In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period. Find the required payment for the sinking fund. (Round your answer to the nearest cent.)

Yearly deposits earning 12.9% to accumulate $2500 after 12 years. The Oseola McCarty Scholarship Fund at the University of Southern Mississippi was established by a $150,000 gift from an 87-year-old woman who had dropped out of sixth grade and worked for most of her life as a washerwoman. How much would she have had to save each week in a bank account earning 3.9% compounded weekly to have $150,000 after 75 years? (Round your answer to the nearest cent.)

Imagine that there are only two countries in the world: America and China. Each country produces and consumes two goods – a tradable good (T) and a non-tradable good (NT). The production of these goods involves the use of labour, but no other resources are used in the production process. This is of course a ridiculous assumption, but it is one we will make for the purposes of this assignment. There are perfectly competitive markets for the non-tradable good (NT) in each country, but no trade in this good between the countries. There is a perfectly competitive global market in the traded good (T). Labour is homogeneous within America. An hour of labour produces 10 units of the traded good (T) or 5 units of the non-traded good (NT) in America. Labour costs are 10 dollars (USD) an hour in America. Labour is also homogenous within China. An hour of labour produces 5 units of the traded good (T) or 5 units of the non-traded good (NT) in China. Labour costs are 10 yuan (CNY) an hour in China.

Suppose that over time the productivity per hour of labour in China in the tradable good industry increases to 10 units of T, while the other three productivity figures do not change. What will happen to the real exchange rate? (1 mark)

Nonconstant Growth Stock Valuation

Assume that the average firm in your company's industry is expected to grow at a constant rate of 4% and that its dividend yield is 7%. Your company is about as risky as the average firm in the industry and just paid a dividend (D₀) of $2.25. You expect that the growth rate of dividends will be 50% during the first year (g_0,1 = 50%) and 20% during the second year (g_1,2 = 20%). After Year 2, dividend growth will be constant at 4%. What is the estimated value per share of your firm’s stock? Do not round intermediate calculations. Round your answer to the nearest cent.

$

Amy is going to need R145 000 in three years’ time, to pay for a holiday overseas. She immediately starts
to make monthly deposits into an account earning 11,05% interest per year, compounded monthly. Amy’s
monthly deposit is
[1] R3 384,18.
[2] R3 415,34.
[3] R4 027,78.
[4] R4 707,20.
[5] R4 750,55.

Can I get whole answeres for this case?

The case and questions in your side but I can see only five questions' answers but I need to see all solutions.

The Sunrise Bakery Corporation was originally founded.......

6. What is the after-tax net income in each of the six years? 7. Calculate the change in working capital each year from the projected financial statements. 8. What is the terminal value of the project at the end of year 6? 9. Compute the free cash flows for each year. 10. What is the IRR? 11. Calculate the NPV. 12. Using Payback Analysis, how many years until the project pays off the investment? 13. What is the return on invested capital? 14. Should Sunrise Bakery purchase the new oven?

Capstone Case: Sunrise Bakery Expansion The Sunrise Bakery Corporation was originally founded in Houston, TX in 1991 by Griffin Harris, who currently serves as the company's Chief Executive Officer. About four years ago, Griffin's daughter, Erica, moved into the company to serve as Chief Financial Officer. Erica had graduated from college a few years ago and had worked for a few years in retail. However, for the past two years, she had been working quite successfully on an online accounting degree, but she still felt a little uncomfortable in her new role as CFO of the family business. Sunrise produces and markets a variety of bakery products throughout southeast Texas and Louisiana. They operate mostly through warehouse delivery and produce fresh breads, buns, rolls, and snack cakes under a few of their own regional brands but also including some licensed "big name" national brands. In total, they operate five bakeries with one very large facility and four smaller production sites. For the past three years, sales have averaged about $15 Million, generating about $650 Thousand in Net Income per year. However, sales have been roughly flat for the past six years as growth has slowed and production capacity has reached nearly 100%. In order to grow sales, Sunrise Bakery needs to invest in further production capacity. Griffin Harris has been looking to purchase more space, build additional bakeries, or even perhaps acquire one of their smaller competitors, but nothing specific has worked out yet. Erica has an alternative short-term plan to modernize the production process at their main plant. Her idea involves the purchase of a new, significantly faster, integrated commercial oven that she recently saw displayed at a trade show. Few other bakeries in the region have invested in this modern equipment, and she expects it may cut costs and improve output efficiency. Her sales representative suggests the new oven could raise incremental sales at their large bakery by 15%. Installation of the oven could be mostly executed over the upcoming Labor-day long weekend and shouldn't disrupt sales or production too much. However, the new oven requires an expenditure of $350,000, which would be a large capital expenditure for Sunrise. To reflect the wear and tear on the oven, tax law allows for a 10% annual reduction in the value of the oven as a depreciation expense. That is, Erica’s financial forecast includes a non-cash expense of $35,000 for each of the next six years. After six years, Erica’s sales representative expects the oven to be worth about $140,000, which is just equal to the accounting book value of the oven after six years of accumulated depreciation ($140,000 = $350,000 – 6 * 10%*$350,000). Operation of the oven also requires a small initial investment in an inventory of spare parts of $15,000. The inventory should be fully recoverable for $15,000 if the machine is sold. The investment in inventory represents an increase in other current assets (inventory) that should be included as a change in working capital requirements for Sunrise Bakery. Sunrise estimates receivables at 1.5% of revenues and payables at 2% of revenues each year. At the end of the project, Erica expects to recover all of the working capital invested in the project. In other words, she expects a cash flow equal to the amount of Non-Cash Current Assets less Current Liabilities in the last year of the project. Erica’s financial forecast for the new oven does not require any significant change in financing. Sunrise started with one small bakery entirely paid for with cash from Griffin Harris and a mortgage on the bakery property. Currently, Sunrise maintains a rough capital structure of about 25% debt and 75% equity. In Erica's forecast, she expects to purchase the new oven with available cash and retained earnings (Sunrise's own money) and without any additional drawdown on their bank line of credit (no new debt). Sunrise currently pays about 4.5% on their debt, and that rate is not expected to change with the additional purchase of the oven. No additional external financing should be needed, and after discussions with her loan office, Erica expects the bank will approve the purchase of the oven without any effect on their line of credit. Overall, the cash purchase of the oven is not expected to change the capital structure of the Sunrise Corporation. However, since the oven will become part of the assets of Sunrise, the bank could seize the oven should Sunrise fail to make payments on their current debt. Erica remembered from her online classes that she needs to assess the risk of her business when making important financial decisions. In researching similar large public bakery and other food manufacturers, she found that firms in her industry with about the same level of risk mostly had stock market betas around 0.80 on average. She also noted that many analysts used a ballpark equity risk premium of 5.5% and a current yield on U.S. treasury bonds (risk-free rate) of about 3%. Sunrise has a corporate tax rate of 30%. To help understand the costs and benefits of the decision, Erica worked closely with her director of operations, plant manager, marketing team, and her father to produce some realistic sales, costs, and financial forecasts. Her team felt uncomfortable forecasting more than 5 or 6 years into the future. Her focus was on how the new oven might improve incremental revenue generation at their large plant. The case exhibits below contain Erica's financial projections for the project. In discussing her plan to purchase the new oven, Erica's father seems more than a little worried that the new machinery is not worth the cost and that Erica's motivations may not be based on sound financial decision making. As Erica looked over the financial forecasts, market data, line of credit agreement, and the intimidating $350,000 invoice that would soon follow, she wondered how she could convince her father, and herself, that purchasing the new oven would be a sound financial decision. Sunrise Bakery Capstone Case questions In this case analysis, our objective is to will bring together all the tools we picked up throughout the four modules incorporating discounted cash flows, estimating free cash flow forecasts, analyzing the cost of capital and computing various capital budgeting tools. The open-ended platform of a case study is to put the tools and concepts we have developed into a more real-world and practical setting. Using this information given in the case, your job is to figure out whether or not to make the investment by computing all of the capital budgeting tools that we covered in week 2. This involves calculation of the free cash flows following the process we outlined in week 3 and computing the discount rate we covered in week 4. Exhibit 2 below provides a worksheet for calculating the free cash flows using the financial statement forecast given in Exhibit 1. In addition to the worksheet provided in Exhibit 2, a spreadsheet template has also been uploaded. Please feel free to use this template to complete the case using the spreadsheet tools we covered in weeks one and two.

Bright Lighting Ltd is considering a new range of product based on a specific type of intelligent stage lighting after extensive market research costing $60,000, which was paid yesterday. Bright expects that this range will increase the firm’s revenues by $1,565,000 in the first year of operations. Thereafter, revenues will only increase by 15% p.a. The additional material will cost $850,000 p.a., additional labour cost is expected to be $350,000 p.a. and other miscellaneous costs are estimated to be $52,000 p.a. After the first year, Bright expect these costs will increase by 2.5% p.a. each year. [Assume that all revenues are received and that all costs are paid at the end of each year.] The initial outlay of $2,125,000 will be depreciated on a straight-line basis to zero salvage value over the 8-year productive life of the project. It is estimated the various components of equipment can be sold for $100,000 at the completion of the project. The firm requires a 12.5% p.a. required rate of return and the tax rate is 30%. Tax is paid in the year in which net earnings are received. Calculate the incremental cash flows for each year (Y0 to Y8 inclusive). PLZ consider Y0. Calculate the net present value, that is, the net benefit or net loss in present value terms of the project.

Problem 1. Consider the following table, which gives a security analysts expected return on two stocks for two particular market returns:

a) What are the betas of the two stocks?

b) What is the expected rate of return on each stock if the market return is equally likely to be 5% or 25%?

c) If the T-bill rate is 6% and the market return is equally likely to be 5% or 25%, draw the SML for this economy.

d) Plot the two securities on the SML graph. What are the alphas of each?

Problem 2. Assume that the risk-free rate of interest is 6% and the expected rate of return on the market is 16%.

a) A share of stock sells for $50 today. It will pay a dividend of $6 per share at the end of the year. Its beta is 1.2. What do investors expect the stock to sell for at the end of the year?

b) A stock has an expected rate of return of 4%. What is its beta?

Combined Communications is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 24 percent a year for the next 4 years and then decreasing the growth rate to 6 percent per year. The company just paid its annual dividend in the amount of $1.30 per share. What is the current value of one share of this stock if the required rate of return is 9.25 percent? can you please do it on excel

Calculate the modified duration of a 10-year 7% semi-annual coupon bond priced at 97.50. 7.316 7.06 6.88 3.53 3.67

Using the bond below, calculate your annual holding period yield (on a bond equivalent basis).

• 3.096%
• 5.888%
• 6.192%
• 6.246%
• 6.288%

(Note: I did my assignment with these answers but 4 of them is wrong and 6 are right. Please tell me which answer is wrong and what's the right answer for them)

1-One of the most important features of a filing and record keeping system is that it works for you and meets your needs.

(True)

2-Which one of these is the best way to prevent foreclosure?

Save at least 1% of your home’s purchase price annually

(ANSWER)-Refinance as soon as possible

Use a budget to live within your means and build savings

Never accept an adjustable-rate mortgage

3-Choose the best scenario for refinancing.

(ANSWER)-You have a current mortgage at 5% and have been approved for a new mortgage at 3.75%. You’ll break even on the closing costs in two years, and you don’t plan to move for at least five.

You intend to move in about nine months, but you have been approved for a mortgage with an interest rate two whole points lower than your current rate.

4-A home equity loan can be risky because the lender can foreclose if you don’t make your payments.

(TRUE)

5-The best way to protect your family from carbon monoxide poisoning is to install a whole-house air ventilation system.

(FALSE)

6-What should you do if you start having a hard time paying your mortgage? Select all that apply.

Use your credit cards for everything so you can meet your payment

Notify your mortgage servicer

Contact a Homeownership Advisor

Wait a few months and see if things turn around

Cut other expenses where you can

7-How much should you save each year for maintenance on your home?

$500

Whatever your home inspector recommends

7% of your gross income

(ANSWER) At least 1% of the purchase price

8-One of the advantages of a home equity loan is that you can borrow money any time, up to the approved amount.

(ANSWER) (TRUE)

9-Which of these is not a responsibility of homeownership?

(ANSWER)Being a courteous neighbor

Getting appraisals done annually

Keeping your home properly insured

Keeping your home safe and secure

Regular home maintenance

10-In which scenario do most homeowners use the equity in their home?

(ANSWER)To pay off student loans

When they have children

When they sell it to buy a new one

When they’re threatened with foreclosure

10-2. Chris contracts to sell his house and lot to Kahra for $250,000. The terms of the contract call for Hayaa to pay 20 percent of the purchase price as a deposit toward the purchase price, or as a down payment. The terms further stip¬ulate that should the buyer breach the contract, the deposit will be retained by Chris as liquidated damages. Kahra pays the deposit, but because her expected financing of the $190,000 balance falls through, she breaches the contract. After adjusting the listing price downward several times due to market volatility, 10 months later Chris sells the house and lot to Connor for $270,000. Kahra demands her $50,000 back, but Chris refuses, claiming that Kahra's breach and the contract terms entitle him to keep the deposit. Discuss who is correct using the IRAC method of case analysis.

You have the following financial statement data for a corporation: Revenue = 10,000,000

Operating income = 7,500,000 interest = 2,500,000

Net Income = 4,000,000 Current Assets = 10,000,000 Total Assets = 100,000,000 Current Liabilities = 8,000,000 Long-term Debt = 50,000,000

Total Common Equity = 42,000,000

You also have the following information: Total Dividends Paid = 1,000,000 Common shares outstanding = 2,000,000

Current share price = $27

The long-term debt consists of one bond issue that has 6 years remaining until maturity. Each bond has a par value of $1,000 and pays an annual coupon. The current yield-to-maturity on the bond issue is 8%.

The firm is considering a capital budgeting project that will require an initial outlay of $1,000,000 that is expected to produce net cash inflow of $200,000 each year for the next 7 years, at which time the project will end. The project under consideration is considered to be of equal risk as the firm's typical project. The firm has not made a decision as to how it will finance the project, if necessary. If it issues new equity to finance the project, it could sell new common equity at the current market price, while incurring total flotation cost of 5%.

The current risk-free rate of return for the market 2%, and the market risk-premium is estimated to stand at 7.5%. You know nothing about the firm's expected dividend policy, but you do know that the firm's equity Beta is 1.8

Based on the information you have, answer the following questions about the firm (You must show work for each question and answer each question separately in order to earn full credit):

1. What is the firm's profit margin?

2. Using the DuPont identity and the information given, show the value of the firm's equity multiplier?

3. What is the firm's P/E ratio?

4. What is the firm's current ratio?

5. What is the best estimate of the firm's capital structure according to book value?

6. What is the total market value of the firm's equity?

7. What is the total market value of the firm's debt?

8. What is the total value of the firm based on market value?

1. What is the firm's capital structure based on market values?

10. What is the firm's pre-tax cost of debt?

11. What is the best estimate for the firm's cost of common equity if using retained earnings as a financing option?
    50. What is the best estimate for the firm's WACC if using retained earnings as common equity financing?
    1000. What is the best estimate of the NPV for the proposed capital budgeting project, given the info that you have?
    14. Should the firm accept the project based on NPV analysis? Why or why not?

• • What is the IRR for the proposed project?

Imagine you are the treasurer of a Japanese company exporting electronic equipment to the United States. All revenues are received in USD and all other expenses (e.g., R&D costs, costs of employees etc) are incurred in Japanese Yen.

Required:

(i) Discuss whether you need to hedge the foreign exchange risk and factors you need to consider when designing contracts to hedge the risks.

(ii) If the company is able to raise the price of its product in USD if Yen appreciates without affecting the sales volume, how would you adjust your recommendation in part (i) and sell your strategy to other executives?

Hint: If the company is able to raise the price of its product in USD if Yen appreciates, what does it tell you about the company’s foreign exchange exposure? Which derivative security (securities) could be used to hedge this risk? There is no model answer to this question, you just have to provide reasoned explanations.