Your company currently has $ 1,000 ​par, 6.75 % coupon bonds with 10 years to maturity and a price of $ 1,076. If you want to issue new​ 10-year coupon bonds at​ par, what coupon rate do you need to​ set? Assume that for both​ bonds, the next coupon payment is due in exactly six months.

Gateway Tours is choosing between two bus models. One is more expensive to purchase and maintain but lasts much longer than the other.​ Gateway's discount rate is

10.7 %10.7%.

The company plans to continue with one of the two models for the foreseeable future. Based on the costs of each shown​ below, which should it​ choose? ​ (Note: dollar amounts are in​ thousands.)

Based on the costs of each​ model, which should it​ choose?  ​(Select the best choice​ below.)

A.

Gateway Tours should choose Old Reliable because the equivalent annual annuity of its costs is smaller.

B.

Gateway Tours should choose Short and Sweet because the equivalent annual annuity of its costs is smaller.

C.

Gateway Tours should choose Short and Sweet because the NPV of its costs is smaller.

D.

Gateway Tours should choose Old Reliable because it lasts longer.

A buyer can afford no more than $500 per month in payments. The most favorable loan available in the market is a 30 year loan at 9%. What is the maximum affordable house with a 20% down payment?

Professor Wendy Smith has been offered the following​ opportunity: A law firm would like to retain her for an upfront payment of

$ 49 comma 000$49,000.

In​ return, for the next year the firm would have access to eight hours of her time every month. As an alternative payment​ arrangement, the firm would pay Professor​ Smith's hourly rate for the eight hours each month. ​ Smith's rate is

$ 540$540

per hour and her opportunity cost of capital is

15 %15%

per year. What does the IRR rule advise regarding the payment​ arrangement? (Hint: Find the monthly rate that will yield an effective annual rate of

15 %15%​.)

What about the NPV​ rule?

You are choosing between two projects. The cash flows for the projects are given in the following table​ ($ million):

a. What are the IRRs of the two​ projects?

b. If your discount rate is

5.2 %5.2%​,

what are the

NPVs

of the two​ projects?

c. Why do IRR and NPV rank the two projects​ differently?

a.  A bond that has a ​$1 comma 000 par value​ (face value) and a contract or coupon interest rate of 10.5 percent. Interest payments are ​$52.50 and are paid semiannually. The bonds have a current market value of ​$1 comma 122 and will mature in 10 years. The​ firm's marginal tax rate is 34 percet.

b.  A new common stock issue that paid a ​$1.83 dividend last year. The​ firm's dividends are expected to continue to grow at 7.4 percent per​ year, forever. The price of the​ firm's common stock is now ​$27.35.

c.  A preferred stock that sells for ​$122​, pays a dividend of 8.1 ​percent, and has a​ $100 par value.  

d.  A bond selling to yield 11.7 percent where the​ firm's tax rate is 34 percent.

Your factory has been offered a contract to produce a part for a new printer. The contract would last for

33

years and your cash flows from the contract would be

$ 5.24$5.24

million per year. Your upfront setup costs to be ready to produce the part would be

$ 7.82$7.82

million. Your discount rate for this contract is

7.6 %7.6%.

a. What does the NPV rule say you should​ do?

b. If you take the​ contract, what will be the change in the value of your​ firm?

Rate the three most important concepts of Working Capital, Financial budgeting, and The Cash Budget in order of importance (one being the most important; three, the least). Provide a rationale for your ratings.

Hi, can you answer this question in more detail?

Subject: Insurance Practices

Q4：

There are two major types of risk management tools, namely, risk control and risk financing. Discuss the details of these tools with examples.

Compare a value firm with a growth firm? What are some metrics that one can normally use to characterize firms in the value or growth category? How does valuation of a growth company compare to that of a value company? Can a growth company become a value company? How? Provide the name of a company that you think used to be a growth company that is now a value firm. Compare how your valuation of a growing company would differ from that of a declining company. How does the macro economy affect your valuation of each (inflation, economic growth, value of the dollar)?

A $16,000 bond redeemable at par on July 27, 2012 is purchased on October 19, 2002. Interest is 6.9% payable semi-annually and the yield is 7.3% compounded semi-annually.

a. What is the cash price?

b. What is the accrued interest?

c. What is the quoted price?

What is EBITDA? How does it compare to operating income? Which is likely to be the largest? Identify and discuss several liquidity ratios? Current ratio, quick ratio? Can the quick ratio ever be greater than the current ratio? Profitability ratios? Gross margin?

Compare and contrast the valuation of a business using discounted cash flow (DCF) and relative valuation (multiples). What elements do you need to know in order to proceed with each methodology? In what cases would you advise against using DCF? Relative valuation? How would a Federal Reserve interest rate increase affect your valuation? Suppose you decided to use DCB. Discuss how you would estimate the risk premium for the company.

Anderson Corp just issued a stock dividend of$2.00 yesterday. The company plans on increasing the dividend by 6% per year for the next 5 years. After which, the dividend will grow at 3% forever. The required rate of return is 10%.

A) Calculate the current price of the stock

B)Calculate what the price of the stock should be in 1 year

C) Calculate the Dividend yield and capital gains yield during the first year.

True or False:

This question has 5 parts:

a) the slope coefficient computed by regressing a particular stock's historical returns on the s&p 500 returns is called beta,the stock's beta with respect to the s&p 500 index; beta is important in finding variance-minimizing hedged portfolis.

b)a swap provides a means for replacing a stream of uncertain and variable payments with a fixed, non-variable payment stream that is certain.

c)the zero-cost collar options trading strategy involves buying a call option and selling a put option on the same stock with the same expiration date, same premium, and a higher strike price than the call option.

d)suppose you go long 10 Eurodollar futures contracts at price of 97. when the futures contracts settle at expiration, 3-month LIBOR is 1%.j ignoring commissions and margin interest, your position results in a $50,000 loss.

e)the current u.s. dollar/Chinese yuan currency spot rate is $0.13 per yuan. the fair value price for the U.S. dollar /Chinese yuan exchange rete for a 2-year forward contract is $0.1408. If the U.S. dollar denominated annual interest rate is 6%, the Chinese yuan-denominated annual interest rate must be 3%.

u can just answer true or false, but if u can simply explain why, It will be better. thank you