QUESTION Sidmans products stock is currently selling for $60 per share. The firm is expected to earn $5.40 per share this year and to pay a year-end dividend of $3.60.a. If investors require a 9% return what rate of growth must be expected for Sidman?b. If Sidman reinvests earnings in projects with an aver a. […]
Date: September 2nd, 2020
QUESTION 2. The present worth of a multi-year investment with all positive cash flows (incomes) other than the initial investment is PW = $25,000 at MARR = (i+1)%. If MARR changes to (i-1)%, the present worth will be(a) less than $25,000(b) equal to $25,000(c) greater than $25,000(d) cannot determine without (a) Less than $25,000 If […]
Date: September 2nd, 2020
QUESTION How long will it take $ 200 to double if it earns the following rates? Compounding occurs once a year.a.7%b.10%c. 18%d. 100% ANSWER: CLICK REQUEST FOR AN EXPERT SOLUTION
Date: September 2nd, 2020
QUESTION In Year 2011, you decide to get a loan of $350,000 at annual interest rate of 3.545% and to pay back monthly for 15 years.Monthly interest = 0.03545 / 12After paying the February 15, 2022, monthly mortgage, you see a refinance opportunity due to lower interest rate, how much loan amount you need to […]
Date: September 2nd, 2020
QUESTION Find the future vales of the following ordinary annuities:a. FV of $400 paid each 6 months for 5 years at a nominal rate of 12 %, compounded semiannually.b. FV of $200 paid each 3 months for 5 years at a nominal rate of 12%, compounded quarterlyc. These annuities receive the same amount of cash […]
Date: September 2nd, 2020
QUESTION how does a cost-efficient capital market help reduce the prices of goods and services? reduce the cost of production. Thus any activity that reduces the cost of the firm in producing the goods and services enables the firm to make the goods and services available in the market at lower cost. Thus the lower […]
Date: September 2nd, 2020
QUESTION An alternative type of mortgage loan is called a price-level adjusted mortgage (PLAM), which sets all mortgage payments and the principal amount of the mortgage in real rather than nominal terms. Thus, if the inflation rate was 10 percent in a certain year, the monthly payment would be increased by The principal amount and […]
Date: September 2nd, 2020
QUESTION A firm has a profit margin of 5.5% and an equity multiplier of 2.4. Its sales are $140 million and it has total assets of $84 million. What is its ROE? Round your answer to two decimal places. The ROE is calculated using Du-Pont analysis: ROE = Profit margin * Total asset turnover ratio […]
Date: September 2nd, 2020
QUESTION A convertible bond is currently selling for $855. It is convertible into 15 shares of Capri INC. common which presently sell for $63 per share. The conversion premium is? Conversion Premium: The amount by which the price of a convertible security exceeds the current market value of the common stock into which it may […]
Date: September 2nd, 2020
QUESTION A project requires an initial investment of 20,000 dollars. The lifetime of the project will be 13 years with a cashflow stream of 2,000 per year and an interest rate of 3. Compute the Savings/investment ratio. PV of investment and future earnings of a project is given by : PV = -I a*r (1 […]
Date: September 2nd, 2020
