Reference no: EM131332339
1. Calculate the cost of new common equity financing of stock R using Gordon Model
Round the answers to two decimal places in percentage form (Write the percentage sign in the "units" box)
|
Last Year Dividend
|
Growth Rate of Dividends
|
Selling Price of Stock
|
Floatation Costs
|
Cost of Common Equity
|
|
Stock R
|
$1.29
|
7.0%
|
$60.65
|
$4.29
|
?
|
2. Fresh Fruit, Inc. has a $1,000 par value bond that is currently selling for $1,377. it has an annual coupon rate of 16.09 percent, paid semiannually, and has 14-years remaining until maturity. What would the annual yield to maturity be on the bond if you purchased the bond today and held it until maturity?
Round to the nearest two decimals.
3. Deep Waters, Inc is using the internal rate of return (IRR) when evaluating projects. Find the IRR for the company's project. The initial outlay for the project is $335,200. The project will produce the following after-tax cash inflows of
Year 1: 121,100
Year 2: 168,200
Year 3: 168,600
Year 4 182,600
Round the answer to two decimal places in percentage form.
4. Cheeseburger and Taco Company purchases 17,079 boxes of cheese each year. It cost $17 to place and ship each order and 7.41 per year for each box held as inventory. The company uses Economic order quantity model in placing the orders. How many orders will be placed each year? Round the answer to the whole number.
5. Marco Chip, INC. just issued zero-coupon bonds with a par value of $1,000. The bond has a maturity of 29 years and a yield to maturity of 10.13 %, compounded semi- annually. What is the current price of the bond?
|
Effects of dividends vs stock repurchases
: Compare and contrast the effects of dividends vs. stock repurchases, the pros and cons of each, and how the managers decide between the two.
|
|
Describe mechanism implemented by king
: Describe mechanism implemented by king using two extensive-form games: in one extensive-form game Elizabeth is the true mother of the child, and in the second extensive-form game Mary is the true mother of the child.
|
|
Places in percentage form
: What is the yield to call of a 20 year to maturity bond that pays a 11.13 percent per year, has a $1,000 par value and is currently priced at $1,143? The bond can be called back in 5 years at a call price $1,083. Assume annual coupon payments. Rou..
|
|
Reject these projects based on payback analysis
: You are considering two mutually exclusive projects. Project A has cash flows of -$72,000, $21,400, $22,900, and $56,300 for years 0 to 3, respectively. Project B has cash flows of -$81,000, $20,100, $22,200, and $74,800 for years 0 to 3, respectivel..
|
|
Calculate the cost of new common equity financing
: 1. Calculate the cost of new common equity financing of stock R using Gordon Model Round the answers to two decimal places in percentage form (Write the percentage sign in the "units" box)
|
|
Find all the equilibria of the following two player game
: Find all the equilibria of the following two-player game.- What are all the subgames of the two-stage game?- Find all the subgame perfect equilibria of the two-stage game.
|
|
Discuss about the health care and human capital
: Explore whether or not funding from international lending institutions like the World Bank and the IMF are helping or hindering the social, economic, or political development of the country that you have selected. Support your response with exampl..
|
|
Company cost of capital
: 1. Tall Trees, Inc. is using the net present value (NPV) when evaluating projects. You have to find the NPV for the company's project, assuming the company's cost of capital is 9.83 percent. The initial outlay for the project is $331,077. The proj..
|
|
Describe different approaches for inventory management
: Information System Management (COMP1006) - Explain why the endpoint security is not so much successful in business organizations. What should be the option for companies to overcome this issue in order to save their data and information?
|