Sheridan, Inc., has outstanding bonds that will mature in six years and pay an 8 percent coupon semiannually. If you paid $1,093.30 today and your required rate of return was 5.5 percent.

How much should you have paid for the bond?

Did you pay the right price for the bond?

How a operational synergy, managerial synergy and market power, financial synergy enhance the value of company

Assume semi-annualcoupon payments. Find missing values in the table above.

Please show details of your solution.

You plan on starting a retirement fund at the end of the year. The fund earns 11% per year. You will invest X dollars into the fund. You plan to retire at the end of 40 years from now. Once you retire, you will take your entire retirement fund and transfer it into a safer investment that will only earn 5% interest per year compounded monthly. You will need $4000 per month for 30 years during your retirement to sustain your lifestyle. (After which point, RIP). Calculate exactly how much money you will deposit in your retirement account at the end of this year.

Your cousin who is the same age as you and with the same life expectancy and desired retirement age decides she will wait 10 years to start saving for retirement (so she will save for only 30 years). How much does she need to invest per year to achieve the same retirement nest egg as you when she retires?

Finally, your lazy best friend who is also your age decides he will wait 10 years to start saving for retirement just like your cousin. However, he will only save the same amount you save per year. He will retire at the same time as you and reinvest just like you do into a safer investment. He will try to live the same life style as you. How long after retirement (in months) before he is broke?

You are using a net present value profile to compare Project A and B, which are mutually exclusive. Which one of the following statements correctly applies to the crossover point between these two?

A.The internal rate of return of each project is equal to zero.

B.The net present values for both projects are the same at a certain discount rate

C. The net present value of each project is equal to zero

D. The internal rate of return for Project A equals that of Project B, but generally does not equal zero


Not sure why the Expert asked for Data, it's not a calculation, its asking what is true of the comparison of two projects, there is no data....

One year ago your company purchased a machine for $110,000. You have learned that the new, much better machine is available for $150,000. In will be depreciated on a straight line basis and has no salvage value. You expect the machine to produce $60,000 per year in revenue and cost $20,000 per year to operate for the next ten years. The current machine is expected to produce $40,000 per year in revenue and also costs $20,000 per year to operate. The current machine’s depreciation expense is $10,000 per for the next 10 years, after which it will be discarded. It will have no salvage value. The market value of the current machine today is $50,000. Your company’s tax rate is 45% and the opportunity cost of capital is 10%. Should your company replace its year-old machine

please give me the correct answer

Which of the following statement is incorrect?

1. Most traditional mutual funds allow investors to redeem their share of the fund only at the close of business.

2. Investment banks underwrite security offerings, advise corporations regarding the design and pricing of new securities, buy these securities from the issuing corporation, and resell them to investors.

3. When a firm sells goods and services to public first time and the Federal Reserve issues IPOs for the firm, but an investment bank helps with the IPO to overprice the issues.

4. Most of the answers are correct.

5. The foreign trade balance describes the level of imports relative to exports.

Which of the following statement is incorrect?

1. Most of the answers are correct.

2. The average rate of return required by investors is called the weighted average cost of capital (WACC).

3. A partnership exists whenever two or more persons or entities associate to conduct a noncorporate business for profit.

4. Derivatives are securities whose values depend on the values of some other traded assets.

5. Public markets are where transactions are worked out directly between two parties and these transactions are called private placements.

Which of the following statement is correct?

1. Corporate bonds are riskier than U.S. government debt and the riskiness depends on strength of issuer.

2. Like typical mutual funds, which can have thousands of investors, hedge funds have many small investors and a relatively large number of low-net-worth individuals.

3. U.S. Treasury notes and bonds are issued by the largest U.S. corporations.

4. All the answers are incorrect.

5. The prime rate is the rate that U.K. banks report for loans made to other U.K. banks.

Which of the following statement is correct?

1. If the Federal Reserve Board purchases Treasury securities held by banks, then the increased demand causes Treasury securities’ prices to go up.

2. Some securities are created from packages of other real assets, a process called simulation.

3. All the answers are incorrect.

4. Most traditional mutual funds allow investors to buy and sell their shares during normal trading hours as opposed to ETFs which can be bought and sold after markets are closed.

5. The larger the federal deficit, other things held constant, the lower the level of interest rates.

Which of the following statement is correct?

1. All the answers are incorrect.

2. Capital markets are the markets for debt securities with maturities of less than a year.

3. Investment banks take premiums, invest these funds in stocks, bonds, real estate, and mortgages, and then make payments to beneficiaries.

4. Because these investors are supposed to be sophisticated, hedge funds are much less regulated than mutual funds.

5. The common stocks of a corporation is about a set of rules drawn up by the founders of the corporation and guides corporate managers to follow.

Which of the following statement is incorrect?

1. If the Fed wishes to slow down the economy and reduce inflation, the Fed sells Treasury securities to banks, which reduces banking reserves and causes an increase in short-term interest rates but a decrease in long-term inflationary pressures.

2. Money markets are the markets for corporate stocks and debt maturing more than a year in the future.

3. general partners potentially can lose all of their personal assets in the event of bankruptcy because each general partner is liable for the business’s debts.

4. One of the properties of cash flows that determine a company’s value is about the risk of the cash flows—safer cash flows are worth more than uncertain cash flows.

5. Most of the answers are correct.

Which of the following statement is correct?

1. All the answers are incorrect.

2. The intrinsic value of a firm is obtained using the expected sales and the cost of goods when all relevant information is incorporated.

3. The Federal Deposit Insurance Corporation (FDIC), which is backed by the U.S. government, insures up to $250,000 per depositor.

4. The fundamental value of a firm is obtained using the expected cash reserves and past dividends when all relevant information is incorporated.

5. Investment banks are cooperative associations whose members have a common bond, such as being employees of the same firm or living in the same geographic area.

Which of the following statement is incorrect?

1. If debt matures in more than a year, it is called a capital market security.

2. Commercial banks help companies raise capital through underwriting activities.

3. Some securities are created from packages of other financial assets, a process called securitization.

4. Most of the answers are correct.

5. One of the advantages of a corporation is that it is easy transfers of ownership interests.

What are some of the pros and cons you should be aware of if you are an investor for a pension fund and given the following scenario and deciding whether to invest or not?

-A portfolio of CMBS bonds issued in 2018 with the bonds maturing up to 2028 depending upon tranche. Assume you are looking at the investment grade tranches with a 3.7% to 5% yield.

In 2017, NB Inc.’s federal taxable income was $317,000. Compute the required installment payments of 2018 tax in each of the following cases: (Round your intermediate calculations and final answers to the nearest whole dollar amount.)

1. NB’s 2018 taxable income is $550,000.
2. NB’s 2018 taxable income is $935,000.
3. NB’s 2018 taxable income is $1,362,000.

The statement of change in net debt is unique to public sector financial reporting. Assume that you are a financial accountant with the Municipality of Walton. Prepare the 20X5/X6 statement of change in net debt using the information below. (Note: prepare only the current-year column, not the comparative numbers.)

Additional information:

• The annual surplus includes $14,718 in amortization expense.
• Tangible capital assets were purchased for $6,450.
• There were no TCA disposals in the year.

THE MBA DECISION Ben Bates graduated from college six years ago with a finance undergraduate degree. Since graduation, he has been employed in the finance department at East Coast Yachts. Although he is satisfied with his current job, his goal is to become an investment banker. He feels that an MBA degree would allow him to achieve this goal. After examining schools, he has narrowed his choice to either Wilton University or Mount Perry College. Although internships are encouraged by both schools, to get class credit for the internship, no salary can be paid. Other than internships, neither school will allow its students to work while enrolled in its MBA program. Ben’s annual salary at East Coast Yachts is $61,000 per year, and his salary is expected to increase at 3 percent per year until retirement. He is currently 28 years old and expects to work for 40 more years. His current job includes a fully paid health insurance plan, and his current average tax rate is 25 percent. Ben has a savings account with enough money to cover the entire cost of his MBA program. The Ritter College of Business at Wilton University is one of the top MBA programs in the country. The MBA degree requires two years of full-time enrollment at the university. The annual tuition is $65,000, payable at the beginning of each school year. Books and other supplies are estimated to cost $2,800 per year. Ben expects that after graduation from Wilton, he will receive a job offer for about $107,000 per year, with an $20,000 signing bonus. The salary at this job will increase at 4 percent per year. Because of the higher salary, his average income tax rate will increase to 30 percent. The Bradley School of Business at Mount Perry College began its MBA program 16 years ago. The Bradley School is smaller and less well known than the Ritter College. Bradley offers an accelerated, one-year program, with a tuition cost of $78,000 to be paid upon matriculation. Books and other supplies for the program are expected to cost $4,000. Ben thinks that after graduation from Mount Perry, he will receive an offer of $90,000 per year, with a $17,000 signing bonus. The salary at this job will increase at 3.5 percent per year. His average income tax rate at this level of income will be 28 percent. Both schools offer a health insurance plan that will cost $3,500 per year, payable at the beginning of the year. Ben also estimates that room and board expenses will cost $2,500 more per year at both schools than his current expenses, payable at the beginning of each year. The appropriate discount rate is 6.2 percent. Assume all salaries are paid at the end of each year. Assuming all salaries are paid at the end of each year, what is the best option for Ben—from a strictly financial standpoint? He has three choices: remain at his current job, pursue a Wilton MBA, or pursue a Mt. Perry MBA. In order to determine the best option, you will need to calculate the after tax value of each option (perform analysis below).

Timeline for growing annuity for 40 years Salary Wilton MBA Mount Perry MBA

Timeline Timeline Timeline

Year Value Year Value Year Value

Suppose you own 50,000 shares of common stock in a firm with 2.5 million total shares outstanding. The firm announces a plan to sell an additional 1 million shares through a rights offering. The market value of the stock is $35 before the rights offering and the new shares are being offered to existing shareholders at a $5 discount. (LG 8-3)

    If you exercise your preemptive rights, how many of the new shares can you purchase?

    What is the market value of the stock after the rights offering?

    What is your total investment in the firm after the rights offering? How is your investment split between original shares and new shares?

    If you decide not to exercise your preemptive rights, what is your investment in the firm after the rights offering? How is this split between old shares and rights?

The president of Lowell Inc. has asked you to evaluate the proposed acquisition of a new computer. The computer's price is $60,000, and it falls into the MACRS 3-year class (33% in year 1, 45% in year 2, 15% in year 3, and 7% in year 4). Purchase of the computer would require an increase in net operating working capital of $2,000. The computer would increase the firm's before-tax revenues by $20,000 per year but would also increase operating costs by $5,000 per year. The computer is expected to be used for 4 years and then be sold for $25,000. The firm's marginal tax rate is 40 percent, and the project's cost of capital is 14 percent. What is the total value of the terminal year non-operating cash flows (after-tax salvage value + working capital recovered) at the end of Year 4?

Kirksville Inc. has 1,100 bonds outstanding that are selling for $992 each. The bonds carry a 6.0 percent coupon, pay interest semi-annually, and mature in 7.5 years. The company also has 9,500 shares of 5% preferred stock at a market price of $40 per share. This month, the company paid an annual dividend in the amount of $1.20 per share. The dividend growth rate is 5.0 percent. The common stock is priced at $30 a share and there are 34,500 shares outstanding. The company is considering a project that is equally as risky as the overall company. This project has initial costs of $630,000 and operating cash flows of $80,000 a year for the next 10 years and salvage value of $20,000 at the end of 10 years. The net working capital (NWC) is expected to increase by $10,000 a year until the end of the project life. All the NWCs will be recovered when the project is completed. The project will be depreciated straight-line to zero over the project’s 10-year life. The tax rate is 21%.

(a) What is Kirksville’s weighted average cost of capital?

(b) What is the net present value (NPV) of this project? Should you accept the project? Explain why.

(c) What is the internal rate of return (IRR) of this project? Should you accept the project if you apply the IRR decision rule?

Show all Work!

Balance the budget sheet:

Current Assets:

Total Current Assets:

Property and equipment:

Other assets:

Total Assets:

Current liabilities:
Total Current Liabilities:

Total Liabilities:

Share holders equity

Total Liabilities & Share holders Equity: