Questions
You find the following corporate bond quotes. To calculate the number of years until maturity, assume...

You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2016. The bonds have a par value of $2,000. Company (Ticker) Coupon Maturity Last Price Last Yield EST $ Vol (000’s) Xenon, Inc. (XIC) 6.100 Jan 15, 2027 94.253 ?? 57,369 Kenny Corp. (KCC) 7.190 Jan 15, 2026 ?? 5.28 48,948 Williams Co. (WICO) ?? Jan 15, 2033 94.805 6.98 43,809 What price would you expect to pay for the Kenny Corp. bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Price $ What is the bond’s current yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Current yield %

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You find the following Treasury bond quotes. To calculate the number of years until maturity, assume...

You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2016. The bonds have a par value of $1,000. Rate Maturity Mo/Yr Bid Asked Chg Ask Yld ?? May 21 103.5397 103.5275 +.3235 5.899 6.002 May 26 104.4887 104.6344 +.4233 ?? 6.138 May 36 ?? ?? +.5340 3.931 In the above table, find the Treasury bond that matures in May 2036. What is the asked price of this bond in dollars? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Asked price $ If the bid-ask spread for this bond is .0637, what is the bid price in dollars? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Bid price $

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You find the following Treasury bond quotes. To calculate the number of years until maturity, assume...

You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2016. The bonds have a par value of $1,000. Rate Maturity Mo/Yr Bid Asked Chg Ask Yld ?? May 26 103.5488 103.6370 +.3041 2.369 5.324 May 31 104.4978 104.6435 +.4317 ?? 6.173 May 41 ?? ?? +.5431 4.071 In the above table, find the Treasury bond that matures in May 2026. What is the coupon rate for this bond? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Coupon rate %

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Bill Smith, CFO of Acme Inc., is evaluating a new project that costs $125,000 and is...

Bill Smith, CFO of Acme Inc., is evaluating a new project that costs $125,000 and is expected to last 6 years. The required return on this project is 15%, compounded monthly. This project is expected to earn the same cash flow each month over the life of the project. In order to be indifferent between accepting and rejecting this project, the monthly cash flow must be: A) $2,004.34 B) $2,942.65 C) $2,752.47 D) $1,736.11 E) $2,643.13

need steps and explanation

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Using the information provided in the following​ table, find the value of each​ asset: The value...

Using the information provided in the following​ table, find the value of each​ asset:

The value of Asset A is ​

The value of Asset B

The value of Asset C

The value of Asset D

The value of Asset E

Asset

End of Year

Amount

Appropriate required return

A

1

​$

7,000

8​%

2

7,000

3

7,000

B

1 through∞

​$

500

4​%

C

1

​$

0

5​%

2

0

3

0

4

0

5

48,000

D

1 through 5

​$

1,200

4​%

6

8,200

E

1

​$

3,000

7%

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A bond currently sells for 104% of par value and has a yield to maturity of...

A bond currently sells for 104% of par value and has a yield to maturity of 8.22 percent. The bond natures in 5 years and pays interest semi annually. What is the coupon rate on the bond?

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A firm has a total debt of 10 million, and equity of 15 million. The company...

A firm has a total debt of 10 million, and equity of 15 million. The company pays 8% interest on the debt and return on equity is 14%. If the tax rate of the company is 35%, calculate the cost of capital for the company?

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You are considering a project with an opportunity cost of 10% and that offers up the...

You are considering a project with an opportunity cost of 10% and that offers up the following two possible payouts based on your ability to market the product:

In the optimistic state you expect the following payouts, -$4,795, $8,000, $8,000. Based on your pessimistic expectations you expect the following -$4,795, -$500, -$10,000. The cash flows fall at time period 0, 1 and 2.

Your sense is that there is a 40% chance things will turn out well and a 60% chance things will turn out poorly. What is your expected NPV if you are able to abandon the project after year one?

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Dorman Industries has a new project available that requires an initial investment of $6.2 million. The...

Dorman Industries has a new project available that requires an initial investment of $6.2 million. The project will provide unlevered cash flows of $845,000 per year for the next 20 years. The company will finance the project with a debt-to-value ratio of .25. The company’s bonds have a YTM of 6.3 percent. The companies with operations comparable to this project have unlevered betas of 1.32, 1.25, 1.47, and 1.42. The risk-free rate is 3.3 percent, and the market risk premium is 6.5 percent. The company has a tax rate of 34 percent.

  

What is the NPV of this project? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

  

  NPV $  

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How are MNCs subject to political risk? Stated differently, in what manner are MNCs exposed when...

How are MNCs subject to political risk? Stated differently, in what manner are MNCs exposed when it comes to political risk?

I. Transfer Risk
II. Operational Risk
III. Control Risk
IV. Presidential Narcissism

Group of answer choices

I, II, III, IV

II & III only

I, II, & III only

I & II only

I, II & IV only

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H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset...

H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,350,000. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $2,290,000 in annual sales, with costs of $1,310,000. Assume the tax rate is 21 percent and the required return on the project is 10 percent.

What is the project’s NPV?

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Corporate bonds are classified as “structured” investments; explain their importance to asset portfolios and what is...

Corporate bonds are classified as “structured” investments; explain their importance to asset portfolios and what is the value of a warrant that is issued with a corporate bond to investors and to the issuing corporation?

Explain with examples.

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Consider the following information on a portfolio of three stocks: State of Economy Probability of State...

Consider the following information on a portfolio of three stocks:
State of
Economy
Probability of
State of Economy
Stock A
Rate of Return
Stock B
Rate of Return
Stock C
Rate of Return
  Boom .15 .04 .33 .55
  Normal .60 .09 .13 .19
  Bust .25 .15 –.14 –.28  

  

a.

If your portfolio is invested 40 percent each in A and B and 20 percent in C, what is the portfolio’s expected return? The variance? The standard deviation? (Do not round intermediate calculations. Round your variance answer to 5 decimal places, e.g., .16161. Enter your other answers as a percent rounded to 2 decimal places, e.g., 32.16.)

b. If the expected T-bill rate is 3.75 percent, what is the expected risk premium on the portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

  

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Crete Logistics is thinking of opening a new warehouse, and the key data are shown below....

Crete Logistics is thinking of opening a new warehouse, and the key data are shown below. The company will be leasing the building at a cost of $2,000 per month. The equipment for the project would be depreciated by the straight-line method over the project's 4-year life to a salvage value of zero, but you estimate the equipment's true salvage value is $10,000. New working capital of $15,000 would be required, and revenues and other operating costs would be constant over the project's 4-year life.

WACC

10.0%

Equipment Cost

$65,000

Sales revenues, each year

$123,000

Annual Operating Cost (including lease payment and excluding depreciation)

$49,000

Tax rate

35%

What is the project's NPV?  

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Megan Berry is a freshman at University of Minnesota. She has some financial questions for the...

  1. Megan Berry is a freshman at University of Minnesota. She has some financial questions for the next three years of school and beyond. (4 pts)
    1. If Megan’s tuition, fees and expenses for books this year total $12,000, what will they be during her senior year (three years from now), assuming costs rise 4% annually? (Use Appendix A or one of the links below) _____________________
      Equation 1.4 Future Value of a Lump Sum
      Present Value $1,000.00
      i = Interest Rate 8.00%
      n = Number of Periods 4
      Future Value $1,360.49
      *For monthly compounding; n = number of months, i = the annual interest rate divided by 12
  1. Megan is applying for a scholarship currently valued at $5,000. If she is awarded it at the end of next year, how much is the scholarship worth in today’s dollars, assuming inflation of 3%. (Use Appendix A or one of the link in part a) __________________
  1. Megan is already looking ahead to graduation and a job and she wants to buy a new car not long after graduation (1-3 years). If after graduation, she begins an investment program of $2400 per year in an investment yielding 6%, what will be the value of the fund after 4 years? (Use Appendix A or one of the links in part a)______________ After 6 years? ____________
  1. Megan’s Aunt Carol told her she would give Megan $1,000 at the end of each year for the next 3 years to help with her expenses. Assuming an interest rate of 2%, what is the present value of that stream of payments? (Use Appendix A or one of the links in part a) __________________

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