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If a six-month Treasury bill is purchased for $0.9675 on a dollar (i.e., $96,750 for a $100,000 bill), what is the discount yield and the annual rate of interest? What will these yields be if the di
What is Chicago Gear's required return according to the CAPM?
Suppose Community Bank offer to lend you $10,000 for one year at a nominal annual rate of 8%, but you must make interest payments at the end of each quarter and then pay off the $10,000 principle am
Your bank offers to lend you $100,000 at an 8.5% annual interest to start your new business. The terms require you to amortize the loan with 10 equal end-of-year payments. How much interest would yo
Find the after-tax return to a corporation that buys a share of preferred stock at $43, sells it at year-end at $43, and receives a $6 year-end dividend. The firm is in the 30% tax bracket. (Do not
However, the firm's financial manager is concerned that interest rates will climb even higher in coming months.
Would Carter be better off if it issued floating-rate debt and engaged in the swap? Would Brence be better off if it issued floating-rate debt or if it issued fixed-rate debt and engaged in the swap
PepsiCO operating income was $8.04 billion in 2009 and %6.96 billion in 2008. Based on these figures, which company had higher operating leverage?
What type of positive and negative covenants may AirJet Best Parts, Inc. use in future bond issues?
AirJet Best Parts, Inc. has decided to take a $6,950,000 loan being offered by Regions Best at 8.6% APR for 5 years. What is the monthly payment amount on this loan? Do you agree with this decision?
In 2000, the S& P 500 Index earned 9.1 percent while the T- bill yield was 5.9 percent. Does this mean the market risk premium was negative? Explain.
what weight should you use for debt in the computation of FarCry's WACC?
Marme Inc. has preferred stock selling for 137 percent of par that pays an 11 percent annual coupon. What would be Marme's component cost of preferred stock?
The average annual return on the S& P 500 Index from 1986 to 1995 was 15.8 percent. The average annual T- bill yield during the same period was 5.6 percent. What was the market risk premium duri
What is the investment's NPV? What is the EVA each period? What is the present value of the stram of EVAs?
Coca Cola reported 30.99 billion in sales in 2009 and 31.94 in 2008. Operating costs were 8.23 billion in 2009 and 8.45 in 2008. How do I calculate the change in EBIT and the change in sales?
How many companies have AAA rating for its bonds? What countries have the highest rating?
What is the expected value of sample information? How much might the physicians be willing to pay for a market study?
Today's electronics specializes in manufacturing modern electronic components. It also builds the equipment that produces the components. Phyllis Weinberger.
Assume that the salary payments are equal amounts paid at the end of each month. If the interest rate you choose is an 8 percent EAR, what is the size of the settlement?
Bob bought some land costing $15,740. Today, that same land is valued at $45,517. How long has Bob owned this land if the price of land has been increasing at 6 percent per year?
The account pays 5.25 percent interest, compounded annually. How much money must the company deposit today to fully fund the equipment purchase?
What is the future value of a 10 year annuity of $2,000 per period where payments come at the beginning of each period? The interest rate is 8 percent.
He can afford to save $2,500 permonth for the next 10 years. If he can earn an 10 percent EAR before he retires and an 7 percent EAR after he retires, how much will he have to save each month in yea
Assume that the risk-free rate is 5.5% and the expected return on the market is 12%. What is the required rate of return on a stock with a beta of 1.6? Round your answer to two decimal places.