Finance
The bonds of TigerPaw, Inc. carry a 8% annual coupon, have a $1,000 face value, and mature in 6 years. Market rate is 4%. What is the market value of Tiger’s bonds? (bond valuation)
- UWA Candy and Cookies, Inc. pays a constant annual dividend of $3 per share. How much are you willing to pay for one share if you require a 7 percent rate of return? (constant dividend model)
- If a stock has a 7% of dividend yield and the required rate of 10%, what is the capital gains yield of this stock?
- Mr. Finance, Inc. announced yesterday that their next annual dividend will be $8 and that future dividends will be increasing by 9 percent annually. How much are you willing to pay for one share of this stock if your required return is 14 percent? (dividend growth model)
- How much is a share of Bama Corp. stock expected to be worth one year from now, if you pay $40 per share today for this stock, the next dividend will be $4 per share, and your required rate of return on equity investment is 10%? (one-period model for stock valuation)
Use the following information to answer question #20 ~ #22.
Three-year project with Initial investment: $1,000 Interest rate: 3%
The 1st year cash flow: $400 The 2nd year cash flow: $1,500
- Which of the followings is NPV of this two-year project?
- What is the payback period for this project?
- The profitability index (PI) will be approximately calculated as _____.
Order from us and get better grades. We are the service you have been looking for.
