Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1.An investor bought 10 Ellis Industries, Inc., long-term bonds one year ago, when they were first issued by the company. In addition, he bought 200 shares of the company's common stock at the same time for $30 per share. He paid $1,000 each for the bonds, and today, the bonds are selling at $950 each (long-term interest rates have increased slightly over the past year). The e bonds have a stated interest rate of 12 percent per year. The e investor received an interest payment equaling $60 per bond six months ago and has just received another $60 per bond interest payment.
find out the investor's percentage holding period return for the one year he has held the bonds.

2. Suppose a U.S. Treasury bill, maturing in 30 days, can be purchased today for $99,500. Assuming that the security is held until maturity, the investor will receive $100,000 (face amount).
Determine the percentage holding period return on this investment.

3. Vanity Press, Inc., has annual credit sales of $1,600,000 and a gross profit t margin of
35 percent.

a. If the firm wishes to maintain an average collection period of 50 days, what level of accounts receivable should it carry? (Assume a 365-day year.)

b. The inventory turnover for this industry averages six times. If all of Vanityâ??s sales areon credit, what average level of inventory should the firm maintain to achieve the same inventory turnover figure as the industry?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M928312

Have any Question? 


Related Questions in Basic Finance

Bellamee company has bonds outstanding with five years to

Bellamee Company has bonds outstanding with five years to maturity and a face value of $5,299. The bonds are currently priced at their face value. If the bonds have a coupon rate of 25 percent, then what is Bellamee's af ...

1 distinguish among observational physiological and

1. Distinguish among observational, physiological, and self-report measures. 2. What do researchers interested in psychometrics study? 3. Why do researchers use converging operations? 4. Distinguish among nominal, ordina ...

Surmec inc has sales of 21 million last year the companys

Surmec, Inc. has sales of $2.1 million last year. The company's primary business line is manufacturing of nuts and bolts. Since this is a mature industry, the analysts are certain that the sales will grow at a steady rat ...

Assignment - merger acquisition and international

Assignment - Merger, Acquisition, and International Strategies Choose two (2) public corporations in an industry with which you are familiar - one (1) that has acquired another company and operates internationally and on ...

Discussion 1 170 wordsidentify a futures commodity exchange

Discussion 1: (170 words) Identify a futures commodity, exchange, stock, or interest rate. Use the internet to find a short history of the performance of this futures contract. Then research the possible reasons for this ...

Please in your own words what are dividends what are some

Please, in your own words. What are dividends? What are some different types of dividends?

Financial assignmentpart 1 at november 30 2012 silver

Financial Assignment Part 1: At November 30, 2012, Silver Traders Company had the following trial balance. There is detailed information on the next page about December 2012 transactions that need to be recorded. Silver ...

Explain how characteristics of mncs can affect the cost of

Explain how characteristics of MNCs can affect the cost of capital ? From an investor's standpoint, have small companies, in general over the past, been more profitable than their larger brethren?

1 what factors should be considered when doing a

1. What factors should be considered when doing a cost-benefit analysis of a proposed study? 2. What is the purpose of the Institutional Review Board? 3. When is it not necessary to obtain informed consent?

The following excerpt if from the notes to the financial

The following excerpt if from the notes to the financial statements in the 2009 Annual Report of Bank of America (p. 147): The Corporation enters into trading derivatives to facilitate client transactions for proprietary ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

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.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro