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I need Finance help FI 3300 problems Please I need help 1. All else being equal, which of the following is indicative of a firm
I need Finance help
FI 3300 problems Please I need help 1. All else being equal, which of the following is indicative of a firm in good financial health? a. A firm paus out more dividends than its cash flow from operation? b. A firm pays a higher debt ratio c. A firm has a lower times interest earned ratio d. A firm has a higher current ratio e. A firm has a lower return on assets 2. ANC, INC just paid a dividend of $3.00. ANC's dividends will grow at 25% next year and then 30% for the two years after that the dividend will grow at 4% forever. Assume an 11% cot of equity, the current stock price should be? 3. ANC, INC will not pay a dividend for three years. Four years from today, the company is expected to pay a dividend of %#.00 per share (that is, D4 = 3.00). This dividend is expected to grow at 4% per year forever. The required rate of return ANC stock is 18%. The sock should sell for $__________ today ( that is, at t = 0) 4. BCC Movies, which owns walk in move rental store, is facing a dismal flutter. The company's revenues and dividends are expected to decline. BCC just paid a dividend of $1.30 (that is, D0 = 1.30). The market believes will decrease at a constant rate 4 % every year forever. If the required rate of return is 12%, BCC's stock should be $__________. 5. Five years ago ANC, INC sold a 20 year, $1,000 par value, semi-annual pay bond for $ 1081.44. Today the bond's YTM has risen to 9.500%. therefore, the bonds are currently selling-------- 6. Which of the following statement is correct? a. Bond A and Bond B are identical in every respect except for their time to maturity. Bond A matures in 5 years and Bond b matures in 7 years, thud Bond B has a higher price. b. A bond has a yield maturity YTM of 9%. If the YTM decreases to 8.9%, then the price of the bond will also decrease if the coupon rate is less than 9 % c. Assume you may accurately value a stock by using the constant dividend growth model. All else equal a decrease in the growth rate will result in a higher valuation of the stock. d. If the economy goes into a recession and the stock market drops, you would prefer to own socks with the lower beta in your portfolio e. The ABC, Inc. is 1.50. Suppose beta goes up but the market return and risk free rate unchanged. According to the CAPM the required rate of return for ABC should be decreaseStep by Step Solution
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