What is the Macaulay duration of a bond with a coupon of 6.2 percent, five years to maturity, and a current price of $1,064.70? What is the modified duration? (Do not round intermediate calculations. Round your answers to 3 decimal places.)

Warrington LTD makes and sells one product. Unit costs for direct materials and direct labor are $24 and $36. In March, 20K units were produced, and total overhead was $214K. In April, 26K units were produced, and total overhead was $259K. The selling price of the unit is $100.

1. Compute the total fixed overhead of the company

2. Compute the contribution margin ratio

3. Compute the company's break-even point in sales dollars

4. Compute the number of units must be sold to have net income of $122K

Thunderhorse Oil is a U.S. oil company. Its current cost of debt is

7.307.30​%,

and the​ 10-year U.S. Treasury​ yield, the proxy for the​ risk-free rate of​ interest, is

3.103.10​%.

The expected return on the market portfolio is

8.708.70​%.

The​ company's effective tax rate is

3535​%.

Its optimal capital structure is

8080​%

debt and

2020​%

equity.a. If​ Thunderhorse's beta is estimated at

0.900.90​,

what is​ Thunderhorse's weighted average cost of​ capital?b. If​ Thunderhorse's beta is estimated at

0.600.60​,

significantly lower because of the continuing profit prospects in the global energy​ sector, what is​ Thunderhorse's weighted average cost of​ capital?

a. If​ Thunderhorse's beta is estimated at

0.900.90​,

what is​ Thunderhorse's weighted average cost of​ capital?

1.)Turnbull Co. is considering a project that requires an initial investment of $270,000. The firm will raise the $270,000 in capital by issuing $100,000 of debt at a before-tax cost of 10.2%, $30,000 of preferred stock at a cost of 11.4%, and $140,000 of equity at a cost of 14.3%. The firm faces a tax rate of 40%. What will be the WACC for this project?      (Note: Round your intermediate calculations to three decimal places.)

2.) Consider the case of Kuhn Co.

Kuhn Co. is considering a new project that will require an initial investment of $20 million. It has a target capital structure of 58% debt, 6% preferred stock, and 36% common equity. Kuhn has noncallable bonds outstanding that mature in five years with a face value of $1,000, an annual coupon rate of 10%, and a market price of $1,050.76. The yield on the company’s current bonds is a good approximation of the yield on any new bonds that it issues. The company can sell shares of preferred stock that pay an annual dividend of $8 at a price of $95.70 per share.

Kuhn does not have any retained earnings available to finance this project, so the firm will have to issue new common stock to help fund it. Its common stock is currently selling for $22.35 per share, and it is expected to pay a dividend of $2.78 at the end of next year. Flotation costs will represent 8% of the funds raised by issuing new common stock. The company is projected to grow at a constant rate of 8.7%, and they face a tax rate of 40%. What will be the WACC for this project?      (Note: Round your intermediate calculations to two decimal places.)

Compare the balance sheets (composition of assets and liabilities) of banks and Money Market Mutual Funds (MMMFs). How are they similar and how are they different?

(Please show the formulas you used in excel i cant get the right numbers :// if you could post one with numbers then show the formulas that would be awesome!!)

NOK Plastics is considering the acquisition of a new plastic injection-molding machine to make a line of plastic fittings. The cost of the machine and dies is $125,000. Shipping and installation is another $8,000. NOK estimates it will need a $10,000 investment in net working capital initially, which will be recovered at the end of the life of the equipment. Sales of the new plastic fittings are expected to be $350,000 annually. Cost of goods sold are expected to be 50% of sales. Additional operating expenses are projected to be $115,000 per year over the machine’s expected 5-year useful life. The machine will depreciated using a 5-year MACRS class life. The equipment will be sold at the end of its useful life (5 years) for $35,000. The tax rate is 25% and the relevant discount rate is 15%. Calculate the net present value (NPV), internal rate of return (IRR), payback period (PB), and profitability index (PI) and state whether the project should be accepted.

Cosmo, a Japanese exporter, wishes to hedge its $15 million in dollar receivables coming due in 60 days. In order to reduce its net cost of hedging to zero, however, Cosmo sells a 60-day dollar call option for $15 million with a strike price of ¥98/$ and uses the premium of $314,000 to buy a 60-day $15 million put option at a strike price of ¥90/$.a.Graph the payoff on Cosmo's hedged position over the range ¥80/$-¥110/$. What risk is Cosmo subjecting itself to with this option hedge?

All of the following are hedges against exchange-rate risk EXCEPT

You are considering making a movie. The movie is expected to cost $ 10.9 million up front and take a year to produce. After​ that, it is expected to make $ 4.5 million in the year it is released and $ 2.1 million for the following four years. What is the payback period of this​ investment? If you require a payback period of two​ years, will you make the​ movie? Does the movie have positive NPV if the cost of capital is 10.7%​?

B.F. Pierce & Company is considering changing its capital structure. The company currently has no debt and no preferred stock, but it would like to add some debt to take advantage of low interest rates and the tax shield. Its investment banker has indicated that the pre-tax cost of debt under various possible capital structures would be as follows:

The company uses the CAPM to estimate its cost of common equity. Currently the risk-free rate is 5%, the market risk premium is 6%, and the company’s tax rate is 35%. The company estimates that its beta now (which is unlevered because it currently has no debt) is 0.8. Based on this information, what is the firm’s weighted average cost of capital at its optimal capital structure?

Group of answer choices

8.66%

9.07%

9.21%

8.83%

HSAs (Health saving Account) and FSAs (Flexible spending Account ) which is better? and why ?

discount rate is 10%

1.A stream of cash flows that pays $100 every year for 10 year. The first cash flow is received at t=3 and you will receive additional $1000 at the end of the 12 years.,What is the PV at time zero? what is the FV at time 12?

2.A stream of cash flows that pays $100 every year for 10 year. The first cash flow is received at t=3.What is the PV at time zero? what is the FV at time 12?

3.A stream of cash flows that pays $100 every year for 10 year. The first cash flow is received at t=1 and you will receive additional $1000 at t=5.What is the PV at time zero? what is the FV at time 10

4.A stream of cash flows that pays $100 every year for 10 year. The first cash flow is received at t=1 .What is the PV at time zero? What is the FV at time 10?

5.A stream of cash flows that pays $100 every year for 10 year. The first cash flow is received at t=1 and you will receive additional $1000 at the end of the 10 years.,What is the PV at time zero? what is the FV at time 12?

An investment has an initial cash outflow of $210,000 for fixed assets that will be depreciated straight-line to zero over the 4-year life of the project. The sales price is $19.95 a unit, annual fixed costs are $237,000, the variable costs per unit are $8.87, and the tax rate is 23 percent. At what annual sales quantity will the investment break even on an accounting basis?

Select one:

a. 29,889 units

b. 24,092 units

c. 32,088 units

d. 30,135 units

e. 26,129 units

Scenario Modeler’s prospective stock has a 15% chance of producing a 65% return, a 25% chance of producing a 22% return, a 40% chance of producing a 9% return, and a 20% chance of producing a –24% return. What is the firm’s coefficient of variation of return?

Deep Value, Inc.’s annual stock returns for the last ten years are: –5%, 15%, 11%, 18%, –8%, 9%, 16%, –3%, 3%, and 35%. The Market Index’s annual returns for the same ten years are: 10%, 22%, 9%, 13%, –7%, 8%, 15%, –13%, –12%, and 18%. What is Deep Value’s beta coefficient?