Collins Corporation is expected to pay a cash dividend on its common stock of $2.20 per share in one year, $2.45 per share in two years, and a dividend of $2.60 per share in three years. Your analysis indicaes that you think you will sell the stock for a market price of $34.50 per share in three years. The current risk-free rate is 2.20% while the appropriate rate of return for the risks involved in owning Collins corporation stock is 10.75% What will be the dividend yield for the first year (rounded to two decimal places)

1. A corporate bond is quoted at a price of 100.73% of par with a 4.8% coupon. The bond pays interest semiannually. What is the current yield on one of these bonds? (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations)

2. Jade Inc. announced today that it will begin paying annual dividends. The first dividend will be paid next year in the amount of $0.28 per share. The following dividends will be $0.39, $0.63, and $0.76 per share annually for the following three years, respectively. After that, dividends are projected to increase by 3.1% per year.

The sales forecast is based on projected levels of demand. All the numbers are expressed in today’s dollars.

Price per bus $220,000

Units sold per year 12,250

Labor cost per bus $32,500

Components & Parts $86,500

Selling General & Administrative $200,000,000

The average warranty cost per year per bus for the first five years is $2,000. The present value of this cost will be used as a cost figure for each bus. Afterwards, the bus operator will become responsible the repairs on the buses. The buses can be produced for 15 years. Afterwards, the designs become obsolete.

For a new product, sales volume in the first year is estimated to be 80,000 units and is projected to grow at a rate of 4% per year. The selling price is $12 and will increase by $0.50 each year. Per-unit variable costs are $3, and annual fixed costs are $400,000. Per-unit costs are expected to increase 5% per year. Fixed costs are expected to increase 8% per year. Develop a spreadsheet model to calculate the net present value of profit over a 3-year period. I need step by step solution please

On 1/1/2019, Newmanium, Inc. issues $40,000 in bonds having a stated rate of 7%. The bonds mature in 6 years, and interest is paid annually each 12/31. The market (effective) rate is 9%.What are the proceeds of this bond (i.e., the issuance price)?Record all necessary journal entries during the first two years of the bond’s life assuming the company uses the straight-line amortization method:

Record the necessary journal entries on 12/31/19 and 12/31/20 assuming the company uses the effective-rate amortization method:

Pretorious Manufacturing has just hired a new controller, Diana Metcalf. During her first week on the job, Diana was asked to establish a budget for operating expenses for next year. Since Diana was not yet familiar with the operations of Pretorious Manufacturing, she decided to budget these expenses using the same procedures as the prior controller. Therefore, in order to establish a budget for operating expenses, Diana started with actual operating expenses incurred in this year and added 4.3 percent. Diana based this percentage on inflation as measured by the consumer price index.

Comment on the effectiveness of Diana’s budgeting strategy.

The mobile phone was invented in 1973, and during the first 20 years of its life, few people used one, except as a car phone. But during the 25 years, the use of mobile phones increased dramatically and the price of mobile phone service fell.

1. Are the substitutes for mobile phones? If so, provide an example.
   
   
   

2. Do mobile phones have complements? If so provide an example.
   
   
   

3. What increased the demand for mobile phones? Provide examples.
   
   
   

4. What increased the quantity demanded for mobile phones? Illustrate the effect by using the demand curve for mobile phones.

Pretorious Manufacturing has just hired a new controller, Diana Metcalf. During her first week on the job, Diana was asked to establish a budget for operating expenses in 2014. Since Diana was not yet familiar with the operations of Pretorious Manufacturing, she decided to budget these expenses using the same procedures as the prior controller. Therefore, in order to establish a budget for operating expenses, Diana started with actual operating expenses incurred in 2013 and added 4.3 percent. Diana based this percentage on inflation as measured by the consumer price index.

Comment on the effectiveness of Diana’s budgeting strategy.

1) IBM expects to pay a dividend of $5 next year and expects these dividends to grow at 77​% a year. The price of IBM is $85 per share. What is​ IBM's cost of equity ​capital?

2) Since your first​ birthday, your grandparents have been depositing $1,200into a savings account on every one of your birthdays. The account pays 9​%

interest annually. Immediately after your grandparents make the deposit on your 18th​ birthday, the amount of money in your savings account will be closest​ to:

A.$69,386.25

B.$59,473.93

C.$29,736.97

D.$49,561.61

Do dual classes of stocks aggravate or lessen the effects of agency problems? Explain how. If dual classes of stocks are bad for investors, as claimed by a number of institutional shareholders, then why do investors not protest it more vehemently? To estimate the monetary value of voting power, consider the price differences of GOOG and GOOGL. First, explain their differences in terms of voting powers. Next, find the difference in their stock prices. Is it significant? One argument for dual classes of shares is that it insulates management from the short-term mindset of the Wall Street. Do you agree? Why or why not?