+61-413 786 465
info@mywordsolution.com
Home >> Basic Finance
A bond has a face value of $1,000, a market price of $1,112, and pays $45 in interest every six months. What is the coupon rate?
Basic Finance, Finance
Question - Bio-Science Inc. will pay a common stock dividend of $4.60 at the end of the year (D 1 ). The required return on common stock (Ke) is 17 percent. The firm has a constant growth rate (g) of 7 percent. Compute t ...
Stock X has a beta coefficient of 2.0 and stock Y has a beta coefficient of 1.5. The expected rate of return on an average stock is 11% and the risk-free rate is 5%. By how much does the required rate of return on the ri ...
Sam has had the following transactions during the year: Gambling losses $3,000 New suit for work $500 Tax Preparation Fees $1,000 Investment mgmt fee $2,200 Sam's AGI of $110,000 is broken down as follows: Earned income ...
Thanks for starting out the discussion on Financial Leverage. It is taking on Debt and Interest payments for a business. Debt is not a bad thing but too much debt can be a bad thing. How does this relate with Financial L ...
Question - The cost of raising capital through retained earnings is the cost of raising capital through issuing new common stock. The current risk-free rate of return is 4.2%. The market risk premium is 6.1%. D'Amico Co. ...
Assume that real risk-free rate (r*) = 1.00%; the maturity risk premium is found as MRP = 0.20%×(t - 1), where t = years to maturity; the default risk premium for AT&T bonds is found as DRP = 0.07%×(t - 1); the liquidity ...
Question - John Roberts has $42,180.53 in a brokerage account, and he plans to contribute an additional $5,000 to the account at the end of every year. The brokerage account has an expected annual return of 12 percent. I ...
Tick the factors that financial manager should be included when computing the incremental free cash flows of an investment decision. Sunk costs Opportunity costs Project externalities Financing costs
(?Market-value ratios?) Garret Industries has a? price/earnings ratio of 19.46X a. If? Garret's earnings per share is ?$1.65?, what is the price per share of? Garret's stock? b. Using the price per share you found in par ...
The required rate of return on a certain bond changes from 12 percent to 8 percent, causing the price of the bond to change from $900 to $1,100. Determine the bond's price elasticity.
Start excelling in your Courses, Get help with Assignment Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.
Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate
Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p
Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As
Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int
Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As