Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

subject: business finance can you please answer these four questions( must answer all the questions) 1. Colwood Corp. has 9.6% coupon bonds making annual payments

subject: business finance

can you please answer these four questions( must answer all the questions)

1. Colwood Corp. has 9.6% coupon bonds making annual payments with a YTM of 8.8%, current market value of $1,055.60.

How many years do these bonds have left until they mature? (Do not round intermediate calculations. Round the final answer to 2

decimal places.)

Years left to maturity_____years.

2. You own a stock portfolio invested 15% in Stock Q. 15% in Stock R. 15% in Stock S, and 55% in Stock T. The betas for these four stocks are 0.84, 117, 1.08, and 1.36, respectively. What is the portfolio beta? (Do not round intermediate calculations, Round the final answer to 3 decimal places.)

Portfolio beta_____.

3. Chamberlain Corporation is expected to pay the following dividends over the next four years: $12.60, $8.60, $760, and $3.10

Afterward, the company pledges to maintain a constant 4% growth rate in dividends forever. If the required return on the stock is 12%, what is the current share price? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.)

Current share price_____$.

4. Big Show's Pawn Shop charges an interest rate of 28.5% per month on loans to its customers. Like all lenders, Big Show must report an APR to consumers.

What rate should the shop report? (Round the final answer to 1 decimal places.)

APR_______%

What is the effective annual rate? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

EAR______%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Financial Management

Authors: R. Charles Moyer, William J. Kretlow, James R. Mcguigan

8th Edition

0324065914, 9780324065916

More Books

Students also viewed these Finance questions