Reference no: EM13852192
Finance questions..
1. Consider a bond with a price of $1,140.25, 10 years to maturity, $1,000 face value, pays quarterly coupons, and has a yield to maturity of 8.9%. What is the bond's coupon rate?
2. Suppose a stock's beta decreases and the market risk premium is positive. All else equal, what happens to i) the stock's required return and ii) its stock price?
3. A firm expects dividends to grow at 15% for the next two years and 5.1% thereafter. The firm just paid a dividend of $4.70 (i.e., D0 = 4.70) and the required rate of return is 20.5%. The stock should sell for $______.
4. Your firm has a current beta of 1.25. The expected return on the market is 10% and the risk-free rate is 4%. Your CEO is interested in lowering the company's cost of equity to 10% by purchasing another company that has a lower beta. If the company's current market capitalization is $3 billion and the CEO is considering buying another $2 billion company, what must the new company's beta be to achieve this goal?
5.Expected Return on Stock A: 10%
Expected Return on Stock B: 17%
Standard Deviation Stock A: 26%
Standard Deviation Stock B: 58%
Risk free rate: 4%
You want to create a portfolio that is 70% invested in Stock A and 30% invested in the risk-free asset. What is this portfolio's standard deviation?
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Analyze the organization human resource management programs
: Choose an organization with which you are familiar or one in which you have an interest. Research and analyze the organization's Human Resource Management programs, policies, procedures, or initiatives
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Made of a material twice
: Two solid metal balls are placed in contact with each other. The first ball is made of a material twice as dense as the second ball; the first ball has a radius of 1, the second has a radius of 3. The gravitational force between them is F1.
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The timber ridge company has the following relationships
: The Timber Ridge Company has the following relationships: Sales/Total assets = 3.22; ROA = 0.1020 What is Timber Ridge's net profit margin?
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Soaring eagles corp. has total current assets
: Soaring Eagles Corp. has total current assets of $11,732,000, current liabilities of $5,402,000 and a quick ratio of 0.87. What is its level of inventory?
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What is the bond''s coupon rate
: 1. Consider a bond with a price of $1,140.25, 10 years to maturity, $1,000 face value, pays quarterly coupons, and has a yield to maturity of 8.9%. What is the bond's coupon rate?2. Suppose a stock's beta decreases and the market risk premium is posi..
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Equivalent force-couple system
: A 3.5-kip force P is applied at point D of the cast-iron post shown. Replace that force with an equivalent force-couple system at the center A of the base section. (Round the final answer to two decimal places.)
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Case-cameron mechanical & automation inc.
: You know, because they have been asking questions, most of which revolve around expatriates. These questions from the VPs tell you that they are now ready to address cultural differences and how they relate to preparing staff for cross-cultural wo..
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Find the indices of refraction
: A ray of light strikes the a-b interface at a 50.0o angle of incidence. The index of reflection of materials a is na = 1.20. The angles of refraction in materials b and c are respectively, 39.0o and 53.9o. Find the indices of refraction in these tw..
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Describing new concept
: Write a paragraph (minimum) describing new concept(s), terms or ideas that you learned from this week's reading. For the purpose of this quiz, a submission must be at least 250 words. This answer can be written in first person.
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