8:19 Skk 9.In the above case, the bond will be selling at: Single choice. (5 Points) A Premium A Discount Par Cannot Tell 10.If instead the YTM was equal to the coupon rate of 12%, what must be the price of the bond?. Single line text. (10 Points) Submit This content is created by the owner of the form. The data you submit will be sent to the form owner. Microsoft is not responsible for the privacy or security practices of its customers, including those of this form owner. Never give out your password. Powered by Microsoft Forms 1 + 8:19 . Skk (15 Points) 6. How much would the company owe after paying the first five payments? [Remove $ sign & commas, and keep two decimal places in your final answer). Single line text. (10 Points) 7.If the company will be willing to settle the loan earlier (after 7 years), what would be the balance of the loan at the end of the 7th year? [Remove $ sign & commas, and keep two decimal places in your final answer). Single line text. (10 Points) 8.If the company instead decides to issue a 10-year semi-annual bond with a face value of $1000 per bond, if the coupon rate that the company intends to offer is 12% and if the company was only able to sell the bond at a price of $900 per bond, what must be the expected return on this bond (its YTM)? [keep two decimal places in your final answer). Single line text. (15 Points) 9.In the above case, the bond will be + 8:19 Skk 2.If the company instead decides to take an amortizing loan from its bank, the maximum loan value would be $10M which will be just enough to finance the necessary expansion. If the Annualized Percentage Rate (APR) that the bank offers is 11% compounded semi- annually, and the loan repayment will be monthly over 10 years. What is the effective annual rate (EAR) of this loan? [keep two decimal places in your final answer]. Single line text. (5 Points) 3.What is the monthly rate that will be used in calculating the loan interest payments. [keep two decimal places in your final answer]. Single line text. (5 Points) Read more 725 PM E 3000 PMT number of periods Interest rate 68000 7 2.50% Payment re Policy Amo 517243 Present value + 8:19 Skk BUSI 2093 - Mini-case 2 - Covering units 4,7 & 8 (BUSI 2093 Introduction to Managerial Finance) Hi Shivani, when you submit this form, the owner will be able to see your name and email address. 1.Intercontinental Inc. is an outdoor furniture company that is planning to considerably grow over the coming years. Gaining very good reputation with its high-quality products, the company is projecting that it can grow at 10% over the coming 4 years and then the growth rate will decrease to 3% thereafter. Its earning per share (EPS) this year was $4 and the company's dividend pay-out ratio was 30%, that is its most recent dividends was $1.2. In order to finance this growth, the company needs to invest in new machinery and working capital. The company is considering three financing options to finance this growth: Either to raise equity, get an amortising loan from its bank or issue a bond. If the company chooses to raise equity, what would be the expected price/share given the projected growth rates and given that the expected return on the company's equity is 15% (assume the company uses the divided discount + 8:19 Skk 9.In the above case, the bond will be selling at: Single choice. (5 Points) A Premium A Discount Par Cannot Tell 10.If instead the YTM was equal to the coupon rate of 12%, what must be the price of the bond?. Single line text. (10 Points) Submit This content is created by the owner of the form. The data you submit will be sent to the form owner. Microsoft is not responsible for the privacy or security practices of its customers, including those of this form owner. Never give out your password. Powered by Microsoft Forms 1 + 8:19 . Skk (15 Points) 6. How much would the company owe after paying the first five payments? [Remove $ sign & commas, and keep two decimal places in your final answer). Single line text. (10 Points) 7.If the company will be willing to settle the loan earlier (after 7 years), what would be the balance of the loan at the end of the 7th year? [Remove $ sign & commas, and keep two decimal places in your final answer). Single line text. (10 Points) 8.If the company instead decides to issue a 10-year semi-annual bond with a face value of $1000 per bond, if the coupon rate that the company intends to offer is 12% and if the company was only able to sell the bond at a price of $900 per bond, what must be the expected return on this bond (its YTM)? [keep two decimal places in your final answer). Single line text. (15 Points) 9.In the above case, the bond will be + 8:19 Skk 2.If the company instead decides to take an amortizing loan from its bank, the maximum loan value would be $10M which will be just enough to finance the necessary expansion. If the Annualized Percentage Rate (APR) that the bank offers is 11% compounded semi- annually, and the loan repayment will be monthly over 10 years. What is the effective annual rate (EAR) of this loan? [keep two decimal places in your final answer]. Single line text. (5 Points) 3.What is the monthly rate that will be used in calculating the loan interest payments. [keep two decimal places in your final answer]. Single line text. (5 Points) Read more 725 PM E 3000 PMT number of periods Interest rate 68000 7 2.50% Payment re Policy Amo 517243 Present value + 8:19 Skk BUSI 2093 - Mini-case 2 - Covering units 4,7 & 8 (BUSI 2093 Introduction to Managerial Finance) Hi Shivani, when you submit this form, the owner will be able to see your name and email address. 1.Intercontinental Inc. is an outdoor furniture company that is planning to considerably grow over the coming years. Gaining very good reputation with its high-quality products, the company is projecting that it can grow at 10% over the coming 4 years and then the growth rate will decrease to 3% thereafter. Its earning per share (EPS) this year was $4 and the company's dividend pay-out ratio was 30%, that is its most recent dividends was $1.2. In order to finance this growth, the company needs to invest in new machinery and working capital. The company is considering three financing options to finance this growth: Either to raise equity, get an amortising loan from its bank or issue a bond. If the company chooses to raise equity, what would be the expected price/share given the projected growth rates and given that the expected return on the company's equity is 15% (assume the company uses the divided discount +
