Question
1. Malko Enterprises bonds currently sell for $1,150. They have a 6-year maturity, an annual coupon of $75, and a par value of $1,000. What
1. Malko Enterprises bonds currently sell for $1,150. They have a 6-year maturity, an annual coupon of $75, and a par value of $1,000. What is their current yield?
2. What is the expected return for a stock that always pays a $3 annual dividend and sells now for $91?
3. If Div0 = $1.25, g (which is constant) = 4.5%, and P0 = $26.11, what is the stocks expected dividend yield for the coming year?
4. Gray Manufacturing is expected to pay a dividend of $2.25 per share at the end of the year (D1 = $2.25). The stock sells for $42.50 per share, and its required rate of return is 10.5%. The dividend is expected to grow at some constant rate, g, forever. What is the equilibrium expected growth rate?
5. What is the NPV of a project that costs $285,000 today and no cash inflows for 3 years, followed by cash inflows $95,000 annually for the next five years, if the opportunity cost of capital is 2%?
6. If the dividend yield for year one is expected to be 8% based on the current price of $70, what will year six dividend (DIV6) be if dividends grow at a constant 3%?
7. What is the current yield for a Bond with a $1,000 par value bond, with a 3% annual coupon that matures in 5 years if the interest rate is 7%?
8. A stock just paid a dividend of D0 = $1.50. The required rate of return is r = 10.1%, and the constant growth rate is g = 4.0%. What is the current stock price?
9. Tom O'Brien has a 2-stock portfolio with a total value of $100,000. $37,500 is invested in Stock A with a beta of 0.75 and the remainder is invested in Stock B with a beta of 1.42. What is his portfolios beta?
10. Adams Enterprises noncallable bonds currently sell for $1,120. They have a 15-year maturity, an annual coupon of $85, and a par value of $1,000. What is their yield to maturity?
Please show how to get answers on 10bii calculators. I need to know all the inputs and order of operations.
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