1. Fulkerson Manufacturing wishes to maintain a sustainable growth rate of 10 percent a year, a debt–equity ratio of .37, and a dividend payout ratio of 34 percent. The ratio of total assets to sales is constant at 1.38. What profit margin must the firm achieve in order to meet its growth rate goal?
2. Heginbotham Corp. issued 20-year bonds maturity two years ago at a coupon rate of 5.3 percent. The bonds make semiannual payments. If these bonds currently sell for $1,050, what is the YTM?
You find a zero-coupon bond with a par value of $1,000 and 17 years to maturity. If the yield to maturity on this bond is 4.9 percent, what is the price of the bond? Assume semiannual compounding periods.
Yan Yan Corp. has a $1,000 par value bond outstanding with a coupon rate of 4.9 percent paid semiannually and 13 years to maturity. The yield to maturity of the bond is 3.8 percent. What is the price of the bond?
Can someone explain this using Excel: referencing cells and =pv(B12, etc etc)