If interest rates suddenly increase by 2 determine the, Ask an Expert

Finance

1) Givens, Inc., is fast growing technology company which paid $1.25 dividend last week. Company's expected growth rates over next 4 years are as follows: 25%, 30%, 35%, and 30%. Company then expects to settle down to constant-growth rate of 8% annually. If required rate of return is 12%, determine the present value of dividends over fast growth phase?

2) Both Bond Sam and Bond Dave have 7% coupons, make semi-annual payments, and are priced at par value. Bond Sam has 3 years to maturity, while Bond Dave has twenty years to maturity.

If interest rates suddenly increase by 2%, determine the percentage change in price of Bond Sam and Bond Dave?

If rates were to unexpectedly fall by 2% instead, what would be percentage change in price of Bond Sam and Bond Dave?

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M915326

Have any Question?Write your Review or question?

Related Questions in Basic Finance

Tapley dental supply company has the following datanet

Tapley Dental Supply Company has the following data: Net Income = $240 Sales = $10,000 Total assets = $6,000 Debt ratio = 75% TIE ratio = 2.0 Current ratio = 1.2 BEP ratio = 13.33% If Tapley could streamline operations, ...

Question - you want to borrow 342339 from the bank to

Question - You want to borrow $342339 from the bank to purchase a new condominium. Your mortgage will be a 30-year loan fixed at 9.1 annual interests. What will be your monthly mortgage payment?

A common stock just paid a 200 dividend that will grow at 5

A common stock just paid a $2.00 dividend that will grow at 5% for years 1 and 2, then at 3% for year 3, then at 2% thereafter. If you require a 9% return, what is the intrinsic value of the stock?

The shareholders ofnbspa company need to elect six

The shareholders of a company need to elect six directors and there are 150,000 shares outstanding. 1). What is the minimum number of shares they need to own to make sure that they can elect at least one director if the ...

1 i a stock will pay constant dividends of 9 every year its

1) i) A stock will pay constant dividends of $9 every year. Its required rate of return (a.k.a., cost of capital, discount rate) is 17%. What is the value of the stock? Round to the penny. ii) A stock just paid a dividen ...

Question - river enterprises has 500 million in debt and 20

Question - River Enterprises has $500 million in debt and 20 million shares of equity outstanding. Its excess cash reserves are $15 million. They are expected to generate $200 million in free cash flows next year with a ...

What is marketing discipline what is most peoples

What is marketing discipline? What is most people's perception of marketing discipline? Name an organization that has done a great job marketing. What did they do to make you feel this way?

If you insulate your office for 18000 you will save 1800 a

If you insulate your office for $18,000, you will save $1,800 a year in heating expenses. These savings will last forever. a. What is the NPV of the investment when the cost of capital is 4%? 10%? b. What is the IRR of ...

A biased coin has probability 06 of turning up heads you

A biased coin has probability 0.6 of turning up heads. You win $x if a head comes up and you lose $y if a tail comes up. If your expected winnings is $0, what is the relationship between x and y?

What are the implications of increased index investing for

What are the implications of increased index investing for market efficiency?

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

Recent Questions

Ask Basic Finance Expert