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You just graduated & get your first job in your new career. You remember that your favorite finance professor told you to start the painless job of saving for retirement as soon as possible.
Given some amount to be received several years in the future, if the interest rate increases, the present value of the future amount will be:
Ron Rhodes calls his agent to inquire about buying a bond of Golden Years Recreation Corporation. His broker quotes a price of $1,170. Ron is concerned that the bond might be overpriced based on the f
Essex Biochemical Co. has a $1,000 par value bond outstanding that pays 10% yearly interest. The current yield to maturity on such bonds in the market is 7%.
Without doing the computation would the price of the bond increase, decrease or stay the same if the maturity date was changed to November 15, 2009. Describe you resoning.
Wilson Company will issue $300,000,000 of seven percent, $1000 Par bonds on November 15, 2004. The bonds will pay interest semiannually & mature on November 15, 2011.
You wish to buy a new convertible twelve years from today. At that time, the car will cost $80,000. You currently have 10,000 $ to invest.
Assume you bought a bond that will pay $1,000 in twenty (20) years. No intermediate coupon payments will be made. If the appropriate interest rate is 8 percent.
Compute the present value of the following cash flows discounted at 10 percent. $1,000 received seven years from today?
Determine payment amount necessary to amortize a loan of $80,000 i n9 payments at 8% compounded annually.
How much would you be willing to pay [Give your answer to the nearest dollar] for a twenty (20) year annuity due if the payments are $4,500 per year & you want to earn a rate of return equal to 5.
What terms [or inputs] are required to calculate yield to maturity? How does this compare to calculating yield to call?
An 8% semiannual coupon bond matures in five (5) years. The bond has a face value of $1,000 & a yield to maturity of 8.21%. Calculate the bond’s price and YTM?
Calculate the value of an annuity where $275 is deposited at the end of each quarter for three years and the interest rate is 9.5 percent compounded quarterly.
You are 40 years old and plan to retire in exactly twenty (20) years. Starting 21 years from now you will need to withdraw $5,000/year from your retirement fund to supplement your social security paym
Butler Corp paid a dividend today of $3.50/share. The dividend is expected to grow at a constant rate of 8% per year. If Butler Corp stock is selling for $75.60/share,
Stewart Industries expects to pay a $3/share dividend at the end of the year (D1 $3.00), which is expected to grow at a rate of 25 percent a year until t 3, and then at a constant rate of 5 percent.&n
A stock is expected to pay a dividend of $1.00 at the end of the year (D1 $1.00), which is expected to grow 25 percent in each of the following two years and at a constant rate of 6 percent,
Parr Paper's stock has a beta of 1.40, and its required return is 13 percent. Clover Dairy's stock has a beta of .80. If the risk-free rate is 4 percent, calculate the required rate of return on Clove
Stock values are the discounted value of future cash flows. For which type of company would the constant growth model be appropriate to price that firm's stock price?
Cargo Point, Inc. has a beta of 1.10. The risk-free rate of interest is currently six percent, & the required return on the market portfolio is 13 percent.
Preferred Stock returns Bruner Aeronautics has perpetual preferred stock outstanding with a par value of dollar 100. The stock pays a quarterly dividend of 2$, & its current price is $80.
The Zumwalt Company is expected to pay a dividend of $2.25 per share at the end of the year, and that dividend is expected to grow at a constant rate of 5.00 percent per year in the future.
McDonnell manufacturing is expected to pay a dividend of dollar 1.50 per share at the end of the year [D1 = $1.50]. The stock sells for $34.50 per share,
A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return is rs = 12.5 percent, & the expected constant growth rate is g = 8.5 percent.