This is an URGENT matter. I wanna know the answer as soon as possible.
Multiple Choice Identify the choice that best completes the statement or answers the question. a a The company with best performance is: Number ef says of receivalNes aAaciBbd. 21. Union Local School District has bonds outstanding with a coupon rate of 3.7 percent paid semiannually and 14 years to maturity. The yield to maturity on these bonds is 3.9 percent and the bonds have a par value of $5,000. What is the price of the bonds? a.4,104.15th.4.88180c381440d.4.00200 o 22 Assume that ABC Corporation has the following capital structure: 30 percent debt, 10 percent preferred stock, and 60 percent equity. ABC Corporation wishes to maintain these proportions as it raises new funds. Its before-tax cost of debt is 8 percent, its cost of preferred stock is 10 pereent, and its cost of equity is 15 percent. If the company's marginal tax rate is 30 percent, what is ABC 's weighted average cost of eapital? 2. If sales are $500,000, variable costs are 70% of sales, and operating income is $75,000, what is the operating leverage? a. 2.0 i 2,5 c. 2.2 41.2 24. E-Eyes.com has a new issue of preferred stock it calls 20/20 preferred. The stock will pay a $20 dividend per year, but the first dividend will not be paid until 20 years from today. If you require a return of 7.5 percent on this stock, how much should you pay twenty years from now? 3. 7055 6. 366.67 = 25 You have $6,250 to deposit. Regency Bank offers 12 pereent per year compounded monthly (I percent per month), while King Bank offers 12 percent but will only compound annually. How much will your investment be worth in 20 years at Regency Bank? 25. You have three proposals for an investment. Their "Present Value Indexes" are as follow (see alternatives). Which one would you select? a.1.21b.1.15c0.95d.Noershooldbewelletad 27. The company with best performance is: \begin{tabular}{|c|c|c|c|} \hline Compary A & Company B & Compang C & Campar B \\ \hline 13 & 20 & 25 & 30 \\ \hline \end{tabular} a.Ha2i.inA = 2k An analysis of a proposal by the net present value method indicated that the present value of future cash inflows exceeded the amount to be invested. Which of the following statements best describes the results of this analysis? a. The proposal is desirable and the rate of retum expected from the proposal is less than the minimum rate used for the analysis. k. The proposal is desirable and the rate of refurn expected from the proposal exceeds the minimum rate used for the analysis. c. The proposal is undesirable and the rate of return expected from the proposal exceeds the minimum rate used for the analysis. 4. The proposal is undesirable and the rate of return expected from the proposal is less 24. Suppose the following bond quote for 10U Corporation appears in the financial page of today's newspaper. Assume the bond has a face value of $1,000, and the current date is April 15. 2016. What is the yield to maturity of the bond? Company (Ticker) Coupon Maturity Last Price Last Yield EST Vol (000s) IOU (IOU) 8.00 Apt 15,2031 91.645 ?? 1,827 Note: Just to clarify, the coupon is 8% i.9965b.9085e.9275d.9.105 32. You can earn 27 percent per month at your bank, If you deposit \$1,900, how long must you wait until your account has grown to $3,100 ? -answer in month- a.194.43b.20151&.218.41i.181.56 31. A Macrohard Corp, bond carries an 8 percent coupon, paid semiannually. The par value is $1,000, and the bond matures in six years. If the bond currently sells for $901, what is its yield to maturity? i.1000%b.sartei.11.75%1075% 12. If the discount rate is 15% The best project is is. B 5. Noon d. A 13. PK Software has 6.3 percent coupon bonds oa the market with 22 years to maturity. The bonds make semiannual payments and currently sell for 98 percent of par. What is the effective annual yield? if66b.630e6.50d.6.005 34. Suppose we observe a stock selling for $40 per share. The next dividend will be \$1.25 per share, and you think the dividend will grow at 12 percent per year forever. What is the tota required return? a 1475% b. 15135 5. 14.0sen 15. The Brigapenski Co. has just paid a cash dividend of $2,25 per share. Investors require a 16 percent return from investments such as this. If the dividend is expected to grow at a steady percent per year, what will be the value of the stock in five years? i12.67b.39.67&4461d.47.17 * 3. The best project is: Raybuck Reriod (yean) 37. Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2003, Sotheby's sold the Edgar Degas bronze sculpture Petite Danscuse def Quatorze Ans at auction for a price of $10,311,500. Unfortunately for the previous owner, he had purchased it in 1998 at a price of $12,377,500. What was his annual rate of retum on this sculpture? is 6 ars 22d.44535min = s. The company with best performance is: 41. Mitchell, Inc., is expected to maintain a constant 4.8 percent growth rate in its dividends, indefinitely. If the company has a dividend yield of 5.8 percent, what is the required return on the company's stock? a. 10.40% c. 5.80% b. 12.00% d. 10.60% 43. Stein Co. issued 15-year bonds two years ago at a coupon rate of 5.4 percent. The bonds make semiannual payments. If these bonds currently sell for 88 percent of par value, what is the YTM? a. 9.40% c. 6.81% b. 3.40% d. 6.07% 45. You are ready to buy a house and you have $20,000 for a down payment and closing costs. Closing costs are estimated to be 4% of the loan value. You have an annual salary of $36,000 and the bank is willing to allow your monthly mortgage payment to be equal to 25% of your monthly income. The interest rate on the loan is 6% per year with monthly compounding (.5\% per month) for a 30 -year fixed rate loan. How much can you offer for the house? a. 146,486 c. 160,178 b. 140,090 d. 154,501
