You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2016. The bonds have a par value of $2,000.

What price would you expect to pay for the Kenny Corp. bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Price            $

What is the bond’s current yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Current yield       6.09      %

Problem 9-8
Additional Funds Needed

Stevens Textile's 2012 financial statements are shown below:

Balance Sheet as of December 31, 2012 (Thousands of Dollars)

Income Statement for December 31, 2012 (Thousands of Dollars)

A. Suppose 2013 sales are projected to increase by 20% over 2012 sales. Use the forecasted financial statement method to forecast a balance sheet and income statement for December 31, 2013. The interest rate on all debt is 9%, and cash earns no interest income. Assume that all additional debt is added at the end of the year, which means that you should base the forecasted interest expense on the balance of debt at the beginning of the year. Use the forecasted income statement to determine the addition to retained earnings. Assume that the company was operating at full capacity in 2012, that it cannot sell off any of its fixed assets, and that any required financing will be borrowed as notes payable. Also, assume that assets, spontaneous liabilities, and operating costs are expected to increase by the same percentage as sales. Determine the additional funds needed. Round your answers to the nearest dollar. Do not round intermediate calculations.

B. What is the resulting total forecasted amount of notes payable? Round your answer to the nearest dollar. Do not round intermediate calculations.
Notes payable     $  

C. In your answers to Parts a and b, you should not have charged any interest on the additional debt added during 2013 because it was assumed that the new debt was added at the end of the year. But now suppose that the new debt is added throughout the year. Don't do any calculations, but how would this change the answers to parts a and b?

Assume that 8 years ago you borrowed $200,000 as a 30-year mortgage on your home with an annual percentage rate of 7% at monthly payments (12 payments per year). You plan to refinance this mortgage with a new 30 year low at the current rate of 5%.

a. What is the monthly payment of the original mortgage.

b. How much do you still owe of the original principal after seven years? (Hint: for a loan that is amortized, like a mortgage, the amount you still owe at any time is the present value of the remaining payments that have not yet been made).

c. How much money can you borrow now at the new interest rate if you keep the same monthly payments as the original mortgage?

Hello,
i need a 1.5 Pages report about southwest airlines, the paper should discuss 6 ratios of the company, explaining what these numbers are telling us, we are not required to do calculation or show how we solved them, just mention 6 ratios and explain them, and how investors are affected and what information it gave us to improve our business.

**the ratios could be found in any general website.

Martin Enterprises needs someone to supply it with 136,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you’ve decided to bid on the contract. It will cost you $965,000 to install the equipment necessary to start production; you’ll depreciate this cost straight-line to zero over the project’s life. You estimate that, in five years, this equipment can be salvaged for $118,000. Your fixed production costs will be $540,000 per year, and your variable production costs should be $18.45 per carton. You also need an initial investment in net working capital of $112,000. Assume your tax rate is 21 percent and you require a return of 11 percent on your investment. a. Assuming that the price per carton is $28.20, what is the NPV of this project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. Assuming that the price per carton is $28.20, find the quantity of cartons per year you can supply and still break even. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c. Assuming that the price per carton is $28.20, find the highest level of fixed costs you could afford each year and still break even.

what are characteristics of long operating inventory cycles and how does that effect inventory turnover?

Your company has been approached to bid on a contract to sell 5,500 voice recognition (VR) computer keyboards a year for four years. Due to technological improvements, beyond that time they will be outdated and no sales will be possible. The equipment necessary for the production will cost $4.5 million and will be depreciated on a straight-line basis to a zero salvage value. Production will require an investment in net working capital of $465,000 to be returned at the end of the project, and the equipment can be sold for $445,000 at the end of production. Fixed costs are $640,000 per year, and variable costs are $89 per unit. In addition to the contract, you feel your company can sell 14,200, 16,300, 19,300, and 11,800 additional units to companies in other countries over the next four years, respectively, at a price of $198. This price is fixed. The tax rate is 24 percent, and the required return is 10 percent. Additionally, the president of the company will undertake the project only if it has an NPV of $125,000. What bid price should you set for the contract?

What are the 5 C’s of Credit and their purpose.

5.15

The YTM on a bond is the interest rate you earn on your investment if interest rates don't change. If you actually sell the bond before it matures, your realized return is known as the holding period yield (HPY).

a. Suppose that today you buy a bond with an annual coupon rate of 10 percent for $1,190. The bond has 18 years to maturity. What rate of return do you expect to earn on your investment? Assume a par value of $1,000.

b-1. Two years from now, the YTM on your bond has declined by 1 percent, and you decide to sell. What price will your bond sell for?

b-2. What is the HPY on your investment?

The table contains the Sales estimates for the next year. The Purchases are 22% of Sales. Purchases are paid in the following month. The administrative expenses of $5,777 are paid each month Tax expenses of $70,307 are paid in March, June, September, and December each year. Rent expenses of $20,971 are paid in June and December. What is the cash outflow for December? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.

Jan- 47,538

Feb- 47, 859

Mar- 53, 620

Apr- 51, 519

May- 47,538

June- 47,859

July- 51,519

Aug- 53, 620

Sep- 47,538

Oct- 53,620

Nov- 47, 859

Dec- 51, 519

Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 11 percent, and that the maximum allowable payback and discounted payback statistics for your company are 3 and 3.5 years, respectively.

Use the NPV decision rule to evaluate this project. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

We discussed three different theories of yield curve determination in class. Identify and explain each type.

8. You want to buy a car, and a local bank will lend you $25,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 11% with interest paid monthly. What will be the monthly loan payment? What will be the loan's EAR? Do not round intermediate calculations. Round your answer for the monthly loan payment to the nearest cent and for EAR to two decimal places.

Monthly loan payment: $  

EAR:   %

10. Find the interest rates earned on each of the following. Round your answers to the nearest whole number.

1. You borrow $74,000 and promise to pay back $523,603 at the end of 14 years.

     %

2. You borrow $9,000 and promise to make payments of $2,684.80 at the end of each year for 5 years.

     %

12. Find the present values of these ordinary annuities. Discounting occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent.

1. $400 per year for 14 years at 14%.

   $  

2. $200 per year for 7 years at 7%.

   $  

3. $800 per year for 7 years at 0%.

   $  

4. Rework previous parts assuming they are annuities due.

   Present value of $400 per year for 14 years at 14%: $  

   Present value of $200 per year for 7 years at 7%: $  

   Present value of $800 per year for 7 years at 0%: $  

13. What is the present value of a $900 perpetuity if the interest rate is 3%? If interest rates doubled to 6%, what would its present value be? Round your answers to the nearest cent.

Present value at 3%: $  

Present value at 6%: $  

14. You borrow $195,000; the annual loan payments are $18,980.59 for 30 years. What interest rate are you being charged? Round your answer to the nearest whole number.

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