On January 1, 2018, Rice Co. issued ten-year bonds with a face value of $5,000,000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield 12%. Table values are:

Instructions

1. Calculate the issue price of the bonds.
2. Record the bond issuance
3. Record the first interest payment

supply and demand curve:

Hurricane Katrina closed all refineries on the Gulf Coast, while the Chevy Volt, an electric car, is released. What effect will this have on the market for gasoline? Draw and the graph and explain which curve shift first and, then what cause the second curve to shift. Final what happens to price and quantity at the nee equilibrium point?

Bayou Okra Farms just paid a dividend of $2.65 on its stock. The growth rate in dividends is expected to be a constant 4.5 percent per year indefinitely. Investors require a return of 15 percent for the first three years, a return of 13 percent for the next three years, and a return of 11 percent thereafter. What is the current share price?

Suppose that General Motors Acceptance Corporation issued a bond with 10 years until​ maturity, a face value of $1,000​ and a coupon rate of 7.5%

​(annual payments). The yield to maturity on this bond when it was issued was 6.5%. Assuming the yield to maturity remains​ constant, what is the price of the bond immediately before it makes its first coupon​ payment?

Moulton motors is advertising the following deal on a new Honda civic: Monthly payments of $709.88 for the next 36 months and this beauty can be yours!" the sticker price of the car is $22,000. if you bought the car, what interest rate would you be paying in both APR and EAR terms? what is the amortization schedule of the first six payments?

New Gadgets, Inc., currently pays no dividend but is expected to pay its first annual dividend of $5.50 per share exactly 7 years from today. After that, the dividends are expected to grow at 3.5 percent forever. If the required return is 12.5 percent, what is the price of the stock today? $35.17 $61.11 $26.79 $30.14 $49.71

Moody Farms just paid a dividend of $3.50 on its stock. The growth rate in dividends is expected to be a constant 5 percent per year indefinitely. Investors require a return of 13 percent for the first three years, a return of 11 percent for the next three years, and a return of 9 percent thereafter. What is the current share price?

Moody Farms just paid a dividend of $2.65 on its stock. The growth rate in dividends is expected to be a constant 3.8 percent per year indefinitely. Investors require a return of 15 percent for the first three years, a return of 13 percent for the next three years, and a return of 11 percent thereafter. What is the current share price?

(a) ABC Company has just paid a dividend of $1.00 per share. Dividends are paid annually. Analysts estimate that dividends per share will grow at a rate of 20% for the next 2 years, at 15% for the subsequent 3 years, and at 3% thereafter. If the shareholders’ required rate of return is 12% per year, then what is the price of the stock today? What will be the ex-dividend price at the end of the first year? What will be the capital gains yield in the first year? [10 points]

(b) Crazy Dividends Inc. has announced that it will pay dividends only in alternate years, starting 2 years from now. It has just paid a $1.00 dividend per share and the next dividend will be at the end of year 2, followed by dividends at the end of year 4, 6, etc. Each dividend amount is 10% higher than the last payment. So, the next dividend will be $1.10. The stock is selling for $22 right now. What is the shareholders’ required return per year? [5 points]