Please, help with a very detailed answers ASAP. 1) XYZs bonds have 3 years remaining to maturity. The bonds have a face value of 10%. They pay interest annually and have 8% coupon rate. What is their current yield?

2) Diesel company issued bonds with 12% coupon rate, semiannual coupon, $1,000 par value. Bonds mature in 40 years and are callable 5 years from now at $1120. Bonds are sold today at a price of $1300, and the yield curve is ownward sloping. What type of yield will you use as a most likely scenario (yield to call or YTM)? Write a formula, insert numbers (no calculation required). Is the YTM (or yield to call) higher or lower than the coupon rate?

3) Motors Co stock has a required rate of return of 11.50% and it sells for 25$. Dividend is expected to grow at constant rate of 7%. What is the last dividend paid? 4)

Last month, Lloyd's Systems analyzed the project whose cash flows are shown below. It is 100% debt financed. The tax rate is 25%. The yield on company`s bond is 16%

Year 0 1 2 3 Cash flows -$1,100 $460 $480 $510

Calculate the projects NPV, Profitability ratio and decide whether you accept it or not. If the payback period acceptable for a company in 3 years, would you accept a project, being based on discounted cash flows?

5)

Is it true? Explain!

If our current ratio is greater than 1,5, then borrowing on a short-term basis and using the funds to build up our cash would cause the current ratio to increase.

6) S. Systems Inc. pays a $6 current dividend (D0=$6), the dividend is expected to grow at a constant rate of 8% a year, and the common stock currently sells for $45 per share. the before tax cost of debt is 12% and the tax rate is 40%. The target capital structure consists of 50% debt and 50% common equity. What is the company`s WACC if all the equity used is from retained earnings?

7)

Cornell Systems analyzed the project whose cash flows are shown below. It is 100% debt financed. The tax rate is 20%. The yield on company`s bond is 6,25%

Year 0 1 2 3 Cash flows -$950 $500 $400 $300

Calculate the projects NPV, Profitability ratio and decide whether you accept it or not. If the payback period acceptable for a company in 2.5 years, would you accept a project, being based on discounted cash flows?

8)

Is it true? Explain!

If our current ratio is less than 1.0, then using some of our cash to pay off some of our current liabilities would cause the current ratio to increase and thus make the firm look stronger.