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Finance Questions and Answers June 17, 2017

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Griffin's Goat Farm, Incorporated, has sales of $649,000, costs of $365,000, depreciation expense of $37,000, interest expense of $31,000, and a tax rate of 22 percent. The firm paid out $115,000 in cash dividends, and has 30,000 shares of common stock outstanding. a. What is the earnings per share, or EPS, figure? b. What is the dividends per
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$1,057.09, what rate of return would she have earned for the past year? Do not round intermediate calculations. Round your answer to two decimal places. % $1,057.09, what rate of return would she have earned for the past year? Do not round intermediate calculations. Round your answer to two decimal places. %
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Fatura fiyat 1.001 ABD dolar olan bir bono satn alyorsunuz. Kupon oran yzde 5,33 olan tahvil, alt ayda bir deme yapyor ve bir sonraki kupon demesine 4 ay var. Parsel deeri 1.000$'dr. Tahvilin temiz fiyat nedir? rev: 12_14_2018_QC_CS-151570 974,35 dolar 1.027,65 $ 992,12 dolar 1.009,88 dolar 983,23 dolar

3 Brookdale Hospital hired an inexperienced controller early in 20X4. Near the end of 204, the board of directors decided to conduct a with current generally accepted principles, for hospitals. The trial balance prepared by the controller at December 31,204, follows: Additional Information: 1. Your analysis of the contributions receivable as of
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QUESTION 3 The shareholders' equity portion of a company is as follows Common stock (1.0 million shares) $20,000,000 Retained earnings 12,000,000 $32,000,000 The current market value of the stock is $30. Required Show the Equity section of the balance sheet assuming 10% stock dividend is declared For the toolbar, press ALT+F10 (PC) or ALT+FN+F10
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17) The duration of an 11-year, $1,000 Treasury bond paying a 10 percent coupon and selling at par has been estimated at 5.9106 years. What is the modified duration of the bond? The bond has semi-annual coupon payments. O a. 6.582 Ob. 5.629 OC. 5.576 od 7.463
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Capital asset pricing model (CAPM) For the asset shown in the following table, use the capital asset pricing model to find the required retum. here in order to copy the contents of the data table below into a spreadsheet.) Market Risk-free rato TRF 5% return, im 14% Beta, b 0.7 The required return for the asset is % (Round to two decimal places)
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You sell a stock for $36.00 that you purchased a year ago for $32. If year end dividends are $1.25 what is your expected return? 16.41% 18.45% 12.5% 14.33%

Apple is preparing to pay its first dividend. It is going to pay dividends of $0.45, $0.60, and $1 per share over the next three years, respectively. After that, the company has stated that the annual dividend will be $25 per share in perpetuity. What is the stock price per share today if you require a 10.8% of return on stocks of this type.

(Payables) Suppose Boeing imported a Rolls-Royce jet engine for 2 million payable in one year The U.S. interest rate: 5.00% per annum The U.K. interest rate: 6.50% per annum The spot exchange rate: $1.325/ The forward exchange rate: $1.375/ (1-year maturity) Call option premium = $0.02, Strike price = $1.35. If the future spot price is expected to

In conjunction with their analysis of capital projects (for example, a new manufacturing facility, or branch store or fleet of planes), financial managers must determine how the company will fund the approved projects. Financial managers review each project's estimated capital costs and forecasted cash flow projections and develop an estimate of
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Question 23 A security's required return depends on its expected cash flows O risk O both expected cash flows and risk > Question 25 Standard deviation of a security's return measures the security's when held in isolation Total return O Unsystematic risk Systematic risk Total risk Question 28 An example of systematic risk of a security is given by
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A business analyst uses a tool to find out how much stock the grocery company has on backorder. This is a _____ task. a. structured b. semistructured c. unstructured d. pseudostructured

Vandermark Credit Corp. wants to earn an effective annual return on its consumer loans of 17.75 percent per year. The bank uses daily compounding on its loans. What interest rate is the bank required by law to report to potential borrowers? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places,

22. It took roughly 14 years for the Dow Jones Average of 30 Industrial Stocks to go from 1,000 to 2,000. To double from 2,000 to 4,000 took only 8 years, and to go from 4,000 to 8,000 required roughly 2 years. To the nearest whole percent, what compound annual growth rates are implicit in these three index-doubling milestones
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Company XYZ does not currently pay a dividend. However, their earnings have been growing at a very high rate. Thus, they are expected to begin paying a dividend, starting 7 years from today. Expectations are that the first dividend will be $ 5.1 per share. The dividend is then expected to grow at 29 % per year for 6 years, and at the end of that

4. You will receive the following cash payments as a retirement settlement: Year 0 1 2 3 4 Amount $10,000 $20,000 $50,000 $50,000 $75,000 In place of the above you are offered a check today for $182,000. Assuming an interest rate of 4%, which would you choose? If an interest rate of 5% was used would this change your selection? Explain
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Your company has two divisions: One division sells software and the other division sells computers through a direct sales channel, primarily taking orders over the Internet. You have decided that Dell Computer is very similar to your computer division, in terms of both risk and financing. You go online and find the following information: Dell's
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Josh has a major medical policy with a $500 deductible, 80% coinsurance provision, and an out-of-pocket maximum of $1,500. Josh broke his ankle and has a hospital bill of $10,000. How much total will Josh have to pay? $1,500 0 $10,000 $500
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Dreamland company is considering investing in Project Cloud or Project Rainbow. Project Cloud generates the following cash flows: year "zero" = 389 dollars (outflow); year 1 = 247 dollars (inflow); year 2 = 328 dollars (inflow); year 3 = 336 dollars (inflow); year 4 = 144 dollars (inflow). Project Rainbow generates the following cash flows: year
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Southwest Airlines is considering buying a new Boeing 737. The airplane will cost 34 million dollars today and then generate 9 million dollars per year for the next 13 years. After 13 years, the airplane will not generate any cash for Southwest Airlines. If the cost of capital is 10%, what is the NPV (in millions of dollars) of buying the new

Check my work You are considering an investment in 30-year bonds issued by Moore Corporation. The bonds have no special covenants. The Wall Street Journal reports that 1-year T-bills are currently earning 3.25 percent. Your broker has determined the following information about economic activity and Moore Corporation bonds: Real risk-free rate
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This morning, you borrowed $150,000 to buy a house. The mortgage rate is 7 percent. The amortized loan requires you to pay $10,000 in principal plus interest each year over 15 years. The first payment is due one year from today. How much is the second payment ?

12 Please show work Currently, T-Bills are paying 1.5% interest and the inflationary premium is 1%. What is the risk-free ta rate of interest 0.5% 1.0% O 1.5% 2.5%
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Flotation costs are incurred by a publicly-traded company when it issues new stocks. Which of the following is correct alout flotation cost. a. It is hidden cost. b.It is also known as spread C. It excludes legal and registration fees. d.It includes all expenses incurred in issuing new stocks

The cost of capital for a firm with a 60/40 debt/equity split, 6.33% cost of debt, 15% cost of equity, and a 35% tax rate would be
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Growth Company's current share price is $20.20 and it is expected to pay a $1.20 dividend per share next year. After that, the firm's dividends are expected to grow at a rate of 3.6% per year. a. What is an estimate of Growth Company's cost of equity? b. Growth Company also has preferred stock outstanding that pays a $2.25 per share fixed

Break-Even Point Sheridan Enterprises sells a product for $69 per unit. The variable cost is $46 per unit, while fixed costs are $98,394. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $77 per unit. a. Break-even point in sales units units b. Break-even point if the selling

a firms unlevered cost of equity is 12.25% the yield to maturity on its debt is 5% its debt equity ratio is 1.3, and its tax rate is 21% what is the firms levered cost of equity. answer to the enarest hundreth

Tangerine Inc.'s target capital structure is 20 percent debt, 20 percent preferred stock, and 60 percent common equity. Its bonds have a 10 percent coupon rate, semiannual interest payments, a current maturity of 20 years, and a market value equal to their par value of $1,000. The firm's marginal tax rate is 40 percent. The firm's policy is to use

FACTOR TABLE Problem 9-20 Marge Simons won a $17,100,000 lottery and elected to receive her winnings in 30 equal installments. After receiving the first 10 installments, Marge and her husband divorced, and the remaining 20 payments became part of the property settlement. The judge who presided over the divorce proceedings awarded one-half interest
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Suppose you are short 50 contracts on a 2-year 50-call option on TSLA and long 10 contracts on TSLA stock. How much will your option position increase in value if TSLA stock price goes down by $1 (use negative number if value decreases)
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If investors expect the average realized return from 2 0 1 2 to 2 0 1 6 on FF s stock to continue into the future, its coefficient of variation ( CV ) will be .

What is the difference between a private pension fund and a public pension fund and What is the main regulations governing pension funds

Sidman Products has preferred stock which pay a perpetual annual dividend of $11. These preferred stocks currently sell at $108.50 per share. If the marginal tax rate is 25%, what is the cost of Sidmans preferred Stock? 10.14% 15.14% 7.60% 10.67%

The payback method: is rarely used in actual practice. determines a cutoff point equal to the point where all initial capital investments have been fully depreciated. varies the cutoff point with the market rate of interest. requires an arbitrary choice of a cutoff point. determines a cutoff point so that all projects accepted by the NPV rule will

A bank grants a loan with the following characteristics: Duration: 5 years Nominal: 100 000 Coupon: 12% base 30/360 Constant monthly reimbursements m Question 1: can you give us the value of m and for each months the amount of principal and interests paid, the amount of remaining principal? What is the initial duration and modified duration?

Question 18 O out of 1 points On 01/01/2019, you invest in the following stock, which you sell on 01/01/2021: 2019 2020 2021 76.8 Price (on Jan 1st) 69.3 87.9 Dividend (on Dec 31st) 0.8 0.7 Calculate the arithmetic average annual return over the holding period (two years) of the stock. (In percent and rounded to two decimals) Selected Answer: 7.89
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Question 3 5 pts "Ethan just finished negotiating a sales price of $27,000 for the car of their dreams. Their $3,000 old car will be traded in as a down payment. If they can get a loan for a 9.6% APR over 4 years, will be the total cost of this purchase?" Question 4 5 pts "Carolyn just used $52,000 as a down payment on a $349,000 house. If their
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Land bought for speculation is known to be increasing in value according to the following function, V = 20000e Vt (fourth root oft) If the discount rate is 3%, calculate how long the land should be held to maximize its present value? Choose the dosest answer. Select one: O 12.4 years O 16.8 years O 10 years O 33.2 years O 0.06 years
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Um custa o dobro do preco de uma moto mais 215 reais. os dois produtos juntos custa 38920 reais. A equacao que representa e

NPV Calculate the net present value (NPV) for a 10-year project with an initial investment of $30,000 and a cash inflow of $6,000 per year. Assume that the firm has an opportunity cost of 17%. Comment on the acceptability of the project. The project's net present value is (Round to the nearest cent.) Is the project acceptable? (Select the best
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3. Discuss the difference in treatment between the purchase of equity investment in a company of between 1 % and 20% and another investment in equity of another company of between 21% and 49%. Be specific about income, dividend recognition and the carrying value of the investment in the Books of the Investors. Bonds are very popular means of
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Suppose a 10-year, $1,000 bond with a 7% coupon rate and semiannual coupons is trading for a price of $926.34. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 9% APR, what will the bond's price be? GRAD a. What is the bond's yield to maturity (expressed as an
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A property bought 9 years ago for $500,245 is priced today at $1,000,000. What has been the annual growth rate of the property's price? a. 12% B. 10% c. 8% d. 6% e. none of the above You have today taken a 25-year, $100,000 mortgage loan at 12% annual interest rate, to be repaid in equal monthly payments at each month-end over 25 years. What will

A stock sells for $20. The next dividend will be $3 per share. If the rate of return earned on reinvested funds is a constant 12% and the company reinvests a constant 50% of earnings in the firm, what must be the discount rate? Note: Do not round your intermediate calculations. Enter your answer as a whole percent
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Allan is evaluating the stock of Alpha Ltd and gathers the following information regarding the company and its two closest competitors, Beta Ltd and Gamma Ltd: Company P/B Ratio Forecasted ROE Beta Alpha Ltd 2.15 Beta Ltd 2.90 Gamma Ltd 2.15 16.25% 14.85% 12.60% 0.90 1.20 1.20 Based on the given information, the stock of Alpha Ltd is most likely
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Use the table below to answer questions 18-20 regarding Kroger. P/E P/FCFE PIE FYE 2020 Analyst Consensus Estimated Earnings (Per Share) Industry 60.36 23.20 Kroger (KR) 9.37 2.26 Sector 30.22 25.94 Caseys General Stores Inc (CASY) | 30.33 5.10 18. Using the Industry multiple P/E, what is the valuation estimate for KR's share price near FYE 2020.
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Question 4 (Hedging a Stock Portfolio) (20 points) Consider the following information on three investors, A, B and C. Portfolio Size P Investor A || $200,000 Investor B || $300,000 Investor C || $200,000 Portfolio Beta Bp Tolerable Loss z% 2 10 % 2.5 20% 1.5 10% a) Which investors must use put options with the lowest strike price? Explain. b)
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An investment has conventional cash flows and a profitability index of 1 . 0 . Given this, which one of the following must be true The internal rate of return exceeds the required rate of return. The investment never pays back. The net present value is equal to zero. The average accounting return is 1 . 0 . The net present value is greater than 1
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QUESTION 2 Fred Sweet runs dancing classes for middle-aged and elderly people. Some of Fred's customers lack physical coordination and injuries from kicks, falls, etc. are common, Fred naturally fears that injured customers will sue him for negligence. Thus, he makes each customer sign a written contract containing a cause relieving Fred of all
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Tresnan Brothers is expected to pay a $3.00 per share dividend at the end of the year (i.e., D1 - $3.00). The dividend is expected to grow at a constant rate of 3% a year. The required rate of return on the stock, rs, is 7%. What is the stock's current value per share? Round your answer to the nearest cent
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A local bank advertises the following deal: Pay us $100 at the end of each year for 11 years and then we will pay you (or your beneficiaries) $100 at the end of each year forever. a. Calculate the present value of your payments to the bank if the interest rate is 4.25%. (Do not round intermediate calculations. Round your answer to 2 decimal

Calculate the bond equivalent yield and effective annual return on fed funds that are 5 days from maturity and have a quoted yield of 0 . 4 0 percent. Note: Use 3 6 5 days in a year. Do not round intermediate calculations. Round your percentage answers to 4 decimal places. ( e . g . , 3 2 . 1 6 1 6 ) Bond Equivalent Yield ( BEY ) : 0 . 4 0 5 6 %

Answer the following questions in a report containing not less than 500 words. Discuss World Trade Organization (WTO) Discuss Preferential Trade Agreements (PTA) Explain in detail why the balance of payments account is an important diagnostic tool for international economists. Provide a complete description and nature of the following: The
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Please use a calculator or show all the work AND steps taken. DO NOT USE EXCEL TO SOLVE 5. Apex invests $225,000 in a piece of equipment that has a 5 year life. The firm has estimated the cash inflows associated with the proposal as shown in the following table. The firm has has a capital structure of 60% Debt and 40% Equity. The cost of Debt is
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Your factory has been offered a contract to produce a part for a new printer. The contract would last for three years, and your cash flows from the contract would be $5.07 million per year. Your upfront setup costs to be ready to produce the part would be $7.75 million. Your discount rate for this contract is 8.1%. a. What does the NPV rule say
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please help! Exhibit 4.1 The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over Balance Sheet (Millions of S) Assets Cash and securities Accounts receivable
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Four page, maximum, report on your answers to questions: As a loan committee member at the Park Bank, would you approve the request? Why or why not? Evaluate the decision using each of the four Cs of credit. Use the Collateral Analysis Template to evaluate the Collateral C. Use the Debt Service Template to evaluate the Capacity C. Templates are
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First National Bank charges 11.36 % compounded monthly on its business loans. First United Bank charges 11.86%, compounded semiannually. Calculate the EAR for First United Bank. (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations).

On March 13, 1986, Microsoft issued over 3 million shares at an issue price of $21 per share. By doing so, it raised $61 million during its Initial Public Offering (I.P.0.). It closed most recently at approximately $135 per share. Since going public, Microsoft stock has split nine (9) times and began paying a dividend in 2003. The specifics of
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The stock of Business Adventures sells for $40 a share. Its likely dividend payout and end-of-year price depend on the state of the economy by the end of the year as follows: Boom Normal economy Recession Dividend $2.80 1.80 0.90 Stock Price $48 43 34 a. Calculate the expected holding-period return and standard deviation of the holding-period
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The company you currently work for is looking for guidance on several projects they are considering. You have been asked to review the following scenarios and offer your recommendations regarding how to proceed: The following opportunities are being considered as part of their capital budget process ( NOTE: they can only choose one ) : A new piece

required rate of return is 11.5%. What is the market value of the preferred stock? The market value of the preferred stock is I per share. (Round to the nearest cent.)
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What were the implications of the crisis on the financial industry?

You can form a portfolio of two assets, A and B, whose returns have the following characteristics: Expected Return 6% Standard Deviation 26% Stock Correlation A 0.2 16 38 a. If you demand an expected return of 13%, what are the portfolio weights? (Do not round intermediate calculations. Round your answers to 3 decimal places.) Portfolio Weight A
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Jana Morgan is about to sign up for cellphone service. She is primarily interested in the safety aspect of the phone; that is, she wants to have One available for emergencies. She does not want to use it as her primary phone. Jana has narrowed her options down to two plans: Plan 1 Plan 2 Monthly fee $20 $30 Free local minutes 60 120 Additional

17 Question 11 18 Joe bought a large tract of land 14 years ago for $1,500 per acre. If Joe could have alternatively invested his money in a mutual fund that 19 earned 13% per year, what price per acre must he receive for the land today to "break even with his opportuni 20 Answer 122 PV 123 FV 124 Rate 125 Nper 126 PMT 127 m 128
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a) Matt wishes to accumulate $15,000 by the end of 8 years by making deposits of $X into his investment account at the end of each year. Determine X if his account earns interest at an annual effective interest rate of 5%. b) Suppose, after 5 years, the annual effective interest rates drops to 4.5%. Determine the size of the annual deposits now
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Bir hisse senedi ortalamann zerinde beklenen getiriye sahipse, mantksal olarak bunun olmasn beklersiniz. A) yatrmclar tarafndan yaygn olarak tutuluyor B) ortalamadan daha riskli C) iyi bir sektrde D) iyi bir irkette

Please describe the process of preparing for a listing appointment.

As a preliminary matter, is this contract governed by the UCC or common law? Define each of the following terms: offer, acceptance, and consideration. Next, discuss where each of these terms appear in the AT&T services contract. Define each of the following terms: performance, breach, and remedies. Next, discuss where each of these terms appear in

US online grocery store industry Need description of analysis of US online grocery consumers purchase behaviors (use online consumer reviews on your topic community)

For most large corporations, spending money on lobbying is: a. nothing more than greenwashing. b. factual support of the importance and nature of corporate social responsibility. c. political wrangling. Using the above, support your stance on lobbying with well-researched arguments and examples. Answers must be 150-200 words.

In general, which of the following bonds carry the lowest level of risk
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Explain the link between the Weighted Average Cost of Capital (WACC) and leverage. If you use market values to calculate the WACC and your stock price or bond prices become erratic, elaborate how this will influence your capital structure and, as a result, the firms investment choice.

A AL Stodos A and B have the following probability distributions of expected future retums Probability 0.1 (116) (38%) 0.2 S 0 0.4 13 21 0.2 23 27 0.1 31 42 a. Calculate the expected rate of return, Pfor Stock B (A - 12.80%.) Do not round Intermediate calculations. Round your answer to two decimal places d. Calculate the standard deviation of
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A. 1. 1 C. 1

Attempts Keep the Highest / 10 8. Problem 8.08 (Beta Coefficient) eBook Given the following information, determine the beta coefficient for Stock L that is consistent with equilibrium: L = 14.5%; PRF = 2.5%; r = 10.5%. Round your answer to two decimal places. Grade it Now Save & Continue Continue without saving
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5 Currently, a company has 2,500,000 shares outstanding with a book value per share of $40. The company is considering a project that is expected to increase current net income of $8,200,000 by $800,000. The cost of the project is expected to be $19,680,000, which would be financed with the issue of 500,000 new shares. Assume the company's current
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You just got an offer for a bond issued by Coala Corporation . The bond pays annual coupons with a coupon rate of 0.06 , while its yield to maturity is 0.105 , the bond has 21 years to maturity what is the price of the bond what is the current yield

The company Smart Inc. is a company that produces Dog Shampoo in Toronto area. The results of the company, which has been mediocre for the past couple of years, have been presented in the annual financial statement. Sales (1 million units x 10$) 10 000 000$ Fixed Costs (5 000 000) Variable Costs (1 million units x 7$) (7 000 000) Depreciation (3

Imagine you are a bank manager. Currently, your bank holds $3 million in deposits at a 3% interest rate. However, you need to increase the total deposits to $4 million, which you do by offering an interest rate of 3.36%. Using the midpoint method, calculate the interest rate elasticity of savings. If necessary, round all intermediate calculations
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QUESTION 8 10 points Save Answer Compute the value in 9 years of a $861 deposit earning 5 percent per year compounded annually. Answers should be rounded to two decimal places. Example $3.25
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The annual dollar amount of dividend income generated by an investment divided by the investment's current market value is called: dividend payout dividend yield price-earnings growth ratio total return
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Suppose a random sample of size 40 is selected from a population with = 10. Find the value of the standard error of the mean in each of the following cases (use the finite population correction factor if appropriate). The population size is infinite (to 2 decimals). The population size is N = 50,000 (to 2 decimals). The population size is N =

Suppose Autodesk stock has a beta of 2.30, whereas Costco stock has a beta of 0.71. If the risk-free interest rate is 4.5% and the expected return of the market portfolio is 12.0%, what is the expected return of a portfolio that consists of 60% Autodesk stock and 40% Costco stock, according to the CAPM? a. What was your realized return? The
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step by step instructions Sun Bank USA has purchased a 24 million one-year Australian dollar loan that pays 15 percent interest annually. The spot rate of U.S. dollars for Australian dollars (AUD/USD) is $0.625/A$1. It has funded this loan by accepting a British pound (BP)-denominated deposit for the equivalent amount and maturity at an annual
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5. Option pricing - Single-period binomial approach The value of an option can be calculated by using a step-by-step approach in the case of single periods or by using sophisticated formulas that can be easily created through a spreadsheet. In the real world, two possible outcomes for a stock price in six months is an assumption. The stock markets
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year 62. (Catoutating the procent value of an ordinary annulty) (Related to Checkpoint 6.2 on page 199) Calculate the present value of the following annuities. 1. 350 a year for 12 years discounted back to the present at 7 percent. b. 260 a year for 5 years discounted back to the present at 8 percent c. $3,000 a year for 8 years discounted back to
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Your assignment: Write approximately 700 words about the common traits of the target markets that will use your chosen business/product. If you're writing about a business you currently own or a fictional company you plan to own, then specify the target markets you intend to reach. If youre writing about an existing company/product, specify the
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Name: Problem 1 is worth 25 points. Problem 2 is worth 25 points. Problem is worth 20 points. All returns are annual returns unless otherwise indicated. Show your work. No credits will be given if only final answers are shown. (25 pes) 1. Firm expects a 20 percent sales growth rate for next year. The tax rate is 25%. The current end of the year
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Question 4 Next > Question 4 Next >
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Suppose a stock had an initial price of $51.82 per share, paid a dividend of $5 per share during the year, and had an ending share price of $87.91. What are the percentage returns?

Assume Highline Company has just paid an annual dividend of 31.08. Analysts are predicting an 11.3% per year growth rate in eamings over the next five years. After then, Highline's earnings are expected to grow at the current industry average of 5.6% per year. If Highline's equity cost of capital is 93% per year and its dividend payout ratio
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1) Kiss the Sky Enterprises has bonds on the market making annual payments, with 9 years to maturity, and selling for $860. At this price, the bonds yield 9.6 percent. What must the coupon rate be on the bonds? (Note: first find the coupon payment, then the coupon rate. The face value of $1,000 x coupon rate = coupon payment). Multiple Choice

The All State Mutual Fund has the following 5-year record of performance: Find this no load fund's 5-year (2015-2019) average annual compound rate of return Also find its 3.yoar (2017-2019) average annual compound rate of return. If an investor bought the fund in 2015 at 10.00 a share and sold it 5 years later in 2019) at $1572. how much total
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A new machine will cost $17,000 and will have a resale value of $14,000 after 5 years. Special tooling for the machine will cost $5000. The tooling will have a resale value of $2500 after five years. Maintenance will be $2000 per year. The effective annual compound interest rate is 6%. What will be the average annual cost of ownership during the
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An investment promises to pay $5,000 at the end of each year for the next 7 years, $9,000 at the end of each year for years 8 through 20, and $3,000 at the end of each year for years 21 through 35. If you require a 10% annual rate of return on this investment, what is the present value of these cash flows at a 10% annual rate of return? Show time

Assume that IWT has a $115 million capital budget planned for the coming year. You have determined its present capital structure (70% equity and 30% debt) is optimal, and its net income is forecasted at $160 million. Use the residual distribution model approach to determine IWT's total dollar distribution. Assume for now that the distribution is
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