What is the value of these bonds rounded to nearest dollar

Assignment Help Financial Management
Reference no: EM132034106

1. DIS has issued bonds with 10 years to maturity, a 5% coupon rate, and $1,000 face value. If your required ROR is 6% and the bonds pay interest semiannually, what is the value of these bonds rounded to the nearest dollar?

2. Jon snow has a target debt-equity ratio of 0.52. its cost of equity is 18 percent, and its cost of debt is 11 percent. If the tax rate is35 percent, what is the companys's WACC?

3. Project Z has an initial outlay of $11,000 and generates positive cash flows in years 1, 2, 3, 4, 5 and 6 of $1,205, $2,211, $3,829, $4,498, $5,135, and $6,934 respectively. Using a discount rate of 7.8%, what is the NPV of this project? (remember, if it is negative, you need to input the negative sign) Please show work.

Reference no: EM132034106

Questions Cloud

Discuss in detail dual-diagnosis from your readings : Discuss in detail dual-diagnosis from your readings, then incorporate how such coexisting disorders impact the addiction cycle discussed in Module.
What is apple implied stock price per share : What is Apple’s implied stock price per share, based on this information?
Why daggar and bayshore may use different methods : Give reasons why Daggar and Bayshore may have wanted to use different methods to report similar transactions
What this image looks like and why : If we draw his indifference curves with good 1 on the horizontal axis and good 2 on the vertical axis, what this image looks like and why?
What is the value of these bonds rounded to nearest dollar : If your required ROR is 6% and the bonds pay interest semiannually, what is the value of these bonds rounded to the nearest dollar?
Find the earnings per share : Dividends declared and paid during the year amounted to $40,000 on the preferred stock and $60,000 on the common stock. The earnings per share for 2017 is
Short run real gdp and the price level : Based on this information What will happen with the short run real GDP and the price level.
Future healthcare system more competitive : How should economic policies be revised or created to make our current and future healthcare system more competitive?
What is your best estimate of the company cost of equity : If stocks sell for $32 per share, what is your best estimate of the company's cost of equity?

Reviews

Write a Review

Financial Management Questions & Answers

  What would the risk-free rate have to be for the two stocks

Stock Y has a beta of .87 and an expected return of 9.80 percent. Stock Z has a beta of .70 and an expected return of 9 percent. What would the risk-free rate have to be for the two stocks to be correctly priced relative to each other?

  Is the investment justified

A special effects process can be carried out by using a machine which can be acquired for Php450,000. The sources for these funds are as follows.

  What interest rate was paid on the construction bonds

The Golden Gate Bridge in San Francisco was financed with construction bonds sold for $34 million in 1931. These were 40-year bonds, and the $34 million principal plus almost $38 million in interest were repaid in total in 1971. Assume the constructi..

  Outlay cash or cash equivalents

Jean has always paid for anything, any time in her business career using cash or 30 day terms. She understands this may have to change because orders tend to be bigger when purchasing overseas. What can she do where she does not have to outlay cash o..

  Their financing at lower interest rates in markets

Swaps provide for more complete financial markets and help borrowers tailor their financing at lower interest rates in markets that might not be accessible to them. However swaps present risks. If you were the swap bank, discuss the 2 risks that you ..

  Describe the relationship of yield to maturity-coupon rates

Describe the relationship of yield to maturity, coupon rates and the price of a bond.

  How much additional life insurance should she purchase

Lisa is using the needs approach to determine how much life insurance to buy. how much additional life insurance should she purchase?

  Calculate eac for both conveyor belt systems

Lang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. Calculate the EAC for both conveyor belt systems.

  What is the expected npv of the project

What is the expected NPV of the project (in millions) if it cannot be abandoned?

  What is the expected return of the stock

A certain stock has a beta of 1.3. If the risk-free rate of return is 3.2 percent and the market risk premium is 7.5 percent, what is the expected return of the stock? What is the expected return of a stock with a beta of .75?

  Growth in the firm is described by relationship

A firm’s capitalization rate is 22%, while the firm invests in projects with ROE of 20%.The growth in the firm is described by this relationship:

  Ethical implications of undertaking transactions expressly

What are the ethical implications of undertaking transactions expressly to temporarily hide how much money a firm has borrowed?

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