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Corporate bonds have a 0.2% liquidity premium versus a zero liquidity premium for T-bonds, what is the default risk premium on the corporate bond?
At the end of 15 years, jerry will use the fund to make annual payments of Y at the beginnig of each year for 4 years, after which the fund is exhasuted. the effective annual rate of interest is 7
In your analysis of DBM Corporation you find that the current earnings per share are $5.00 per share and most analysts are projecting the earnings per share to grow at a 12 percent rate annually. Wh
How to calculate bond valuation when the following numbers are given. 10% coupon rate, interest rate is paid semianually and the bond matures in 11 years.
If your time value of money is 7 percent, what would be the largest amount for the equal, annual payments that you would be willing to undertake?
Your bank has offered you a $15,000 loan. The terms of the loan require you to pay back the loan in five equal annual installments of $4,161.00. The first payment will be made a year from today. Wh
Find the present value of the cash flows shown using a discount rate of 9 percent.
Calculate the required rate of return for Management, Inc., assuming that investors expect a 5% rate of inflation in the future. The real rate is equal to 3% and the market risk premium is 5%.
Provide a grant to his alma mater of $10,000 every six months, beginning six months from now, for six years. How much should be deposited in the trust?
Matthew has been secretly depositing $2,500 in his savings accountevery December starting in 1999. His account earns 5% compounded annually. How much will he have in December 2008?
Assume that the real risk-free rate is 2 percent and that the maturity risk premium is zero. If the nominal rate of interest on 1-year bonds is 5 percent and that on comparable risk 2-year bonds is
You see that the current 30-day T-bill rate is 4.5%. You are told by a friend who works for an investment firm that the best estimates of the current interest rate premiums for relatively safe corpo
Ravings Incorporated recently reported net income of $5.4 million. Its operating income (EBIT) was $15 million, and its tax rate was 40 percent. What was the company's interest expense?
Your portfolio has provided you with returns of 7.9 percent, 11.2percent, 3.8 percent, and 14.7 percent over the past four years,respectively. What is the geometric average return for given perio
The previous year, its balance sheet showed $404 million of retained earnings. What was the firm's net income during the most recent year?
Cox Corporation recently reported an EBITDA of $58 million and $7 million of net income. The company has $12 million interest expense and the corporate tax rate is 40.0% percent. What was the compan
The firm's total debt equals $600 million and its common equity equals $400 million. What is the firm's market value added?
The previous retained earnings were $780million. How much in dividends were paid to shareholders during the year?
It has a profit margin of 4%, an average collection period of 60 days, receivables of $150,000, total assets of $3 million and a debt ratio of 0.64. What is the firm's return on equity?
What is the project's rate of return? Should the company produce this toy based on its rate ofreturn if the required return is 10 percent?
Casey Motors recently reported net income of $19 million. The firm's tax rate was 40.0% and interest expense was $6 million. The company's after-tax cost of capital is 14.0% and the firm's total in
4 years later, you refinance the remaaining balance at a 4% rate and pay a $1,000 fee. What is the present value of the savings from doing this?
A firm's operating income (EBIT) was $400 million, their depreciation expense was $40 million, and their increase in net investment in operating capital was $70 million. Assuming that the firm is in
Acme Products has a bond outstanding with 8 years remaining to maturity and a coupon rate of 5% paid semiannually. If the current market price is $729.05, what is the yield to maturity?
IBX has a bond issue outstanding that is callable in three years at a 5 percent call premium. The bond pays a 10 percent annual coupon and has a remaining maturity of 23 years.