Question
In: Finance
Magdalena have provided you with the following information in the table and you are required to...
Magdalena have provided you with the following information in the table and you are required to find the value of the below bond to assist her with her investment decision: Cash Flow Appropriate required return End of year Amount 1 3,000.00 2.1% 2 3,000.00 3 3,000.00 4 53,000.00
Solutions
Expert Solution
The value of the bond is equal to the present value of the annual cash flows
Discount rate, r = 2.1% = 0.021
PV = 3,000.00/(1 + 0.021)^1 + 3,000.00/(1 + 0.021)^2 + 3,000.00/(1 + 0.021)^3 + 53,000.00/(1 + 0.021)^4
PV = 2,938.2957884427 + 2,877.86071346 + 2,818.6686713615 + 48,772.2623513408
PV = $57,407.0875246
The value of the bond is $57,407.0875246
jeff jeffy answered 2 years agoRelated Solutions
arah provided you with the following information in the table and you are required to find...
arah provided you with the following information in the table
and you are required to find the value of the below bond to assist
her with her investment decision: Cash Flow Appropriate required
return End of year Amount (N$) 1 750.00 15% 2 750.00 3 750.00 4
750.00 until infinity 750.00
Consider the information provided in the following table. Using the additional information provided at the bottom,...
Consider the information provided in the following table. Using
the additional information provided at the bottom, calculate the
value of the firm using FCFF method.
[15]
Year
2019
2020
2021
2022
2023
2024
2025
Total Assets
10000
Fixed Assets
8000
Current assets
2000
Debt
4000
Equity
5000
Current liabilities
1000
Sales
15000
Operating expenses
12000
EBIT
3000
Int
400
PBT
2600
Tax(25%)
650
PAT
1950
For first five years, growth rate is sales in 5% and from sixth
year...
Required information [The following information applies to the questions displayed below.] The following data is provided...
Required information
[The following information applies to the questions
displayed below.]
The following data is provided for Garcon Company and Pepper
Company.
Garcon Company
Pepper Company
Beginning finished goods inventory
$
12,600
$
17,500
Beginning work in process inventory
18,000
20,550
Beginning raw materials inventory (direct materials)
7,400
12,150
Rental cost on factory equipment
30,500
24,700
Direct labor
21,200
41,000
Ending finished goods inventory
17,150
14,100
Ending work in process inventory
25,900
20,200
Ending raw materials inventory
7,100
7,600
Factory...
Required information [The following information applies to the questions displayed below.] The following data is provided...
Required information
[The following information applies to the questions
displayed below.]
The following data is provided for Garcon Company and Pepper
Company.
Garcon Company
Pepper Company
Beginning finished goods inventory
$
12,600
$
17,500
Beginning work in process inventory
18,000
20,550
Beginning raw materials inventory (direct materials)
7,400
12,150
Rental cost on factory equipment
30,500
24,700
Direct labor
21,200
41,000
Ending finished goods inventory
17,150
14,100
Ending work in process inventory
25,900
20,200
Ending raw materials inventory
7,100
7,600
Factory...
Required information [The following information applies to the questions displayed below.] The following data is provided...
Required information
[The following information applies to the questions
displayed below.]
The following data is provided for Garcon Company and Pepper
Company.
Garcon Company
Pepper Company
Beginning finished goods inventory
$
12,700
$
19,600
Beginning work in process inventory
18,800
22,800
Beginning raw materials inventory
7,200
13,200
Rental cost on factory equipment
31,500
24,100
Direct labor
20,800
37,800
Ending finished goods inventory
19,250
13,100
Ending work in process inventory
23,800
21,400
Ending raw materials inventory
6,300
9,800
Factory utilities
10,950...
Required information [The following information applies to the questions displayed below.] The following data is provided...
Required information
[The following information applies to the questions
displayed below.]
The following data is provided for Garcon Company and Pepper
Company.
Garcon Company
Pepper Company
Beginning finished goods
inventory
$
14,200
$
17,350
Beginning work in process
inventory
15,600
23,400
Beginning raw materials
inventory
7,300
11,550
Rental cost on factory
equipment
29,750
24,400
Direct labor
24,800
41,400
Ending finished goods
inventory
20,900
16,200
Ending work in process
inventory
22,300
16,600
Ending raw materials
inventory
6,400
7,400
Factory utilities
14,250...
Required information [The following information applies to the questions displayed below.] The following data is provided...
Required information
[The following information applies to the questions
displayed below.]
The following data is provided for Garcon Company and Pepper
Company.
Garcon Company
Pepper Company
Beginning
finished goods inventory
$
12,700
$
16,600
Beginning work
in process inventory
18,000
23,550
Beginning raw
materials inventory
11,500
13,350
Rental cost on
factory equipment
27,250
26,950
Direct
labor
20,600
43,000
Ending finished
goods inventory
20,000
13,500
Ending work in
process inventory
25,300
17,200
Ending raw
materials inventory
6,200
8,000
Factory
utilities
11,550...
Required information [The following information applies to the questions displayed below.] The following data were provided...
Required information
[The following information applies to the questions
displayed below.]
The following data were provided by Mystery Incorporated for the
year ended December 31:
Cost of Goods Sold
$
156,000
Income Tax Expense
15,120
Merchandise Sales (gross revenue) for Cash
222,000
Merchandise Sales (gross revenue) on Credit
38,400
Office Expenses
18,100
Sales Returns and Allowances
6,510
Salaries and Wages Expense
36,600
2-a. What was the amount of gross profit?
2-b. What was the gross profit percentage?
(Round your percentage...
Cost Classification: The Lee’s have provided you with the following costs and relevant information that are...
Cost Classification: The Lee’s have provided you with the
following costs and relevant information that are assumed for year
20XY.
A. Classify each of the costs (a.
through j.) below under C. as a variable cost or a fixed cost.
B. Explain the importance of
distinguishing between variable and fixed costs.
C. Prepare a budgeted income
statement, assuming 600 units to be produced and sold, a per unit
selling price of $85, an income tax rate of 28% and the...
Cost Classification: The Lee’s have provided you with the following costs and relevant information that are...
Cost Classification: The Lee’s have provided you with the
following costs and relevant information that are assumed for year
20XY.
A. Classify each of the costs (a.
through j.) below under C. as a variable cost or a fixed cost.
B. Explain the importance of
distinguishing between variable and fixed costs.
C. Prepare a budgeted income
statement, assuming 600 units to be produced and sold, a per unit
selling price of $85, an income tax rate of 28% and the...
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