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What does it mean if a firm's bond rating is downgraded? What do you expect to happen to the bond's price and yield-to-maturity once this downgrade is announced?
Assuming a $1,000 face value, what was your total dollar return on this investment over the past year? What was your total nominal rate of return on this investment over the past year?
Why are social media sites such a threat to information security? Give four potential scenarios where social media use might create personal or organizational security compromises.
The Joseph Company has a stock issue that pays a fixed dividend of $3.00 per share annually. Investors believe hte nominal risk-free rate is 4 percent and that this stock should have a risk premium
Erron Corporation wants to issue five-year notes but investors require a credit risk spread of 3 percentage points. What is the anticipated coupon rate on the Erron notes if the treasury note payin
What is the price of a treasury note paying an annual coupon of 5.06 percent if investors' required rate of return is 6.09 percent on similar bonds? Treasury notes pay interest semi-annually.
Sharon Smith will receive $1 million in 50 years. The discount rate is 14%. As an alternative, she can receive $1,000 today. Which should she choose?
Thomas invests $103 in an account that pays 6 percent simple interest. How much money will Thomas have at the end of 4 years?
Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamond can be sold for $120. The materials cost for a standard diamond is $70.
Marcia Stubern is planning for her golden years. She will retire in 20 years, at which time she plans to begin withdrawing $60,000 annually. She is expected to live for 20 years following her retire
Although faust corporation has customers dispersed throughout the United States, the company has maintained its headquarters and central billing system in Atlanta.
Develop a comprehensive growth matrix for your organization based on the readings for this module. Does the growth matrix you developed identify new markets or new products for your company's expansio
Suppose you are informed that a company expects to pay a $2.50 dividend at year end (D1 = $2.50), the dividend is expected to grow at a constant rate of 5.50% a year, and the common stock currently
Describe the skills you will bring to the table to ensure that you are competent to know whether to continue the negotiation after your initial meeting or to walk away from the process.
Risk Premium If the annual return on the S&P 500 Index was 12.4 percent. The annual T-bill yield during the same period was 5.7 percent. What was the market risk premium during that year?
Chip's Home Brew Whiskey management forecasts that if the firm sells each bottle of Snake-Bite for $20, then the demand for the product will be 15,000 bottles per year, whereas sales will be 94 p
The bank included a credit memorandum for $1,260, which represents collection of a customer's note by the bank for the company; principal amt of the note wa $1,200 and interst was $60. interest has
What arguments would you make for allowing insurers to set their own rates and be regulated by market or competitive forces? What arguments would you make for continuing regulatory approval of insur
A particular security's default risk premium is 3 percent. For all securities, the inflation risk premium is 2 percent and the real interest rate is 2.25 percent. The security's liquidity risk premi
How much should she save per year starting right now in order to have the retirement annuity she desires? Round your answer to the nearest dollar and do not enter the dollar sign in your answer.
Research in the gaming industry showed that 11% of all slot machines in the United States stop working each year. Short's Game Arcade has 60 slot machines and only 2 failed last year.
Prada has nine million shares outstanding, generates free cash flows of $ 40 million each year and has a cost of capital of 10%. It also has $30 million of cash on hand.
If discretionary expenses are $500, cash flow before discretionary expenses are $2,000, and discretionary capital expenditures are $500, what is the discretionary payout percentage?
Sidney took a 775 cash advance by using checks linked to her credit card account. The bank charges a 3 percent cash advance fee on the amount borrowed and offers no grace period on cash advances.
Barrett Industries invests a large sum of money in R&D; as a result, it retains and reinvests all of its earnings. In other words, Barrett does not pay any dividends, and it has no plans to pay