Reference no: EM133049513
Questions -
Q1. An issue of bonds with par of $1000 matures in 12 years and pays interest at 7% annually. The current quoted market price is $1200 and the investors required rate of return is 8%.
(a) Calculate the bonds expected rate of return.
(b) Should the investor purchase the bond? (Explain your answer.)
Q2. Due to the current global economic conditions, Canary Ltd stopped its dividend payments. Dividends of $3.50 are expected to re-commence in 6 years and are expected to increase at a rate of 5% per year thereafter. If the required rate of return is 11%, what is the current value of the firm's shares?
Q3. Given that a company's return on equity is 14% and management plans to retain 30% of earnings for investment purposes,
(a) Calculate the company's growth rate of future earnings.
(b) If the company just paid a cash dividend of $1.20, and the required rate of return is 13%, what is the value of the firm's shares?
Q4. A $2,000 bond with 8 years to maturity is currently selling for $2,055. If the yield to maturity is 9.5%, calculate the bond's coupon interest rate.
Q5. The dividend for Annen's ordinary shares is expected to be $1.20 next year. This dividend is expected to grow at a rate of 6% for the following two years, after which is expected to grow at 4% each year for the foreseeable future. If the required rate of return on these shares is 12%, what is the approximate current value of the firm's shares?
Q6. You initially deposit $3,000 in to a savings account for 5 years, paying 6% compounded annually. Starting 6 years from now, you were able to deposit an annual amount of $500 each year for 8 years in to the savings account, and the interest rate rises to 9% compounded semi-annually. What is the balance in the account at the end of 13 years?
|
Provisions of the sarbanes oxley act
: -What are provisions of the Sarbanes Oxley Act concerning corporate boards? How does it curb agency costs and non-ethical behavior?
|
|
Identifying the key external environmental factors
: The main theme of these questions is identifying the key external environmental factors impacting their fair/festivals; ask at least 5 to 7 questions.
|
|
Watch protecting twitter users
: 1. Watch Evan Williams: The voices of Twitter users 2. Watch Protecting Twitter users (sometimes from themselves)
|
|
Residency project-information security policy
: Information security policies are written instructions provided by management that inform employees and others in the workplace about proper behavior
|
|
Calculate the bonds expected rate of return
: An issue of bonds with par of $1000 matures in 12 years and pays interest at 7% annually. Calculate the bonds expected rate of return
|
|
What is the total cost
: RVW (Restored Volkswagens) buys 30 used VW's at each of two car auctions each week held at different locations. It then transports the cars to repair shops it
|
|
Discuss game theory
: Discuss game theory and how artificial intelligence is used in video games. Provide examples and visual representations.
|
|
Porter generic strategies
: You opened a sports brand in Canada 3 years ago and this week you need to set a strategy. Your products are tennis racket, skateboard and hockey stick.
|
|
What are the journal entries
: There was one sale of inventory with a cost of $30,000 and a selling price of $45,000. What are the journal entries
|