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hi i was wondering if you can help me with finance homework. I need them to be correct. Please take a look and let me

hi i was wondering if you can help me with finance homework. I need them to be correct. Please take a look and let me know

image text in transcribed FINC 301 Spring 2016 Section 1 (Chapters 4 and 5) 1. You are planning for your retirement and have decided the following: you will retire in 35 years and would like to have $8,000 per month as retirement income for 30 years of retirement. You have access to an account that earns a 7% rate of return. a. How much will you need to have when you retire to be able to withdraw the desired $8,000 per month during your years of retirement? b. 2. If you plan to save by making equal monthly deposits into your account from now until when you retire, how much does that deposit need to be? A six-year annuity of $8500 quarterly payments will begin 9 years from now. The discount rate is 9%, compounded quarterly. a. How much is this annuity worth 5 years from now? b. How much is this annuity worth today? Section 2 (Chapters 6 and 7) 3. A bond has face value of $1,000, a coupon rate of 12%, YTM of 9%, and matures in 20 years. The bond pays interest semiannually. a. What is the value of this bond? b. c. What is this bond's capital gains yield this year? d. What is this bond's value 6 years from now? e. What will this bond's current yield be 6 years from now? f. 4. What is the current yield for this bond this year? What will this bond's capital gains yield be eight years from now? Consider a stock that most recently paid a dividend of $0.75. The company plans to increase dividends by 50% each year for the next 3 years, then by 20% each year for 4 years, and then level off to a permanent growth rate in dividends of 6%. a. If the required return for this stock is 11%, what is the value of the stock today? b. What are dividend yield and capital gains yield this year? c. What will be the value of the stock in 7 years? d. 5. What will be the dividend yield and capital gains yield in 7 years? Consider a stock that is not planning to pay a dividend until 10 years from now. The first dividend paid (D11) will be $2. After that, the company will maintain a constant dividend growth rate of 5% forever. The required return for this stock is 8%. a. What is the value of the stock in 10 years? b. c. What is the value of the stock today? d. What are dividend yield and capital gains yield this year? e. What is the value of the stock in 3 years? f. What are dividend yield and capital gains yield in 3 years? g. 6. What are dividend yield and capital gains yield in 10 years? What will the dividend yield be 50 years from now? An unconventional bond offers a coupon rate of 5% for the first 5 years of the bond and 7% for the remaining 8 years of the bond. Face value is $1,000 and the yield to maturity is 8%. a. Find bond value, current yield, and capital gains yield this year. b. Find bond value, current yield, and capital gains yield next year. c. Find bond value, current yield, and capital gains yield in 5 years. Section 3 (Chapters 2 and 3) 7. A company has net income of $1,500 and profit margin of 12%. The company's depreciation expense for the year was $500, interest expense was $300, and the average tax rate is 35%. a. What was the company's taxable income? b. c. 8. What was the company's EBIT? What was the company's Operating Cash Flow? Suppose you find that a particular company generates $.40 in sales for every dollar in total assets. How often does this company turn over its total assets? 9. Use the information in the table below to construct an income statement for 2014 and balance sheets for 2014 and 2015. Then, find Operating Cash Flow, change in Net Working Capital, Net Capital Spending, Cash Flow to Creditors, Cash Flow to Shareholders, and Free Cash Flow. The tax rate is 30% and the plowback ratio is 40%. 2014 Sales Costs of Goods Sold Depreciation Expense Interest Expense Total Fixed Assets Accumulated Depreciation Total Current Assets Total Current Liabilities Long-term Debt Common Stock 2000 400 550 400 600 600 2015 1500 700 200 100 3000 650 500 700 1160

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