1.Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Disregard this.

Â

2.Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â If you invest \$8,000 today at 4 percent compounded monthly, how much will you have after 3 years?

Â

3.Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â How much would you have to invest today in order to receive \$10,000 in 3 years at an assumed 4% APR and quarterly compounding?

Â

4.Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â What is the present value of \$10,000 to be received for each of the next three years at an assumed 4 % APR.

Â

5.Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Assume that you won a \$ 20 million lottery. You are to receive \$1 million a year for 10 years plus an additional \$10 million lump sum payment at the end of the tenth year. What is the present value of this lottery payment schedule at an assumed discount rate of 3 %?

Â

6.Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â What are theÂ monthlyÂ payments required in order to pay off a \$30,000 auto loan at an assumed 1.5 % (one point five percent) APR over a three year period?

Â

7.Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â A corporation issued a \$1,000 par value bond paying 4% interest with 10 years to maturity. Assume the current yield to maturity on such bonds is 5 %. What is the price of the bond?

Â

8.Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â A corporation will pay a \$2.00 dividend (D1) in the next 12 months. The required rate of return is 6 % and the constant growth rate is 4 %.Compute the stock priceÂ Po.

Â

9.Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â The preferred stock of a corporation pays an annual dividend of \$2.50. It has a required rate of return of 5 %. Compute the price of the preferred stock.

Â

10.Â Â Â Â Â Â Â Â Â Â Â Â Â Â A \$1,000 par value bond has 7 years to maturity. The bond pays \$60 a year in interest and is selling for \$900. Given a 30% tax bracket, what is the after tax cost of this debt?

Â

11.Â Â Â Â Â Â Â Â Â Â Â Â Â Â A share of preferred stock is selling for \$50 with an estimated floatation cost of \$1 per share. It is anticipated that the preferred stock will pay \$3 per share in dividends. Compute the cost of the preferred stock to the issuing corporation.

Â

Â

12.Â Â Â Â Â Â Â Â Â Â Â Â Â Â A corporation expects to pay dividends (D1) of \$1.40 per share at the end of the current year and the current price of its common stock is \$50 per share. The expected growth rate is 5% and floatation costs of \$1.00 per share are anticipated. Making use of the constant growth model, compute the cost of this new common equity.

Â

13. Â Â Â Â  Making use of the Capital Asset Pricing Model, compute the cost of

Â Â Â Â Â  Â Â Â Â  Common equity assuming a risk free rate of 2%, a market rate of 5 % and

Â Â Â Â Â  Â Â Â  An assumed beta of 1.5.

Â

14.Â Â Â  Assume the following capital structure:

DebtÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â  30%

Preferred stock 20%

Common equityÂ Â Â Â Â Â Â Â Â Â Â  50 %

Â

The following facts are provided:

Â

Bond yield to maturityÂ Â  6%

Corporate tax rateÂ Â Â Â Â Â Â  Â Â Â Â Â Â Â Â Â Â  35%

Dividend, Pre.Â  StockÂ Â Â Â Â Â Â Â Â Â Â Â Â Â  \$2.00

Price, Pre. StockÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â  \$35.00

Floatation, Pre. stockÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â  \$1.00

Dividend (Do), Com. StockÂ Â Â Â Â  \$2.00Â

Price, Com. StockÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â  \$25.00

Growth rate, Com. StockÂ Â Â Â Â Â Â Â  Â Â Â  4%

Compute the weighted average cost of capital

Â

15.Â Â Please assume the following cash flow data:

Â Â  YearÂ  Â Â Â Â Â Cash Flow

0Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â - \$60,000

1Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 24,000

2Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 36,000

3Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 52,000

Â

Required: Please calculate each of the following:

a.Â Â Â Â Â Â Â The Payback

b.Â Â Â Â Â Â The Internal Rate of Return

c.Â Â Â Â Â Â Â The Net Present Value at an assumed capital cost of 10%.

d.Â Â Â Â Â Â The Modified Internal Rate of Return.

Solution details:
STATUS

This question was answered on: Sep 05, 2019

Solution~000200031610.zip (25.37 KB)

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free solution (Deadline assured. Flexible pricing. TurnItIn Report provided)

## Minister of Lebanon...

if i was the minister of education in lebanon( an underdeveloped country) what changes would i make to the education system , why and how use...

TaskInvestigate the effectiveness of business information systems of the given case study. To do this, you are required to submit a comple...

## Explain briefly the emergent property...

Explain briefly the emergent property/property dualist/epiphenomenal conception of mind. How does this differ from elim...

## w-8 D3...

Question:2 Windows auditing is known to be file integrity monitoring sometimes., which helps to detect the chan...

## None...

To prepare for this Assignment:Use the Course Guide and Assignment Help found in this week’s Learning Resources and search for a quantitative art...

## Analyze why older white adults vote in elections m...

Analyze why older, white adults vote in elections more than other groups while describing how each political party cultivates voters and the rol...

## ANTH 130 University of California San Diego Corona...

ANTH 130 University of California San Diego Coronavirus Disease 2019 Lecture Summary...

## Observational Study Designs...

A clinical pediatric nurse has noticed a rise in childhood cancer diagnoses among the Hispanic population served by the local clinic. The...

## Chapter 4 of your textbook illustrates the utiliza...

Chapter 4 of your textbook illustrates the utilization of the Nine-Stage process for creative problem solving by providing an example. Nike has pla...

## binomial option pricing model...

Chapter 22 Problem 1 pg 841You are considering the sale of a call option with an exercise price of \$100 and one year to expiration. T...

## FOR NANCY CAROL ONLY (Human Resource Management)...

Research Paper Due at the End of Week 3 Write a five (5) page minimum...

## Programming : Basic HTML/CSS code for a software...

Hi I need help with designing a software interface for a simple application interface. THIS PART IS ONLY FOR THE USER INTERFACE DESIGN USI...

### Other samples, services and questions:

Calculate Price

When you use PaperHelp, you save one valuable — TIME

You can spend it for more important things than paper writing.

Approx. price
\$65
Order a paper. Study better. Sleep tight. Calculate Price!
Calculate Price
Approx. price
\$65