Period 0 1 2 3 59 60 $27.0 $27.0 $27.0 $27.0 $27.0 + $2,000 A corporation issues a bond that generates the above cash flows. If the periods shown are 3 months, which of the following best describes that bond? O A. a 20-year bond with a notional value of $2,000 and a coupon rate of 2.700% paid annually. B. a 15-year bond with a notional value of $2,000 and a coupon rate of 5,4% paid quarterly. O c. a 15-year bond with a notional value of $2,000 and a coupon rate of 1.350% paid monthly OD. a 60-year bond with a notional value of $2,000 and a coupon rate of 5,4% paid semiannually Maturity.(years). 1 Price $97.25 2 3 4 5 $94.53 $91.83 $89.23 $87.53 The above table shows the price per $100 face value of several risk-free, zero-coupon bonds. What is the yield to maturity of the two-year, zero-coupon, risk-free bond shown? O A. 1.43% OB. 0.05% OC. 2.85% OD. 5.71% 0 FCF Forecast ($ million) Year 1 2 3 4 Sales 240 270 290 310 325.5 Growth versus Prior Year 12.5% 7.4% 6.9% 5.0% EBIT (10% of Sales) 27.00 29.00 31.00 32.55 Less: Income Tax (37%) (9.99) 10.73 11.47 12.44 Less: Increase in NWC (12% of Change in Sales). 3.6 2.4 Free Cash Flow 2.4 1.86 13.41 15.87 17.13 18.65 Banco Industries expect sales to grow at a rapid rate over the next 3 years, but settle to an industry growth rate of 7% in year 4. The spreadsheet above shows a simplified pro forma for Bagco Industries. Banco industries has a weighted average cost of capital of 13%, $30 million in cash, $80 million in debt, and 18 million shares outstanding. If Banco Industries can reduce their operating expenses so that EBIT becomes 12% of sales, by how much will their stock price increase? O A. $3.11 OB. $5.44 OC. $3.73 OD. $9.32