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The preferred stock of CISO, Inc., pays an annual dividend of $6.50 a share and sells for $48 a share. What is CISO's cost of preferred stock?
Nungesser Corporation's outstanding bonds have a $1,000 par value, a 9% semiannual coupon, 8 years to maturity, and an 8.5% YTM. What is the bond's price?
A firm's bond's have a maturity of 10 years with a $1,000 face value. What are their yield to maturity and their yield to call? What return should investors expect to earn on this bond?
There are two principal methods of presenting cash flow from operating activities - the direct method and the indirect method. Describe these two methods.
The project will produce cash inflows of $9,000 a year for the first year and $10,000 a year for the following three years. What is the payback period?
Bank of America has bonds which have a 10-year maturity, a 6.25% semiannual coupon, and a par value of $1,000. The going interest rate (rd) is 4.75%, based on semiannual compounding. What is th
The Zombie Corporation's common stock has a beta of 1.6. If the risk-free rate is 4.7 percent and the expected return on the market is 13 percent, what is the company's cost of equity capital?
A neighbor of your deposited $7,500 in a local bank account that pays 3.75% with daily compounding and a 360-day year. How much could he withdraw after 8 months, assuming each month has 30 days?
What is the WACC for a companys with after tax cost of equity, preffered, debt equal to ( 16%, 9%, 5%) if equity makes up 30% and debt makes up 5% of the companys capital structure.
Assume that the yield to maturity remains constant for the next 3 years. What will the price be 3 years from today? What is its yield to maturity?
Based on the financial information of the 10% discount rate, should she wait for the $1 million? Why? If the discount rate is 12% what is her better choice?
Tuttle Enterprises is considering a project that has the following cash flow and required return data. What is the project's NPV? Note that if a project's projected NPV is negative, it should be rej
Caculate the breakeven price from the following information. quantity of service - $3000. fixed costs - $45,000.
The Iraqi Dinar is selling for $.7681 and the Mexican Paso is selling for $1.6581. The cross rate between the dinar and the paso is?
Florida Sun, Inc. has a 5%, semiannual coupon bond with a current market price of $988.52. The bond has a par value of $1,000 and a yield to maturity of 5.29%.
What is the present value of a $100 perpetuity if the interest rate is 7%? If interest rates doubled to 14%, what would its present value be?
You borrow $85,000;the annual loan payments are $8,273.59 for 30 years. What interest rate are you being charged?
If the discount rate is 7 percent compounded monthly, what is the value of this annuity 6 years from now? What is the current value of the annuity?
Why does this accounting principle cause difficulties in financial statement analysis? Is there a solution that you feel would work?
Taggart Inc.'s stock has a 50% chance of producing a 25% return, a 30% chance of producing a 10% return, and a 20% chance of producing a -28% return. What is the firm's expected rate of return? What
What was the average real risk-free rate over this time period? What was the average real risk premium?
Valerie bought 200 shares of Able stock today. Able stock has been trading for some time on the NYSE. Valerie's purchase occurred in which market?
Lucas has 5 million shares outstanding, and the current price of Lucas shares is $30 per share. What is the payout ratio?
Technical Sales, Inc. has 6.6 percent coupon bonds on the market with 9 years left to maturity. The bonds make semiannual payments and currently sell for 92.5 percent of par. What is the effective a
Mirrlees Furniture earned $500,000 last year and had a 40 percent payout ratio. How much did the firm add to its retained earnings?