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Zombie Industries issues 400,000 face value dollars, 8.5 percent coupon, fifteen year bonds on January 1, 2008. Interest is paid yearly on December 31. Calculate the book value of these bond
Calculate the return on investment for the investment center?
Calculate the corporation's residual income.
South Side Corporation is expected to pay the following dividends over the next 4 years: $8, $6, $3, and $2. Estimate the present share price?
Hollin Corporation stock currently sells for 50 dollars per share. Estimate the most recent dividend per share paid on the stock.
The Brennan CO. just paid dividend of 1.40 dollars per share on its stock. The dividends are expected to grow at a constant rate of 6% per year indefinitely. Determine the current price and what
The next dividend payment by MUG, Inc., will be 3.10 dollars per share. If MUG stock currently sells for 48 dollars per share, determine the required return?
Gruber Corp. pays a constant 12 dollars dividend on its stock. If the required rate on this stock is 10 percent, determine the current share price.
Assume the yield to maturity on a one year zero coupon bond is eight percent. According to the Expectations Hypothesis, determine the expected one-year rate in the market place for year 2?
Assume the price of a two year Treasury strip is 950 dollars & the price of a Ford zero-coupon note of a similar maturity is 900 dollar. Par is 1,000 dollars for both securities. Compute the yield
Compute GM's Z-score based on the given data: X1 = —0.049, X2 = 0.0289, X3 = 0.02, X4 = 0.036, X5 = 0.409.
A zero-coupon bond with 2.5 years to maturity has an YTM = 25 percent. A three year annual-coupon bond has a face value of 1,000 dollar & a 25 percent coupon rate. Compute for each bond the percen
Which of the two projects should be chosen based on the net present value method? Suppose a cost of capital of ten percent.
The Danforth Tire Company is considering the purchase of a new machine that would increase the speed of manufacturing and save money. Determine the internal rate of return and net present value
Miller Electronics is considering two new investments. Project C calls for the purchase of a coolant recovery system. Calculate the NPV of the projects based on a zero discount rate.
Determine the expected value and standard deviation of unit sales for the new product.
Determine the coefficient of variation, rank the 5 alternatives from lowest risk to highest risk.
Sims inc. earned 1.00 dollar per share in 2000. 5 years later, in 2005. It earned 225 dollars. Determine the growth rate in Sims' earnings per share [EPS] over the five year period?
Assume you inherited 50,000 dollars and invested it at six percent per year; flow much could you withdraw at the end of each of the next fifteen years?
You just won the state lottery. The state gives you die choice of 1,000,000 dollars today. Determine what rate of return is built into the annuity?
Alfred Road has reached his 70th birthday & he is ready to retire. Mr. Road has no formal training in finance but has saved his money and invested carefully. Suppose that the investment portf
The Carter Company's bonds mature in seven year have a par value of 1,000 dollars & an annual coupon payment of 80 dollars. Determine the price of these bonds.
Brown Enterprises' bonds currently sell for 1,025 dollars. They have a sixteen year maturity, Determine their yield to maturity?
Highfield Inc's bonds currently sell for 1,275 dollars & have a par value of 1,000 dollars. Determine their yield to call (YTC).
Yest Corporation's bonds have a twenty-two year maturity, a seven percent semiyearly coupon, and a par value of $1,000. The going interest rate [rd] is 6 percent, based on semiyearly compounding. Dete