If an investor wants to receive 500000 euros and the expected yield on the 12-year bond is 7.2% then what would be the amount of an initial investment? State the answer as a number with 2 decimals without any currency sign.
In: Finance
You bought a 10-year bond with $100 face value at a price of $101 with a coupon rate of 5.00% paid semiannually. After 5 years, (5 years left in maturity) you decide to sell it and you find that the new yield to maturity is 6.00% APR. What is the percentage change in the bond’s price?
Group of answer choices
-1.46%
-8.36%
-5.21%
5.50%
In: Finance
Data on Trenton Travel Inc. for the most recent year are shown
below, along with the days sales outstanding of the firms against
which it benchmarks. The firm's new CFO believes that the company
could reduce its receivables enough to reduce its DSO to the
benchmarks' average. If this were done, by how much would
receivables decline? Use a 365-day year.
| Sales | $110,000 |
| Days sales outstanding (DSO) | 49.78 |
| Benchmark days sales outstanding (DSO) | 20 |
In: Finance
Consider a 2-year forward on a stock index. The current value of the index is 2,500. The risk-free interest rate is 4% per annum, and the dividend yield on the stock index is 3% per annum. What is the 2-year forward price?
In: Finance
Hercules Ltd. sold $200,000 of lumber in the last year. They were operating at 94% of fixed capacity and current sales are $350,000, how fast can the company grow before any new fixed assets are needed?
In: Finance
The inflation rate over the past year was 4.2 percent. If an investment had a real return of 9.4 percent, what was the nominal return on the investment?
In: Finance
Suppose the shares of Hector Financial are expected to pay a dividend of $10 next year. The annual growth rate is expected in the long term to be 2%. Investors require an 11% return on their investment in Hector Financial. What should be the price of this stock?
Select one:
a. $90.91
b. $92.73
c. $111.11
d. $113.33
In: Finance
What is the monthly salary of Padmavati if she agrees to a 25 year contract whose value today is $235,000. She gets a signing bonus equal to 15 percent of the contract value and agrees to an APR of 5.29 percent compounded monthly?
Multiple Choice
$1,201.72
$1,161.66
$1,196.44
$1,261.80
$1,215.62
In: Finance
A company is projected to generate free cash flows of $164 million per year for the next 3 years (FCFF1, FCFF2 and FCFF3). Thereafter, the cash flows are expected to grow at a 2.0% rate in perpetuity. The company's cost of capital is 10.2%. What is your estimate for its enterprise value? Answer in millions, rounded to one decimal place (e.g., $213,456,789 = 213.5).
In: Finance
If a perpetuity that pays 105 once a year, what is its Macaulay duration? Assume a 10% yield.
A. 9
B. 12
C. 10
D. 11
In: Finance