Hey. I am having trouble with a finance question:

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Consider two bonds. The first is a 6% coupon bond with six years to maturity, and a yield to maturity of 4.5% annual rate, compounded semi-annually. The second bond is a 2% coupon bond with six years to maturity and a yield to maturity of 5.0%, annual rate, compounded semi-annually.

Given the data for the first two bonds, now consider a third bond: a zero coupon bond with six years to maturity. Calculate the price per $100 of face value of the zero coupon bond. Calculate the yield to maturity for the zero coupon bond. (Express the yield as annual rate, compounded semi-annually).

HINT: Use the Value Additivity principle to answer. Create a synthetic zerocoupon bond, that is, a portfolio of the 6% coupon bond and the 2% coupon bond that has the same cash flows as a 6-year, zero coupon bond.

Tec Industries manufactures and sells one product. The following information pertains to each of the company’s first two years of operations:

Variable costs per unit: Manufacturing: Direct Materials $ 35 Direct Labor $ 25 Variable manufacturing overhead $ 7 Variable Selling and administrative $ 5 Fixed costs per year: Fixed manufacturing overhead $ 320,000 Fixed selling and administrative expenses $ 125,000

During its first year of operations, BIA produced 40,000 units and sold 30,000 units. During its second year of operations, BIA produced 40,000 and sold 50,000 units. The selling price of the company’s product is $100 per unit.

1) Assume the company uses Variable Costing.

a. Compute the unit product cost for Year 1 and Year 2.

b. Prepare an income statement for Year 1 and Year 2 using Variable Costing.

PLEASE SHOW ALL WORK!!

Tec Industries manufactures and sells one product. The following information pertains to each of the company’s first two years of operations:

Variable costs per unit: Manufacturing: Direct Materials $ 35 Direct Labor $ 25 Variable manufacturing overhead $ 7 Variable Selling and administrative $ 5 Fixed costs per year: Fixed manufacturing overhead $ 320,000 Fixed selling and administrative expenses $ 125,000

During its first year of operations, BIA produced 40,000 units and sold 30,000 units. During its second year of operations, BIA produced 40,000 and sold 50,000 units. The selling price of the company’s product is $100 per unit.

2) Assume the company uses Absorption Costing.

a. Compute the unit product cost for Year 1 and Year 2.

b. Prepare an income statement for Year 1 and Year 2 using Absorption Costing.

PLEASE SHOW ALL WORK!!

Compute the expected return and standard deviation for the following properties. The current price of each property is $500,000. Which has the better risk-return tradeoff?

Property A:

• Pessimistic: NOI stays flat at $50,000 per year for the next 5 years. Resale price is $500,000 in year 5. Probability = 25%.
• Most Likely: NOI starts at $50,000 the first year and grows by 1% for the next 5 years. Resale price is $525,000 in year 5. Probability = 50%.
• Optimistic: NOI starts at $50,000 the first year and grows by 3% for the next 5 years. Resale price is $575,000 in year 5. Probability = 25%.

Property B:

• Pessimistic: NOI starts at $50,000 the first year and decreases by 2% for the next 5 years. Resale price is $475,000 in year 5. Probability = 25%.
• Most Likely: NOI starts at $50,000 the first year and grows by 1% for the next 5 years. Resale price is $525,000 in year 5. Probability = 50%.
• Optimistic: NOI starts at $50,000 the first year and grows by 5% for the next 5 years. Resale price is $600,000 in year 5. Probability = 25%.

Suppose that you are reviewing a price sheet for bonds and see the following prices (per $100 par value) reported. You observe what seem to be several errors. Without (!) calculating the price of each bond, indicate which bonds seem to be reported incorrectly and explain why.

A consumer’s demand function for good x is Qx = 100 – Px – Py/2 + Pz/2+ I/100 with Qx representing the quantity demand for good x, Px the price for good x, Py the price for good y, Pz the price for good z, and I the consumer’s income.

c) Determine whether good y is a complement or substitute to good x. d) Determine whether good z is a complement or substitute to good x. e) Determine whether good x is a normal or inferior good

The following chart provides price (P) and number of shares outstanding (Q) data for stocks A, B, and C at the end of year 0 and at the end of year1.

P0 Q0 P1 Q1

A 45 100 50 100

B 60 150 50 150

C 28 200 35 200

What are the equal-, price-, and value-weighted returns on an index comprised of A, B and C? Equal weighted return Price weighted return Value weighted return A. 1.5% B. 2.09% C. 6.48%

The following chart provides price (P) and number of shares outstanding (Q) data for stocks A, B, and C at the end of year 0 and at the end of year1.

P0 Q0 P1 Q1

A 45 100 50 100

B 60 150 50 150

C 28 200 35 200

What are the equal-, price-, and value-weighted returns on an index comprised of A, B and C?

Equal weighted return Price weighted return Value weighted return A. 2.09% B. 1.5% C. 6.48%

A stock costs $80 and pays a $4 dividend each year for three years.

a) If an investor buys the stock for $80 and expects to sell it for $100 after three years, what is the anticipated annual rate of return?

b) What would be the rate of return if the purchase price were $60?

c) What would be the rate of return if the dividend were $1 annually and the purchase price were $80 and the sale price were $100?

Please show how to solve within excel and provide formulas. Thank you.

As stated in ASIC Regulatory Guide (RG) 261 and s738H of the Corporations Act 2001, “not being listed on a financial market in Australia or overseas (including its related parties)” is among the requirements for company eligibility to make a Crowd-sourced funding (CSF) offer.

• Ms Apple holds 15% of X Pty Ltd., 100% of Y Ltd., and 15% of Z Pty Ltd.
• Square Co Ltd holds 43% of X Pty Ltd., the rest (%42) of the company shares is held by Mr Apple., the husband of Ms Apple.
• Finally, Circle Co Ltd. holds 85% of Z Pty Ltd.

Question 1

When assessing the CSF eligibility of Y Ltd, are Circle Co Ltd. or Square Co Ltd. related body corporates of Y Ltd.? Please state your reasons.

Question 2

When assessing the CSF eligibility of Y Ltd in making Crowd-sourced funding (CSF) offers, would it be accurate to say Ms and Mr Apple are related parties under RG 261? Please state your reasons.