• Q : Calculate weighted average cost of capital....
    Finance Basics :

    ake's Sound Systems has 210,000 shares of common stock outstanding at a market price of $36 a share. Last month, Jake's paid yearly dividend in the amount of $1.593 per share.

  • Q : Make a table to amortize the premium....
    Finance Basics :

    Stacy Company issued 5 year, 10 percent bonds with a face value of $10,000 on January 1, 2007. Interest is paid yearly on December 31.

  • Q : Compute the price of forward contract....
    Finance Basics :

    Suppose that current spot price of brent oil is $82 and nine month risk free rate of return is 4%. The continuous storage cost of oil is 3 percent per year.

  • Q : Calculate the estimated yield on treasury securities....
    Finance Basics :

    Calculate the estimated yield on Treasury securities?

  • Q : Comparing borrowing costs....
    Finance Basics :

    Stephens Security has two financing options: (A) A publicly placed $50 million bond issue. Issuance costs are $1 million, the bond has a 9 percent coupon paid semiannually, and the bond has a twenty y

  • Q : Calculate the bonds price....
    Finance Basics :

    A bond with face value $1,000 has a current yield of 7% & a coupon rate of 8%. Calculate the bond's price?

  • Q : Calculate the best expected return....
    Finance Basics :

    Assume you own a portfolio of T-Bills and 2 stocks: Motorola & Nokia. The share of the portfolio invested in T-Bills is worth 20,000 dollar, while the share invested in Motorola is worth 30,000 do

  • Q : Questions based on cost of capital and capital budgeting....
    Finance Basics :

    The common stock of Eddie's Engines, Inc. sells for $25.71 a share. The stock is expected to pay 1.80 dollar per share next month when the year dividend is distributed.

  • Q : Calculate the price of share....
    Finance Basics :

    Angelina's made two statements concerning its common stock today. 1st, the company announced that its next year dividend has been set at $2.16 a share.

  • Q : Compute the yield to maturity....
    Finance Basics :

    A Co. bond has an 8% coupon & pays interest yearly. The face value is $1,000 and the current market price is $1,020.50. The bond matures in twenty years.

  • Q : Calculate the present value of tax shields....
    Finance Basics :

    Doubles Company is issuing 10 million dollar debt [$1,000 par per bond] with ten year bonds with 16% yearly coupon rate, even though its [pretax] cost of debt is only 8 percent.

  • Q : Calculate the total implicit interests....
    Finance Basics :

    Assume your firm needs to increase 10 million dollar by issuing 10 year zero coupon bonds. Your firm's cost of debt is 8%.

  • Q : Calculate cost of equity at the target leverage ratio....
    Finance Basics :

    Common stocks of the Threes Company which currently has no debt in its capital structure are trading for $50 a share. Threes has 2 million shares outstanding now. Threes Co. uses the CAPM in determini

  • Q : Calculate the cost of financing using preferred stock....
    Finance Basics :

    The G Company has 10,000 bonds outstanding. The bonds are selling at 101 percent of face value, have a 7 percent coupon rate, pay interest yearly, & mature in 9 years.

  • Q : Calculate the standard deviation of a portfolio....
    Finance Basics :

    Calculate the standard deviation of a portfolio that is invested 40% in stock A & 60% in stock B, given the following data?

  • Q : Calculate the bonds coupon rate....
    Finance Basics :

    You have paid $1,063.65 for a bond with nine years remaining to maturity. Interest on the bond is paid semiannually. If the current rate of return for same investments is a nominal 8 percent.

  • Q : Calculate the value of common stock....
    Finance Basics :

    Sooty Iron works; Inc has had declining sales & increasing expenses over the last decade & expects this trend to continue. If the market required rate of return is 12%, calculate the valu

  • Q : Calculate the rate of return....
    Finance Basics :

    The stock of Macbeth Cleaning Corp is selling for $25 a share. The company is expected to give a dividend of $.75 at the end of this year.

  • Q : Find the price earnings ratio....
    Finance Basics :

    RTR Corp. has reported a net income of 812,425 for the year. The company's share value is 13.45, & the company has 312,490 shares outstanding.

  • Q : Compute the initial return earned by investors....
    Finance Basics :

    Company X is executing an initial public offering with the given characteristics. The company will sell 10 million shares at an offer price of 25 per share, the underwriter will charge a 7% underwriti

  • Q : Determine the cost of equity and wacc....
    Finance Basics :

     Firm X and Y are identical in all respects except for their capital structure. Firm X is all equity financed with $800,000 in stock. Firm Y uses both stock and perpetual debt; its stock is worth

  • Q : Credit risk analysis of bonds....
    Finance Basics :

    Your task for this module is to use the concept of present value to your selected company. Assume your company is selling a bond that will pay you 1000 dollar in one yeSelect two other companies in th

  • Q : Calculate the value for the bond....
    Finance Basics :

    Your task for this module is to use the concept of present value to your chosen company. Assume your company is selling a bond that will pay you 1000 dollar in one year from today.

  • Q : Calculate the risk free rate and the expected return....
    Finance Basics :

    The expected value and standard deviation of the market portfolio are 8 percent and 12 percent, respectively. The expected return of security A is 6%. The standard deviation of security B is 18%, &

  • Q : Objective questions based on cost of capital and stock....
    Finance Basics :

    Tolan Co. purchased 60, 6 percent Irick Company bonds for $60,000 cash plus brokerage fees of $600. Interest is payable semiannually on July 1 and January 1. If 15 of the securities are sold on July 1

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