Question
Help me answer these 8 questions please 4. Ordinary Annuity What's the FV of a 5-year $120 annuity, if the quoted interest rate is 2.75%,
Help me answer these 8 questions please
4. Ordinary Annuity
What's the FV of a 5-year $120 annuity, if the quoted interest rate is 2.75%, compounded quarterly? What is PV of the same annuity?
5. Calculate the payment amount for a $1,000, 2% semi-annual rate loan with 5 total number of payments.
6. A 9-year, 7.5% annual coupon bond selling for $1,150 can be called in 3 years for $1,070, what is its yield to call (YTC) on this bond?
7. A bond has a coupon of 7.5% and it pays interest semiannually. With a face value of $1000, it will mature after 7 years. If you require a return of 7% from this bond, how much should you pay for it? 8. Last dividend of a company was $3 and it is expected that the dividend will continue to grow at 7% at a constant rate. What should be the price of the company's stock one year from now if opportunity cost of capital is 7.01%?
9. Find Free Cash Flow (FCF) from the following info:
The Balance Sheet U.S. CORPORATION Balance Sheets as of December 31, 2013 and 2014 ($ in Millions) 2013 2014 2013 2014 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 104 $ 160 Accounts payable $ 232 $ 266 Accounts receivable 455 688 Notes payable 196 123 Inventory 553 555 Total $ 428 $ 389 Total $1,112 $1,403 Fixed assets Net fixed assets $1,644 $1,709 Long-term debt $ 408 $ 454 Owners' equity Common stock and paid-in surplus 600 640 Retained earnings 1,320 1,629 Total $1,920 $2,269 Total liabilities and Total assets $2,756 $3,112 owners' equity $2,756 $3,1120.8. CORPORATION 201 4 Income Statement (5 in Millions) Net sales Cost of goods sold (COGS) Depreciation Earnings before interest and taxes (EBIT and EBITA) Interest paid Taxable income Taxes Net income Dividends $103 Addition to retained earnings 309 $1 .509 750 65 $ 694 $ 624 21 2 $ 412Step by Step Solution
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