Reference no: EM131027848
Financial Management
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Question 1
Everything else being equal, what would happen to a bond's price if Moody's changes this bond rating from Baa to A? Explain.
Question 2
Given the following bond's characteristics.
Par value $1,500 Annual coupon 6.25%, interest payable semi-annually
Maturity 7 years Bond price $1,406
A. Using Excel ONLY, determine this bond's annual "yield-to-maturity." Round percentage answer to 2 decimal points (e.g.: 4.75%, 9.53%, etc.) Attach Excel print-out with appropriate formula and answer.
B. Is this bond priced at premium or discount?
Question 3
You expect interest rates to decrease. From the corporate finance viewpoint, should you currently issue short term or long term bonds? Explain.
Question 4
Given the following financial data for the U.S. economy and a specific company.
U.S. economy:
· U.S. Treasuries annual yield: 2.3%
· Prime rate: 3.5%
· Expected rate of return on stock market: 7.0%
· Inflation rate 2.5%
Company:
· Beta value: 0.85
· Stock price: $50/share
· Earnings per share: $5.00
Based on the above information, calculate this company's "rate of return stockholders require." Show all calculations.
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Find probability distribution for number of cells
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How many elements are there in this field
: Prove that Z5/(x2 + x + 1) is a field. How many elements are there in this field? Can you also represent it as Z5[x]/(x2-a) where a is some element of Z5?
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Pros and cons of how sociological research has been applied
: Start a thoughtful dialogue about the pros and cons of how sociological research has been applied in these examples. What are the ramifications/consequences/implications of how this research has been applied
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Find probability distribution for sum of two sampled numbers
: Five balls, numbered 1, 2, 3, 4, and 5, are placed in an urn. Two balls are randomly selected from the five, and their numbers noted. Find the probability distribution for the largest of the two sampled numbers.
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What happen to a bonds price if moodys changes bond rating
: Everything else being equal, what would happen to a bond's price if Moody's changes this bond rating from Baa to A? Explain.
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Maximum value of cost cij in the network
: (a) The most vital arc is an arc with the maximum value of cost cij in the network (b) The most vital arc is an arc with the maximum value of cij on some shortest path from node s to node t
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Show that n is contained in p for each prime ideal
: Where N is the set of all nilpotent elements. "a" is nilpotent if a^n=0 for some positive integer n. N itself is an ideal.
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What are some of the drawbacks using dividend growth model
: Is there a significant difference? Please explain your answer. What are some of the drawbacks using Dividend Growth Model, or any other dividend based pricing model?
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Why (x) is not a maximal ideal of
: Let . Show that the map the residue of a+ b modulo 2, is a ring homomorphism with . Prove that . Hence, or otherwise, give a maximal ideal of .
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