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Seth Bullock, the owner of Bullock Gold Mining, is evaluating a new gold mine in South Dakota. Dan Dority, the company's geologist, has just finished his analysis of the mine site. He has estimated th
Is the yield to maturity on a bond the same thing as the required return? Is YTM the same thing as the coupon rate? Suppose today a 10% coupon bond sells at par? Two years from now the required return
Ozzy Corp. has bonds on the market with 10.5 years to maturity, a YTM of 9.4%, and a current price of $945. The bonds make semi-annual payments.
Delphin's Marina is expected to pay an annual dividend of $0.58 next year. The stock is selling for $8.53 a share and has a total return of 12 percent. What is the dividend growth rate?
$1,000 face amount bonds of Stalwart Development Corp. are quoted at a price of 102.2 and carry a 6.50 percent coupon. The bonds pay interest semiannually. What is the current yield on one of these bo
Strickler technology is considering changes in its working capital policies to improve its cash flow cycle. Strickler's sales last year were $3,250,000 (all on credit), and its net profit margin was 7
Beginning three months from now, you want to be able to withdraw $1,700 each quarter from your bank account to cover college expenses over the next 4 years.
You just signed a consulting contract that will pay you $38,000, $52,000, and $85,000 annually at the end of the next three years, respectively.
Zan Azlett and Angela Zesiger have joined forces to start A&Z Lettuce Products, a processor of packaged shredded lettuce for institutional use. Zan has years of food processing experience, and Ang
Martin Software has 9.4 percent coupon bonds on the market with 19 years to maturity. The bonds make semi-annual payments and currently sell for 107.5 percent of par.
With all investments, there are an expected percentage return and certain types of return that can be expected. Describe the possible forms in which a return could be received for bonds, common stock,
The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.60 per share on its stock. The dividends are expected to grow at a constant rate of 6 percent per year indefinitely.
Do you feel that it is possible to develop a universal set of ethical standards for business, or do you believe that cultural differences make universal standards impractical and/or impossible?
If you were to purchase 10 Sept 2011 Euribor futures at 99.35 and sell them at 99.40 three days later, how much money would you have made or lost? Each future has a tick value of €25
What tools or techniques would you use in analyzing business strategies, financial reporting and disclosure policies, financial performance, forecasts and fundamental values?
Etonic Inc. is considering an investment of $365,000 in an asset with an economic life of five years. The firm estimates that the nominal annual cash revenues and expenses at the end of the first year
Using the option prices given below, give an example of a zero cost collar and explain how it could be used to hedge a long position in the underlying asset.
Backwater Corp. has 6 percent coupon bonds making annual payments with a YTM of 5.5 percent. The current yield on these bonds is 5.85 percent. How many years do these bonds have left until they mature
Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of $2.85 next year. The growth rate in dividends for all three companies is 5 percent.
XYZ Motors just issued 225,000 zero coupon bonds. These bonds mature in 20 years, have a par value of $1,000, and have a yield to maturity of 7.45 per cent.
Explain the role of the U.S. Federal Reserve, the Federal Reserve Chairman, and Board, indicating its effectiveness in today's economic environment. Provide support for rationale.
Answer in Excel. NPV versus IRR: Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation (BRC)
You are considering an investment in either individual stocks or a portfolio of stocks. The two stocks you are researching, stocks A and B, have the following historical returns:
Komishito has 100,000 bonds and 5,000,000 shares outstanding. The bonds have a 9% annual coupon (paid semi-annually), $1,000 face value, $1,100 market value and 10 year maturity.
Colin's Haberdashery Products is considering a project that would have an initial cost of $285,000 and a 4-year life. The project's assets will be depreciated using straight-line depreciation to a zer