JUDUIT to the problem 1. Page 231 Questions and Problem 1 & Page 232 problems 11 and 12. 2. A Common stock of General Motors closed at $38.16 today 11/07/19 The company paid 50.40 last quarter and the growth rate is expected to be 5.5%. a. What will be the investor's price assuming she has a required rate of 9.5%? b. What would be the yield the yield on the investment based on an annual (4x$0.40) dividend? C. Would she buy, sell, or hold if she is interested in trading for a profit? Explain fully 3. Page 423 Problem #9. This is a problem about weighted cost of capital 4. AT&T 10-year bonds paying 8% currently sells for 0.96 which is equivalent to $960 in dollar terms. a. What is the current yield? b. What is the yield to maturity? c. What is the investor's price assuming she is requiring 9% return d. Would she invest in the bond? WHY? Hint use Excel Moodle for Bond Calculations uploaded in Moodle to assist with your calculations Class Problem on Cash Receipts. Receivables. Credit Financing Month Dec August Feb March April 120 no 140 Sales (SM) May June 140 120 100 140 150 Assumptions: - 15% Collected at invoicing in a given month - 45% one month after - Remainder 2 months after 5 (a) What is the cash receipt for June 5 (b) What is the receivables in August 5 (c) Would you do a loan of $9.M in July assuming a factoring of 75%? Why? 6. You are booking an invoice into you CA project with an accounts payable condition of 1.5/20 Net 60. Assuming you do not have the cash to take the discount would you take a loan within the discount days at an interest rate of 3267 Explain fully using math logic and descriptive words 7. As a student seeking to graduate with an MBA you may have to decide on investing in projects that yield returns that are taxable and non-taxable. In other words, at what return would a non-taxable investment be equivalent to a taxable investment assuming a marginal tax rate of 40 and a tax-free investment is yielding 6.5%. Essentially, you are required to find an equivalent before tax investment after tax investment product. 8. Page 271 # 21 Chapter 8 (see notes in Weeks 9 and, or 10) 9. Risk & Return Situation Asset A Situation Probability Returns Exp Ret Deviation Recession 0.15 2% Normal 0.55 10% Boom 0.30 15% Expected Return= Risk Coefficient of Variation Asset A = Asset B Probability Returns Exp Ret Deviations 0.15 -30% 0.55 18% 0.30 31% Expected Return Risk Coefficient of Variation Asset B = Asset A Asset B Parameters Expected returns Risk Coefficient of Variation Explain your the logic for your derived numbers and use the bell-shaped assumption in the above graphs to make your points as done in class Con e bee creer Point Ent, y ay, 1 ross ngy