#Jse the following financial information to answer the questions that follow: ATT Verizon Revenue $25 Billion $22 Billion Total Assets $65 Billion $55 Billion Total Debt ratio 0.4 0.3 Net Income $4 Billion $2 Billion Compare ATT and Verizon's ROE using the Dupont analysis (Show NPM, TAT, EM). ATT has a dividend yield of 5% and a current price of $30. What is its payout ratio if its P/E ratio is 6? There is $1,200,000 in a retirement account. If $7000 is withdrawn each month, how much will be in the account in 30 years if the annual return is 5%? An annuity promises $4000 every month for 10 years, what is the present value if the discount rate is 6%? An investor buys a $100,000 condo by putting 20% down and financing the rest for 15 years at an annual rate of 3.6%. The condo appreciates in value by 0.5% a month over the next seven years. The investor decides to sell it after the 7 years. What was the monthly payment? What was the price of the condo when he sold it? How much equity does he have in the condo when he sells it? How much principal did he pay on the loan over the seven years? Determine the yield to maturity on each of the three bonds. If the yield on RR & Sons bond falls to 6% in 3 years, what will be the price of the bond? Issuer Symbol Coupon (%) Maturity Current Price par value ARD Securities ARDS 8.75 Jan. 31, '23 $838.80 $1000.00 Sanchez Energy SN 6.125 Jan. 15, 23 $247.50 RR & Sons RRD 6.5 Nov. 15, '23 $990.00 Three years ago, an individual has $20,000 in a savings account earning 2.5% a year with monthly compounding. What is the effective annual rate? A college graduate is expected earn about $25,000 more a year than a high school graduate over a 40 year working life. A typical college education has an opportunity cost of $40,000 a year for 4 years. Assuming the appropriate discount rate is 6%, determine the NPV of going to college. Consider the following two mutually exclusive projects: Year 0 1 2 Cash Flow (A) -$365,000 38,000 47,000 62,000 455,000 Cash Flow (B) $40,000 20,300 15,200 14,100 11,200 4 The required return on these investments is 13%. a. b. c. What is the NPV for each project? What is the IRR for each project? Based on your answers in (a) and (b), which project will you finally choose? #Jse the following financial information to answer the questions that follow: ATT Verizon Revenue $25 Billion $22 Billion Total Assets $65 Billion $55 Billion Total Debt ratio 0.4 0.3 Net Income $4 Billion $2 Billion Compare ATT and Verizon's ROE using the Dupont analysis (Show NPM, TAT, EM). ATT has a dividend yield of 5% and a current price of $30. What is its payout ratio if its P/E ratio is 6? There is $1,200,000 in a retirement account. If $7000 is withdrawn each month, how much will be in the account in 30 years if the annual return is 5%? An annuity promises $4000 every month for 10 years, what is the present value if the discount rate is 6%? An investor buys a $100,000 condo by putting 20% down and financing the rest for 15 years at an annual rate of 3.6%. The condo appreciates in value by 0.5% a month over the next seven years. The investor decides to sell it after the 7 years. What was the monthly payment? What was the price of the condo when he sold it? How much equity does he have in the condo when he sells it? How much principal did he pay on the loan over the seven years? Determine the yield to maturity on each of the three bonds. If the yield on RR & Sons bond falls to 6% in 3 years, what will be the price of the bond? Issuer Symbol Coupon (%) Maturity Current Price par value ARD Securities ARDS 8.75 Jan. 31, '23 $838.80 $1000.00 Sanchez Energy SN 6.125 Jan. 15, 23 $247.50 RR & Sons RRD 6.5 Nov. 15, '23 $990.00 Three years ago, an individual has $20,000 in a savings account earning 2.5% a year with monthly compounding. What is the effective annual rate? A college graduate is expected earn about $25,000 more a year than a high school graduate over a 40 year working life. A typical college education has an opportunity cost of $40,000 a year for 4 years. Assuming the appropriate discount rate is 6%, determine the NPV of going to college. Consider the following two mutually exclusive projects: Year 0 1 2 Cash Flow (A) -$365,000 38,000 47,000 62,000 455,000 Cash Flow (B) $40,000 20,300 15,200 14,100 11,200 4 The required return on these investments is 13%. a. b. c. What is the NPV for each project? What is the IRR for each project? Based on your answers in (a) and (b), which project will you finally choose