Question: Please help I am taking a test now. Need answers asap! If its yield to maturity declined by 1%, which of the following bonds would
If its yield to maturity declined by 1%, which of the following bonds would have the largest percentage increase in value? A 1 -year zero coupon bond. A 1-year bond with an 8% coupon. A 10-year bond with a 12% coupon. A 10-year bond with an 8% coupon. A 10-year zero coupon bond. Westchester Corp. is considering two equally risky, mutually exclusive projects, both of which have normal cash flows. Project A has un IRR of 11%, while Project B's IRR is 14%. When the WACC is 8%, the projects have the same NPV. Given this information, which of the following statements is CORRECT? If the WACC is 13%, Project A's NPV will be higher than Project B's. If the WACC is 9%, Project B's NPV will be higher than Project A's. If the WACC is 6%, Project B's NPV will be higher than Project A's. If the WACC is 9%, Project A's NPV will be higher than Project B's. If the WACC is greater than 14%, Project A's IRR will exceed Project B's. A company's perpetual preferred stock currently sells for $112.50 per share, and it pays an $8.00 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 5.00% of issue price. What is the firm's cost of preferred stock? 7.49% 6.96% 8.83% 8.31% 7.41% Suppose a State of New York bond will pay $1,000 ten years from now. If the going interest rate or 10-year bonds is 4.4%, how much is the bond worth today? $754.14 $604.61 $650.12 $526.60 $708.63
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