Reference no: EM13921632
1) XYZs bonds have 3 years remaining to maturity. The bonds have a face value of 10%. They pay interest annually and have 8% coupon rate. What is their current yield?
2) Diesel company issued bonds with 12% coupon rate, semi annual coupon, $1,000 par value. Bonds mature in 40 years and are callable 5 years from now at $1120. Bonds are sold today at a price of $1300, and the yield curve is ownward sloping. What type of yield will you use as a most likely scenario (yield to call or YTM)? Write a formula; insert numbers (no calculation required). Is the YTM (or yield to call) higher or lower than the coupon rate?
3) Motors Co stock has a required rate of return of 11.50% and it sells for 25$. Dividend is expected to grow at constant rate of 7%. What is the last dividend paid?
4) Last month, Lloyd's Systems analyzed the project whose cash flows are shown below. It is 100% debt financed. The tax rate is 25%. The yield on company`s bond is 16% Year 0 1 2 3 Cash flows -$1,100 $460 $480 $510 Calculate the projects NPV, Profitability ratio and decide whether you accept it or not. If the payback period acceptable for a company in 3 years, would you accept a project, being based on discounted cash flows?
5) Is it true? Explain! If our current ratio is greater than 1,5, then borrowing on a short-term basis and using the funds to build up our cash would cause the current ratio to increase.
|
About the won the lottery
: Your friend just won the lottery. He has a choice of receiving $50,000 a year for the next 20 years or a lump sum today. The lottery uses a 15% discount rate, compounded monthly. What would be the lump sum your friend would receive?
|
|
Computer networks assignment
: This assignment is designed to test your understanding of computer networks through problem solving, literature study, simple analysis and problem solving.
|
|
The beginning share price for a security
: The beginning share price for a security over a three-year period was $50. Subsequent year-end prices were $62, $58 and $64. The arithmetic average annual rate of return and the geometric average annual rate of return for this stock was
|
|
Get the most timely job cost information
: What is the best way to handle manufacturing overhead costs in order to get the most timely job cost information?
|
|
Current yield-what is the last dividend paid
: XYZs bonds have 3 years remaining to maturity. The bonds have a face value of 10%. They pay interest annually and have 8% coupon rate. What is their current yield? Motors Co stock has a required rate of return of 11.50% and it sells for 25$. Dividend..
|
|
Is the jones company using an optimal mix of labor
: Is the Jones Company using an optimal mix of labor and capital to produce its current output? If not, should it use more capital or labor? Explain.
|
|
What is the companys cost of equity capital
: What is the company’s cost of equity capital if CCC’s common stock has a beta of 2.0, a risk-free rate of 6.0 percent and the expected return on the market is 12 percent?
|
|
How chiropractors cure headaches
: Choose a specific issue from a career of interest (how chiropractors cure headaches). The purpose is to explore the issue and incorporate 4 reliable sources using MLA format
|
|
Prepare the necessary adjusting entry
: During the year, Able Co. purchased $39,600 worth of supplies, at the end of the year, the balance sheet showed a balance of $1,760 in the supplies account. Prepare the necessary adjusting entry.
|