Company OMEGA wants to invest in Bonds and Stocks. The financial manager was looking at different...
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Company OMEGA wants to invest in Bonds and Stocks. The financial manager was looking at different types of Bonds and Stocks. After studying the market, he decided to choose 3 bonds and 3 stocks. Given the following information: Bonds: The financial manager wants to buy bonds A, B, C and he decided to buy different numbers from each bond. All bonds pay annual coupon Bond A B C Number of Bonds 27 28 20 X Y Z Number of Stock 2800 2500 Type Discount Bond Par Bond Premium Bond 2200 Dividends Type Coupon rate 5.8% Zero Growth Constant Growth Constant Growth 10.5% Stocks: The financial manager wants to buy Stocks X, Y, Z and he decided to buy different numbers from each stock Stock YTM 8.1% Required Return 14% 11% 13% 6.4% Growth 6% Maturity 12 years 17 years 17 years 6% Face Value 2000 3000 2000 Dividends 01 Dividends 11 1.8 Calculate the total amount of investment the company needs to buy the 3 bonds and the 3 stocks. Total Amount = Company OMEGA wants to invest in Bonds and Stocks. The financial manager was looking at different types of Bonds and Stocks. After studying the market, he decided to choose 3 bonds and 3 stocks. Given the following information: Bonds: The financial manager wants to buy bonds A, B, C and he decided to buy different numbers from each bond. All bonds pay annual coupon Bond A B C Number of Bonds 27 28 20 X Y Z Number of Stock 2800 2500 Type Discount Bond Par Bond Premium Bond 2200 Dividends Type Coupon rate 5.8% Zero Growth Constant Growth Constant Growth 10.5% Stocks: The financial manager wants to buy Stocks X, Y, Z and he decided to buy different numbers from each stock Stock YTM 8.1% Required Return 14% 11% 13% 6.4% Growth 6% Maturity 12 years 17 years 17 years 6% Face Value 2000 3000 2000 Dividends 01 Dividends 11 1.8 Calculate the total amount of investment the company needs to buy the 3 bonds and the 3 stocks. Total Amount =
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Answer rating: 100% (QA)
Total amount 185385223200 408019 Calculated as Price of bonds Present value of coupon paid YTM par v... View the full answer
Related Book For
Personal Finance Building Your Future
ISBN: 978-0073530659
1st edition
Authors: Robert B. Walker, Kristy P. Walker
Posted Date:
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