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Question 1: Coleman Technologies common stock is priced at $75 per share. The company has $10 billion in total assets, $4 billion in total debt,

Question 1: Coleman Technologies common stock is priced at $75 per share. The company has $10 billion in total assets, $4 billion in total debt, and $6 billion in common equity. It has 800 million shares of common stock outstanding. Calculate market/book ratio?

Question 2:Company As bonds have 15 years remaining to maturity. Interest is paid semiannually, the bonds have a $1000 par value and the coupon rate is 8%. If the bonds sell at a price of $900, what is their yield to maturity?

Question 3:Suppose the risk free rate= 3%, expected return of the market= 10%, and the beta of the stock A is 1.50. Calculate stock As required return.

Question 4:Suppose you manage a $2 million fund that consists of three stocks with the following investments: StockInvestmentBetaA$500,0001.50B$300,000 0.70C$1,200,0000.75What is the funds Beta? If the market expected rate of return is 12% and the risk free rate is 3%, what is the funds required rate of return?

Question 5:Brushy Mountain Mining Companys coal reserves are being depleted, so its sale are falling. Also environmental costs increase each year, so its cost are rising. As a result, the companys earnings and dividends are declining at the constant rate of 5% per year. If D0 = $7 and the Required Return on the companys stock = 12%, what is the estimated value of Brushy Mountains stock?

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