The Ivanhoe Department of Transportation has issued 25-year bonds that make semiannual coupon payments at a rate of 10.075 percent. The current market rate for similar securities is 11.3 percent. Assume that the face value of the bond is $1,000. Suppose the bond were to mature in 12 years.

What will be the bond’s price if rates in the market (i) decrease to 9.30 percent or (ii) increase to 12.3 percent?

(i) Bond's price if rate decrease to 9.30 percent

(ii) Bond's price if rate increase to 12.3 percent

Assume the canadian spot rate is 1.18C$/US$, the swiss franc spot rate is 1.29CHF/US$ and the market cross rate is 1.11CHF/C$

A. Calculate the implied cross rate of CHF/C$.

B. Calculate the triangular profit. Assume you have US $1,000 to work with. State the currencies you need to buy and sell in order to earn the arbitrage profit   

Simon recently received a credit card with a 15% nominal interest rate. With the card, he purchased an Apple iPhone 7 for $360.53. The minimum payment on the card is only $10 per month.

1. If Simon makes the minimum monthly payment and makes no other charges, how many months will it be before he pays off the card? Do not round intermediate calculations. Round your answer to the nearest whole number.

     month(s)

2. If Simon makes monthly payments of $35, how many months will it be before he pays off the debt? Do not round intermediate calculations. Round your answer to the nearest whole number.

     month(s)

3. How much more in total payments will Simon make under the $10-a-month plan than under the $35-a-month plan. Do not round intermediate calculations. Round your answer to the nearest cent.

   $  

The Utah Mining Corporation is set to open a gold mine near Provo, Utah. According to the treasurer, Monty Goldstein, “This is a golden opportunity.” The mine will cost $2,700,000 to open and will have an economic life of 11 years. It will generate a cash inflow of $375,000 at the end of the first year, and the cash inflows are projected to grow at 8 percent per year for the next 10 years. After 11 years, the mine will be abandoned. Abandonment costs will be $430,000 at the end of Year 11. a. What is the IRR for the gold mine? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. The Utah Mining Corporation requires a return of 10 percent on such undertakings. Should the mine be opened? Yes No

You are interested in buying a house and renting it out. You expect to receive a monthly net income of $1,500 from rent. You then expect to sell the house for $300,000 at the end of 60 months. If your discount rate on this investment is 0.8% per month, what is this property worth to you today? Assume that you receive rent at the beginning of each month and you receive the first rent the same day you purchase the property. Round to the nearest cent. ​[Hint: Notice that the interest rate provided is monthy, so this is i/m. Also, 60 months is nxm.]

A C corporation earns $10 per share before taxes. After it has paid taxes, it will distribute the rest of its earnings as dividends. The dividend is income to you, so you will pay taxes on these earnings. The corporate tax rate is 40% and your personal dividend tax rate is 15%. How much of the earnings remain after all taxes are paid?

SOLVE MULTIPLE CHOICE, PLEASE SHOW STEP BY STEP SOLVING

a.) $0.90 b) $ 4.00 c) $6.00 d) $5.10

suppose you took out a fully amortized $30,000 automobile loan to finance your purchase over 48 months at an APR of 3.5%. So far, you have made two years of payments in a timely fashion so the next payment will be your 25th. what percentage of the next payment will be allocated toward reducing the outstanding balance on the loan and what percentage will be interest?

use a financial calculator or a program such as Excel to answer the questions run your answers to the nearest whole number.

A. you purchase a stock for $9,500 and collect $350 at the end of each year in dividends. you sell the stock for $11,000 after 6 years what was the annual return on your $9, 500 investment?

B. You purchased a building for a $750,000 collect annual rent (after expenses) of $110,000 and sell the building for $800,000 after 4 years. what is the annual return on this investment?.

C. you buy a stock for $1,000 and expect to sell it for $940 after 6 years but also expect to collect dividends of $130 a year. calculate the return on this investment and prove that it is less than 14%.

The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 6% per year. Callahan's common stock currently sells for $21.50 per share; its last dividend was $2.00; and it will pay a $2.12 dividend at the end of the current year.

Using the DCF approach, what is its cost of common equity? Round your answer to two decimal places.

If the firm's beta is 1.3, the risk-free rate is 7%, and the average return on the market is 14%, what will be the firm's cost of common equity using the CAPM approach? Round your answer to two decimal places.

If the firm's bonds earn a return of 8%, based on the bond-yield-plus-risk-premium approach, what will be r_s? Use the midpoint of the risk premium range. Round your answer to two decimal places.
  %

If you have equal confidence in the inputs used for the three approaches, what is your estimate of Callahan's cost of common equity?. Round your answer to two decimal places.
  %

AFN equation

Broussard Skateboard's sales are expected to increase by 20% from $8.6 million in 2018 to $10.32 million in 2019. Its assets totaled $4 million at the end of 2018.
Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2018, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 5%, and the forecasted payout ratio is 60%. What would be the additional funds needed? Do not round intermediate calculations. Round your answer to the nearest dollar.
$   

APPLY THE CONCEPTS: Construct the income statement

When constructing the income statement, it is important to understand that the income statement reports the revenues and expenses for a period of time, based on the matching concept. This concept is applied by matching the expenses with the revenue generated during a period by those expenses. The excess of the revenue over the expenses is called net income or net profit.

Pleasant Co. has compiled the following account balances from its general ledger on July 31, 20Y8 (the last day of its fiscal year).

Use the information given to create Pleasant Co.’s annual financial statements. Construct Pleasant’s income statement for 20Y8.

Feedback

From the balances above, select the appropriate revenue and expense items, and compute the appropriate subtotals.

APPLY THE CONCEPTS: Construct the Statement of Stockholders' Equity.

The statement of stockholders' equity shows the change in statement of stockholders' equity as a result of net income and any dividends. It also serves as an important link between the income statement and the balance sheet in that it translates the effects of net income into an updated number for statement of stockholders' equity. Construct Pleasant’s statement of stockholders' equity for 20Y8.

Feedback

Hover over the statement of stockholders' equity definition in the earlier step to review the construction of this statement. Remember that Net Income or Net Loss from the statement in the prior step is the linking value between these two statements.

APPLY THE CONCEPTS: Construct the balance sheet

The balance sheet, also known as the statement of financial position, shows the company’s assets and the claims against those assets in the form of liabilities and stockholders' equity. Unlike financial statements that display financial performance over a given interval of time, the balance sheet is a snapshot of a financial position at a given point in time.

Construct Pleasant’s balance sheet in account form for 20Y8.

Can I get the excel workings of this question?

WBC is currently financed using debt and equity with a targeted debt to equity ratio of one (D/E = 1). Its debt financing is from three sources, overdraft, bank bills and debentures, with the ratio of overdraft to bank bills to debentures of 1:2:3. Its equity is ordinary shares. These ratios represent the long-term capital structure target for WBC. The debenture pays an annual coupon of 12 per cent per annum on its $1,000 face value. The remaining term of the debenture is six years. The debenture is currently priced $922.23. The bank bills issued by WBC are ninety-day bills, with a face value of $100,000 and are currently priced at $97,593.58. The bank overdraft rate is 1 per cent per annum above the bank bill rate. The ordinary shares sell for $8.00. The projected dividend for year one is $1.10. Dividends are expected to grow at 6 per cent per annum indefinitely. Required Calculate the Weighted Average Cost of Capital (WACC) for WBC, assuming a tax rate of 30 per cent. Hint: this requires a calculation of the effective annual cost for each source of finance. Discuss whether the WACC could be used in the above project evaluation, and if so how. Include a discussion of any restrictions that apply to the use of WACC?