Calculate the price of a 10 percent coupon bond with eight years to maturity, given an appropriate discount rate of 12 percent, using both annual and semiannual discounting.

Victor is spending HKD300,000 per year and is quite satisfied with the present living lifestyle and standard. He is now 38 and plans to retire at age 60. He believes he can live up to age 85. He wants to keep 80% of the current living lifestyle and standard after retirement. Victor would like all the money for retirement to be ready when he retires. He also would like the retirement money for spending in a year to be ready at the beginning of every year. He plans to start saving for the retirement reserve with an equity unit trust fund of 10% annual rate of return. Average expected annual rate of return during his retirement period is 6%. Assume the average long term inflation is 4% p.a.

a. What is the required annual expenditure at the time when Victor retires at age 60?

b. What is the total amount of money required for 25 years after Victor’s retirement? (at the beginning of age 60)

c. How much should Victor save at the beginning of each month from now on until the age of 60 in order to meet the required amount at (c)?

A company is analyzing two mutually exclusive projects, S and L, with the following cash flows:

The company's WACC is 9.0%. What is the IRR of the better project? (Hint: The better project may or may not be the one with the higher IRR.) Round your answer to two decimal places.

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I need detailed long answer, more than 1 page, with references.

True/ False - An unusually low stock price in management's eyes encourages management to take the company private in a management buyout

Identify an instance where management took a company private based on a low stock price valuation? Did the company remain private, and if so, why did it remain in private hands?

Solve the following options employing the Black-Scholes model:

A: European call option on XYZ: stock value = $13. Strike price = $12, r = 6%. strand deviation = 20%. T = 6 months, 1st dividend $1 in 2 months, 2nd dividend of $1 in 5 months.

B: American call option for XYZ (Black's Approximation).

In time 0, an investor takes a calendar spread by selling two-year European call option and buying three-year European call option. These two options have the same strike price of $80 and are for the same stock that pays no dividends. The two-year option sells for $5 and the three-year option sells for $7. Two years later, the stock price turns out to be $90. The risk-free rate is 2% per annum. What is the minimum of the profit from this strategy? (We assume that we sell the longer-term option in year two)

Six years ago the Templeton Company issued 20-year bonds with a 15% annual coupon rate at their $1,000 par value. The bonds had a 9% call premium, with 5 years of call protection. Today Templeton called the bonds. Compute the realized rate of return for an investor who purchased the bonds when they were issued and held them until they were called. Round your answer to two decimal places.

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Please answer E-J

Hastings Corporation is interested in acquiring Vandell Corporation. Vandell has 1.5 million shares outstanding and a target capital structure consisting of 30% debt; its beta is 1.45 (given its target capital structure). Vandell has $8.16 million in debt that trades at par and pays a 7.6% interest rate. Vandell’s free cash flow (FCF₀) is $2 million per year and is expected to grow at a constant rate of 6% a year. Vandell pays a 30% combined federal-plus-state tax rate, the same rate paid by Hastings. The risk-free rate of interest is 5%, and the market risk premium is 6%. Hasting’s first step is to estimate the current intrinsic value of Vandell.

1. What is Vandell’s cost of equity? Do not round intermediate calculations. Round your answer to two decimal places.

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2. What is its weighted average cost of capital? Do not round intermediate calculations. Round your answer to two decimal places.

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3. What is Vandell’s intrinsic value of operations? (Hint: Use the free cash flow corporate valuation model.) Enter your answer in millions. For example, an answer of $1.23 million should be entered as 1.23, not 1,230,000. Do not round intermediate calculations. Round your answer to two decimal places.

   $   million

4. Based on this analysis, what is the minimum stock price that Vandell’s shareholders should accept? Do not round intermediate calculations. Round your answer to the nearest cent.

   $   / share

The Gorman Group issued $980,000 of 9% bonds on June 30, 2018, for $1,076,985. The bonds were dated on June 30 and mature on June 30, 2038 (20 years). The market yield for bonds of similar risk and maturity is 8%. Interest is paid semiannually on December 31 and June 30.

Complete the below table to record the company's journal entry. (Round intermediate calculations and final answers to the nearest whole dollar. Enter interest rate to 1 decimal place. (i.e. 0.123 should be entered as 12.3).)

Required: Complete the below table to record the company's journal entry.

1. to 3. Prepare the journal entry to record their issuance by The Gorman Group on June 30, 2018, interest on December 31, 2018 and interest on June 30, 2019 (at the effective rate).

a) What relationship does the agency theory examine in a firm? What is/are the associated problem/costs of agency theory that would arise and affect the value of a firm? Why is it more important in a public corporation than in a private corporation?

b) “The higher the standard deviation, the lower the risk premium should be”? Do you agree? Explain based on systematic risk principle under CAPM.

Your boss know wants you to price some call options. Explain to your boss the relative benefits and defects of each of the pricing models below:

1. Pricing using Put-Call Parity
2. Pricing using the Binomial model
3. Pricing using the Black-Scholes-Merton model

The Butler-Perkins Company (BPC) must decide between two mutually exclusive projects. Each costs $7,000 and has an expected life of 3 years. Annual project cash flows begin 1 year after the initial investment and are subject to the following probability distributions:

BPC has decided to evaluate the riskier project at 11% and the less-risky project at 10%.

1. What is each project's expected annual cash flow? Round your answers to two decimal places.

   Project A $

   Project B $

   Project B's standard deviation (σ_B) is $5,776 and its coefficient of variation (CV_B) is 0.74. What are the values of (σ_A) and (CV_A)? Round your answer to two decimal places.

   σ_A = $

   CV_A =

plase help!

Thank you!