Question
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______%
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