Reference no: EM133072798
1. You own a 25-year, $10,000 par value bond paying 11% interest annually. The market price of the bond is $8,750. Compute the bond's expected rate of return
2. ExxonMobil 15-year bonds pays 7% coupon interest rate annually on a Php 25,000 par value.In addition the required rate of return is 10%. What is the value of the bond?
3. Honeywag common stock is expected to pay $1.85 in dividends next year, and the growth rate is projected to be 5%. If investors require a rate of return of 11%, what is the current value of the stock?
4. The common stock of Corby Corporation paid $1.32 in dividends last year. Dividends are expected to grow at a 6% annual rate for an indefinite number of years. a) If Corby's current market price is $23.50 per share, what is the stock's expected rate of return?
5. relative to number 4 problem, b) If your required rate of return is 10.5%, what is the value of the stock for you?
6. How many months will it take to pay off a loan of $50,000 at an annual rate of 12% compounded monthly if you make monthly payment of $600?
7. You lend friend $10,000, for which your friend will repay you $27,027 at the end of 5 years. What interest rate are you charging your friend?
8. You are considering an investment security that will pay you $1,000 in 3 years. If the appropriate discount rate is 11%, what is the value of this investment today?
9. Mr. Preston purchased a new house for $80,000. He paid $20,000 down payment and agreed to pay the rest over the next 25 years in 25 equal beginning-of-year payments plus 9% compound interest on the unpaid balance. How much will these equal payments be?
10. These are shares that represent the ownership in a corporation and with voting rights.
|
Discuss the risks and performance implications of banks
: Discuss the risks and performance implications of banks using purchased funds vs core deposits.
|
|
Agency problem between management and shareholders
: 1. a. Please list at least two ways to deal with the agency problem between management and shareholders, and discuss their effectiveness.
|
|
What amount will be reported as cost of goods sold
: Using the FIFO perpetual inventory method, what amount will be reported as cost of goods sold for the 15 units that were sold
|
|
What is the expected change in stock price
: What is the expected change in stock price from January 1 to July 1? Assume the discount rate is zero. (Round answer to 2 decimal places, e.g. 15.25.)
|
|
Compute the bond expected rate of return
: 1. You own a 25-year, $10,000 par value bond paying 11% interest annually. The market price of the bond is $8,750. Compute the bond's expected rate of return
|
|
Calculate the amount of dividend distributed
: Preferred shares-$ 6, no par, 8,000 shares outstanding $400,000. Calculate the amount of dividend distributed to the preferred shareholders
|
|
What price would the bond sell
: -A bond with an annual coupon rate of 8% and the term to maturity of 10 years. The bond has face value of $1,000 and makes semiannual interest payments.
|
|
What will your mortgage balance be
: You are going to make mortgage payments of $20,000 per year at the end of each year for the next 20 years. The bank charges you a constant mortgage rate of 10%
|
|
Prepare an income tax return for the client
: Prepare an income tax return for the client - Completion of working papers for the Income tax return using the excel template provided in the assessment tasks
|