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A 15 year zero coupon bond was issued with $1000 par value to yield 8%. What is the approximate market value of the bond?
TSP Financial has advised Bob that he can safely assume that all savings will earn 12% per annum until he reitres. but only 8% thereafter. How much must Bob saveper year during the next 20 years pr
A similar firm which is publicly traded had a price/earnings ratio of 5.0. Using only the information given, estimate the market value of one share of Charleston's stock.
Use Appendix B and Appendix D. Compute the price of the bonds for these maturity dates (Round "PV Factor" to 3 decimal places, intermediate and final answers to 2 decimal places.
All of Division A's projects are equally risky, as are all of Division B's projects. However, the projects of Division A are less risky than those of Division B. Which of the following projects shou
A company entered into a futures contracts on March 1 to hedge the purchase of oil June 1. It closed out its position on June 1. What is the effective price paid by the company for the oil?
Interest rates are 0.5% per month. Determine the net profit or loss if the index price at expiration is $830 (in 6 months).
At expiration, 3 months later, the stock price is $56.75. All other things being equal and given an annual interest rate of 4.0%, what is the net profit or loss to the investor?
In the last few years, your company made a concerted effort to improve its minority hiring, so many of the new employees are minorities. How should you decide who to lay off?
Calculate the return (in percent) for each value of b. (Note: you may just calculate the total return and not worry about how this is split between current yield and capital-gains yield.)
Company A has a bond with a par value of $1,000.00 and a coupon rate of 8%. It has a ten year maturity date with a yield to maturity of 6%. What is the price of annual coupon payments? Semi-annual?
The second issue consisted of 20-year binds with 6% coupon paid annually and attached warrants. Both issues sold at their $1000 par values. What is the implied value of the warrants attached to each
Which of the following should be included in the initial outlay?
ABC plans to use this money to pay a dividend of $250 million & pay off $250 million of debt. Estimate the levered beta for ABC after these transactions.
What is the equivalent annual cost of an oven if the required rate of return is 10 percent? (Round your answer to whole dollars)
What percent ownership interest should Roger be willing to give to a venture investor, Syd, for his $500,000 investment?
An environmental impact study required by the state was performed at a cost of $48,000. For capital budgeting purposes, what is the relevant cost of the new building?
What price change could lead to a margin call ? Under what circumstances could $1,500 be withdrawn from the margin account?
What is the value of the preferred stock today? Round to the nearest $1. Answer $100 $85 $75 $16
If you were to purchase and hold the stock for three years, what would the expected dividends be worth today? Answer $12.60 $9.21 $17.12 $15.55 $11.46
Fris B. Corporation stock is currently selling for $42.86. It is expected to pay a dividend of $3.00 at the end of the year. Dividends are expected to grow at a constant rate of 3% indefinitely. Com
Butler, Inc.'s return on equity is 17% and management retains 75% of earnings for investment purposes. Based on this information, what will be the firm's growth rate? Answer 4.25% 22.67% 44.12% 12.7
Southwest U's campus book store sells course packs for $17 each, the variable cost per pack is $7, fixed costs to produce the packs are $200,000, and expected annual sales are 43,000 packs. What are
WSU Inc. is a young company that does not yet pay a dividend. You believe that the company will begin to pay dividends 5 years from now, and that the company will then be worth $50 per share. If you
The machine falls into the MACRS 5-year class life category. Assume a tax rate of 30% and a discount rate of 13%. What is the depreciation tax shield for this project in year 5?