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Thank you in advance!! This is for Corporate Finance Fin/571 1. A Japanese company has a bond outstanding that sells for 94 percent of its

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Thank you in advance!! This is for Corporate Finance Fin/571

image text in transcribed 1. A Japanese company has a bond outstanding that sells for 94 percent of its 100,000 par value. The bond has a coupon rate of 6.1 percent paid annually and matures in 17 years. What is the yield to maturity of this bond? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) 2. Watters Umbrella Corp. issued 15-year bonds 2 years ago at a coupon rate of 8.2 percent. The bonds make semiannual payments. If these bonds currently sell for 85 percent of par value, what is the YTM? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) 3. Microhard has issued a bond with the following characteristics: Par: $1,000, Time to maturity: 7 years ,Coupon rate: 10 percent Semiannual payments. Calculate the price of this bond if the YTM is (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.): Price of the Bond a. 10 percent $ b. 12 percent $ c. 8 percent $ 4. The next dividend payment by ECY, Inc., will be $2.16 per share. The dividends are anticipated to maintain a growth rate of 5 percent, forever. The stock currently sells for $44 per share. What is the required return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) 5. Siblings, Inc., is expected to maintain a constant 6.6 percent growth rate in its dividends, indefinitely. The company has a dividend yield of 8.4 percent. What is the required return on the company's stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) 6. The Starr Co. just paid a dividend of $1.85 per share on its stock. The dividends are expected to grow at a constant rate of 4 percent per year, indefinitely. Investors require a return of 12 percent on the stock Current:$ 3 Years:$ 14 Years:$ 7. Zoom stock has a beta of 1.46. The risk-free rate of return is 3.07 percent and the market rate of return is 11.81 percent. What is the amount of the risk premium on Zoom stock? 8. The risk premium for an individual security is computed by: adding the risk-free rate to the security's expected return. dividing the market risk premium by the beta of the security. dividing the market risk premium by the quantity (1 + Beta). multiplying the security's beta by the risk-free rate of return. multiplying the security's beta by the market risk premium 9. The risk-free rate of return is 3.68 percent and the market risk premium is 7.84 percent. What is the expected rate of return on a stock with a beta of 1.32? 10. Central Systems, Inc. desires a weighted average cost of capital of 9 percent. The firm has an after-tax cost of debt of 6 percent and a cost of equity of 12 percent. What debt-equity ratio is needed for the firm to achieve its targeted weighted average cost of capital? 11. Mullineaux Corporation has a target capital structure of 75 percent common stock and 25 percent debt. Its cost of equity is 14 percent, and the cost of debt is 8 percent. The relevant tax rate is 35 percent. What is the company's WACC? 12. Filer Manufacturing has 6 million shares of common stock outstanding. The current share price is $78, and the book value per share is $5. The company also has two bond issues outstanding. The first bond issue has a face value $65 million, a coupon of 7 percent, and sells for 98 percent of par. The second issue has a face value of $35 million, a coupon of 8 percent, and sells for 106 percent of par. The first issue matures in 22 years, the second in 5 years. a. What are the company's capital structure weights on a book value basis? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616.) Equity / Value Debt / Value b. What are the company's capital structure weights on a market value basis? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616.) Equity / Value Debt / Value c. Which are more relevant Market value weights Book value weights

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