Can anyone please answer these questions?

1) 1) Five years ago you took out a 30-year mortgage with an APR of 6.40% for $196,000. If you were to refinance the mortgage today for 20 years at an APR of 4.15%, how much would you save in total interest expense? A) $48,888 B) $97,776 C) $195,552 D) $146,664 2) 2) If the current inflation rate is 2.3%, then the nominal rate necessary for you to earn a(n) 8.1% real interest rate on your investment is closest to A) 14.8% B) 10.6% C) 16.9% D) 12.7% 3) 3) Consider a zero-coupon bond with $1000 face value and 15 years to maturity. If the YTM is 6.3%, this bond will trade at a price closest to A) $479.93 B) $559.92 C) $399.95 D) $639.91 4) - 4) A bond has three years to maturity, a $2000 face value, and a 6.4% coupon rate with annual coupons. What is its yield to maturity if it is currently trading at $1843.33? A) 13.33% B) 9.52% C) 7.62% D) 11.43% 5) 3) What is the yield to maturity of a eight-year, $10,000 bond with a 4.9% coupon rate and semiannual coupons if this bond is currently trading for a price of $9112.52? A) 6.33% B) 3.17% C) 8.86% D) 7.60% 6) - 6) What must be the price of a $5000 bond with a 6.9% coupon rate, semiannual coupons, and eight years to maturity if it has a yield to maturity of 12% APR? A) $3711.50 B) $5196.10 C) $2969.20 D) $4453.80 7) 7) A $5000 bond with a coupon rate of 7.0% paid semiannually has nine years to maturity and a yield to maturity of 6.3%. If interest rates fall and the yield to maturity decreases by 0.8%, what will happen to the price of the bond? A) The price of the bond will rise by $289.17. B) The price of the bond will fall by $347.00. C) The price of the bond will rise by $404.83. D) The price of the bond will fall by $289.17. 8) A company issues a ten-year $1,000 face value bond at par with a coupon rate of 6.1% paid semiannually. The YTM at the beginning of the third year of the bond (8 years left to maturity) is 8.6%. What was the percentage change in the price of the bond over the past two years? A) -11.40% B) -14.25% C) -19.95% D)-17.10% 9) - 9) A firm issues five-year bonds with a coupon rate of 6.6%, paid semiannually. The credit spread for this firm's five-year debt is 0.8%. New five-year Treasury notes are being issued at par with a coupon rate of 4.0%. What should the price of the firm's outstanding five-year bonds be per $100 of face value? A) $129.50 B) $107.92 C) $151.08 D) $86.33 10 hree years. If 10) Coolibah Holdings is expected to pay dividends of $1.20 every six months for the next three years. the current price of Coolibah stock is $21.70, and Coolibah's equity cost of capital is 18% (APR), W price would you expect Coolibah's stock to sell for at the end of three years? A) $30.11 B) $32.84 C) $27.37 D) $31.48 A) $40.12 bit 11) Rylan Industries is expected to pay a dividend of S5.70 year for the next four years. If the current pricei 11) ITT TU of Rylan stock is $31.48, and Rylan's equity cost of capital is 12%, what price would you expect Rylan's stock to sell for at the end of the four years? B) $22.29 201519AB 62110m 19V-OESTID) $17.83 Ogs Ziso Ovil (1 trn world to STA 15 HOY OS 101 vabos ghororoonanilor 12) 12) Gremlin Industries will pay a dividend of $165 per share this year. It is expected that this dividend 82 (A will grow by 3% per year each year in the future. The current price of Gremlin's stock is $24.00 per share. What is Gremlin's equity cost of capital? A) 12% B) 10% C) 14% or not . ID) 9% trotto or (S of 12golo zlomov O HO S oni 13) A company has stock which costs $41.25 per share and pays a dividend of $2.00 per share this year. 13) The company's cost of equity is 8%. What is the expected annual growth rate of the company's dividends? buod ng Nobiz B) 3.15% C) 12.60% D) 6.30% w brad Ener 14. Two mutually exclusive investment opportunities require an initial investment of $6 million. 14) Investment A pays $1.9 million per year in perpetuity, while investment B pays $1.2 million in the first year, with cash flows increasing by 4% per year after that. At what cost of capital would an investor regard both opportunities as being equivalent? A) 5% B) 11% C) 3% D) 12% C) 12.00 A) 9.45% 15) 15 Chittenden Enterprises has 616 million shares outstanding. It expects earnings at the end of the year to be $880 million. The firm's equity cost of capital is 10%. Chittenden pays out 30% of its earnings in total: 20% paid out as dividends and 10% used to repurchase shares. If Chittenden's earnings are expected to grow at a constant 4% per year, what is Chittenden's share price? A) $14.28 B) $7.14 C) $2.14 D) $3.57 16) - 16. What is the internal rate of return (IRR) of an investment that requires an initial investment of $15,000 today and pays $20,700 in one year's time? A) 38% B) 41% C) 42% D) 35% 17) Consider the following two projects: Project Year 0 Year 1 Year 2 Year 3 Year 4 Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow T - 100 40 50 60 N/A - 73 40 40 40 Discount Rate 0.10 0.10 A 40 wars C) 1.8 years D) 1.5 years The payback period for project B is closest to A) 2.0 years B) 1.6 years 18 18) A delivery service is buying 600 tires for its fleet of vehicles. One supplier offers to supply the tires for $80 per tire, payable in one year. Another supplier will supply the tires for $20,000 down today, then $55 per tire, payable in one year. What is the difference in PV between the first and the second offer, assuming interest rates are 7.9%? A) -$2439 B) -$9147 C) -$6098 D) $9147 19) A company buys a color printer that will cost $19,000 to buy, and last 5 years. It is assumed that it will require servicing costing $500 each year. What is the equivalent annual annuity of this deal, given a cost of capital of 10%? A)-$4961 B) -$4410 C)-$5512 D) -$3859 20) 20) Jenkins Security has learned that a rival has offered to supply a parking garage with security for ten years for $40,000 up front and a further $25,000 per year. If Jenkins Security offers to provide security for eight years for an upfront cost of $23,300 and a separate yearly payment, by what maximum amount can this yearly payment be over $20,000, so that Jenkins' offer matches the equivalent annual annuity of their rival's offer? (Assume a cost of capital of 9%.) A) 55970 B) S7023 C) $5619 D) $6321 21) 2) Vernon- Nelson Chemicals is planning to release a new brand of insecticide. Ber-Safe, that will kill many insect pests but not harm useful pollinators. Buying new equipment to manufacture the product will cost $20 million, and there will be an additional $2 million cost to reconfigure existing plant. The equipment is expected to have a lifetime of seven years and will be depreciated by the straight-line method over its lifetime. The firm expects that they should be able to sell 1,500,000 gallons per year at a price of 555 per gallon. It will take $35 per gallon to manufacture and support the product. If Vernon- Nelson's marginal tax rate is 40%, what are the incremental earnings after tax in year 3 of this project? A) $30.0 million B) $10.8 million C) $27.1 million D) $16.3 million 22) Year 0 Year 1 Year 2 Year 3 MACRS Depreciation Rate 33.33% 44.45% 14.81% 7.41% A machine is purchased for $550,000 and is used through the end of Year 2. The machine will be depreciated using the 3-Year MACRS schedule. At the end of Year 2. the machine is sold for $90,000. What is the after-tax cash flow from the sale of the machine at the end of Year 2 if the firm's marginal tax rate is 35%? A) $72,764 B) $18,191 C) $40,755 D) $49,245 23) 23) CathFoods will release a new range of candies which contain antioxidants. New equipment to manufacture the candy will cost $5 million, which will be depreciated by straight-line depreciation over six years. In addition, there will be $5 million spent on promoting the new candy line. It is expected that the range of candies will bring in revenues of $7 million per year for six years with production and support costs of $1.5 million per year. If CathFoods' marginal tax rate is 35%, what are the incremental free cash flows in the second year of this project? A) $1.633 million B) $4.667 million C) $3.867 million D) $2.450 million 24 Cameron Industries is purchasing a new chemical vapor depositor in order to make silicon chips. I 24) will cost $7,000,000 to buy the machine and $15,000 to have it delivered and installed. Building a clean room in the plant for the machine will cost an additional $3 million. The machine is expected to raise gross profits by $4,500,000 per year, starting at the end of the first year, with associated costs of si million for each of those years. The machine is expected to have a working life of six years and will be depreciated over those six years. The marginal tax rate is 40%. What are the incremental free cash flows associated with the new machine in year 2? A) $2,567,667 B) $2,330,833 C) $1,169,167 D) $1,164,167 25 Gonzales Corporation generated free cash flow of $83 million this year. For the next two years, the company's free cash flow is expected to grow at a rate of 9%. After that time, the company's free cash flow is expected to level off to the industry long-term growth rate of 4% per year. If the weighted average cost of capital is 11% and Gonzales Corporation has cash of $100 million, debt of $300 million and 100 million shares outstanding, what is Gonzales Corporation's expected terminal enterprise value in year 2? A) $1025.57 B) $1 172.08 C) $1465.10 D) $1318.59