Consider a new product or service that has recently become available for purchase by consumers. To what extent did this product or service possess the “screening” characteristics that are described in the chapter (adding value, providing competitive advantage, etc.)?

The yield to maturity on one-year zero-coupon bonds is currently 7 percent; the YTM on two-year zeroes is 8 percent. The federal government plans to issue a two-year-maturity coupon bond, paying coupons once per year with a coupon rate of 9 percent. The face value of the bond is $100.

1. At what price will the bond sell?
2. What will be the yield to maturity on the bond?
3. If the expectations theory of the yield curve is correct, what is the market expectation of the price that the bond will sell for next year?
4. If the liquidity preference theory is correct and you believe that the liquidity premium is 1 percent, what is the market expectation of the price that the bond will sell for next year?

Please make a sales forecast for an all in one washer and dryer that costs $1020 I have no idea how to do this. Im supposed to create my own numbers because I "made" the product. You can make the numbers up just label it please. It says to put it in a table

The expected pretax return on three stocks is divided between dividends and capital gains in the following way: Stock Expected Dividend Expected Capital Gain A $0 $10 B 5 5 C 10 0 a. If each stock is priced at $200, what are the expected net percentage returns on each stock to (i) a pension fund that does not pay taxes, (ii) a corporation paying tax at 35% (the effective tax rate on dividends received by corporations is 10.5%), and (iii) an individual with an effective tax rate of 15% on dividends and 10% on capital gains? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) b. Suppose that investors pay 50% tax on dividends and 20% tax on capital gains. If stocks are priced to yield an after-tax return of 8%, what would A, B, and C each sell for? Assume the expected dividend is a level perpetuity. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Makai Metals Corporation has 10 million shares of common stock outstanding and 440,000 4 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $48 per share and has a beta of 1.5, and the bonds have 10 years to maturity and sell for 115 percent of par. The market risk premium is 8.8 percent, T-bills are yielding 5 percent, and the company’s tax rate is 40 percent.

a. What is the firm's market value capital structure? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616.)

b. If the company is evaluating a new investment project that has the same risk as the firm's typical project, what rate should the firm use to discount the project's cash flows? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Discount rate              %

One year​ ago, your company purchased a machine used in manufacturing for $95,000.You have learned that a new machine is available that offers many advantages and that you can purchase it for$160,000 today. The CCA rate applicable to both machines is 20%​; neither machine will have any​ long-term salvage value. You expect that the new machine will produce earnings before​ interest, taxes,​ depreciation, and amortization (EBITDA​) of $55,000 per year for the next ten years. The current machine is expected to produce EBITDA of $25,000 per year. All other expenses of the two machines are identical. The market value today of the current machine is $50,000.Your​ company's tax rate is 38%​, and the opportunity cost of capital for this type of equipment is 11%.

Should your company replace its​ year-old machine?

Stock Valuation and Analysis :

Vivint Solar, Inc. (VSLR)

NYSE - Nasdaq Real Time Price. Currency in USD

Assignment Content

Top of Form

Resource

• Stock Valuation and Analysis,Stock Valuation and Analysis Grading Guide

Purpose of Assignment

The purpose of this assignment is to allow students the opportunity to research a Fortune 500 company stock using the popular online research tool, Yahoo Finance. The tool allows the student to review analyst reports and other key financial information necessary to evaluate the stock value and make an educated decision on whether to invest.

Assignment Steps

Select a Fortune 500 company from one of the following industries:

• Pharmaceutical
• Energy
• Retail
• Automotive
• Computer Hardware
• Manufacturing
• Mining

Access Yahoo Finance and enter the company name.

Review the financial information and statistics provided for the stock you selected and answer the following:

• What is the ticker symbol of the company you chose?
• What is the Current Stock Price?
• What is the Market Cap for the stock you chose?
• What is the Price to Earnings Ratio?
• What is the Dividend and Yield?
• What is the Enterprise Value?
• What is the Beta?
• Was there a Stock Split, and if so, when?
• What was the closing stock price for the last 5 days?
• What was the 52 Week High for this stock?
• What is the Book Value per Share?
• What type of rating are analysts recommending (i.e. buy, hold, etc.)?
• What is the target price analysts are predicting for this stock?
• What is the analyst's average revenue estimate for next year?
• What are some of the significant news items and press releases made by the company over the last year?

Explain in 700 words why you would or would not recommend investing in this stock.

• Describe the relationship between the value of the stock and the price to earnings ratio.
• What information does the Market Capitalization (Market Cap) and Beta provide to the investor?

Submit your assignment.

Judy’s Rugs, Inc. needs an additional $50,000 to support an expansion of fixed assets. A banker has offered to loan the money at 14 percent interest but also requires a compensating balance of 25 percent of the loan amount. What is the effective rate of the one year loan?

You have been asked by the president of the Farr Construction Company to evaluate the proposed acquisition of a new earth mover. The mover’s basic price is $200,000, and it would cost another $30,000 to modify it for special use. Assume that the mover falls into the MACRS 5-year class, it would be sold after 4 years for $60,000, and it would require an increase in net operating working capital (spare parts inventory) of $10,000. The earth mover would have no effect on revenues, but it is expected to save the firm $50,000 per year in before-tax operating costs, mainly labor. The firm’s marginal federal-plus-state tax rate is 40 percent and the project’s cost of capital is 10 percent. Evaluate the project using the NPV rule and the IRR rule.

The real risk-free rate (r*) is 2.8% and is expected to remain constant. Inflation is expected to be 7% per year for each of the next three years and 6% thereafter.

The maturity risk premium (MRP) is determined from the formula: 0.1(t – 1)%, where t is the security’s maturity. The liquidity premium (LP) on all Sacramone Products Co.’s bonds is 0.55%. The following table shows the current relationship between bond ratings and default risk premiums (DRP):

Sacramone Products Co. issues 13-year, AA-rated bonds. What is the yield on one of these bonds? Disregard cross-product terms; that is, if averaging is required, use the arithmetic average.

11.58%

11.03%

10.38%

5.35%

Based on your understanding of the determinants of interest rates, if everything else remains the same, which of the following will be true?

The yield on U.S. Treasury securities always remains static.

Higher inflation expectations increase the nominal interest rate demanded by investors.

George Taylor, owner of a toy manufacturing company, is considering the addition of a new product line. Marketing research shows that gorilla action figures will be the next fad for the six-to ten-year-old age group. This new product line of gorilla-like action figures and their high-tech vehicles will be called Go-Rilla. George estimates that the most likely yearly incremental cash flow will be $26,000. There is some uncertainty about this value because George’s company has never before made a product similar to the Go-Rilla. He has estimated the potential cash flows for the new product line along with their associated probabilities of occurrence. His estimates follow

a. Calculate the standard deviation of the estimated cash flows.

b. Calculate the coefficient of variation.

c. If George’s other product lines have an average coefficient of variation of 12 percent, what can you say about the risk of the Go-Rilla Project relative to the average risk of the other product lines

You have a credit card on which you owe a balance of $3,000. The card carries an interest rate of 22% (APR), compounded monthly. You decide to cut up the card, and pay it off by paying the minimum payment due each month, which is a constant $60 (HINT: The amount you owe the credit card company today is a loan).

Suppose you enter into a 9-month long forward contract on a non-dividend-paying stock when the stock price is S₀ = $125 and the risk-free rate is 2.0% per annum with continuous compounding.

(a) What are the forward price (F₀) and the initial value of the forward contract?

(b) Three months later, the price of the stock (S₀) is $112, and the risk-free remains 2.0%. What are the forward price (F₀) and the value of the forward contract?

(c) Another month later (4 months from today), the risk-free rate increases to 2.25% while the stock price stays $112. What are the forward price and the value now?

(d) Suppose now that another month later (5 months from today) the risk-free rate stays 2.25%, but the stock price goes up to $130. How much could you sell your forward contract for?