Kiss the Sky Enterprises has bonds on the market making annual payments, with 23 years to maturity, and selling for $945. At this price, the bonds yield 4.5 percent.What must the coupon rate be on the bonds?

Select one:

a.4.21%

b.3.91%

c.4.19%

d.14.11%

e.4.11%

Q14

You purchase a bond with a coupon rate of 6.8 percent and a clean price of $1,073. If the next semiannual coupon payment is due in two months, what is the invoice price?

Select one:

a.1095.67

b.1190.60

c.1075.77

d.1050.33

e.1055.65

You purchase a bond with an invoice price of $968. The bond has a coupon rate of 7.4 percent, and there are four months to the next semiannual coupon date. What is the clean price of the bond?

Select one:

a.925.25

b.980.33

c.945.67

d.980.67

e.955.67

Bond Sam have 13 percent coupons and 7 years to maturity, make semiannual payments, and is priced at par value. If interest rates suddenly fall by 2.5 percent, what is the percentage change in the price of Bond Sam.

Select one:

a.18.12%

b.28.28%

c.22.28%

d.15.15%

e.12.18%

Southern Utilities just issued some new preferred stock. The issue will pay a $19 annual dividend in perpetuity beginning 9 years from now. What is one share of this stock worth today if the market requires a 7 percent return on this investment?

Select one:

a.187.87

b.157.97

c.150.90

d.155.95

e.167.67

In the financial pages of today's newspaper, quote for ABC Enterprises show that the company pays 0.88 as a stock dividend, the company's dividend yield is 4.29% and today's newspaper show a net change in the price as negative 0.13. What was the closing price for this stock that appeared in yesterday's paper?

Select one:

a.20.64

b.21.64

c.23.64

d.19.64

e.22.64

In the financial pages of today's newspaper, quote for ABC Enterprises show that the company pays 0.88 as a stock dividend, the company's dividend yield is 4.29% and today's newspaper show a net change in the price as negative 0.13. Suppose ABC Enterprises has a PE ratio of 15 and currently has 20 million shares of stock outstanding, what would be the net income for the most recent year?

Select one:

a.37330423

b.27350427

c.25355425

d.27454424

e.26356426

Suppose a firm is expected to increase dividends by 17.5% in one year and by 14.5% for the next two years. After that, dividends will increase at a rate of 6.5% per year indefinitely.If the last dividend was $1.95 and the required return is 13.20%, what is the price of the stock?

Select one:

a.35.54

b.31.09

c.37.07

d.39.06

e.36.09

An investment project provides cash flows of $1,190 per year for 10 years. If the initial cost is $8,000, what is the payback period?

Select one:

a.7.92

b.6.92

c.7.62

d.6.72

e.7.72