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What is the main factor that causes deviation of the market value and its par value? Accompany your answer with an example that covers all different scenarios in fluctuation of the value of the bond
how large must his payments be to ensure that after retirement he will be able to draw $30.000 per year from this account until he is 80?
Excess short term borrowing (if any exists)Fielding has no short term borrowing as of March 1st, 2008. assume that the interest on short term borrowing is 1% per month. What is fielding 's projected
Wright has received no payments from either school as of month end. What amount will be recognized as net accounts receivable on the balance sheet as of November 30?
You have another $8,000 to invest, and would like to invest it in a manner such that the risk of the new portfolio matches that of the overall market. What does the beta of the new security have to
All dollars are in millions. What is the projected inventory turnover ratio for the coming year?
Firms HD and LD are identical except for their use of debt and the interest rates they pay--HD has more debt and thus must pay a higher interest rate. Based on the data given below, how much higher
Teldar's post-merger beta is estimated to be 1.7, and its post-merger tax rate would be 35%. The risk-free rate is 6%, and the market risk premium is 5.5%. What is the value of Teldar to Gekko Prope
If Simpson is going to make up 45% of the new firm (and Lachey will comprise the remaining 55%), what will be the beta of the new merged firm? There will be no additional infusion of debt in the mer
Portfolio U.S Treasury bond futures contract - 10 year/ 8 years - $100,000 $75.32 Not applicable 1 - $100,000,000 94-05
Such concern has centered on esoteric financial products such as derivatives that are used to manage risk. What is the significance and importance of sound business decision-making in risk and risk
You own 1,000 shares of XYZ and have purchased ten protective put contracts. The puts have a delta of -0.317.
Under these conditions, how much would you have just after you make the 5th deposit, 5 years from now?
Investment bankers have advised General Bill that flotation costs on the new preferred issue would be 5% of the selling price. The general's marginal tax rate is 30%. What is trhe relevalent cost of
To raise money to finance the capital budget projects you've been evaluating, your firm plans to borrow money at an interest rate of 14%, before-tax. If your firm's effective tax rate is 40%, what i
The zero coupon bonds of D&L movers have a market price of $319.24, a face value of $1,000, and a yield to maturity of 9.17 percent. How many years is it until these bonds mature?
Your firm is considering an investment that will cost $750,000 today. The investment will produce cash flows of $250,000 in year 1, $300,000 in year 2 through 4, and $100,000 in year 5. The discount
Your friend, Wendy, plans to open a hair salon. Wendy states that she does not have time to develop and implement a system of internal controls.
If 20% of sales are for cash, 40% are credit sales paid in the month after the sale, and another 40% are credit sales paid 2 months after the sale, what are the expected cash receipts for March?
If the dividends are expected to grow by tyhe company's internal growth rate indefinitedly,what is the current value of Chambers common stock if its required rate return is 20%?
Looking at The Wall Street Journal you observe that the settlement price on a hypothetical 15-year, semiannual payment, 6% coupon bond is 81-21. If the bond has a $1,000 par value, what is the impli
If Whitewall is expected to increase its annual dividend by 2 percent per year into the foreseeable future and the current price of Whitewall's common shares is $11.66, what is the cost of common eq
Suppose the September CBT Treasury bond futures contract has a quoted price of 11.2-09. What is the implied annual interest rate inherent in this futures contract?
Using the estimates from (a) & (b), what is the expected cost for the material over the life of the project using the COMPLEX method?
Blue Stripes Co. is comparing two different capital structures. Plan I would result in 9,000 shares of stock and $342,000 in debt. Plan II would result in 12,600 shares of stock and $205,200 in debt