QUESTION 2..0/msohtmlclip1/01/clip_image002.jpg”> (a) Yield of this bond can be calculated in Excel as =RATE (10,-105,1124,-1000). This is equal to 8.60%. Cost of capital = bond yield *(1-tax rate) = 8.60%*(1-34%) =5.67% (b) m(p)= d(1+g)/ r-g m(p)=27.58 d=1.75 g=7.5% 27.58 = 1.75 (1+7.5%)/(r-7.5%) r= 7.56% Wrong: 14.32 C. Cost of Common equity ? D. Bond selling […]
QUESTION On January 2, 2013, Bentley Co. leases equipment from Harry’s Leasing Company with five equal annual payments of $120,000 each, payable beginning December 31, 2013. Bentley Co. agrees to guarantee the $20,000 residual value of the asset at the end of the lease term. Bentleyâs incremental borrowing rate is 10%; however, the company knows […]
QUESTION Hamilton Landscaping’s dividend growth rate is expected to be 30% in the next year, drop to 15% from Year 1 to Year 2, and drop to a constant 5% for Year 2 and all subsequent years. Hamilton has just paid a dividend of $2.50 and its stock has a required return of 11%. […]
QUESTION Halliford Corporation expects to have earnings this coming year of $3.3690 per share. Halliford plansto retain all of its earnings for the next two years. For the subsequent two years, the firm will retain 46% of its earnings. It will then retain 23% of its earnings from that point onward. Each year, retained earnings […]
QUESTION D.Using the following data on the price of a bond and the corresponding interest rate (assuming a flat term structure) and regression method, estimate convexity and duration of the bond: Price Interest Rate $99 .06 100 .057 101.5 .052 102 .049 105 .044 106.5 .038 108 .033 108.5 .031 110.1 .028 42. What is […]
QUESTION What would be the motives for joint ventures and strategic alliances versus a merger and acquisitionUse specific examples of when one would be more appropriate than the other. ANSWER: REQUEST HELP FROM A TUTOR
QUESTION HW5Q1. Multiple Choice questions:1. Which of the following statements about stock dividends is true? a) Stock dividends are reported on the statement of cash flows.b) Stock dividends are reported on the statement of retained earnings.c) Stock dividends increase total equity.d) Stock dividends decrease total equity.2. Which order best describes the largest number of shares […]
QUESTION 27. To operate without inventory all components must be defect free, or else all successive operations will stop, waiting for usable inputs. True False 28. Synchronous production is superior to the just-in-time production system because it is a balanced system in which the capacities of all operations are equal. True False 29. Synchronous manufacturing […]
QUESTION 1. After reviewing Exhibit 7.4.2 list what you regard as the major problems with the Darby appraisal system. Make specific recommendations about changing the system.2. What revisions to the rating form would you suggest? What particular methods (formats) discussed in chapter 7 do you recommend? Do you recommend the same methods for all Darby […]
QUESTION How does a date escalate to rape? There has been a drastic increase in the use of date rape drugs over the last several years. Give some examples of current drugs being used, how they are administered, and their effects on the victim. Each students answer to the question should be between 350-500 words. […]
