I'm a MBA student and I am having trouble with my assignments can a tutor explain how to do these? Thank you

Indiana University, Kelley School of Business C540 - Assignment 1, Summer 2016 (40 points) Due by noon EDT on Sunday, July 3rd (revised from June 28th in syllabus) This is a team assignment. Only one member of your team should submit the assignment, making sure that the names of all team members appear on it. You may use Excel or a calculator to solve for numeric answers, but make sure you provide enough detail about how you set up the problem so I can follow your logic and give partial credit when warranted. Round your answers to whole cents or 100ths of a % (i.e., 2 decimal points in % form or four in decimal form). FORMAT FOR DELIVERABLE You should submit one file in Canvas (either Excel or a pdf) that includes a one-page cover sheet, or tab, with only your answers, followed by the detailed work for each problem on individual tabs. Make sure that your assignment is formatted for printing on 8 x 11 inch paper (test this by using preview print). Also, make sure that your final answers are clearly marked (highlighted). The points assigned to each question are shown below, to the right of the question number. No. Pts 1 3 What is the present value of a perpetuity of $20,000 per month, if the first cash flow will be received exactly nine months from now, and the stated rate is 12% APR compounded monthly? 2 3 You invested $4,000 in a mutual fund three years ago. The EAR on your mutual fund has been 7.5% per year. How much is in the fund now, after three years? 3 4 You will be joining a new health club that has given you the choice of paying $700 today for a two-year membership or paying $30 per month to be paid at the beginning of each month for two years. If you choose the 24 monthly payments, the first payment is due today (at Time Zero). Draw the timeline and show the cash flows for each option. What is the effective monthly rate if you pay by the monthly plan? 4 4 Dow Chemical Company has bonds outstanding which are priced at $1,160.10. These bonds carry a coupon rate of 5.85%, make semiannual payments, and mature in 11 years. Assuming the par value is $1,000, what is the annual yield to maturity on these bonds? 5 5 You need a quick $700 to pay this month's cell phone bill. A \"payday\" loan company will lend you that amount for three weeks, charging you a fee of \"only\" $50 (meaning you pay back $750 in 21 days). The fee will be due on the day you pay off the loan. Recognizing that the fee is in reality the interest payment, please answer the following two questions. Assume 365 days in a year. What is the Annual Percentage Rate (APR) on this loan if you assume daily compounding? And what is the EAR on this loan? 6 6 Your cousin Mikey is attempting to sell you his portfolio to pay off some gambling debts. Vincent has informed Mikey that he needs the money by the end of the day or he will help him take a swim in the river. Mikey proposes to sell you his portfolio at a price of $100,000. Mikey's portfolio includes the following: a) 40 zero coupon bonds with a $1,000 face value and 12 years to maturity. The YTM on these bonds is 7.0% (assume annual compounding). b) 60 bonds with a $1,000 face value and a coupon rate of 5.0%. These bonds have 8 years to maturity and pay coupons on a semiannual basis. The YTM of these bonds is 6%. c) 120 shares of Hill Corp. stock. Hill Corp expects to pay a quarterly dividend of $1.50 in 3 months, has a quarterly growth rate of 2%, and a required return of 4% per quarter. How good of a deal is Mikey offering you for his portfolio? Clearly show your reasoning here with supporting calculations. 7 6 Target Corp generated $10 billion of Operating Cash Flow last year while spending $6 billion on investments in Fixed Assets (capital expenditures) and an additional $0.5 billion on increases in Working Capital. You expect Free Cash Flow to grow by 15% for the next two years and then grow at 4% annually, forever. You require a 15% expected annual return on your investment in Target. Estimate the value of Target using a discounted cash flow analysis, assuming that Target has no debt outstanding. 8 9 Using the data from the 2015 financial statements for Company C on the next page: 1) forecast the 2016 Pro forma Financial Statements for Company C using the % of Sales Method assuming: a) sales increase by 20%, from 2015 to 2016, as do all other operating accounts on the balance sheet, except the company must increase Fixed Assets to $50,000 to support the higher level of production; b) all external funds needed (EFN) will come from additional debt, c) the $ amount of the dividend payment in 2016 will remain the same as in 2015, and d) the effective tax rate and the rate of interest on debt will remain unchanged from 2015. 2) Based on just 2 iterations, what is your forecast the $ amount of debt and the debt/equity ratio Co. C will require to support this growth. Company C Income Statement 2015 Sales 100 CGS 75 EBIT 25 Interest Expense 5 Profit bef. Taxes 20 Taxes Net Income Dividend Payment Tax Rate Int. Rate % of Sales 2016 2016 Iteration 1 Iteration 2 2016 2016 12 6 0.4 0.125 2015 Cash 20 A/R 15 Inventory 15 Fixed Assets 40 Total 90 A/P 15 Debt Stockholder's Equity Total 40 Addn to RE Iteration 2 8 Balance Sheet EFN Iteration 1 35 90 % of Sales Funding Forecast