Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Operation Management Expert

Management Studies


Home >> Operation Management

Module 2 Extra ExtraPractice

1. ABC has a 5% coupon bond outstanding. The remaining maturity is 10 years. The market yield on this type of bond is 6%. Find a fair price. (926.40)

2. If the ABC bond has a price of 1050, what is the yield? (4.37%)

3. Last year Trumpco paid a 2.30 per share dividend. The beta is 2.1, the market is expected to earn 10%, and the risk free rate is 3%. If dividends remain at 2.30 per year forever, what is a fair price? (12.99)

4. What if Trumpco's dividends grow at 6% per year forever? (20.84)

5. Find the dividend yield and capital gains yield for the stock in number 4. (.117 and .06)

6. What if Trumpco's dividends grow at 4% for one year, than at 8% forever after that? (24.66)

7. Drew Brees can generate 4 in Eps per year forever. The fair return is 12%. They can retain 50% of earnings and invest in a project that will earn 14%. Find the value of assets in place. Find the value of the growth opportunity. Should Drew buy it? (33.33, 6.67, yes)

8. The spot price is 50. The exercise price on a one year call is 48. The standard deviation of the spot is 25%. The risk free rate is 3%. Find the intrinsic value, time value and premium for this call. (2, 4.52, 6.52)

9. The spot price is 70. The exercise price on a one year call is 72. The risk free rate is 3%. Find the price of the call if there is equal probability that stock price will grow to 75 or fall to 68. (1.71)

10. XYZ uses a capital structure that is 40% debt. The interest rate on this debt is 8%. The tax rate is 40%. If XYZ has a beta of 1.5 and the market is expected to earn 12% and the risk free rate is 2%, what is XYZ's WACC? (.1212)  

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M91811840
  • Price:- $25

Priced at Now at $25, Verified Solution

Have any Question?


Related Questions in Operation Management

1 what attributes describes the current major customer

1. What attributes describes the current major customer segments for your firm? Are these changing? If so, is your firm prepared to meet these new customer demands? 2. Is Your firm highly vertically integrated? If yes, d ...

For this journal assignment please reflect on your

For this journal assignment, please reflect on your experiences both professionally and academically working as a part of a team. This will be a personal reflection, Is there a role you usually play on a team? What is yo ...

1 preston corporation sold all of its assets to adam

1. Preston Corporation sold all of its assets to Adam Corporation in exchange for Adam stock. Preston then distributed the stock to its shareholders, without paying a debt of $150,000 owed to a major supplier, Corey. Cor ...

Organizational culture is the culture that exists in an

Organizational culture is the culture that exists in an organization. "Something mine to a social culture." Therefore, organizational culture is "contextually driven" and is comprised of many intangible things such as "v ...

Todays state-of-the-art network security appliances do a

"Today's state-of-the-art network security appliances do a great job of keeping the cyber monsters from invading your business. But what do you do when the monster is actually inside the security perimeter? Unfortunately ...

1 define the term procurement planning and briefly apply it

1. Define the term: Procurement Planning and briefly apply it to IKEA. 2. How we can measure the learning evaluation impact on business performance. ? 3. Marketing can be indentify in entrepreneurship in what ways.

1 when should a firm choose the global strategy rather than

1. When should a firm choose the global strategy rather than a multidomestic strategy? 2. How might a given country’s regulatory environment impact a firm’s international strategy? 3. How do the international strategies ...

Topic research a publicly traded company that recently

Topic: Research a publicly traded company that recently (within the past three years) went IPO (initial public offering). Discuss the estimation of the company's stock price prior to the actual IPO date, the price of the ...

1 a capacity alternative has an initial cost of 75000 and

1. A capacity alternative has an initial cost of $75,000 and $35,000 salvage value. It creates cash flow (income) of $15,000 for each of the next five years. If the cost of capital is 12 percent (i =12%), what is the net ...

Give and one example of logos pathos and ethos for a total

Give and one example of logos, pathos, and ethos for a total of three examples. Each example does not have to be from the same source. Explain how the source uses the appeal. You can use a feature story from a magazine o ...

  • 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

Why might a bank avoid the use of interest rate swaps even

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

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

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 1150 payment made in ten

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

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved