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Hello, I have a Managerial Finance that I need help with. 1. Calculate the number of shares issued through this IPO. 2. The Florida Investment
Hello, I have a Managerial Finance that I need help with.
1. Calculate the number of shares issued through this IPO. 2. The Florida Investment Fund buys 76 bonds of the Gator Corporation through a broker. The bonds pay 10 percent annual interest. The yield to maturity (market rate of interest) is 12 percent. The bonds have a 15-year maturity. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Using an assumption of semiannual interest payments: a. Compute the price of a bond. (Do not round intermediate calculations and round your answer to 2 decimal places.) b. Compute the total value of the 76 bonds. (Do not round intermediate calculations and round your answer to 2 decimal places.) 3. The Deluxe Corporation has just signed a 180-month lease on an asset with a 22-year life. The minimum lease payments are $1,400 per month ($16,800 per year) and are to be discounted back to the present at a 10 percent annual discount rate. The estimated fair value of the property is $170,000. Use Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Assume the lease is set up as an annual lease. a. Calculate the lease period as a percentage to the estimated life of the leased property. (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) b. Calculate the present value of lease payments as a percentage to the fair value of the property. (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)Step by Step Solution
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