What is the current dollar price of this security

Assignment Help Financial Management
Reference no: EM131579363

1. A $50,000 face value STRIPS matures in 12 years and has a yield to maturity of 6.50 percent. What is the current dollar price of this security?

$21,199.68

$23,206.44

$25,038.18

$26,141.41

$28,809.18

2. How would you interpret a current ratio of 2.2 with an industry average of 3.1?

The company is 2.2x more liquid than the industry.

The company is on the verge of bankruptcy.

The company turns its sales into cash at a rate of 2.2x per year.

The company has $2.20 in current assets for every $1 in current liabilities.

Reference no: EM131579363

Questions Cloud

Types of leadership and patterns of management : How you address conflict provides insight into how you might execute your role as a human services administrator.
Choose are sufficiently poor to warrant revision : Make sure whatever instructions you choose are sufficiently poor to warrant revision, and by revision, I don't mean merely copy editing
Draw a graph in which the vertices are labelled : Table shows a sample of the kinds of applications a school district might get for its positions. An x below an applicant's number means that that applicant.
Discuss issue and challenge that face intelligence community : Discuss issues and challenges that face the intelligence community. This is a small example of that thinking from the founders.
What is the current dollar price of this security : A $50,000 face value STRIPS matures in 12 years and has a yield to maturity of 6.50 percent. What is the current dollar price of this security?
Prove hamiltonian closure of a simple graph g is hamiltonian : We form the Hamiltonian closure of a graph by constructing a sequence of graphs Gi with G0 = G, and Gi formed from Gi-1 by adding an edge.
Debt on its balance sheet for which it pays an interest rate : what is the firms WACC? DFG is company with 500 million of debt on its balance sheet for which it pays an interest rate of 6.75%.
Show that the k-path problem is np-complete : The k-Path problem is the problem of determining whether a graph on n vertices has a path of length k, where k is allowed to depend on n.
Do you believe the should be required of federal government : Do you believe this should be required of the federal government as well? Why, or why not? What might be the ramifications if this philosophy drove the federal

Reviews

Write a Review

Financial Management Questions & Answers

  Service department cost allocated to production department

Motorcade Company has three service departments (S1, S2, and S3) and two production departments (P1 and P2). The following data relate to Motorcade's allocation of service department costs: The number of employees is used as the allocation base for a..

  According to the pecking-order theory

According to the pecking-order theory, a firm’s leverage ratio is determined by:

  Dividend initiation and stock value

Dividend Initiation and Stock Value A firm does not pay a dividend. It is expected to pay its first dividend of $1.40 per share in 3 years. This dividend will grow at 14 percent indefinitely. Using a 16 percent discount rate, compute the value of thi..

  Calculate the present value of the cash flow stream

Calculate the future value of $100,000 ten years from now based on the following annual interest rates: Calculate the present value of a stream of cash flows based on a discount rate of 8%. Annual cash flow is as follows: Calculate the present value ..

  Calculate project alpha net present value

Calculate project Alpha's Net Present Value (NPV), assuming your firm’s required rate of return is 10%.

  Fxplain the primary reason for the change in gmcr

From information given in the attached financial statements, explain the primary reason for the change in GMCR’s Debt-Asset Ratio.

  Which of statements is more useful to the financial manager

Accrual income vs. cash flow for a period Thomas Book Sales, Inc., supplies textbooks to college and university bookstores. The books are shipped with a proviso tht they must be paid for within 30 days but can be returned for a full refund credit wit..

  Revenue increase on the firms working capital policy

18,109,000 total assets, 13,682000 Current Liabilities 4,427000 working capital with a 20% increase in revenue in this next year calculate and discuss the effect of the revenue increase on the firms working capital policy and provide the calculations

  What is the amount of cost recovery

Alex placed in service two assets in 2015: equipment (7 year property) in August 2015 which cost $1,400,000, and computer equipment (5 year property) in November 2015 which cost $2,000,000. What is the amount of cost recovery (depreciation) he can ta..

  Construct an amortization schedule

A family purchased a house valued at $300,000 Owners equity of 20% is required as an initial collateralized condition with the financed amount to be amortized in equal monthly amounts extended over a 15 year period @ 12%. Find : The borrowers financi..

  What is the importance of different interest rate forecasts

List the basic steps in DGAP analysis. What is the importance of different interest rate forecasts?

  International bond-bank and equity markets

Briefly describe the differences among international bond, bank and equity markets. Would you support an MNC that favors financing through bonds issues or would you rather support one that favors financing through stock issues?

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