Coupon rate. mike corp has bonds on the market with 13.5 years to maturity, a YTM OF 7.3 PERCENT, , and a current price of $1,080 The bond make semi annual payments. What must the coupon rate be on these bonds. Please explain using a TI BA II PLUS
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A company has total assets of $120,000, current assets of $80,000, total liabilities of $50,000, and current liabilities of $25,000. What is the current ratio?
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In 1980 Massey-Ferguson Ltd, a multinational producer of farm machinery, industrial machinery, and diesel engines, lost $225 million, or $12.79 per share. This capped a three year period during which the firm lost almost half a billion dollars. Calcu..
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Greenberg Corp. is considering opening a subsidiary to expand its operations. To evaluate the proposal, the company needs to calculate its cost of capital. You've collected the following information: The firm has one bond outstanding with a coupon ra..
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McGilla Golf has decided to sell a new line of golf clubs and would like to know the sensitivity of NPV to changes in the price of the new clubs and the quantity of new clubs sold. The clubs will sell for $900 per set and have a variable cost of $500..
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Assume that you won the lotto or lottery jackpot for 20 million further assume that you were offered a choice to receive the 20 million today or receive it and equal installments of 1 million per year for 20 years according to one of the principles o..
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The D.J. Masson Corporation needs to raise $500,000 for 1 year to supply working capital to a new store. Masson buys from its suppliers on terms of 3/10, net 90, and it currently pays on the 10th day and takes discounts. However, it could forgo disco..
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A project produces annual net income of $46,200, $51,800, and $62,900 over its 3-year life, respectively. The initial cost of the project is $675,000. This cost is depreciated straight-line to a zero book value over three years. What is the average a..
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Suppose you own 3,000 common shares of Laurence Incorporated. The EPS is $8.00, the DPS is $4.25, and the stock sells for $90 per share. Laurence announces a 2-for-1 split. Immediately after the split, how many shares will you have? What will the adj..
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For a European call option on a currency, the exchange rate is $2.0000, the strike price is $1.900, the time to maturity is one year, the domestic (U.S. Dollar) risk-free rate is 5% per annum, and the foreign risk-free rate is 3% per annum. How low c..
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Compare and contrast the main policies of the US Federal Reserve and the European Central Bank over the last 10 years. Based on these policies, identify and contrast the main priorities of these institutions. How do these policies affect exchange rat..
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Bushwhacker Mowing needs $360 million to support growth. If it issues new common stock to raise the funds, the flotation (issuance) costs will be 4 percent. If Bushwhacker can issue stock at $60 per share, how many shares of common stock must be issu..
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