the economy booms, RTF, Inc. stock is expec...

Question 1 If the economy booms, RTF, Inc. stock is expected to return 10%. If the economy goes into a recessionary period, then RTF is expected to only return 4%. The probability

Illustrate the essential requisites of a promissory note, A promissory note...

A promissory note is an instrument in writing (not being a blank or a currency note) containing an unconditional undertaking, signed by the maker, to pay a certain sum of money onl

Endowment, #quOn Completion of her introductory finance course, Kieran was ...

#quOn Completion of her introductory finance course, Kieran was so pleased with the amount of useful and interesting knowledge she gained that she convinced her parents, who were w

Answer required ., What will be impact on the operating leverage of a firm,...

What will be impact on the operating leverage of a firm, if it proceeds for additional borrowings?

Write Your Message!

Captcha
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!

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