How much can the debentures be issued for

Assignment Help Business Management
Reference no: EM132597824

A. Polycorp wishes to issue a 90 day bank bill with a face value of $2,000,000. If the current 90 day rate is 7% how much will Polycorp issue the bill for. Calculate to the nearest dollar.

B. Polycorp is about to issue debentures. The following information is available.

1. The coupon rate is 8% pa (or .08). Coupons are paid annually

2. The yield to maturity (YTM) is 0.09 pa

3. The face value is $100

4. The term is 4 years

How much can the debentures be issued for? Your answer should be accurate to the nearest cent. Note that the YTM is expressed as a decimal, so .06 is 6% pa.

C. A non-redeemable preference share is paying a constant dividend of $4. What is the current price if the market yield for such shares is 10 %? Your answer should be calculated to the nearest cent, e.g. 23.167 should be entered as 23.17. Do not enter the $ sign.

Reference no: EM132597824

Questions Cloud

What is the project irr : The project's life is 4 years. What is the project's IRR? Accept or reject the project? Again, assume the cost of capital for a project of this risk is 7%.
What is the required return on stock c : A money manager is holding a $10 million portfolio that consists of the following five stocks:
Determining the stock expected value : Assume that D0, which was just paid, = $1.00, D1= $1.20, D2 = = $1.40, D3 = $1.55, D4 = $2.00, D5 = $2.13, D6 = $2.27
Performing the equity market : Risk return is often difficult to quantify from layman's perspective. Due to the uncertainty that surround investment
How much can the debentures be issued for : A. Polycorp wishes to issue a 90 day bank bill with a face value of $2,000,000. If the current 90 day rate is 7% how much will Polycorp
Standard deviation of the rate of return on portfolio : Consider the following information about a risky portfolio that you manage, and a risk-free asset: E(rP) = 11%, sP = 15%, rf = 5%.
Multinational corporations-ecosystem of international parity : International parity condition has undergone dramatic shift in the past couple of years and the level of shift is likely to accelerate causing more disruptions
Find information for you as a business professional : What did you find to be the most useful information for you as a business professional?
Find the amount of interest paid if interest rate : Mr. belly Troy brought a new car. To pay the car the price at $1,200,000 he gave $500,000 as down payment and agreed to pay the balance in 2 years.

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

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