Question: Hi please help me answer these multi choice questions, thanks! (all info provided) Phranque & Denial Co. earned $5 per share last year. Since the

Hi please help me answer these multi choice questions, thanks! (all info provided)

Hi please help me answer these multi choiceHi please help me answer these multi choiceHi please help me answer these multi choiceHi please help me answer these multi choiceHi please help me answer these multi choice
Phranque & Denial Co. earned $5 per share last year. Since the company is new, they decide to retain 100% of earnings for the next three years. After the third year, the company will payout 80% of its earnings peryear, forever. If thnque & Denial Co. expect to return 8% on new investments, and have an equity cost of capital of 7%, what is the estimated current share price ofthe company? Choose the closest answer. (4 marks) A $71.66 A $77.40 A $87.78 'A $94.80 Question 13 4 points Save Answe An AAA-rated corporate bond has a face value of $1,000 and a credit spread of 4%. The bond has 10 years to maturity and pays coupons semi-annually at a rate of 6% per annum. If the current risk-free treasury yield is 0.95% per annum, what is the value of the bond closest to? (4 marks) $1,200 C$1,801 C $756 C $1,082Question 14 Which of the following is INCORRECT? (2 marks) A The payback rule ignores cash flows after the payback period. A The payback rule is used for its simplicity. A The payback rule ignores the time value of money. A The payback rule incorporates all the of the project's costs and benefits. Question 15 Which of the following formulas is INCORRECT? (2 marks) C g= retention rate x return on new investment. C g= (1 - payout rate) x return on new investment. When return on new investment is more than the cost of equity, the share price is expected to increase. CWhen return on equity is equal to the cost of equity, shareholders will prefer the firms' management to increase the payout ratio.Question 17 A 30-year bond with a face value of $1,000 pays $35 every 6 months and has a yield to maturity of 4% per annum. What is the coupon rate on the bond? (2 marks) C 2% C 7% C 8% C 3.5%

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