QUESTION Present value of dividends: Fresno Corp. is a fast-growing company that expects to grow at a rate of 30 percent over the next two years and then to slow to a growth rate of 18 percent for the following three years. If the last dividend paid by the company was $2.15, estimate the dividends […]
QUESTION What were the responsibilities of the mortgage brokers to borrowers? To lenders? To investors? How well did they fulfill their responsibilities? Why? Mortgage brokers work independently of loan companies to offer home buyers and homeowners mortgage financing options from multiple lenders. Most hold bachelors degrees in a relevant field. State and federal laws regulate […]
QUESTION Calculating the variance and standard deviation: Ben would like to invest in gold and is aware that the returns on such an investment can be quite volatile. Use the following table of states, probabilities, and returns to determine the expected return and the standard deviation of the return on Ben”s gold investment. Probability Return […]
QUESTION Tirade Owens, a professional athlete, currently has a contract that will pay him a large amount in the first year of his contract and smaller amounts thereafter. He and his agent have asked the team to restructure the contract. The team, though reluctant, obliged. Tirade and his agent came up with a counter offer. […]
QUESTION Trial Balance Saxon Company provides the following account balances as of July 31. Accounts Payable $12,445 Accounts Receivable 12,300 Accumulated Depreciation 22,840 Buildings 77,000 Cash 33,200 Common Stock 15,000 Dividends 4,000 Notes Payable 33,000 Operating Expenses 45,205 Retained Earnings 45,700 Service Revenue 49,700 Supplies 6,980 Required Prepare a trial balance as of July 31. […]
QUESTION Kaufman Enterprises has bonds outstanding with a $1,000 face value and 10 years left until maturity. They have an 10% annual coupon payment, and their current price is $1,175. The bonds may be called in 5 years at 109% of face value (Call price = $1,090).What is the yield to maturity? Solution: Kaufman Enterprises […]
QUESTION If your portfolio is invested 35 percent each in A and B and 30 percent in C, what is the portfolio expected return? (Round your answer to 2 decimal places, (e.g., 32.16)) Portfolio expected return % What is the variance? (Do not round intermediate calculations and round your final answer to 5 decimal places, […]
QUESTION Twitter is capitalized as follows with preference shares, equity shares, retained earnings, and debentures All figures except the specific cost of capital are in $million Source Amount Specific Cost of capital Equity share of capital (two hundred thousand shares @$10 each 2 11% Preference Shares (50,000 shares @$ 10 each 0.5 8% Retained Earnings […]
QUESTION a. John Wilson is a portfolio manager at Austin & Associates. For all of his clients, Wilson manages portfolios that lie on the Markowitz efficient frontier. Wilson asks Mary Regan, CFA, a managing director at Austin, to review the portfolios of two of his clients, the Eagle Manufacturing Company and the Rainbow Life Insurance […]
QUESTION Zheng Sens chinese take out had earnings before interest and taxes of 4,000,000 last year. The firm has a marginal tax rate of 40% and currently has the following capital structure: Long term debt at 12% with an amount of 8,000,000 and total capital percentage of 25% Preferred stock at 14% with an amount […]
