Eileen Mahurin is the director of a major charitable organization in Knoxville, Tennessee. A single mother of one young child, she earns what could best be described as a modest income. Because charitable organizations aren’t known for their generous..
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Assume no servicing fees and prepayment=CPR 10%. A CMO is being issued with 3 tranches. The A tranche will consist of $100M of principal and have a coupon of 5%. The B tranche will have a coupon of 5.75% and a principal of $57.5M. The Z tranche will ..
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Your uncle will sell you 100 shares of stock for $62.50 per share You expect the company to grow steadily at an annual rate of 6 percent for the foreseeable future. The firm paid a dividend of $2.30 last year. If you require a rate of return of 10 pe..
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Maggie's Muffins, Inc., generated $2,000,000 in sales during 2013, and its year-end total assets were $1,600,000. Also, at year-end 2013, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and ..
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Lycan, Inc., has 6 percent coupon bonds on the market that have 7 years left to maturity. The bonds make annual payments. Required: If the YTM on these bonds is 8 percent, what is the current bond price?
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Arnell Johnson bought 250 shares of Black Petroleum Company for $95 per share. He paid a commission of $55 when he purchased this stock. He sold the stock 5 years later for $115 per share. When he sold it he paid a commission of $70. While he held th..
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A new pediatric clinic is opening in your community and has hired you as a consultant to help them get started. They have been debating if they really need a Mission Statement, Budget, or Strategic Plan right away and are wondering what your opinion ..
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Calculate the fair present values of the following bonds, all of which pay interest semiannually, have a face value of $1,000, have 4 years remaining to maturity, and have a required rate of return of 14 percent. The bond has a 8.8 percent coupon rat..
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Find expected return of portfolio, standard deviation of portfolio, Sharpe ratios of Stock A, Stock B and portfolio, beta of portfolio, expected return of portfolio, under CAPM
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Blip Ind. purchased a new Bobber for $23,999. The new Bobber will be depreciated straight-line to $3,400 salvage over 6 years. How much depreciation will Blip write off in year 5?
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You bought one of Great White Shark Repellant Co.’s 6.2 percent coupon bonds one year ago for $1,038. These bonds make annual payments and mature 15 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is..
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Kaufman Enterprises has bonds outstanding with a $1,000 face value and 10 years left until maturity. They have an 11% annual coupon payment, and their current price is $1,185. What is the yield to maturity? If the yield curve is horizontal and intere..
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