PLEASE HELP,PLEASE,EVERYTHING YOU NEED IS BELOW IN THE QUESTIONS.

1. Types of bonds Fixed-income securities consist of debt instruments and preferred stock. Bonds are debt securities in which a borrower promises to pay a specified interest rate and principal at a future date. Which of the following statements about Treasury bonds is the most accurate? Treasury bonds have a very small amount of default risk, so they are not completely riskless. Treasury bonds are not completely riskless, because their prices do decline when interest rates rise. Treasury bonds are completely riskless. Based on the information given in the following statement, answer the questions that follow: In July 2009, Walmart sold 100 billion yen of five-year samurai bonds. Lead managers in the deal were Mizuho Securities, BNP Paribas, and Mitsubishi UFJ Securities. Who is the issuer of the bonds? Mitsubishi UFJ Securities Walmart BNP Paribas What type of bonds are these? Corporate bonds 1. Alternative dividend policies In 2013 the Keenan Company paid dividends totaling $2,920,000 on net income of $11 million. Note that 2013 was a normal year and for the past 10 years, earnings have grown at a constant rate of 9%. However, in 2014, earnings are expected to jump to $19.8 million and the firm expects to have profitable investment opportunities of $7.7 million. It is predicted that Keenan will not be able to maintain the 2014 level of earnings growth because the high 2014 earnings level is attributable to an exceptionally profitable new product line introduced that year. After 2014, the company will return to its previous 9% growth rate. Keenan's target capital structure is 40% debt and 60% equity. Calculate Keenan's total dividends for 2014 assuming that it follows each of the following policies: (Write out your answers completely. For example, 25 million should be entered as 25,000,000.) Its 2014 dividend payment is set to force dividends to grow at the long-run growth rate in earnings. Round your answer to the nearest cent. $ ----- It continues the 2013 dividend payout ratio. Round your answer to the nearest cent. $------ It uses a pure residual dividend policy (40% of the $7.7 million investment is financed with debt and 60% with common equity). Round your answer to the nearest cent. $----- It employs a regular-dividend-plus-extras policy, with the regular dividend being based on the long-run growth rate and the extra dividend being set according to the residual policy. Round your answer to the nearest cent. Regular-dividend $ ----- Extra dividend $ ------ Alternative dividend policies a. 2. Rubenstein Bros. Clothing is expecting to pay an annual dividend per share of $1.2 out of annual earnings per share of $3.25. Currently, Rubenstein Bros.' stock is selling for $15.50 per share. Adhering to the company's target capital structure, the firm has $10 million in assets, of which 30% is funded by debt. Assume that the firm's book value of equity equals its market value. In past years, the firm has earned a return on equity (ROE) of 18%, which is expected to continue this year and into the foreseeable future. Based on that information, what long-run growth rate can the firm be expected to maintain? Round your answer to two decimal places. Do not round intermediate calculations. (Hint: g = Retention rate x ROE.) ------ % b. What is the stock's required return? Round your answer to two decimal places. Do not round intermediate calculations. ----- % If the firm changed its dividend policy and paid an annual dividend of $2.40 per share, financial analysts would predict that the change in policy will have no effect on the firm's stock price or ROE. Therefore, what must the firm's new expected long-run growth rate? Round your answer to two decimal places. Do not round intermediate calculations. ------ % If this plan is implemented, what must the firm's required return be? Round your answer to two decimal places. Do not round intermediate calculations. ------ % d. Suppose instead that the firm has decided to proceed with its original plan of disbursing $1.2 per share to shareholders, but the firm intends to do so in the form of a stock dividend rather than a cash dividend. The firm will allot new shares based on the current stock price of $15.50. In other words, for every $15.50 in dividends due to shareholders, a share of stock will be issued. How large will the stock dividend be relative to the firm's current market capitalization? (Hint: Remember market capitalization = P0 x number of shares outstanding.) Round your answer to two decimal places. Do not round intermediate calculations. -----% e. If the plan in Part d is implemented, how many new shares of stock will be issued? Round your answer to the nearest whole. Do not round intermediate calculations. ------- If the plan in Part d is implemented, by how much will the company's earnings per share be diluted? Round your answer to the nearest cent. Do not round intermediate calculations. $ ------ per share 2. Alternative dividend policies In 2013 the Keenan Company paid dividends totaling $2,920,000 on net income of $11 million. Note that 2013 was a normal year and for the past 10 years, earnings have grown at a constant rate of 9%. However, in 2014, earnings are expected to jump to $19.8 million and the firm expects to have profitable investment opportunities of $7.7 million. It is predicted that Keenan will not be able to maintain the 2014 level of earnings growth because the high 2014 earnings level is attributable to an exceptionally profitable new product line introduced that year. After 2014, the company will return to its previous 9% growth rate. Keenan's target capital structure is 40% debt and 60% equity. Calculate Keenan's total dividends for 2014 assuming that it follows each of the following policies: (Write out your answers completely. For example, 25 million should be entered as 25,000,000.) Its 2014 dividend payment is set to force dividends to grow at the long-run growth rate in earnings. Round your answer to the nearest cent. $------ It continues the 2013 dividend payout ratio. Round your answer to the nearest cent. $ ----- It uses a pure residual dividend policy (40% of the $7.7 million investment is financed with debt and 60% with common equity). Round your answer to the nearest cent. $ ---- It employs a regular-dividend-plus-extras policy, with the regular dividend being based on the long-run growth rate and the extra dividend being set according to the residual policy. Round your answer to the nearest cent. Regular-dividend $ ----- Extra dividend $----- Quantitative Problem: Currently, Meyers Manufacturing Enterprises (MME) has a capital structure consisting of 35% debt and 65% equity. MME's debt currently has a 7% yield to maturity. The risk-free rate (rRF) is 5%, and the market risk premium (rM - rRF) is 6%. Using the CAPM, MME estimates that its cost of equity is currently 11.6%. The company has a 40% tax rate. A. What would MME's beta be if the company had no debt in its capital structure? (That is, what is MME's unlevered beta, bU?) Round your answer to 4 decimal places. Do not round intermediate calculations------MME's financial staff is considering changing its capital structure to 45% debt and 55% equity. If the company went ahead with the proposed change, the yield to maturity on the company's bonds would rise to 7.5%. The proposed change will have no effect on the company's tax rate. B. What would be the company's new cost of equity if it adopted the proposed change in capital structure? Round your answer to 2 decimal places. Do not round intermediate calculations. -------- % C. What would be the company's new WACC if it adopted the proposed change in capital structure? Round your answer to 2 decimal places. Do not round intermediate calculations. ------ % 8. Risks of investing in bonds A security with higher risk will have a higher expected return. A bond's risk level is reflected in its yield, but understanding the different risks involved when investing in bonds is important. The curves on the following graph show the prices of two 10% annual coupon bonds at various interest rates. 048121620200017501500125010007505002500BOND VALUE ($)INTEREST RATE (%)1-Year Bond10Year Bond Based on the graph, which of the following statements is true? The 1-year bond has more interest rate risk. The 10-year bond has more interest rate risk. Neither bond has any interest rate risk. Both bonds have equal interest rate risk. Which type of bonds offer a higher yield? Callable bonds Noncallable bonds Answer the following question based on your understanding of interest rate risk and reinvestment rate risk. True or False: Assuming all else is equal, short-term securities are exposed to higher reinvestment rate risk than long-term securities. True False 9. More on types of bonds You can distinguish the various types of bonds by their terms of contract, pledge of collateral, and so on. Identify the type of bond based on each description given in the table that follows: Description Bond type subordinated These bonds are collateralized securities with first claims in the event of bankruptcy. debentures These bonds, which have no collateral and usually offer higher yields, are traded in the bond markets based on investors' belief that the issuer will not default on the repayment. These bonds have a claim on assets only after all of the firm's senior debt has been paid in full. Based on your understanding of bond ratings and bond-rating criteria, which of the following statements is true? An indenture is a legal document that details the rights of bondholders. If the indenture includes a sinking funds provision, the bond will have more default risk. An indenture is a legal document that details the rights of bondholders. If the indenture includes a sinking funds provision, the bond will have less default risk. In 2008, the United States began to witness one of the worst recessions since the 1930s. The collapse of the housing bubble in 2006 led to a massive decline in real estate prices, affecting consumers and institutions, especially banking and financial entities. Severe liquidity shortfalls in the United States as well as other global markets led to a serious credit crisis. During the credit crisis of 2008-2009, several banks and other businesses went through a reorganization process or were forced to liquidate. Consider the following example: In May 2009, General Motors started closing 2,600 of its retail outlets and finally filed for bankruptcy in June. It emerged from the bankruptcy protection by July 2009, after it received funding from the U.S. government, the Canadian government, United Automobile Workers Union, and GM bondholders. Source: Farfan, Barbara. \"General Motors Chapter 11 Bankruptcy Overview and Details.\" About.com, Retail Industry. About.com, n.d. Web. August 31, 2010. http://retailindustry.about.com/od/americanretailhistory/a/GM_chapter_11_bankruptcy_details.htm. This is an example of a: Liquidation Reorganization