Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please answer yellow spaces, need it asap thank you Name Date: 1. PV $1,000 $905 $1,941 $2,500 Using the Excel financial functions calculate the missing
please answer yellow spaces, need it asap thank you
Name Date: 1. PV $1,000 $905 $1,941 $2,500 Using the Excel financial functions calculate the missing amounts in the yellow cells NPER 10 20 7 5 RATE 6% 8% 7% 6% PMT 50 100 0 50 FV $5,000 $1,718 $3,700 $6,500 Give a real-life example of how each of the five calculations can be used in real life situations PV NPER RATE PMT FV 2. Newco issued 20 year bonds 12 years ago at a coupon rate of8% payable semiannually. If the bonds currently sell for 110% of par value, what is their YTM? Answer: 3. Newco is paying a dividend of $1.00 per year on their stock and is expected to continue to pay this amount annually for 10 years. If investors require a 12% return on this stock, what is its price? Answer: 4. Calculate the Payback period, NPV and IRR of the following investment: Year 0 1 2 3 4 Cash Flow ($415,000) 49000 75000 76000 520000 Payback period NPV IRR Give a real-life example of how each of the three calculations can be used in real life situations Payback NPV IRR 5. A firm has debt of $6,000 and is paying 8% interest; Preferred stock of $2,000 and is paying 6% and has a cost of equity of 18%. Calculate its WACC. Answer: 6. Calculate the Operating and Cash Cycles. Item Beginning $10,000 $5,000 $6,000 Inventory Accounts Receivable Accounts Payable Net Sales Cost of Goods Sold Ending $11,000 $6,000 $65,000 $140,000 $85,000 Operating Cycle Days Cash Cycle Days What does Operating and Cash Cycles tell you? Why are they important? in the yellow cells nnually. If the bonds ontinue to pay this s price? nd is paying 6% andStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started