Question
Please answer all or none! Thank You. 5 a. What is the price of a bond which has a face value of $10,000, a maturity
Please answer all or none! Thank You.
5
a. What is the price of a bond which has a face value of $10,000, a maturity of 15 years, a coupon rate of 7% (paid semiannually), and a current yield in the market of 5%?
b. What is the price of a share of common stock that has an expected dividend of $3.00, a tax rate of 30%, a required return of 15%, an expected growth rate of 5%, and a beta of 2.0?
c. Your goal is to have $1,200,000, 30 years from now. If you already have $30,000 invested and can earn 8% per year, how much more do you need to save per month in order to reach your goal?
d. If total assets = 200 and the company has long term debt = 30 and short term debt = 50, what is the shareholders equity?
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