Question
Hello, Can these questions be answered within the next 1 hour or 2? 1.)Your bank is offering you an account that will pay 18 %
Hello, Can these questions be answered within the next 1 hour or 2?
1.)Your bank is offering you an account that will pay 18 % interest in total for a two-year deposit. Determine the equivalent discount rate for a period length of Six months. The equivalent discount rate for a period length of six months is (Round to two decimal places.)
3) You have found three investment choices for a one-year deposit: 11 % APR compounded monthly, 10 %APR compounded annually, and 8 % APR compounded daily. Compute the EAR for each investment choice. (Assume that there are 365 days in the year.) For the case of 11% APR compounded monthly the EAR is (Round to three decimal places.)
4) A 10-year bond with a face value of $1,000 has a coupon rate of 12.00%, with semiannual payments.
a. What is the coupon payment for this bond?
b. Enter the cash flows for the bond on a timeline.
a. What is the coupon payment for this bond?
The coupon payment for this bond is (Round to the nearest cent.)
5) Suppose a 10-year, $1,000 bond with a 12 % coupon rate and semiannual coupons is trading for a price of $913.35.
a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)?
b. If the bond's yield to maturity changes to 10% APR, what will the bond's price be?
a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)?
The YTM is (Round to two decimal places.)
9.) Assume Evco, Inc., has a current stock price of $58 and will pay a $ 2.05 dividend in one year; its equity cost of capital is 19 % What price must you expect Evco stock to sell for immediately after the firm pays the dividend in one year to justify its current price? The expected price is (Round to the nearest cent.)
10) Anle Corporation has a current price of $21, is expected to pay a dividend of
$2 in one year, and its expected price right after paying that dividend is $27.
a. What is Anle's expected dividend yield?
b. What is Anle's expected capital gain rate?
c. What is Anle's equity cost of capital?
a. What is Anle's expected dividend yield?
Anle's expected dividend yield is (Round to two decimal places.)
11.) Summit Systems will pay a dividend of $1.64 one year from now. If you expect Summit's dividend to grow by %6.5% per year, what is its price per share if its equity cost of capital is 10.3%?
The price per share is (Round to the nearest cent.)
12.) Colgate-Palmolive Company has just paid an annual dividend of $0.95. Analysts are predicting a 10.1% per year growth rate in earnings over the next five years. After that, Colgate's earnings are expected to grow at the current industry average of 6.3% per year. If Colgate's equity cost of capital is 8.7% per year and its dividend payout ratio remains constant, what price does the dividend-discount model predict Colgate stock should sell for?
The price per share is (Round to two decimal places.)
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