QUESTION 8. A cash flow sequence isdescribed by 1000 in year 1 increasing by $50 per year . Thesequence extends through year 11. The interest rate is 8% per yearThe annual worth through year 11 is nearest to 541116912121351 Year Cashflows ($) PV factor at 8% Present Values ofCashflows($) 1 1000.00 0.926 926.000 2 1050.00 […]
QUESTION The Isberg Company justpaid a dividend of $0.80 per share, and that dividend isexpected to grow at a constant rate of 6.00% per year in thefuture. The companys beta is 1.25, the market risk premium is5.00%, and the risk-free rate is 4.00%. What is the companyscurrent stock price?$19.95$20.45$20.96 Isberg Company just paid a dividend […]
QUESTION 1.5 A McDonalds Big Mac Value Meal consists of aBig Mac Sandwich, Large Coke, and a Large Fry. Assume thatthere is a competitive market for McDonalds food items and thatMcDonalds sells the Big Mac value meal for $4.79. Considerthe following prices from a McDonalds Res McDonalds sells the Big Mac valuemeal = $4.79 Big […]
QUESTION You were hired as aconsultant to Quigley Company, whose target capital structure is40% debt, 10% preferred, and 50% common equity. The interest rateon new debt is 6.50%, the yield on the preferred is 6.00%, the costof retained earnings is 12.25%, and the tax rate is 40%. The firmwill not be issuing Before Tax Cost […]
QUESTION x.i5rong>4.5 (Problem 4-33) You are shopping for a car and read the following advertisement in the newspaper: Own a new Spitfire! No money down. Four annual payments of just $10,000.” You have shopped around and know that you can buy a Spitfire for cash for $32,500. What is the Annual Payment value $10,000 Number […]
QUESTION Please respond to the DQ with at least 150-200 words.1. What is a mutually exclusive project? How should managersrank mutually exclusive projects?2. What are three potential flaws with the regular paybackmethod?Does the discounted payback method correct all three flaws? 1. What is a mutually exclusive project? How should managersrank mutually exclusive projects? Mutually exclusive […]
QUESTION The firm has a ratio of long-term debt to total assets of 0.70 and a current ratio of 1.20. Current liabilites are $850, sales are $4310, profit margin is 9.5 percent and ROE is 21.5 percent. How do I find the net fixed assets? Current Ratio = Current Assets/ Current Liabilities 1.20 = Current […]
QUESTION Please help. Need by 3/30.Compute the present value of $100 cash flow for the followingcombinations of discout rates and times_r=8%, t=yearsr=8%, t=20 yrsr=4%, t=10yearsr=4%, t=20yearsCompute future value of $100 cashflow for the same combinations of rates and times asabove. A. Present value of $ 100 in the following combinations. 1. r = 8% , […]
QUESTION 2. Determine theamount of money that needs to be deposited 5 years from now towithdraw $6,000 per year for 7 years beginning 10 years from now ifthe interest rate is 8% per year. Annual Withdrawl amount $6,000.00 Number of years to withdraw the amount 7 years Interest rate 8% per year Calculating Present ValueAnnuity […]
QUESTION 8-3. (Problem 8-24) The following table summarizes theyields to maturity on several one-year, zero-couponsecurities:SecurityYield %Treasury3.1AAA Corporate3.2BBB Corporate4.2B Corporate4.9a. What is the price (expressed as a percentage of theface value) of a one-year, zero-couponcorporat (a) Face Value (or) Par value of bond (F) = $1000 Number of Years toMaturity(t) = 1 year Coupon Rate (C) […]
