The Metchosin Corporation has two different bonds currently outstanding. Bond M has a face value of $50,000 and matures in 20 years. The bond makes no payments for the first six years, then pays $1,600 every six months over the subsequent eight years, and finally pays $1,900 every six months over the last six years. Bond N also has a face value of $50,000 and a maturity of 20 years; it makes no coupon payments over the life of the bond. The required return on both these bonds is 10% compounded semiannually, what is the current price of bond M and bond N? (Do not round intermediate calculations. Round the final answers to 2 decimal places.)

We learned that share value maximization is the ultimate goal of a firm in the

market economy? How does this seemingly selfish goal benefit the entire society?

Please answer this question in a essay format!

Morris Corporation has the following information on its balance sheets: Cash = $40, accounts receivable = $30, inventories = $100, net fixed assets = $500, accounts payable = $20, accruals = $10, short-term debt (matures in less than a year) = $25, long-term debt = $200, and total common equity = $415. Its income statement reports: Sales = $820, costs of goods sold (excluding depreciation) = $450, depreciation = $50, interest expense = $20, and tax rate = 40%. Calculate the following ratios: Net profit margin , operating profit margin , basic earning power ratio and return on total assets and return on common equity

assume the Canadian dollar spot rate is 1.18c$/us$, the swiss spot rate is 1.29CHF/us$ and the market cross rate is 1.11 chf/c$ a. calculate the implied cross-rate of CHF/c$ b calculate the triangular arbitrage profit, assume you have us$1000 to work with

Junk bonds: JC Penney has a CCC- rated corporate bond outstanding. There are 4 years remaining to maturity. The bond has a 5.75% coupon and closed at 85.372. Find the bond’s yield to maturity.

PRESENT VALUE OF AN ANNUITY

Find the present values of these ordinary annuities. Discounting occurs once a year. Round your answers to the nearest cent.

1. $600 per year for 16 years at 12%.

   $  

2. $300 per year for 8 years at 6%.

   $  

3. $900 per year for 16 years at 0%.

   $  

   Rework previous parts assuming that they are annuities due. Round your answers to the nearest cent.

4. $600 per year for 16 years at 12%.

   $  

5. $300 per year for 8 years at 6%.

   $  

6. $900 per year for 16 years at 0%.

   $  

The most recently issued 4-week T-Bill is quoted at a discount of 1.91.

a. What is the price of this T-Bill?

b. What is the bond-equivalent yield? Assume 4 weeks is 30 days, and the par value is $10,000. Express your answers rounded to two decimal places.

Thurston Petroleum is considering a new project that complements its existing business. The machine required for the project costs $4.8 million. The marketing department predicts that sales related to the project will be $2.83 million per year for the next four years, after which the market will cease to exist. The machine will be depreciated to zero over its 4-year economic life using the straight-line method. Cost of goods sold and operating expenses related to the project are predicted to be 30 percent of sales. The company also needs to add net working capital of $220,000 immediately. The additional net working capital will be recovered in full at the end of the project’s life. The tax rate is 24 percent and the required return for the project is 11 percent.

Exhibit 10.1

Assume that you have been hired as a consultant by CGT, a major producer of chemicals and plastics, including plastic grocery bags, styrofoam cups, and fertilizers, to estimate the firm's weighted average cost of capital. The balance sheet and some other information are provided below.

Assets

Current assets $38,000,000 Net plant, property, and equipment $101,000,000 Total assets $139,000,000 Liabilities and Equity Accounts payable $10,000,000 Accruals $9,000,000 Current liabilities $19,000,000 Long-term debt (40,000 bonds, $1,000 par value) $40,000,000 Total liabilities $59,000,000 Common stock (10,000,000 shares) $30,000,000 Retained earnings $50,000,000 Total shareholders' equity $80,000,000 Total liabilities and shareholders' equity $139,000,000

The stock is currently selling for $15.25 per share, and its noncallable $1,000.00 par value, 20-year, 9.00% bonds with semiannual payments are selling for $930.41. The beta is 1.22, the yield on a 6-month Treasury bill is 3.50%, and the yield on a 20-year Treasury bond is 5.50%. The required return on the stock market is 11.50%, but the market has had an average annual return of 14.50% during the past 5 years. The firm's tax rate is 25%. Refer to Exhibit 10.1. What is the best estimate of the after-tax cost of debt?

a. 5.59% b. 7.35% c. 6.17% d. 5.23% e. 6.48%

Below are the closing values and daily return on the S&P 500 for the last ten days. What are the daily and annualized standard deviations? You may use excel for this problem. Enter your answers as percent rounded to two decimal places.

What is the duration of an 8% annual coupon bond with a par value of $1000 that matures in 3 years? YTM on alternative investments is 10 %

You bought a TV for $900 and charged it to your credit card with 22% APR. You will be diligent in spending monthly payments in an amount that would retire the card balance in exactly 5 years. After 3 years of payments you refinance the remaining balance to a new card with 12% APR. After 3 years you can afford a high monthly payment of $40.

A) what is the balance that will get transferred to the new card after 3 years?

B) How many months will it take to puff of credit card balance with the new $40 payment assuming no other purchases?