Need help calculating for the questions at the end, we have to do it in an excel spreadsheet. thank you!
, E Chegg Tutors|l X /i .i MyEducatoreT; X i 0 acid test ratio fc X News|Dashboz X N Home|MyNML X N Dashboard X G Citigroup offers X 8 7 X o o 6 0' O l i Secure i https://www.myeducatorcom/reader/web/4OGg/topic0292w5/ 7} N introduction N CurrenlStudentlnfo D HelpDesk D ITServices N MyNMU N MyUser D NMU EduCal'M N NMU Library N NMUWebmaiI N NMU Otherbookmarks M FINANCE CASES v Case 2 v Course v Alexis Reilley v @ Search the text... Case 2: Bond Valuation Case Stock and Bond Valuation Citigroup is considered by many to be the leader in the global banking and investment industry. Citigroup has over 200 million customer accounts in 100 different countries The company's history can be dated back to 1812, where at that v E Listen } 2-1 Topical C5593 Citigroup '/ time it was known as Citibank. Citibank has since merged with numerous companies Inc. to become the giant Citigroup. Cg Glossary Reading 12/ 12 Citigroup offers services such as banking, investment, mortgages, and insurance. Citigroup has brand names such as CitiFinanciaI and Diner's Club, LU Flashcards Bonds Notebook Citigroup offers a variety of coupon bonds that range from 5 to 30 years until maturity. For example, Citigroup has a 30-year coupon bond that is due in year 30. Highlighting The bonds market value was $941.12 and had 26 years until maturity, The bond is a OFF semiannual annuity and has a coupon rate of 5.875%. Advanced Options Preferred Stock Support Preferred stock is very similar to bonds in that they are both annuity type instruments. Like bonds, the value of preferred stock is determined by calculating _ 5 PW PM an 1,201 a E Chegg Tutors|l X /' ll MyEducatoreT; X \ 6 acid test ratio f: X News|Dashboz X N Home|MyNML X N Dashboard X G Citigroup offers X 8 7 X 6 0' O l i Secure i https://www.myeducatorcom/reader/web/4OGg/topic0292w5/ 7} W o N introduction N Current Studentlnfo D HelpDesk D IT Services N My NMU N MyUser D NMU EduCat'M N NMU Library N NMU Webmail N NMU Other bookmarks #1 FINANCE CASES v Case 2 v Course v Alexis Reilley v Search the text... I E present va He 0 t E perpetua annumes. HOWEVEF, pl'E ElTEI SIDE noesn't ave @ Case 2; Bond Valuation Case a maturity date like bonds do. Citigroup has 800,000 shares of preferred stock on the market. One share of Citigroup Inc. stock had a market value of $50.50 per share. The annual dividend for the preferred stock is $2.93, 2.1 Topical Case: Citigroup s/ Inc. El) Listen } Common Stock Citigroup also trades multiple stocks on the New York Stock Exchange. Citigroup has q Glossary over 5 billion shares outstanding for all of their stocks worldwide. The reason is that every entity of Citigroup has its own types of stock. On September 14 of year 4, one of their stocks traded for $46.64 per share, Last year, Citigroup paid an annual dividend of $2.16 per share for this type of stock. Citigroup is a very mature company, and therefore grows at a modest rate. Assume that for year 4, Citigroup grew at a rate of4% unless otherwise stated. Reading 12/ 12 LU Flashcards Notebook Highlighting OFF Case Questions 1, How much will the semiannual interest payment be for the bond? 2, Calculate the Yield to Maturity for the 26 years remaining on the bond. What Advanced Op'i'm would the YTM be if it was a 15-year bond that had the full 30 payments left "ppm and was purchased for the same $941.12? Explain why the two rates of return differ. 3, What is the required rate of return for the preferred stock? o _ 5 m2 PM an 1,201 8 - r E Chegg Tutors|i X /' .' MyEducatoreT; X \ 0 acid test ratio fr X News|Dashboz X N Home|MyNML X N Dashboard X g Citigroup offers X 8 7 X 6 0' O l i Secure i https://www.myeducatorcom/reader/web/4OGg/topic0292w5/ 7} ' if 0 N introduction N Current Student info D HelpDesk D IT Services N My NMU N MyUser D NMU EduCal'M N NMU Library N NMU Webmail N NMU Other bookmarks "4 FINANCE CASES v Case 2 v Course v Alexis Reilley v Case 2: Bond Valuation Case Case Questions @ Search the text... 1. How much will the semiannual interest payment be for the bond? 2. Calculate the Yield to Maturity for the 26 years remaining on the bond. What E) um" } 2.1 Topical Case: Citigroup '/ would the YTM be if it was a 15-year bond that had the full 30 payments left Inc. and was purchased for the same $941.12? Explain why the two rates of return differ. q Glossary 3. What is the required rate of return for the preferred stock? Reading 12/ 12 4. What would you pay for the preferred stock ifthe dividend remained the same but the required rate of return was 8%? LG Flashcards 5. Forthe common stock, calculate the dividend for next year. 5 Notebook 6. Whatwould the required rate of return be if you paid $46.64 for the stock? 7. Should you buy or sell the common stock at the September 14'h market price if Highlighting the required rate of return is 10%? OFF Previous Advanced Options Support WW 0 Need Help? Copyright 2018 MyEducator. All rights reserved. _ E rm: PM AM 1,201 a
