Let’s say that you buy 100 of the 7411 bonds that were issued by Krypton Inc. as described in Problem 3 above for $404.85. At the end of the year, how much money will the bond be worth, and how much tax will you be assessed assuming that you have a marginal tax rate of 35%?
Answer to relevant QuestionsCalculate the price, and BEY of a treasury bill which matures in 181 days, has a face value of $10,000, and is currently being quoted at a bank discount yield of 2.32%.Singing Fish Fine Foods has a current annual cash dividend policy of $2.25. The price of the stock is set to yield a 12% return. What is the price of this stock if the dividend will be paida. For 10 years?b. For 15 years?c. ...Staton-Smith Software is a new up-start company and will not pay dividends for the first five years of operation. It will then institute an annual cash dividend policy of $2.50 with a constant growth rate of 5% with the ...Using Yahoo! Finance, update the dividends for Johnson & Johnson for the last ten years. Find both the arithmetic growth rate and the geometric growth rate of the dividends.1. Why do you think Lawrence specified to invest money in stocks rather than bonds or certificates of deposit?2. How will the trust obtain the cash to make the grants if the dividends do not amount to 5% of the portfolio’s ...
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