Use the following financial information to answer the questions that follow: Revenue Net Profit Margin ROE ROA Stock Price Dividend yield EPS Dow Chemical $57 Billion 5.5% 12% 3.75% $40 3.3% $2.32 BASF $95 Billion 6.3% 19% 6.4% $104 0% $6,60 What is the total equity for each of the firms? Compare the financial leverage of the two firms. What are the internal growth rates for the two firms? A couple buy a condo for $160,000 by putting 10% down and financing the rest using the 30 year fixed rate in the WSJ. What are her monthly payments? After five years they decide to pay an extra $50 a month on their monthly payment, how long will it take to pay off the loan? How much total interest do they save by making the extra payments? CIT has a 10 year bond with a par value of $1000. a coupon rate of 4.25% and a price of S1031.20. What is its yield to maturity? If the bond is sold one year later for S1040, what would be the return on the investment? What is the total equity for each of the firms? Compare the financial leverage of the two firms. What are the internal growth rates for the two firms? A couple buy a condo for $160.000 by putting 10% down and financing the rest using the 30 year fixed rate in the WSJ. What are her monthly payments? After five years they decide to pay an extra $50 a month on their monthly payment, how long will it take to pay off the loan? How much total interest do they save by making the extra payments? CIT has a 10 year bond with a par value of $1000, a coupon rate of 4.25% and a price of $1031.20. What is its yield to maturity? If the bond is sold one year later for $1040, what would be the return on the investment? A year ago oil was selling for $60 a barrel and the JPY per USD exchange rate was 108.2. Today oil is selling for $40 a barrel and the exchange rate is 109.6 JPY per USD. A Japanese investor bought the oil a year ago and sold it today. how much would she have made in JPY What has happened to the value of the USD relative to the JPY over the last year? Did the change in the exchange rate help the Japanese investor or hurt? Explain With an annual discount rate of 3%, $10 million at the beginning of each year for the next 20 years, is worth how much today? Use the following financial information to answer the questions that follow: Revenue Net Profit Margin ROE ROA Stock Price Dividend yield EPS Dow Chemical $57 Billion 5.5% 12% 3.75% $40 3.3% $2.32 BASF $95 Billion 6.3% 19% 6.4% $104 0% $6,60 What is the total equity for each of the firms? Compare the financial leverage of the two firms. What are the internal growth rates for the two firms? A couple buy a condo for $160,000 by putting 10% down and financing the rest using the 30 year fixed rate in the WSJ. What are her monthly payments? After five years they decide to pay an extra $50 a month on their monthly payment, how long will it take to pay off the loan? How much total interest do they save by making the extra payments? CIT has a 10 year bond with a par value of $1000. a coupon rate of 4.25% and a price of S1031.20. What is its yield to maturity? If the bond is sold one year later for S1040, what would be the return on the investment? What is the total equity for each of the firms? Compare the financial leverage of the two firms. What are the internal growth rates for the two firms? A couple buy a condo for $160.000 by putting 10% down and financing the rest using the 30 year fixed rate in the WSJ. What are her monthly payments? After five years they decide to pay an extra $50 a month on their monthly payment, how long will it take to pay off the loan? How much total interest do they save by making the extra payments? CIT has a 10 year bond with a par value of $1000, a coupon rate of 4.25% and a price of $1031.20. What is its yield to maturity? If the bond is sold one year later for $1040, what would be the return on the investment? A year ago oil was selling for $60 a barrel and the JPY per USD exchange rate was 108.2. Today oil is selling for $40 a barrel and the exchange rate is 109.6 JPY per USD. A Japanese investor bought the oil a year ago and sold it today. how much would she have made in JPY What has happened to the value of the USD relative to the JPY over the last year? Did the change in the exchange rate help the Japanese investor or hurt? Explain With an annual discount rate of 3%, $10 million at the beginning of each year for the next 20 years, is worth how much today
