Question: Please Someone help me A B D G H M N O P Q R Answer each question on the specific sheet. Make sure all
Please Someone help me
A B D G H M N O P Q R Answer each question on the specific sheet. Make sure all answers are in a green cell For any question that requires solving for the result For questions requiring you to evaluate after changing a specific variable/input, use the following rules: *Use the model in question 1 as the baseline values *Color any variable/input cell that you change in blue LD 00 1 *Color any output cell that proves your answer in green * See example below 10 11 Example question: What happens to our previous model when we increase student study hours (assume previous question asked about specific study hours and average gpa). 12 13 Inputs 14 Study Hours 4 Note that I'm showing only what happens when study hours increase. Cells B15 and B16 should be identical to previous model, also 15 Course load/hrs 15 cell B19 will be evaluated against the previous model (did it increase or decrease) 16 other inputs -8 17 Make sure you understand how to properly set up and evaluate the model for the one item that is changing. That should 18 Output be the only change I see when grading these type of questions. 19 GPA 2.98 20 21 Explanation As study hours increase GPA also increases 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Instructions 1 2 3 4 5 6 7 8 Formula Sheet +Problem. Abond has a face value of $1,000, an annual coupon rate of 7.5%, a yield to maturity of 8.0%, makes 2 (semiannual) coupon payments per year, and 6 periods to maturity (or 3 years to maturity). What is the price of this bond based on the Annual Percentage Rate (APR) convention? Instructions 1 2 3 4 You must solve this problem using the timeline method Inputs Annual Coupon Rate Yield to Maturity (Annualized) Number of Payments / Year Number of Periods to Maturity Face Value Outputs Discount Rate / Period Coupon Rate Calculate Bond Pricing using the Cash Flows Period Time (Years) Cash Flows Present Value of Cash Flow Bond Price 7 8 Formula Sheet + APR Discount Rate / Period = (Yield to Maturity)/(Number of Payments / Year) Coupon Rate = Annual Coupon Rate * Face Value / (Number of Payments / Year) Time (years) = (Period) / (Number of Payments / Year) Cash flows = coupon rate, Last payment = coupon rate + face value Present Value of Cash Flow = (Cash Flow)/((1+Discount Rate/Period) Period) e 1 2 3 4 5 6 7 8 9 10 1 12 13 14 15 16 17 18 19 20 21 2 23 2 25 26 27 28 29 30 31 32 33 34 35 A 5 points B c D G M N Q i u v w z AL AB AC AD AE AF Using question 1, explain what happens to bond prices when YTM decreases. You will need to copy and paste question 1 into this sheet to verify your answer (see instruction page on proper format, if you copy and paste into the exact same cells you will not have to modify the equations). Your "explanation\" only needs to state the answer and properly color code the inputs/outputs that support your solution. You do NOT need to write a paragraph for this! Instructions 1 8 Formula Sheet . A B c D E F G H ! 1 K L M N o P Q R s T u v w X Y z AA AB AC AD AE 5 points Using question 1, explain what happens to bond prices when number of periods (years) increases from 6 periods (3 years) to 8 periods (4 years). You will need to copy and paste question 1 into this sheet to verify your answer (see instruction page on proper format). Your \"explanation\" only needs to state the answer and properly color code the inputs/outputs that support your solution. You do NOT need to write a paragraph for this! 1 2 3 a 5 6 7 8 9 Instructions 12 3 4 S 6 7 8 FormulaSheet o+ A B C D E F G H J K L M N |5 points _l If YTM is 6.7% and Annual Coupon Rate of a bond is 5%, will the bond sell for. If you show an example for this problem, you may earn partial credit. 1 2 3 4 a. Premium 5 b. Discount 6 c. Neither 7 d. Can not be determined g 9 Answer 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Instructions 1 2 3 4 5 6 7 8 FormulaSheet S A B C D E F G H ] 5 points If the Federal Reserve raises interest rates, what effect does that have on bonds currently selling in the market. If you show work on this question, you may earn partial credit 1 2 3 a 5 a. Their selling price increases 6 b. Their selling price decreases 7 c. Makes no difference 8 d. Can not be determined 9 10 Answer 11 12 13 14 15 16 17 18 19 20 21 22 23 | .l 24 25 26 27 28 29 30 31 32 33 34 35 Instructions 1 2 3 4 5 6 7 8 Formula Sheet o A B C D E F G H 5 points Asonia Company will pay a dividend of $5.60, $9.70, $12.55, and $14.30 per share for each of the next four years, respectively. The company will then close its doors. If investors require a return of 10.6 percent on the company's stock, what is the stock price? Make sure to color code your answer with a green cell Co > Instructions 1 2 3 4 5 7 8 Formula Sheet +1 |5 points 0 0~ U W The Bell Weather Company is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 17 percent a year for the next 4 years and then decreasing the growth rate to 3 percent per year. The company just paid its annual dividend in the amount of $1.70 per share. What is the current value of one share of this stock if the required rate of return is 7.20 percent? Make sure to color code your answer with a green cell Instructions 1 2 3 4 5 6 7 8 Formula Sheet A B C D E F G H J K L M N o} P Q R S T u 1 10 points 2 David Corp. just paid total dividends of $12,000,256 and has 4 million shares outstanding. The dividends are 3 expected to grow at 8% for the next 7 years and then level off to a growth rate of 4.23 percent indefinitely. 4 If the required return is 13%, what is the price of the stock today (must solve using the provided timeline model)? 5 6 7 8 9 10 Stock Valuation Dividend Discount Model 11 12 Inputs 13 Required Rate of Return 14 Dividend per share 15 16 17 Dividend Discount Model First Stage Second Stage 18 Year 0 1 2 3 4 5 6 7 8 19 Dividend Growth Rate 20 Dividend Gordon Growth Model 21 Continuation Value Continuation Value = Dividend_t+1/(Required Rate of Return - Dividend Growth Rate) 22 Dividend + Continuation Value 23 PV of Dividend + Cont. Value PV using formula = (Current D+C value)/((1+Required Rate) Year) 24 Stock Value 25 26 27 28 29 30 31 1 32 33 34 35
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