please answer 1-10 with work shown

x Exam2_Review1.pdf 1. Calculate the net present value (NPV) of a project with the following stream of CF C through C are all equal to $800, C S 300, and C -5800 (notice the minus). The initial investment is S4000. The appropriate discount rate is 10% 2. (a) Calculate the current price of Patience, Inc. stock that is expected to pay a dividend of S4 share at the end of cach year from year 33 through year 61. given a discount rate of 5%. This stock is not expected to pay any divi dends before, nor any dividends after, this range of dividend payments. (b) What do you estimate that the price will be for Patience, Inc. stock 30 years from now tie, -30 3. Tennessee Jed Co. (TJC) bonds mature in 9 years and pay an annual coupon of 8%. They have a face value of $1.000 a. If the required return b investors is 8%, will these bonds sell at foc, at a premium, or at a discount? b. Compute the value of a TIC bond if investors' required return is 10% c. Value this same TIC bond but with semi-annual coupon payments. 4. What is the yield to maturity (YTM) of a 20-yr. bond w/ a coupon rate of 10% ., has a SIK par value, and is currently priced at $1196.367 Round your answer to the nearest whole percent. Coupons are paid annually. Calculate the YTM if the price is $850.61. Finally, calculate YTM if the price is $1000.00 5. A share of LinkedIn, Inc. stock is expected to pay a dividend of $1.20 in 1 year, 51.44 in 2 years, and $1.60 in 3 years. In 3 years, you expect that you can sell the stock for $34.60 night after you receive Divs Using are quired rate of return of 12%, calculate the fair price for a share of Linkedin stock today. 6. Martin Spencer, Inc. (MSI) stock is expected to pay a dividend of $3.00 at the end of the year. Dividends are forecasted to grow at a constant rate of 3%/yr. indefinitely. The appropriate required return for valuing this stock is Nur a. Calculate today's price for MSI stock b. Calculate the price if'g' is expected to only be 29/yr. c. Calculate the price if 'g' is expected to be zero 7. Santhana Muku, Inc. (SMI) stock is expected to pay a dividend of $3.00 twenty-three years from now feat -23, ie, at the end of the 23rd year). Dividends are forecasted to grow thereafter a constant rate of 3 forever. The appropriate required return is 89y. a Calculate what the price should be 22 years from now for SMI stock b. Calculate today's price for SMI stock & String Cheeses, Inc. is considering a project with an initial outlay of $8222.82 & CFs in each of years 1-6 - $2000. Compute the project's IRR. 9. Wyoming Natural Gas, Inc. is weighing a drilling venture into the Teton Mountains. The venture re quires an initial outlay of S73M, but is anticipated to generate a perpetual series of SIM cash flows starting one year from today. 12.5% is the appropriate required rate of return for valuing this venture a. Calculate the project's NPV. b. Now, suppose that the perpetual series of cash flows starts at 5 instead of tt-1. Recalculate NPV. 10. Your task is to value a share of Supernormal Corp. stock using a required return of 10yr. The stock is expected to pay a dividend of S1.20 one year from now. Dividends are then expected to grow by 15%/yr for two years. The growth rate is expected to drop to 129/yr for the next three years. After that, the growth is expected to be stable at 3%/yr forever. 1. Calculate the net present value (NPV) of a project with the following stream of CFs: C, through Cs are all equal to $800, C19 = $300, and C20 = -$800 (notice the minus). The initial investment is $4000. The appropriate discount rate is 10%. 2. (a) Calculate the current price of Patience, Inc. stock that is expected to pay a dividend of $4/share at the end of each year from year 33 through year 61, given a discount rate of 5%. This stock is not expected to pay any divi- dends before, nor any dividends after, this range of dividend payments. (b) What do you estimate that the price will be for Patience, Inc. stock 30 years from now i.e., at t=30)? 3. Tennessee Jed Co. (TJC) bonds mature in 9 years and pay an annual coupon of 8%. They have a face value of $1,000 a. If the required return b investors is 8%, will these bonds sell at face, at a premium, or at a discount? b. Compute the value of a TJC bond if investors' required return is 10%. c. Value this same TJC bond but with semi-annual coupon payments. 4. What is the yield to maturity (YTM) of a 20-yr. bond w/ a coupon rate of 10%/yr., has a $1K par value, and is currently priced at $1196.36? Round your answer to the nearest whole percent. Coupons are paid annually. Calculate the YTM if the price is $850.61 Finally, calculate YTM if the price is $1000.00. 5. A share of LinkedIn, Inc. stock is expected to pay a dividend of $1.20 in 1 year, $1.44 in 2 years, and $1.60 in 3 years. In 3 years, you expect that you can sell the stock for $34.60 right after you receive Div3. Using a re- quired rate of return of 12%, calculate the fair price for a share of LinkedIn stock today. 6. Martin Spencer, Inc. (MSI) stock is expected to pay a dividend of $3.00 at the end of the year. Dividends are forecasted to grow at a constant rate of 3%/yr. indefinitely. The appropriate required return for valuing this stock is 8%/yr. a. Calculate today's price for MSI stock. b. Calculate the price if 'g' is expected to only be 2%/yr. c. Calculate the price if 'g' is expected to be zero. x Exam2_Review1.pdf 1. Calculate the net present value (NPV) of a project with the following stream of CF C through C are all equal to $800, C S 300, and C -5800 (notice the minus). The initial investment is S4000. The appropriate discount rate is 10% 2. (a) Calculate the current price of Patience, Inc. stock that is expected to pay a dividend of S4 share at the end of cach year from year 33 through year 61. given a discount rate of 5%. This stock is not expected to pay any divi dends before, nor any dividends after, this range of dividend payments. (b) What do you estimate that the price will be for Patience, Inc. stock 30 years from now tie, -30 3. Tennessee Jed Co. (TJC) bonds mature in 9 years and pay an annual coupon of 8%. They have a face value of $1.000 a. If the required return b investors is 8%, will these bonds sell at foc, at a premium, or at a discount? b. Compute the value of a TIC bond if investors' required return is 10% c. Value this same TIC bond but with semi-annual coupon payments. 4. What is the yield to maturity (YTM) of a 20-yr. bond w/ a coupon rate of 10% ., has a SIK par value, and is currently priced at $1196.367 Round your answer to the nearest whole percent. Coupons are paid annually. Calculate the YTM if the price is $850.61. Finally, calculate YTM if the price is $1000.00 5. A share of LinkedIn, Inc. stock is expected to pay a dividend of $1.20 in 1 year, 51.44 in 2 years, and $1.60 in 3 years. In 3 years, you expect that you can sell the stock for $34.60 night after you receive Divs Using are quired rate of return of 12%, calculate the fair price for a share of Linkedin stock today. 6. Martin Spencer, Inc. (MSI) stock is expected to pay a dividend of $3.00 at the end of the year. Dividends are forecasted to grow at a constant rate of 3%/yr. indefinitely. The appropriate required return for valuing this stock is Nur a. Calculate today's price for MSI stock b. Calculate the price if'g' is expected to only be 29/yr. c. Calculate the price if 'g' is expected to be zero 7. Santhana Muku, Inc. (SMI) stock is expected to pay a dividend of $3.00 twenty-three years from now feat -23, ie, at the end of the 23rd year). Dividends are forecasted to grow thereafter a constant rate of 3 forever. The appropriate required return is 89y. a Calculate what the price should be 22 years from now for SMI stock b. Calculate today's price for SMI stock & String Cheeses, Inc. is considering a project with an initial outlay of $8222.82 & CFs in each of years 1-6 - $2000. Compute the project's IRR. 9. Wyoming Natural Gas, Inc. is weighing a drilling venture into the Teton Mountains. The venture re quires an initial outlay of S73M, but is anticipated to generate a perpetual series of SIM cash flows starting one year from today. 12.5% is the appropriate required rate of return for valuing this venture a. Calculate the project's NPV. b. Now, suppose that the perpetual series of cash flows starts at 5 instead of tt-1. Recalculate NPV. 10. Your task is to value a share of Supernormal Corp. stock using a required return of 10yr. The stock is expected to pay a dividend of S1.20 one year from now. Dividends are then expected to grow by 15%/yr for two years. The growth rate is expected to drop to 129/yr for the next three years. After that, the growth is expected to be stable at 3%/yr forever. 1. Calculate the net present value (NPV) of a project with the following stream of CFs: C, through Cs are all equal to $800, C19 = $300, and C20 = -$800 (notice the minus). The initial investment is $4000. The appropriate discount rate is 10%. 2. (a) Calculate the current price of Patience, Inc. stock that is expected to pay a dividend of $4/share at the end of each year from year 33 through year 61, given a discount rate of 5%. This stock is not expected to pay any divi- dends before, nor any dividends after, this range of dividend payments. (b) What do you estimate that the price will be for Patience, Inc. stock 30 years from now i.e., at t=30)? 3. Tennessee Jed Co. (TJC) bonds mature in 9 years and pay an annual coupon of 8%. They have a face value of $1,000 a. If the required return b investors is 8%, will these bonds sell at face, at a premium, or at a discount? b. Compute the value of a TJC bond if investors' required return is 10%. c. Value this same TJC bond but with semi-annual coupon payments. 4. What is the yield to maturity (YTM) of a 20-yr. bond w/ a coupon rate of 10%/yr., has a $1K par value, and is currently priced at $1196.36? Round your answer to the nearest whole percent. Coupons are paid annually. Calculate the YTM if the price is $850.61 Finally, calculate YTM if the price is $1000.00. 5. A share of LinkedIn, Inc. stock is expected to pay a dividend of $1.20 in 1 year, $1.44 in 2 years, and $1.60 in 3 years. In 3 years, you expect that you can sell the stock for $34.60 right after you receive Div3. Using a re- quired rate of return of 12%, calculate the fair price for a share of LinkedIn stock today. 6. Martin Spencer, Inc. (MSI) stock is expected to pay a dividend of $3.00 at the end of the year. Dividends are forecasted to grow at a constant rate of 3%/yr. indefinitely. The appropriate required return for valuing this stock is 8%/yr. a. Calculate today's price for MSI stock. b. Calculate the price if 'g' is expected to only be 2%/yr. c. Calculate the price if 'g' is expected to be zero