Zinger has a bond outstanding with a coupon rate of 5.6 percent and semiannual payments. The bond has a yield to maturity of 5.5 percent, a par value of $2,000, and matures in 18 years. Calculate the market value of the bond?
2,022.67
101.13
103.16
106.19
1,012.89
In: Finance
|
Atreides International has operations in Arrakis. The balance sheet for this division in Arrakeen solaris shows assets of 26,000 solaris, debt in the amount of 13,000 solaris, and equity of 13,000 solaris. |
| a. |
If the current exchange ratio is 1.25 solaris per dollar, what does the balance sheet look like in dollars? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) |
| Balance sheet | |||
| Assets | $ | Debt | $ |
| Equity | |||
| Total assets | $ | Total liabilities and equity | $ |
| b. |
Assume that one year from now the balance sheet in solaris is exactly the same as at the beginning of the year. If the exchange rate is 1.30 solaris per dollar, what does the balance sheet look like in dollars now? (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.16.) |
| Balance sheet | |||
| Assets | $ | Debt | $ |
| Equity | |||
| Total assets | $ | Total liabilities and equity | $ |
| c. |
Assume that one year from now the balance sheet in solaris is exactly the same as at the beginning of the year. If the exchange rate is 1.20 solaris per dollar, what does the balance sheet look like in dollars now? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) |
| Balance sheet | |||
| Assets | $ | Debt | $ |
| Equity | |||
| Total assets | $ | Total liabilities and equity | $ |
In: Finance
Dentaltech Inc. projects the following data for the coming year.
If the firm follows the residual dividend model and also maintains
its target capital structure, what will its dividend payout ratio
be?
| EBIT | $2,600,000 | Capital budget | $1,325,000 | |
| Interest rate | 10% | % Debt | 40% | |
| Debt outstanding | $4,900,000 | % Equity | 60% | |
| Shares outstanding | 5,000,000 | Tax rate | 25% |
In: Finance
High Inc. has an accounts receivable turnover ratio of 7.3. Low Company has an accounts receivable turnover ratio of 5. Assuming that High and Low have the same sales level, which of the following statements is correct?
A.
Low Company has (on average) a lower accounts receivable balance than does High.
B.
Low's average collection period is less than High's.
C.
High's average collection period is less than Low's.
D.
High has a higher accounts receivable balance on average than does Low Company.
In: Finance
In: Finance
In: Finance
| You are planning to save for retirement over the next 30 years. To save for retirement, you will invest $800 per month in a stock account in real dollars and $400 per month in a bond account in real dollars. The effective annual return of the stock account is expected to be 11 percent, and the bond account will earn 7 percent. When you retire, you will combine your money into an account with an effective return of 9 percent. The returns are stated in nominal terms. The inflation rate over this period is expected to be 4 percent. |
| How much can you withdraw each month from your account in real terms assuming a 25-year withdrawal period? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| What is the nominal dollar amount of your last withdrawal? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
In: Finance
Superman Enterprises has just completed an initial public offering. The firm sold 800,000 new shares (the primary offering). In addition, existing shareholders sold 325,000 shares (the secondary issue). The new shares were offered to the public at $14.50 per share and underwriters received a spread of $1.21/share. The legal, administrative, and other costs were $175,000 and were split proportionately between the company and the selling stockholders. The amounts a company receive is $10632000. Suppose that on the first day of trading, the price of superman's stock is $18/share. The cost to the firm from the underpricing is $2800000. So, what are the total costs of the issue to the firm as a percentage of the funds raised? Answer is 33.56+-0.03. Please write down the details calculation. Thank you!
In: Finance
1) Discuss the stability/instability of the financial system. Include: a) Four common elements in modern U.S. banking crises (class notes). b) Shadow banking system and too big to fail doctrine. c) Frequency of financial crises since deregulation began in 1980. d) Your opinion on how to best management the financial system.
In: Finance
A stock sells for $110.A call option on the stock has an exercise price of $105 and expires in 43 days.Assume that the interest rate is 0.11 and the standard deviation of the stock's return is 0.25
Required:
What is the call price according to the Black Scholes model?
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I have to prepare two separate counteroffers for a team and they have to be structured differently, can't be the same. I have to figure out how to make sure it's good for the player. Having a signing bonus up front would be good in one of them but not sure how to structure that. There has to be enough deferred compensation over the 4 years so that the team can financially afford it
It has to meet the following four guidelines.
4 year term
Contract total PV (present value) must have a $15.5M-$16M range. (Used a 5.5% discount rate i=.05)
The player must earn AT LEAST ($600,000) In each of the playing years
Build in a deferred compensation pattern.
In: Finance
1) Discuss liquidity management of a bank and the tools and options to address liquidity by bank managers.
In: Finance
The exchange will guarantee both side of the contract that is HOLDER AND WRITER. if the WRITER defaults, the buyer will still be able to fulfill the transaction. of course the guarantee to the WRITER is useless...... WHY?
Explain
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The Hamilton Corporation has 3 million shares of stock outstanding and will report earnings of $6,880,000 in the current year. The company is considering the issuance of 3 million additional shares that can only be issued at $33 per share.
a. Assume the Hamilton Corporation can earn 6.00
percent on the proceeds. Calculate the earnings per share.
(Do not round intermediate calculations and round your
answer to 2 decimal places.)
b. Should the new issue be undertaken based on
earnings per share?
In: Finance
Please discuss the pros and cons of all methods (payback period, NPV, IRR) that we can use to decide whether the project can be executed or not. Please explain which method is best and the reason for your choice.
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