Question
5 questions listed but more in depth with A-E on actual word doc. Price negotiable. 1. Suppose you're given with the following information for some
5 questions listed but more in depth with A-E on actual word doc. Price negotiable.
1. Suppose you're given with the following information for some assets; a 12-year 4.2%-coupon bond of semi-annual coupon payment with face value as $1,000, a common stock of $3.60 expected dividend with 3.5% growth rate currently. Both bond and common stock are issued by Company M&M. Answer the following questions.
2. You're given with a mortgage from your credit union to buy a house that costs $640,000. Suppose you pay $128,000 for down payment and the current average market interest rate is 2.6% for the 15-year mortgage. Answer the following questions:
3. Answer "True' or "False" to the following questions and with "Explanation". (No credits will be given if no explanation is shown)
4. You are given with the following information statements of a public firm Bambie in the airline industry concurrently. (Notice that all negative numbers are parenthesized). The firm has issued 12 million shares of common stock with current market price as $42.40/per share, the expected dividend is $3.90/per share with 3.5% growth rate, 300,000 shares of preferred stocks with promised preferred dividend and preferred stock price as $1.10/per share and $12.5/per share, respectively. The firm also has currently, 2 million 4.6%-coupon bonds with $1,000 face value that pays the coupons semi-annually. The current bond price is $821/per bond. The bonds are expected to mature at 2020. Answer the following questions:
5. You are given with the following information of two projects planned by your company. The initial costs are given as: $3 million for project A, and $2.5 million for project B, respectively.
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