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1) find out annual interest payments and principal amount for treasury inflation protected security with par value of= $1000 and a 3% interest rate if inflation is 4% in year five percent in year two and 6% in year three.

2) Last year Altman Corp. had= $205,000 of assets, $303,500 of sales, 418,250 of net income, and a debt-to-total assets ratio of= 41%. New CFO believes firm has excessive fixed assets and inventory which could be sold, enabling it to decrease its total assets to= $152,500. Sales, costs, and net income would not be affected, and= firm would sustain the= 41% debt ratio. By how much would reduction in assets improve in ROE?

3) Edwards Electronics just reported $11.250 of sales, $5,500 of operating costs other than depreciation, and $1250 of depreciation. Company had no amortization charges, it had= $3,500 of bonds that carry a 6.25% interest rate, and its= 35% income tax. Determine the net cash flow.

4) Determine the bond's nominal (annual) coupon interest rate? $1000 per value, mature in twenty five years, nominal yield to maturity is= 9.25%, semi-annually and sell at a price of= $850.
What is the present stock price, P0? A dividend of= $0.75 per share, 5.50% constant rate per year in the future, beta= 1.15, market risk premium= 5%, risk free rate is= 4.00%

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M914875

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