1.Deposits of $1000 are made at the beginning of each year for three years. The balance at the end of each year (before the deposit for the next year) was $1100, $2000, and $3400, respectively. Find the time-weighted yield rate.

2. A 10,000 par value 10-year bond with 8% annual coupons is bought at a premium to yield an annual effective rate of 6%. Calculate the interest portion of the 7th coupon.

Court Casuals has 300,000 shares of common stock outstanding as of the beginning of the year and has the following transactions affecting stockholders' equity during the year.

Record each of these transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Bastion Inc., expects earnings this year of $5 per share and is paying a dividend of $1 today to shareholders. Bastion pays an annual dividend. Bastion will retain $4 pershare of its earnings to reinvest in new projects that have a return of 12% per year. Suppose Bastion will maintain the same dividend payout rate, retention rate, and return on new investments in the future and will not change its number of outstandingshares.

(a) What growth rate of earnings would you forecast for Bastion?

(b) If Bastion’s equity cost of capital is 11.2%, what price would you estimate for Bas-tion’s stock? Assume that investors will receive today’s dividend when estimatingthe stock price.

(c) Suppose instead that Bastion paid a dividend of $2 per share this year and retainedonly $3 per share in earnings. If Bastion maintains this higher payout rate in the future, what stock price would you estimate for the firm now? Should Bastion raise its dividend? Assume that investors will receive today’s dividend when estimating the stock price.

Discount Amortization

On the first day of the fiscal year, a company issues a $1,400,000, 8%, 4-year bond that pays semiannual interest of $56,000 ($1,400,000 × 8% × ½), receiving cash of $1,266,974.

Journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.

It is January 1 of Year 2. Sales for Harry Company for January, February, and March are forecasted to be as follows: January, $200,000; February $400,000; March, $500,000. 80% of sales are credit sales; the remaining 20% of sales are cash sales. Of these credit sales, 10% are collected during the month of sale, 30% in the following month, and 60% in the second following month. TOTAL sales for November and December of Year 1 were $200,000 and $400,000, respectively.

What is the forecasted amount of total CASH COLLECTIONS FROM SALES in January?

The Landers Corporation needs to raise $1.60 million of debt on a 5-year issue. If it places the bonds privately, the interest rate will be 10 percent. Thirty thousand dollars in out-of-pocket costs will be incurred. For a public issue, the interest rate will be 11 percent, and the underwriting spread will be 2 percent. There will be $140,000 in out-of-pocket costs. Assume interest on the debt is paid semiannually, and the debt will be outstanding for the full 5-year period, at which time it will be repaid. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. For each plan, compare the net amount of funds initially available—inflow—to the present value of future payments of interest and principal to determine net present value. Assume the stated discount rate is 16 percent annually. Use 8.00 percent semiannually throughout the analysis. (Disregard taxes.) (Assume the $1.60 million needed includes the underwriting costs. Input your present value of future payments answers as negative values. Do not round intermediate calculations and round your answers to 2 decimal places.) b. Which plan offers the higher net present value? Private placement Public issue

Suppose that you are considering investing in a four-year bond that has a face value of $1000 and a coupon rate of 5.5 %.

a.) If the market interest rate on similar bonds is 5.5 %, the price of the bond is $ (Round your response to the nearest cent.)

The bond's current yield is % (Round your response to two decimal places.)

b.) Suppose that you purchase the bond, and the next day the market interest rate on similar bonds falls to 4 .5 %.

The price of the bond will be $ . (Round your response to the nearest cent.)

c.) Now suppose that one year has gone by since you bought the bond, and you have received the first coupon payment. The market interest rate on similar bonds is still 4.5 %.

The price of the bond another investor will be willing to pay is ? $

The total return on the bond was $

if another investor had bought the bond a year ago for the amount that was calculated in? (b), the total return would have been %

d.) Now suppose that two years have gone by since you bought the bond and that you have received the first two coupon payments. At this? point, the market interest rate on similar bonds unexpectedly rises to

9?%.

The price of the bond another investor will be willing to pay is  $. (Round your response to the nearest? cent.)

The total return on the bond was     %. (Round your response to two decimal? places.)

Suppose that another investor had bought the bond at the price you calculated in? (c).

The total return would have been

     %. (Round your response to two decimal? places.)

Assume that

MawnMawn

Associates began the year with

76,000

outstanding shares and implemented a

10 %

stock dividend on

January

1 of the current year.

MawnMawn

employees held

80,000

options that were granted on

April

1. If​ exercised, there would be

21,600

incremental shares. On

June

​1,

MawnMawn

implemented a​ 3-for-1 stock split.​ Finally, on

August

​1, the company purchased

133,800

shares to be held in the treasury.

Requirement

Compute the denominator for basic and diluted earnings per share. Assume that the stock split also applies to the options.

Complete the table below to compute the denominator for basic and diluted earnings per share​ (EPS). Assume that the stock split also applies to the options. ​(Assume the options are dilutive. Combine the opening balance and the

January

1 stock dividend on the first line of the table. Complete all answer boxes. Enter a​ "0" for any zero balances. Enter a decrease in shares with a minus sign or​ parentheses.)