Given the following information quoted from yahoo.Finance​ (or Wall Street journal bond​ section) for today and given in the following table.

What is the price of this bond​ (assume a 1,000 par value​)? What is the current yield of this​ bond?   

​Hint: Make sure to round all intermediate calculations to at least six decimal places. Final answer to be rounded to two decimals.

What is the price in dollars of the August 2003 ​bond? ​(Do not enter a​ $ sign. Use commas to separate thousands and use two decimals. Round to the nearest cent. For​ example, if the price you obtained is​ $1,187.659321 then enter ​1,187.66​)

What is the currrent yield of the August 2003 ​bond? ​(Round to two decimal places. You must enter answer in percentage denomination. For example if the answer you obtained is 0.05247 then enter 5.25​)

Book Name: Principles of Managerial Finance - 180 Day Option, 14th Edition
Lawrence J. Gitman

P1–2 Accrual income versus cash flow for a period  Thomas Book Sales, Inc., supplies textbooks to college and university bookstores. The books are shipped with a proviso that they must be paid for within 30 days but can be returned for a full refund credit within 90 days. In 2014, Thomas shipped and billed book titles totaling $760,000. Collections, net of return credits, during the year totaled $690,000. The company spent $300,000 acquiring the books that it shipped.

1. Using accrual accounting and the preceding values, show the firm’s net profit for the past year.
2. Using cash accounting and the preceding values, show the firm’s net cash flow for the past year.
3. Which of these statements is more useful to the financial manager? Why? (please provide me with a detailed calculation for my reference, thank you!)

Book Name: Principles of Managerial Finance - 180 Day Option, 14th Edition
Lawrence J. Gitman

P2–5 Interest versus dividend expense   Michaels Corporation expects earnings before interest and taxes to be $50,000 for the current period. Assuming an ordinary tax rate of 35%, compute the firm’s earnings after taxes and earnings available for common stockholders (earnings after taxes and preferred stock dividends, if any) under the following conditions:

1. The firm pays $12,000 in interest.
2. The firm pays $12,000 in preferred stock dividends.

Please provide me with a detailed calculation for my study purpose thank you!

1. An investment will return $1,000 in cash in each of years 4 and 5. You expect to earn 10%. Is the present value (PV) for this investment properly calculated by the expression: $1,000 (PV/A, 10%, 2) (PV/FV, 10%, 3)?

2. For the above investment, is the PV properly calculated by: $1,000 (PV/A, 10%, 2) (1/(1.1)² )?

3. For the above investment, is the PV also properly calculated by:  $1,000/(1.1)⁴+ $1,000/(1.1)⁵ ?

4. A company issues $100k worth of bonds to fund the construction of a new building. The bonds pay $7K per annually at the end of each year for the next 10 years. At the end of the 10^th year the company also pays the lender back the $100k:

a) What is the interest rate the company is paying on the bonds?

b) The moment after the $100k of bonds issues the company announces it has lost a big account. The $100k worth of bonds are trading on the open market. For this reason, their value drops from $100k to $81.6k. What is the interest rate the bonds are now paying?

7

A) Suppose you buy stock at a price of $82 per share. Three months later, you sell it for $88. You also received a dividend of $0.50 per share. What is your annualized return on this investment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

B) You just sold short 950 shares of Wetscope, Inc., a fledgling software firm, at $72 per share. You cover your short when the price hits $66.00 per share one year later. If the company paid $0.46 per share in dividends over this period, what is your rate of return on the investment? Assume an initial margin of 55 percent. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Rate of return:

6. Retirement Planning for Jennifer and Lennon.

Jenifer is an early bird for everything. She starts to contribute $1,000 to her own 401(K) plan right after she joined company A.E. Corp (at the age of 30). Jenifer's colleague, Lennon, is a late bird for everything. He decides to enjoy his life before he turns 45 and then contributes to his 401(K). Over a coffee break, he learns that Jenifer contributes $1,000 per month now. He figured that if he can contribute $2,000 every month starting from age 45 he would have contributed the same amount as Jenifer when they turn 60 years old (he thought they will both contribute a total of $360,000 = 1000 * 30 *12 also = 2000 *15 *12). In this way, he can lead a pretty decent life style before he turns 45 and have the same amount of retirement funds as Jenifer. After his quick calculation, he decides to persuade Jenifer to do the same. 1) If you were Jenifer, do you agree with Lennon? What seems to be the most important factor to determine the end balance in the retirement plan? 3) What other factors are also important with a 401(K) plan? 4) How can you guide your clients like Jennifer and Lennon to make sound financial decisions to optimize their retirement investments? What should you do differently?

1. Cash flow

Suppose you will need to invest 20,000 in a project. You won’t have any income for the first 4 years. Starting from year 5, you will receive 9,000 each year for the next 5 years. Your required rate of return is 10%. Would you take this project or not? Why?

Why is it important to consider the consequences of taxes when financing a new project? Can you think of a situation in your own personal finances where taxes might influence whether you choose to make a purchase? (approximately 200 words)

When looking at the income statement for your firm, you notice that your Cost of Goods Sold was $1M in 2012, $1.2M in 2013 and $2M in 2014. How will you determine if there is an issue you should be worried about? What other types of financial statements might you look at to see if there is an issue and why? (at least 200 words)

Find the amount to which $500 will grow under each of these conditions:

1. 12% compounded annually for 9 years. Do not round intermediate calculations. Round your answer to the nearest cent.

   $  

2. 12% compounded semiannually for 9 years. Do not round intermediate calculations. Round your answer to the nearest cent.

   $  

3. 12% compounded quarterly for 9 years. Do not round intermediate calculations. Round your answer to the nearest cent.

   $  

4. 12% compounded monthly for 9 years. Do not round intermediate calculations. Round your answer to the nearest cent.

   $  

5. 12% compounded daily for 9 years. Assume 365-days in a year. Do not round intermediate calculations. Round your answer to the nearest cent.

   $  

6. Why does the observed pattern of FVs occur?

Find a news article that discusses ethics in finance. The article should be no more than 12 months old. Summarize the article and analyse the impact on the company

You work on a FX trading desk. A client calls and asks you the deposit rate you can guarantee them in the Malaysian Ringgit (MYR) currency for one year. You have the below information. What deposit rate can you offer the client as a guarantee you can secure them? Your main funding currency is USD. Answer in percentage points to the fourth decimal (e.g. 2.5000% is 2.5000).

USD/MYR Spot: 4.1090 USD/MYR

1-yr Forward FX: 4.1695 USD

1yr Interest Rate: 2.4400%

You have been given the following information for PattyCake’s Athletic Wear Corp. for the year 2018:

1. Net sales = $38,550,000.

2. Cost of goods sold = $22,150,000.

3. Other operating expenses = $5,700,000.

4. Addition to retained earnings = $1,203,500.

5. Dividends paid to preferred and common stockholders = $1,925,500.

6. Interest expense = $1,815,000.

7. The firm’s tax rate is 30 percent.

In 2019:

8. Net sales are expected to increase by $9.55 million.

9. Cost of goods sold is expected to be 60 percent of net sales.

10. Depreciation and other operating expenses are expected to be the same as in 2018.

11. Interest expense is expected to be $2,090,000.

12. The tax rate is expected to be 30 percent of EBT.

13. Dividends paid to preferred and common stockholders will not change.

Calculate the addition to retained earnings expected in 2019.

You are asked to evaluate the following two projects for the Norton corporation. Use a discount rate of 12 percent. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods.

  
a. Calculate the profitability index for project X. (Do not round intermediate calculations and round your answer to 2 decimal places.)

  
b. Calculate the profitability index for project Y. (Do not round intermediate calculations and round your answer to 2 decimal places.)

c. Which project would you select based on the profitability index?

• Project X

• Project Y