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Pages 6

1. Microhard has issued a bond with the following characteristics:

Par: $1,000

Time to maturity: 11 years

Coupon rate: 9 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. 9 percent $ _____

b. 11 percent $ _____

c. 7 percent $ _____

2. Watters Umbrella Corp. issued 20-year bonds 2 years ago at a coupon rate of 8.4 percent. The bonds make semiannual payments. If these bonds currently sell for 90 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.)

YTM _____ %

3. Grand Adventure Properties offers a 7 percent coupon bond with annual payments. The yield to maturity is 5.85 percent and the maturity date is 8 years from today. What is the market price of this bond if the face value is $1,000?

• $1,071.84

• $788.73

• $1,082.17

• $1,019.29

• $947.45

4. The next dividend payment by ECY, Inc., will be $1.64 per share. The dividends are anticipated to maintain a growth rate of 8 percent, forever. The stock currently sells for $31 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.)

Required return _____ %

5. The Starr Co. just paid a dividend of $1.55 per share on its stock. The dividends are expected to grow at a constant rate of 6 percent per year, indefinitely. Investors require a return of 14 percent on the stock.

a. What is the current price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Current price $ _____

b. What will the price be in three years? (Do not round…...

...FIN 571 Complete Week 4 - NEW IF You Want To Purchase A+ Work Then Click The Link Below , Instant Download http://www.hwnerd.com/FIN-571-Complete-Week-4-NEW-6744443.htm?categoryId=-1 If You Face Any Problem E- Mail Us At CONTACT.HWNERD@Gmail.Com FIN 571 Week 4 DQ 1 NEW We can determine the value of an investment at the end of one period (whether it is a month, quarter or year) if we know the interest rate to be earned by the investment. If you invest for one period (single period investment) at an interest rate of i, your investment, or principal, will grow by (1 + i) per dollar invested. The term (1+ i) is the future value interest factor--often called simply the future value factor. How can we determine the value of a two period investment what components are included in the calculation? FIN 571 Week 4 DQ 2 NEW Explain what the time value of money is and why it is important in the field of finance. FIN 571 Week 4 Individual Analyzing Pro Forma Statements NEW Decide upon an initiative you want to implement that would increase sales over the next five years, (for example, market another product, corporate expansion, and so on). Using the sample financial statements, create pro forma statements of five year projections that are clear, concise, and easy to read. Be sure to double check the calculations in your pro forma statements. Make assumptions that support each line item increase or decrease for your forecasted......

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...FIN 571 Complete Week 4 - NEW IF You Want To Purchase A+ Work then Click The Link Below For Instant Down Load http://www.acehomework.net/wp-admin/post.php?post=1490&action=edit IF You Face Any Problem Then E Mail Us At JOHNMATE1122@GMAIL.COM FIN 571 Week 4 DQ 1 NEW We can determine the value of an investment at the end of one period (whether it is a month, quarter or year) if we know the interest rate to be earned by the investment. If you invest for one period (single period investment) at an interest rate of i, your investment, or principal, will grow by (1 + i) per dollar invested. The term (1+ i) is the future value interest factor--often called simply the future value factor. How can we determine the value of a two period investment what components are included in the calculation? FIN 571 Week 4 DQ 2 NEW Explain what the time value of money is and why it is important in the field of finance. FIN 571 Week 4 Individual Analyzing Pro Forma Statements NEW Decide upon an initiative you want to implement that would increase sales over the next five years, (for example, market another product, corporate expansion, and so on). Using the sample financial statements, create pro forma statements of five year projections that are clear, concise, and easy to read. Be sure to double check the calculations in your pro forma statements. Make assumptions that support each line item increase or decrease for your forecasted statements. Discuss and interpret the......

Words: 961 - Pages: 4

...FIN 571 Complete Week 4 IF You Want To Purcahse A+ Work then Click The Link Below For Instant Down Load http://www.acehomework.net/?download=fin-571-complete-week-4 IF You Face Any Problem Then E Mail Us At JOHNMATE1122@GMAIL.COM FIN 571 Complete Week 4 – NEW FIN 571 Week 4 DQ 1 NEW We can determine the value of an investment at the end of one period (whether it is a month, quarter or year) if we know the interest rate to be earned by the investment. If you invest for one period (single period investment) at an interest rate of i, your investment, or principal, will grow by (1 + i) per dollar invested. The term (1+ i) is the future value interest factor–often called simply the future value factor. How can we determine the value of a two period investment what components are included in the calculation? FIN 571 Week 4 DQ 2 NEW Explain what the time value of money is and why it is important in the field of finance. FIN 571 Week 4 Individual Analyzing Pro Forma Statements NEW Decide upon an initiative you want to implement that would increase sales over the next five years, (for example, market another product, corporate expansion, and so on). Using the sample financial statements, create pro forma statements of five year projections that are clear, concise, and easy to read. Be sure to double check the calculations in your pro forma statements. Make assumptions that support each line item increase or decrease for your forecasted statements. Discuss......

Words: 964 - Pages: 4

...FIN 571 Complete Week 4 - NEW IF You Want To Purchase A+ Work then Click The Link Below For Instant Down Load http://www.acehomework.net/?download=fin-571-complete-week-4-new IF You Face Any Problem Then E Mail Us At JOHNMATE1122@GMAIL.COM FIN 571 Week 4 DQ 1 NEW We can determine the value of an investment at the end of one period (whether it is a month, quarter or year) if we know the interest rate to be earned by the investment. If you invest for one period (single period investment) at an interest rate of i, your investment, or principal, will grow by (1 + i) per dollar invested. The term (1+ i) is the future value interest factor--often called simply the future value factor. How can we determine the value of a two period investment what components are included in the calculation? FIN 571 Week 4 DQ 2 NEW Explain what the time value of money is and why it is important in the field of finance. FIN 571 Week 4 Individual Analyzing Pro Forma Statements NEW Decide upon an initiative you want to implement that would increase sales over the next five years, (for example, market another product, corporate expansion, and so on). Using the sample financial statements, create pro forma statements of five year projections that are clear, concise, and easy to read. Be sure to double check the calculations in your pro forma statements. Make assumptions that support each line item increase or decrease for your forecasted statements. Discuss and interpret the......

Words: 960 - Pages: 4

...FIN 571 Complete Week 4 IF You Want To Purcahse A+ Work then Click The Link Below For Instant Down Load http://www.acehomework.net/?download=fin-571-complete-week-4 IF You Face Any Problem Then E Mail Us At JOHNMATE1122@GMAIL.COM FIN 571 Complete Week 4 – NEW FIN 571 Week 4 DQ 1 NEW We can determine the value of an investment at the end of one period (whether it is a month, quarter or year) if we know the interest rate to be earned by the investment. If you invest for one period (single period investment) at an interest rate of i, your investment, or principal, will grow by (1 + i) per dollar invested. The term (1+ i) is the future value interest factor–often called simply the future value factor. How can we determine the value of a two period investment what components are included in the calculation? FIN 571 Week 4 DQ 2 NEW Explain what the time value of money is and why it is important in the field of finance. FIN 571 Week 4 Individual Analyzing Pro Forma Statements NEW Decide upon an initiative you want to implement that would increase sales over the next five years, (for example, market another product, corporate expansion, and so on). Using the sample financial statements, create pro forma statements of five year projections that are clear, concise, and easy to read. Be sure to double check the calculations in your pro forma statements. Make assumptions that support each line item increase or decrease for your forecasted statements. Discuss......

Words: 964 - Pages: 4

...FIN 571 WEEK 4 A+ Graded Tutorial Available At: http://hwsoloutions.com/?product=fin-571-week-4 Visit Our website: http://hwsoloutions.com/ Product Description PRODUCT DESCRIPTION FIN 571 Week 4, The XYZ Company Inc. has decided to launch a product line. The company plans to introduce 2-3 varieties of the product line over the next 5 years. Due to the new initiative the firm expects the sales to increase by 20% within years 1-3 and sales will slow down to 10% from that point. Management feels the total cost of sales will increase from 60.% to 65% in the first 3 years by following a push strategy. The first three years will result in high inventory, purchases and production costs. With learning curve the firm is confident of bringing down the Cost of Sales to 60% from Year 4 onwards. To support growth, XYZ Company Inc. plans to invest strongly in net fixed assets as the current capacity utilization is close to 85%. Net cash flow generated by the company can also be used to retire long term debt by 10% every year. Furthermore, the company wants to keep minimum cash balance of $20,000 to ensure short term liquidity is healthy. Projections indicate that accounts receivable will reduce to 60 in first 3 Years and total sales will increase. The impact of the initiative and the Working Capital requirements are as shown below The operating margin will slowly improve to 22.3% by the end of Year 5. The XYZ Company Inc. has decided to launch a product line. The company......

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...FIN 571 Complete Week 4 - NEW IF You Want To Purchase A+ Work then Click The Link Below For Instant Down Load http://www.acehomework.net/?download=fin-571-complete-week-4-new IF You Face Any Problem Then E Mail Us At JOHNMATE1122@GMAIL.COM FIN 571 Week 4 DQ 1 NEW We can determine the value of an investment at the end of one period (whether it is a month, quarter or year) if we know the interest rate to be earned by the investment. If you invest for one period (single period investment) at an interest rate of i, your investment, or principal, will grow by (1 + i) per dollar invested. The term (1+ i) is the future value interest factor--often called simply the future value factor. How can we determine the value of a two period investment what components are included in the calculation? FIN 571 Week 4 DQ 2 NEW Explain what the time value of money is and why it is important in the field of finance. FIN 571 Week 4 Individual Analyzing Pro Forma Statements NEW Decide upon an initiative you want to implement that would increase sales over the next five years, (for example, market another product, corporate expansion, and so on). Using the sample financial statements, create pro forma statements of five year projections that are clear, concise, and easy to read. Be sure to double check the calculations in your pro forma statements. Make assumptions that support each line item increase or decrease for your forecasted statements. Discuss and interpret the......

Words: 960 - Pages: 4

...FIN 571 Complete Week 4 IF You Want To Purcahse A+ Work then Click The Link Below For Instant Down Load http://www.acehomework.net/?download=fin-571-complete-week-4 IF You Face Any Problem Then E Mail Us At JOHNMATE1122@GMAIL.COM FIN 571 Complete Week 4 – NEW FIN 571 Week 4 DQ 1 NEW We can determine the value of an investment at the end of one period (whether it is a month, quarter or year) if we know the interest rate to be earned by the investment. If you invest for one period (single period investment) at an interest rate of i, your investment, or principal, will grow by (1 + i) per dollar invested. The term (1+ i) is the future value interest factor–often called simply the future value factor. How can we determine the value of a two period investment what components are included in the calculation? FIN 571 Week 4 DQ 2 NEW Explain what the time value of money is and why it is important in the field of finance. FIN 571 Week 4 Individual Analyzing Pro Forma Statements NEW Decide upon an initiative you want to implement that would increase sales over the next five years, (for example, market another product, corporate expansion, and so on). Using the sample financial statements, create pro forma statements of five year projections that are clear, concise, and easy to read. Be sure to double check the calculations in your pro forma statements. Make assumptions that support each line item increase or decrease for your forecasted statements. Discuss......

Words: 964 - Pages: 4

...FIN 571 Complete Week 4 - NEW IF You Want To Purchase A+ Work then Click The Link Below For Instant Down Load http://www.acehomework.net/?download=fin-571-complete-week-4-new IF You Face Any Problem Then E Mail Us At JOHNMATE1122@GMAIL.COM FIN 571 Week 4 DQ 1 NEW We can determine the value of an investment at the end of one period (whether it is a month, quarter or year) if we know the interest rate to be earned by the investment. If you invest for one period (single period investment) at an interest rate of i, your investment, or principal, will grow by (1 + i) per dollar invested. The term (1+ i) is the future value interest factor--often called simply the future value factor. How can we determine the value of a two period investment what components are included in the calculation? FIN 571 Week 4 DQ 2 NEW Explain what the time value of money is and why it is important in the field of finance. FIN 571 Week 4 Individual Analyzing Pro Forma Statements NEW Decide upon an initiative you want to implement that would increase sales over the next five years, (for example, market another product, corporate expansion, and so on). Using the sample financial statements, create pro forma statements of five year projections that are clear, concise, and easy to read. Be sure to double check the calculations in your pro forma statements. Make assumptions that support each line item increase or decrease for your forecasted statements. Discuss and interpret the......

Words: 960 - Pages: 4

Words: 964 - Pages: 4

...balance sheet? • intangible asset • accounts payable • preferred stock • inventory • net plant and equipment Complete FIN 571 week 2 connect problems Answers here FIN 571 Week 2 Connect Problems 3. It is easier to evaluate a ﬁrm using its ﬁnancial statements when the ﬁrm: • is a conglomerate. • is global in nature. • uses the same accounting procedures as other ﬁrms in its industry. • has a different ﬁscal year than other ﬁrms in its industry. • tends to have one-time events such as asset sales and property acquisitions. 4. The cash ﬂow resulting from a ﬁrm's ongoing, normal business activities is referred to as the: • operating cash ﬂow. • net capital spending. • additions to net working capital. • cash ﬂow to retained earnings. • cash ﬂow to investors. FIN 571 final exam (Newest) download now FIN 571 Final Exam (Newest) 5. Which one of these is a non-cash item? • depreciation • interest expense • current taxes • dividends • selling expenses 6. Sankey, Inc., has current assets of $5,000, net fixed assets of $23,300, current liabilities of $4,450, and long-term debt of $11,000. (Do not round intermediate calculations.) What is the value of the shareholders' equity account for this firm? Shareholders' equity $_________ How much is net working capital? Net working capital $_________ FIN 571 complete paper here FIN 571 7. Shelton, Inc., has sales of $401,000, costs of $189,000, depreciation expense of $54,000, interest expense of......

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...Next year’s sales are projected to be $7,906. What is the external financing needed? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) External financing needed $_____ 3. Projected future ﬁnancial statements are called: • plug statements. • pro forma statements. • reconciled statements. • aggregated statements. • comparative statements. 4. One of the primary weaknesses of many ﬁnancial planning models is that they: • rely too much on ﬁnancial relationships and too little on accounting relationships. • are iterative in nature. • ignore the goals and objectives of senior management. • ignore cash payouts to stockholders. • ignore the size, risk, and timing of cash ﬂows. 5. The maximum rate at which a ﬁrm can grow while maintaining a constant debt-equity ratio is bestdeﬁned by its: • rate of return on assets. • internal rate of growth. • average historical rate of growth. • rate of return on equity. • sustainable rate of growth. Find The Complete Answers just a click away FIN 571 Week 3 Connect Problems - Assignment 6. The external funds needed (EFN) equation projects the addition to retained earnings as: • PM × ? Sales. • PM ×? Sales × (1 - d). • PM × Projected sales × (1 - d). • Projected sales × (1 - d). • PM ×Projected sales. 7. Financial planning, when properly executed: • ignores the normal restraints encountered by a ﬁrm. • is based on the internal rate of growth. • reduces the......

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...should all be ones which increase the: a) size of the ﬁrm. b) growth rate of the ﬁrm. c) marketability of the managers. d) market value of the existing owners' equity. e) ﬁrm’s current sales. 3. The primary goal of ﬁnancial management is to: a) maximize current dividends per share of the existing stock. b) maximize the current value per share of the existing stock. c) avoid ﬁnancial distress. d) minimize operational costs and maximize ﬁrm eﬃciency. e) maintain steady growth in both sales and net earnings. 4. Accounting concepts for a ﬁrm to create value it must: a) have a greater cash inﬂow from its stockholders than its outﬂow to them. b) create more cash ﬂow than it uses. c) reduce its investment in ﬁxed assets since ﬁxed assets require the use of cash. d) avoid payments to the government so dividends can be increased. e) avoid the issuance of debt securities Find the week 1 connect problems answers here FIN 571 Week 1 Connect Problems 5. The primary goal of ﬁnancial management is to: a) maximize current dividends per share of the existing stock. b) maximize the current value per share of the existing stock. c) avoid ﬁnancial distress. d) minimize operational costs and maximize ﬁrm eﬃciency. e) maintain steady growth in both sales and net earnings. 6. Which one of the following business types is best suited to raising large amounts of capital? a) sole proprietorship b) limited liability company c) corporation d) general......

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...should all be ones which increase the: a) size of the ﬁrm. b) growth rate of the ﬁrm. c) marketability of the managers. d) market value of the existing owners' equity. e) ﬁrm’s current sales. 3. The primary goal of ﬁnancial management is to: a) maximize current dividends per share of the existing stock. b) maximize the current value per share of the existing stock. c) avoid ﬁnancial distress. d) minimize operational costs and maximize ﬁrm eﬃciency. e) maintain steady growth in both sales and net earnings. 4. Accounting concepts for a ﬁrm to create value it must: a) have a greater cash inﬂow from its stockholders than its outﬂow to them. b) create more cash ﬂow than it uses. c) reduce its investment in ﬁxed assets since ﬁxed assets require the use of cash. d) avoid payments to the government so dividends can be increased. e) avoid the issuance of debt securities Find the week 1 connect problems answers here FIN 571 Week 1 Connect Problems 5. The primary goal of ﬁnancial management is to: a) maximize current dividends per share of the existing stock. b) maximize the current value per share of the existing stock. c) avoid ﬁnancial distress. d) minimize operational costs and maximize ﬁrm eﬃciency. e) maintain steady growth in both sales and net earnings. 6. Which one of the following business types is best suited to raising large amounts of capital? a) sole proprietorship b) limited liability company c) corporation d) general......

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...it is negative. • Any type of project with greater total cash inﬂows than total cash outﬂows, should always be accepted. • An investment project that has positive cash ﬂows for every time period after the initial investment should be accepted. Find the Week 1 Connect Problems answers here FIN 571 Week 1 Connect Problems 3. The primary reason that company projects with positive net present values are considered acceptable is that: • they create value for the owners of the ﬁrm. • the project's rate of return exceeds the rate of inﬂation. • they return the initial cash outlay within three years or less. • the required cash inﬂows exceed the actual cash inﬂows. • the investment's cost exceeds the present value of the cash inﬂows. 4. Accepting a positive net present value (NPV) project: • indicates the project will pay back within the required period of time. • means the present value of the expected cash ﬂows is equal to the project’s cost. • ignores the inherent risks within the project. • guarantees all cash ﬂow assumptions will be realized. • is expected to increase the stockholders’ value by the amount of the NPV. Week 2 Connect problems Answers just a click away FIN 571 Week 2 Connect Problems 5. The net present value method of capital budgeting analysis does all of the following except: • incorporate risk into the analysis. • consider all relevant cash ﬂow information. • use all of a project's cash ﬂows. • discount all future cash......

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