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Suppose you just won the lottery, and you have the choice between receiving $2550000 today or a 20-year annuity of $250000, with the first payment coming a year from today. What rate of return is bu
The stock currently sells for $40.00 a share, has an expected dividend in the coming year of $2.00, and has an expected constant growth rate of 5.00%. What is the estimated floor price of the conver
The bonds mature in 6 years, have a face value of $1,000 and sell at 96% of par. What is the capital structure weight of the preferred stock?
Dochester Inc., has 7,500 shares of stock outstanding, at a market price of $32 each and earnings per share of $1.80. The first has decided to repuchase $64,000 worth of stock. What will the PE rati
A stock has a beta of 2.5 and an expected return of 11.8%. The risk-free rate is 2.8%. What is the slope of the security market line?
If Micro has 10 million shares outstanding, by how much should the merger increase its share price, assuming all of the synergy will go to its stockholders?
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
Suppose the December CBT Treasury bond futures contract has a quoted price of 103-18. If annual interest rates go up by 3.00 percentage point, what is the gain or loss on the futures contract?
Assume the company issues a 10 percent stock dividend. How many shares will be outstanding after the dividend?
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
Suppose hockey skates sell in Canada for 165 Canadian dollars, and 1 Canadian dollar equals 0.71 U.S. dollars. If purchasing power parity (PPP) holds, what is the price of hockey skates in the Unite
How much will the total taxes of western exploration corp. be reduced as a result of the tax loss carryforward?
If the exchange rate remains at 5.10 pesos per dollar through the end of the loan period, what effective annual interest rate will Blenman end up paying on the loan?
Today, at maturity, the exchange rate is 1.324 Swiss francs per dollar. What is the annualized rate of return to the Swiss investor?
Construct a Balance Sheet for the Harper family using the following information. Be sure the format is correct. Are the Harpers solvent or insolvent? explain
If you can earn 8% each year,how much would you have to save each year if you want to retire in 35yrs with $2million?
There are plenty of financing options, including: common stock, preferred stock, debt (many debt options), bank loans, and internal cash. Is there one financing mix that is better than the rest? Exp
If sales increase by 15%, by what percent would EBT (and net income) increase?
If the change in sales is the only consequence of this decision, what is the cost of the rebate (in millions of dollars)?
Short term rates are 2% in Japan and 4% in the United States. The current exchange rate is 120 yen per dollar. What is the expected forward exchange rate ?
What is the Annual Percentage Rate offered by Martin? What is the Annual Percentage Rate offered by Kuchner?
How much gain should Hardin recognize on this exchange, and at what amount should the acquired computer be recorded, respectively?
If you consider the debt tax shield, all the firms should have as much debt as they can, why then do we find that firms have not high levels of debt?
Now suppose you have only 60000 you can invest, but you can borrow the other 40000 needed to make the risky investment given above. The loan for the 40000 will be a 7.8% APR installment loan, with m
Sidman's products' stock is currently selling for $60 per share. The firm is expected to earn $5.40 per share this year and to pay a year-end dividend of $3.60.