An investor has two bonds in his portfolio that have a face value of $1,000 and pay an 11% annual coupon. Bond L matures in 10 years, while Bond S matures in 1 year. Assume that only one more interest payment is to be made on Bond S at its maturity and that 10 more payments are to be made on Bond L. What will the value of the Bond L be if the going interest rate is 5%? Round your answer to the nearest cent. $ What will the value of the Bond S be if the going interest rate is 5%? Round your answer to the nearest cent. $ What will the value of the Bond L be if the going interest rate is 8%? Round your answer to the nearest cent. $ What will the value of the Bond S be if the going interest rate is 8%? Round your answer to the nearest cent. $ What will the value of the Bond L be if the going interest rate is 12%? Round your answer to the nearest cent. $ What will the value of the Bond S be if the going interest rate is 12%? Round your answer to the nearest cent. $ Why does the longer-term bond’s price vary more than the price of the shorter-term bond when interest rates change? Long-term bonds have lower reinvestment rate risk than do short-term bonds. The change in price due to a change in the required rate of return increases as a bond's maturity decreases. Long-term bonds have greater interest rate risk than do short-term bonds. The change in price due to a change in the required rate of return decreases as a bond's maturity increases. Long-term bonds have lower interest rate risk than do short-term bonds

You are trying to decide how much to save for retirement. Assume you plan to save $ 8,000 per year with the first investment made one year from now. You think you can earn 11.0 % per year on your investments and you plan to retire in 44 years, immediately after making your last $ 8,000 investment.

a. How much will you have in your retirement account on the day you retire?

b. If, instead of investing $ 8,000 per year, you wanted to make one lump-sum investment today for your retirement that will result in the same retirement saving, how much would that lump sum need to be?

c. If you hope to live for 17 years in retirement, how much can you withdraw every year in retirement (starting one year after retirement) so that you will just exhaust your savings with the 17 th withdrawal (assume your savings will continue to earn 11.0% in retirement)?

d. If, instead, you decide to withdraw $ 1,421,000 per year in retirement (again with the first withdrawal one year after retiring), how many years will it take until you exhaust your savings? (Use trial-and-error, a financial calculator: solve for "N", or Excel: function NPER)

e. Assuming the most you can afford to save is $ 1,600 per year, but you want to retire with $ 1,000,000 in your investment account, how high of a return do you need to earn on your investments? (Use trial-and-error, a financial calculator: solve for the interest rate, or Excel: function RATE)

​(Round to the nearest​ cent.)

Assume Highline Company has just paid an annual dividend of $0.92. Analysts are predicting an 10.2% per year growth rate in earnings over the next five years. After​ then, Highline's earnings are expected to grow at the current industry average of 4.8% per year. If​ Highline's equity cost of capital is 7.5% per year and its dividend payout ratio remains​ constant, for what price does the​ dividend-discount model predict Highline stock should​ sell?

Lakeside Winery is considering expanding its winemaking operations. The expansion will require new equipment costing $687,000 that would be depreciated on a straight-line basis to zero over the 5-year life of the project. The equipment will have a market value of $187,000 at the end of the project. The project requires $57,000 initially for net working capital, which will be recovered at the end of the project. The operating cash flow will be $176,600 a year. What is the net present value of this project if the relevant discount rate is 13 percent and the tax rate is 35 percent?

Mrs. Jay has asked you, the CFO of the company, to write a memo outlining the advantages and disadvantages of using debt relative to equity. She also wants the memo to cover the impact that his decision might have on the firm’s weighted cost of capital and overall firm value.

You expect a share of stock to pay dividends of $1.40, $1.65, and $1.90 in each of the next 3 years. You believe the stock will sell for $19.00 at the end of the third year.

a. What is the stock price if the discount rate for the stock is 20%?

b. What is the dividend yield for year 1?

c. What will be the dividend yield at the start of year 2?

What is the self-supporting growth rate for Typhoonforce in percent? Typhoonforce generated $5,000,000 in sales during 2018, and its year-end total assets were $2,500,000. Also, at year-end 2018, spontaneous liabilities were $700,000. Looking ahead to 2019, the company estimates that its assets must increase at the same rate as sales, its spontaneous liabilities will increase at the same rate as sales, its profit margin will be 2%, and its payout ratio will be 66%..

The CFO of Rosecurity, is planning for the company's operations next year, and he wants you to forecast the firm's additional funds needed (AFN). The firm is operating at full capacity. Data (in millions) for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year (in millions)? Last year's sales = $350, Last year's accounts payable = $40, Sales growth rate = 3%, Last year's notes payable = $50, Last year's total assets = $500, Last year's accruals = $30, Last year's profit margin = 3%, Target payout ratio = 57%

A T-bond with semi-annual coupons has a coupon rate of 7%, face value of $1,000, and 2 years to maturity. If its yield to maturity is 5%, what is its Macaulay Duration? Answer in years, rounded to three decimal places.

Bond J has a coupon rate of 4 percent. Bond K has a coupon rate of 9 percent. Both bonds have 7 years to maturity, make semiannual payments, and have a YTM of 6 percent.

-If interest rates suddenly rise by 2 percent, what is the percentage price change of Bond J?

-If interest rates suddenly rise by 2 percent, what is the percentage price change of Bond K?

-If interest rates suddenly fall by 2 percent, what is the percentage price change of Bond J?

-If interest rates suddenly fall by 2 percent, what is the percentage price change of Bond K?

You must evaluate a proposal to buy a new milling machine. The base price is $192,000, and shipping and installation costs would add another $16,000. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $134,400. The applicable depreciation rates are 33%, 45%, 15%, and 7%. The machine would require a $8,500 increase in net operating working capital (increased inventory less increased accounts payable). There would be no effect on revenues, but pretax labor costs would decline by $46,000 per year. The marginal tax rate is 35%, and the WACC is 13%. Also, the firm spent $5,000 last year investigating the feasibility of using the machine.

1. How should the $5,000 spent last year be handled?
   1. Last year's expenditure is considered as a sunk cost and does not represent an incremental cash flow. Hence, it should not be included in the analysis.
   2. The cost of research is an incremental cash flow and should be included in the analysis.
   3. Only the tax effect of the research expenses should be included in the analysis.
   4. Last year's expenditure should be treated as a terminal cash flow and dealt with at the end of the project's life. Hence, it should not be included in the initial investment outlay.
   5. Last year's expenditure is considered as an opportunity cost and does not represent an incremental cash flow. Hence, it should not be included in the analysis

2. What is the initial investment outlay for the machine for capital budgeting purposes, that is, what is the Year 0 project cash flow? Round your answer to the nearest cent.
   $

3. What are the project's annual cash flows during Years 1, 2, and 3? Round your answer to the nearest cent. Do not round your intermediate calculations.

   Year 1 $

   Year 2 $

   Year 3 $

4. Should the machine be purchased

Share the most popular issue/topic on stock market. This could be a short article or a video (no longer than 5 minutes). Please either attach the article or share the link. Write down a brief introduction about the sharing. no write by hand，please typing, have a good one!

You must evaluate the purchase of a proposed spectrometer for the R&D department. The base price is $170,000, and it would cost another $25,500 to modify the equipment for special use by the firm. The equipment falls into the MACRS 3-year class and would be sold after 3 years for $76,500. The applicable depreciation rates are 33%, 45%, 15%, and 7%. The equipment would require a $9,000 increase in net operating working capital (spare parts inventory). The project would have no effect on revenues, but it should save the firm $42,000 per year in before-tax labor costs. The firm's marginal federal-plus-state tax rate is 40%.

1. What is the initial investment outlay for the spectrometer, that is, what is the Year 0 project cash flow? Round your answer to the nearest cent. Negative amount should be indicated by a minus sign.
   $

2. What are the project's annual cash flows in Years 1, 2, and 3? Round your answers to the nearest cent.

   In Year 1 $

   In Year 2 $

   In Year 3 $

3. If the WACC is 10%, should the spectrometer be purchased?

You must evaluate a proposal to buy a new milling machine. The base price is $172,000, and shipping and installation costs would add another $7,000. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $60,200. The applicable depreciation rates are 33%, 45%, 15%, and 7%. The machine would require a $10,000 increase in net operating working capital (increased inventory less increased accounts payable). There would be no effect on revenues, but pretax labor costs would decline by $32,000 per year. The marginal tax rate is 35%, and the WACC is 14%. Also, the firm spent $5,000 last year investigating the feasibility of using the machine.

1. How should the $5,000 spent last year be handled?
   1. Last year's expenditure should be treated as a terminal cash flow and dealt with at the end of the project's life. Hence, it should not be included in the initial investment outlay.
   2. Last year's expenditure is considered as an opportunity cost and does not represent an incremental cash flow. Hence, it should not be included in the analysis.
   3. Last year's expenditure is considered as a sunk cost and does not represent an incremental cash flow. Hence, it should not be included in the analysis.
   4. The cost of research is an incremental cash flow and should be included in the analysis.
   5. Only the tax effect of the research expenses should be included in the analysis.
   
   -Select-IIIIIIIVVItem 1

2. What is the initial investment outlay for the machine for capital budgeting purposes, that is, what is the Year 0 project cash flow? Round your answer to the nearest cent.
   $

3. What are the project's annual cash flows during Years 1, 2, and 3? Round your answer to the nearest cent. Do not round your intermediate calculations.

   Year 1 $

   Year 2 $

   Year 3 $

4. Should the machine be purchased?
   -Select-YesNo