Your goal is to hold the stock of TERS Inc. for a year. TERS Inc. will pay a dividend of $1.40 in one year 4 and $1.50 the year after. Your goal is to sell your shares of TERS Inc. at the end of the second year for $25.00. If the discount rate is 10%, then your dividend yield is closest to: A.5.75%
B.6.50%
C.6.25%
D.11.43%
E.12.04%
The correct answer is C, please provide solution
In: Finance
If an investor has a 6 year investment horizon and chooses a bond with a 10 year duration then if interest rates increase then
A) the bond's sale price increase will be more than the lost reinvestment income.
B) the bond's sale price drop will be more than the extra reinvestment income.
C) the bond's sale price drop will be less than the extra reinvestment income.
D) the bond's sale price increase will be less than the lost reinvestment income.
In: Finance
You have a loan of 600,000,
Rate is 3%.
and it is a Twenty year loan
questions.
a.what is the your constant cash flow?
b.what is the interest payment in year 12?
C.what is the amortization of the loan in year 13?
In: Finance
Your company is considering a project with an initial outlay of $1,000 in year zero and the following cash flows over the next 4 years:
|
Year |
Cash flow |
|
1 |
200 |
|
2 |
300 |
|
3 |
400 |
|
4 |
500 |
Assuming cost of capital is 11%:
Use Scenario manager to calculate Expected NPV (format your answer to 2 decimal places) given the following three scenarios and their probabilities of occurrence:
|
Scenario |
Cost of capital |
Probability |
|
Best case scenario |
9% |
25% |
|
Most likely case Scenario |
11% |
55% |
|
Worst case scenario |
13% |
20% |
In: Finance
Your company is considering a project with an initial outlay of $10,000 in year zero and the following cash flows over the next 4 years:
|
Year |
Cash flow |
|
1 |
2,000 |
|
2 |
3,000 |
|
3 |
4,000 |
|
4 |
5,000 |
Assuming cost of capital is 11%:
1) The project's Modified Internal Rate of Return is:
|
12.24% |
||
|
12.50% |
||
|
0% |
||
|
11% |
||
|
13.00% |
In: Finance
If a thirty-year standard corporate coupon bond has a coupon rate of 7%, and if the YTM is 6.4% then what would be thequarterly coupons?
Suppose a firm’s stock is selling for $36.70. They just paid a $3.15 dividend and dividends are expected to grow at 4% per year. What is the required return?
In: Finance
A firm is expected to pay a dividend of $13.29 next year and $13.95 the following year and financial analysts believe the stock will be at their target price of $206.69 in two years -Compute the value of this stock assuming a required return of 13.25%.
In: Finance
At the end of its third year of operations, the Nusa Manufacturing Company had $4,650,000 in revenue (sales); $3,500,000 in cost of goods sold; $475,000 in total operating expenses; $70,000 in interest expense and had a tax liability equal to 30% of the firm’s taxable income. Construct an income statement for the year and find the net profit?
In: Finance
a payment on a loan is made quarterly at a nominal rate of 9% per year compunded monethly. What is the effective semi-annual interest rate for this loan.
In: Economics
In view of the sluggish sales in the year 2019, Panasonic continued to search for new business opportunities by securing new agency with growth potential.
a) Used the SWOT analysis work on its supply chain management
Would really appreciate if you do not copy paste your answers from other sources and do use your own words and answer according to the marks requirement.
In: Economics