it's urgent

21.

Union Local School District has bonds outstanding with a coupon rate of 3.7 percent paid semiannually and 14 years to maturity. The yield to maturity on these bonds is 3.9 percent and the bonds have a par value of $5,000. What is the price of the bonds?

a.

4,194.15

c.

3,874.49

b.

4,881.80

d.

4,892.90

22.

Assume that ABC Corporation has the following capital structure: 30 percent debt, 10 percent preferred stock, and 60 percent equity. ABC Corporation wishes to maintain these proportions as it raises new funds. Its before-tax cost of debt is 8 percent, its cost of preferred stock is 10 percent, and its cost of equity is 15 percent. If the companys marginal tax rate is 30 percent, what is ABCs weighted average cost of capital?

a.

12.40%

c.

12.81%

b.

11.68%

d.

11.44%

23.

If sales are $500,000, variable costs are 70% of sales, and operating income is $75,000, what is the operating leverage?

a.

2.0

b.

2.5

c.

2.2

d.

1.2

24.

E-Eyes.com has a new issue of preferred stock it calls 20/20 preferred. The stock will pay a $20 dividend per year, but the first dividend will not be paid until 20 years from today. If you require a return of 7.5 percent on this stock, how much should you pay twenty years from now?

a.

76.52

c.

266.67

b.

281.69

d.

247.47

25.

You have $6,250 to deposit. Regency Bank offers 12 percent per year compounded monthly (1 percent per month), while King Bank offers 12 percent but will only compound annually. How much will your investment be worth in 20 years at Regency Bank?

a.

59,199.47

c.

81,117.87

b.

66,989.20

d.

68,078.46

26.

You have three proposals for an investment.Their Present Value Indexes are as follow (see alternatives). Which one would you select?

a.

1.21

c.

0.98

b.

1.15

d.

None should be selected

Mrtifiple Choice ldentify the choice that best completes the statement or answqrs the question. = 20 The company with best performance ie- Wiesber ef alays of receivibles a.b.hB 6.i.DC 21. Union Local School District has bonds outstanding with a coupon rate of 3.7 percent paid semiannually and 14 years to maturity. The yield to maturity on these bonds is 3.9 pereent and the bonds have a par value of $5,000. What is the price of the bonds? i. 4.124.15 b. 48.10 \&. 1.574.49 4.382.90 22. Assume that ABC Corporation has the following capital structure: 30 percent debt, 10 pereent preferred stock, and 60 pereent equity. ABC Corporation wishes to maintain these proportions as it raises new funds. Its before-tax cost of debt is 8 percent, its cost of preferred stock is 10 percent, and its cost of equity is 15 percent. If the company's marginal tax rate is 30 percent, what is ABC 's weighted average cost of capital? 2. 12.40% b. 11.3016 c. 1281sin 21. If sales are $500,000, variable costs are 70% of sales, and operating income is $75,000, what is the operating leverage? a 2.0 b. 2.5 c. 2.2 a. 1,2 24. E-Eyes.com has a new issue of preferred stock it calls 20/20 preferred. The stock will pry a $20 dividend per year, but the first dividend will not be paid until 20 years from today. If you require a return of 7,5 percent on this stock, how moch should you pay fwenty years from now? a 76,57 b. 281.69 h.d.2066720747 25. You have $6,250 to deposit. Regency Bank offers 12 percent per year compounded menthly (1 percent per month), while King Bank offers 12 pereent but will only compound annally. How much will your investment be worth in 20 years at Regency Bank? a.b.56.199.4766.950.20 6. 84.112.st d. .07.46 29. You have three proposals for an investment. Their "Present Value Indexes" are as follow (see alternatives). Which one would you select? 27. The company with best performance is: 2b.BCiniDA =. as. An analysis of a proposal by the net present value method indicated that the present value of future cash inflows exceeded the amount to be invested. Which of the following statements best describes the results of this analysis? 2. The proposal is desirable and the rate of return expected from the proposal is less than the minimum rate used for the analysis. b. The proposal is desirable and the rate of return expected from the proposal exceeds the minimum rate used for the analysis. c The proposal is undesirable and the rate of retum expected from the proposal exceeds the minimum rate used for the analysis. d. The proposal is undesirable and the rate of return expected from the proposal is less