## Stock Valuation Assignment | Professional Writing college essay help online free

Nonconstant Growth Stock Valuation Simpkins Corporation does not pay any dividends because it is expanding rapidly and needs to retain all of its earnings. However, investors expect Simpkins to begin paying dividends, with the first dividend of $2.00 coming 3 years from today.

The dividend should grow rapidly – at a rate of 70% per year – during Years 4 and 5. After Year 5, the company should grow at a constant rate of 7% per year. If the required return on the stock is 18%, what is the value of the stock today (assume the market is in equilibrium with the required return equal to the expected return)? Do not round intermediate calculations. Round your answer to the nearest cent. $

Get Finance homework help today

## Project Assignment | Professional Writing college essay help online free

Free trade gives consumers O A. the right to purchase goods and services on

Jefferson & Sons is evaluating a project that will increase annual sales by $90,000 and annual costs by $40,000. The project will initially require $145,000 in fixed assets that will be depreciated straight-line to a zero book value over the 10 year life of the project. The applicable tax rate is 34 percent. What is the operating cash flow for this project?

$35,500

$33,000

$23,430

$26,570

$37,930

Get Finance homework help today

## Coupon Assignment | Professional Writing college essay help online free

Jones Inc. bonds mature in 9 years, at par, and make an annual coupon of 7.5%. The market interest rate for the bonds is 9.0%. What is the bond’s price? 2 Wurlitzer Inc, have a par bonds that mature in 8 years and have a coupon value of 6.2%. If the current market interest rate is 8.0%, at what price should the bonds sell?

3 Three years ago Abraham and Strauss issued 15-year, 8.5% annual coupon bonds at par. Today, the market interest rate on these bonds is 6.5%. What is the current price of the bonds, given that they now have 12 years to maturity? A 20-year, par value bond has an 8.0% annual coupon. The bond currently sells for $935. If the yield to maturity remains at its current rate, what will the price be 5 years from now?C

Get Finance homework help today

## Bond Assignment | Professional Writing college essay help online free

10. Sumitomo Bank’s trading portfolio includes two components; foreign exchange and bonds. The risk manager of Sumitomo has estimated that the DEARs of these two components are -$150 and -$250, respectively. What is the aggregate DEAR of Sumitomo’s trading portfolio if the correlation among the two assets is 1.0? -$100 -$291.548 -$350 -$380.789 -$400 déoco 11. In making credit decisions, which of the following is false? a. Borrower’s reputation, leverage, volatility of earnings, and collateral value are borrower- specific factors.

b. Large loans are based on considerable information collection and borrowers are charged an interest rate based on their credit risk, smaller loans are based on less information collection and greater emphasis is put on loan to value ratio. The position of the economy in the phase of the business cycle is a market-specific factor d. In periods of unusually high interest rates (e.g., 15%-20%), borrowers prefer adjustable-rate to fixed-rate loans e. Since borrower income is sensitive to the phase of the business cycle, borrower income is a market- specific factor c.

Get Finance homework help today

## Dividends Assignment | Professional Writing college essay help online free

Flex Co. just paid total dividends of $700,000 and reported additions to retained earnings of $2,100,000.

The company has 565,000 shares of stock outstanding and a benchmark PE of 15.8 times. What stock price would you consider appropriate?

Get Finance homework help today

## Cash Flow Assignment | Professional Writing college essay help online free

Myca Corp. has a project with the following cash flows. What is the value of the cash flows today assuming an annual interest rate of 9.2 percent?

Year

Cash Flow

1

$

1,660

2

2,060

3

2,360

4

2,370

Get Finance homework help today

## EAR Assignment | Professional Writing college essay help online free

*V Rate – 21%/12 = 1.75%; EAR = 23.14% Deferred Annuity 12. Find the present value of an annuity that pays $2,000 per year for 20 years, beginning in exactly 10 years. The relevant interest rate is 8%. Two-step approach: find PV at year 9 (not 10!) by assuming end of year cash flows: N= 20; I/Y= 8; PMT = 2000; CPT PV = $19,636.29 (again note, this is the PV at year 9 not 10. Second step: discount back to year 0 – N=9; I/Y = 8; FV = $19,636.29; CPT PV = $9,823.04 Alternatively:

use the NPV function in Excel or the Cash Flow Worksheet on the BA II+. For Excel, for years 1-9, the annual cash flows are $0, from years 10-29, the annual cash flows are $2000. Include the entire range 0-29 in the NPV function. On the BA II+ Cash Flow Worksheet (CF button), C01 = 0; F01 = 9; CO2 = 2000; F02 = 20 (make sure to push ENTER after entering a value in the Cash Flow Worksheet, navigate down by pushing the down arrow key). Now, press the NPV button and enter the interest rate (ENTER, arrow down) and CPT. NPV = $9,823.04 D.Dont Dolationshin

Get Finance homework help today

## Bond Assignment | Professional Writing college essay help online free

Consider a zero-coupon bond with a $1,000 face value and 13 years to maturity. If the bond is traded at $190 today, its yield-to-maturity is closest to (Provide your answer in percentage with two decimal points) Consider a 5-year 5%-coupon bond that pays a $1,000 par value at maturity. What is the present value of the bond if it pays semi-annual coupons? Assume the appropriate discount rate is 7 per cent?

(Round your answer to the nearest whole number.) Answer: Which of the following statements is TRUE? Select one: O a. On a coupon bond, the final interest payment is made one period before maturity, and only the bond’s face value is paid as the final payment. O b. The dividend on common stocks is an example of annuities. c. A coupon bond that sells at its par value has a zero expected capital gains yield. d. Because most preferred stocks are perpetuities, their value can be determined by dividing the investor’s required return by the annual dividend.

Get Finance homework help today

## Dividend Assignment | Professional Writing college essay help online free

19 Preferred stock from Allsports Inc. sells for $86.75 per share, and it pays an $7.75 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 5.00% of the price paid by investors. What is the company’s cost of preferred stock for use in calculating the WACC? 20 Monroe Inc. has the following data: rRF = 5.25%; RP M= 6.50%; and b = 1.25. What is the firm’s cost of common from reinvested earnings based on the CAPM? 21 As a consultant to Cocco Inc., you have been provided with the following data: D1 = $0.75, PO = $26.80. and gL = 7.00% (constant). What is the cost of common from reinvested earnings based on the dividend growth approach? 22 As the assistant to the President of Roosevelt Industries, you are asked to estimate its cost of common equity. You have been provided with the following data:

DO = $0.65, PO = $24.75 and gL = 6.5% (constant). Based on the dividend growth model, what is the cost of common from reinvested earnings? 23 Bartlett Company’s target capital structure is 50% debt, 10% preferred, and 40% common equity. The after-tax cost of debt is 6.25%, the cost of preferred is 7.0%, and the cost of common using reinvested earnings is 11.85%. The firm will not be issuing any new stock. You were hired as a consultant to help determine their cost of capital. What is the WACC for Bartlett Company? 24 Safeway Incorporated’s stock trades for $53.45 per share. It is expected to pay a $2.75 dividend at year end (D1 = $2.75), and the dividend is expected to grow at a constant rate of 6.25% a year. The before-tax cost of debt is 6.75%, and the tax rate is 35%. The target capital structure consists of 45% debt and 55% common equity. What is the company’s WACC? 25 Eastway Incorporated is considering a project that has the following cash flow and cost of capital (r) data. What is the project’s NPV and IRR? 26 The Bushwick Corp.is considering a project that has the following cash flow and cost of capital (r) data. What is the project’s NPV, IRR and Regular Payback?

Get Finance homework help today

## Cash Flow Assignment | Professional Writing college essay help online free

Period Cash Flowl Cost of Funds Cumulative Cash Flow -10,000 |

-10,000 -15,000 2 -2,600 3 -2,260 6,000 6,000 6,000 6,000 6,000 -1,886 -22,600 -18,860 -14,746 -10,221 -5,243 -1,475 -1,022 6,000

Get Finance homework help today

## NWC Assignment | Professional Writing college essay help online free

If a 5-year-long project requires initial NWC of $0.1 million, and each year after that NWC will be 10% of the sale which is $5 million.

All working capital will be recovered at the end of the project life, my question is what is the NWC that will be recovered at the end of year 5? Thank you.

Get Finance homework help today

## Bond Assignment | Professional Writing college essay help online free

which of the following bonds has the most reinvestment risk?

a. 8-year bond with a 5% coupon

b.3-year bond with a 10% coupon

Get Finance homework help today