QUESTION 4.Calculate the value of a non-callable 10-year bond with a coupon rate of 6% compounded semi-annually if you expect 8% yield on the bond. Assume a $1,000 face value for the bond.A) $864.10B) $918.89C) $1,137.11D) $828.81E) $1,085.305.Calculate the spread to treasuries on a 30 year corporate bond wi 4) According to the given information,FV […]
QUESTION A pawn shop will lend you $100 for 10 days at a cost of $5 interest. What is the effective rate of interest? Lending Amount = $100 Lending period = 10 days Interest rate = 5% Effective rate of interest =? Effective Interest Rate = (1 Quoted rate / m) m 1 m = […]
QUESTION Allied Laboratories is combining some of its most common tests into one price packages. One such package will contain three tests that have the following variable costs:Test A Test B Test CDisposable syringe $3.00 $3.00 $3.00Blood vial 0.50 0.50 0.50Forms 0.15 0.15 0.15Reagents 0.80 0.60 1.20Sterile a. Test A Test B Test C Disposable […]
QUESTION Total sales of 300,000net income of 20,000year end assets were 200,000firm debt to total assets ratio was 40%Using the Dupont equation, what is ROE?Can you help solve? Thanks in advance. Total Sales = $300,000Net Income = $20,000Assets (ending balance) = $200,000Debt to Total Assets Ratio = 40% Using Du Pont Identity: ROE = [Profit […]
QUESTION 4. Which one of the following methods determines the amount of the change a proposed project will have on the value of a firm?net present valuediscounted paybackinternal rate of returnprofitability indexpayback Net Present Value and Profitability Index methods would determine the amount of the change a proposed project will have on the value of […]
QUESTION In 2008 Pandora, Inc, makes a rights issue at a subscription price of $5 a share. One new share can be purchased for every four shares held. Before the issue there were 10 million shares outstanding and the share price was $6.a. what is the total amount of new money raised?b. What is the […]
QUESTION Suppose you inherited $630,000 and invested it at 8.25% per year. How much could you withdraw at the end of each of the next 20 years? (Points : 10)$49,023.94$65,365.26$81,052.92$79,745.61$81,706.57 I did this with Excel. If you withdraw $65,365.25 at the end of each year, you could live off the money for 20 years and […]
QUESTION what are some factors a finance manager considers in choosing an appropriate discount rate.? thank you The discount rate is an interest rate used to determine how much future cash flows are worth today. Discount rates are used in valuation analysis when cash flows are expected to receive over long-periods of time. The discount […]
QUESTION Annas, Inc. just purchased some equipment at a cost of $20,000. What is the accumulated depreciation of this equipment after year 3 if the company applies a 3 year MACRS depreciation schedule?3 Year MACRSYear 1 2 3 4Depreciation % 33.33% 44.45% 14.81% 7.41%Answera.$1,482b.$15,720c.$18,518d.$2,962 Calculation of depreciton expense for three years as follows. Year Asset […]
QUESTION A pro forma financial statement is one that:Answera.is expressed as a percentage of the total sales of the firmb.projects future years operationsc.reflects the past and current operations of the firmd.is expressed relative to a chosen base years financial statement A pro forma financial statement is one that: Answer a. is expressed as a percentage […]
