Question: Question 1 tegen ROSAS Question Qwin Question 1 1 pts You are estimating the correct rate for a small company's bond with a maturity of

Question 1 tegen ROSAS Question Qwin Question 1 1 pts You are estimating the correct rate for a small company's bond with a maturity of 20 years. You estimate the real risk-free rate is 0.8%, the maturity risk premium on a 20 year bond is 2.9%, and the expected average inflation over the 20 years is 2.4%. You estimate the company's default risk premium is 2.5% and due to the expected infrequent trading the liquidity risk premium for the bond is 0.3%. What is the expected rate on the bond? Express in DECIMALS, not %, so 5.22% should be .0522.. Question 2 1 pts Sneech Inc. has total assets of 21,960. On Sneech's Income statement Operating profits are 1,743, Net Income is 423 and Revenues are 4,385. What is Sneech's Total Asset Turnover? (As always, report your answer in 4 decimal places. Question 3 1 pts Spider Corp has a beta of 1.1. The risk-free rate is 1.6% and the market risk premium is 5.3%.(Note market risk premium is rm-rf) What is the required return on Spider's stock according to the CAPM? (Express in decimals up to four places example.0576) Question 4 1 pts Crayola Corp has an outstanding bond with a coupon rate of 3.0% per year which matures in 2040. If you require a rate of 5.1% per year on this bond, what is the value of the Crayola bond? (Of course the bond is par value $1000 and pays semi-annual coupon payments.)
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