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The book value of the bond at the end of the fifth year is $1,902.63 and the book value of the bond at the end of the seventh year is $1,924.18. Find the price of the bond.
Tom purchased a 10-year Jefferson City municipal bond with a coupon rate of 5%. If a comparable bonds current yield is 8%, what is the value of the bond?
Explain the difference between a forward contract, a futures contract, and an option. How can they be used for hedging and speculating?
Assume you are comparing two firms that are identical in every aspect, except one is levered and one is unlevered. Which one of the following statements is correct regarding these two firms?
You put down 20% on a home with a purchase price of $150,000, or $30,000. The remaining balance will be $120,000. The bank will loan you this remaining balance at 4.375% APR. You will make monthly
A 20 year bond pays 6% on a face value of $1000. If similar bonds are currently yielding 5%, what is the market value of the bond? Use annual analysis
What is the return on stockholders' equity for a firm with a net profit margin of 4.9 percent, sales of $350,000, an equity multiplier of 1.6, and total assets of $215,000?
Also, the firm had a net inflow of $ 300,000 from the sale of assets. What is the net cash used in investing activities?
The inventory has a book value of $3,700 and an estimated market value of $4,400. If Anderson's compiled a financial statement today, how much would it show as the value of the current assets?
Timber firewood company reported the following numbers in its 2010 income statement: If it's marginal tax rate was 30%, what were Timber's cash flows from operating activities for 2010?
Smith Motors reports the following account balances: inventory of $33,100, equipment of $84,400, accounts payable of $16,900, cash of $5,000, and accounts receivable of $22,600. How much does the f
A 30 year bond has a coupon rate of 15%. Coupons are paid annually. The bond is fourteen years old and has a required rate of return of 10%. The face value is $1000. What is the intrinsic value of
Now suppose that instead of issuing debt Beta is financed by a combination of common stock and $1 million of preferred stock. The dividend yield on the preferred is 8% and the corporate tax rate is
The Ackert Company's last dividend was $1.55. The dividend growth rate is expected to be constant at 1.5% for 2 years, after which dividends are expected to grow at a rate of 8.0% forever. The firm'
The project will require $2,000 of net working capital, which is recoverable at the end of the project. What is the internal rate of return on this project at a tax rate of 34 percent?
Cash conversion cycle: Northern Manufacturing Company found that during the last year, it took an average of 47 days to pay its suppliers, while it took 63 days to collect its receivables.
A 15 year zero coupon bond was issued with $1000 par value to yield 8%. What is the approximate market value of the bond?
Assume a project has earnings before depreciation and taxes of $15,000, depreciation of $25,000, and that the firm has a 30 percent tax bracket. What are the after-tax cash flows for the project?
Assume that you are a portfolio manager for a large mutual fund company. Provide an example of how you would calculate the expected return of your portfolio. Share this with the class in the discus
The firm has a tax rate of 40%. If the machine is sold at the end of two years for $50,000, what is the cash flow from disposal?
Compute the present value of an annuity of $861 per year for 24 years, given a discount rate of 10 percent per annum.
The firm uses 25 percent debt and 75 percent common stock as its capital structure. The company's cost of equity is 15.5 percent while the after-tax cost of debt for the firm is 6.1 percent. What is
How much must you deposit in an account today so that you have a balance of $8,904 at the end of 13 years if interest on the account is 11% p.a., but with quarterly compounding?
This preferred stock is currently selling for $56.46 per share. What is the yield or return (r) on this preferred stock?
Bostitch paid $912,000 in legal and other direct costs and $264,000 in indirect costs. What was the flotation cost as a percentage of funds raised?