Project #80519 - Financial Managment

 

Suppose an investment will pay $29,000 in 36 years from now. If you can earn 5.85% interest compounded monthly by depositing your money in a bank, how much should you pay for the investment today?

Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72.

 

$4,399.65

$2,980.40

 

 

 

$3,548.10

$4,009.35

 

 

 

$3,973.87

 

 

 

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Question 75 ptsSkip to question text.

 

Everest Inc's preferred stock pays a dividend of $1.55 per quarter, and it sells the preferred stock $32.90 per share. What is its effective annual (not nominal) rate of dividend for investors?

Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72.

 

25.27%

18.84%

 

 

 

23.05%

20.22%

 

 

 

24.47%

 

 

 

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Question 85 ptsSkip to question text.

 

Wendy has $8,000.00 invested in a bank that pays 4.25% annually. How long will it take for her funds to triple?

Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72.

 

26.40 years

21.38 years

 

 

 

25.60 years

19.80 years

 

 

 

27.19 years

 

 

 

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Question 910 ptsSkip to question text.

 

Everest Inc. is presently enjoying relatively high growth because of a surge in the demand for its new product.  Management expects earnings and dividends to grow at a rate of 34% for the next 2 years, 20.85% in year 3 and 4 and after which competition will probably reduce the growth rate in earnings and dividends to constant growth rate of 5.50%.  The company’s last dividend was $1.00, its beta is 1.75, the market risk premium is 7.45%, and the risk-free rate is 6.50%.  What is the current price of the common stock?

Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72.

 

$14.59

$17.36

 

 

 

$11.38

$12.11

 

 

 

$15.90

 

 

 

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Question 105 ptsSkip to question text.

 

Sadik Inc.'s bonds currently sell for $1,120.25 and have a par value of $1000. They pay a $105.00 annual coupon and have a 12-year maturity, but they can be called in 8 years at $1,187.00. What is their yield to call (YTC)?

Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72.

 

10.19%

7.62%

 

 

 

8.02%

10.00%

 

 

 

9.90%

 

 

 

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Question 115 ptsSkip to question text.

 

Everrest Inc.'s stock has a 43% chance of producing a 15.00% return, a 26% chance of producing a 24.00% return, and a 31% chance of producing a –4.25% return.  What is the firm's expected rate of return?

Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72.

 

8.98%

9.55%

 

 

 

11.37%

13.31%

 

 

 

9.21%

 

 

 

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Question 125 ptsSkip to question text.

 

What's the future value of $15,000 after  23 years if the appropriate interest rate is 6.25%, compounded annually?

Round your answer to two decimal places. For example, if your answer is $345.667 enter as 345.67 and if your answer is .05718 or 5.718% enter as 5.72 in the answer box provided.

 

$70,164.08

$75,607.85

 

 

 

$60,486.28

$46,574.43

 

 

 

$73,188.39

 

 

 

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Question 135 ptsSkip to question text.

 

Your uncle is about to retire, and he wants to buy an annuity that will provide him with $6,300 of income a year for 23 years, with the first payment coming immediately.  The going rate on such annuities is 5.25%.  How much would it cost him to buy the annuity today?

Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72.

 

$77,758.46

$98,727.03

 

 

 

$81,253.22

$87,369.05

 

 

 

$68,147.86

 

 

 

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Question 145 ptsSkip to question text.

 

Ezzell Enterprises' noncallable bonds currently sell for $1,164.75. They have a 5-year maturity, semi-annual coupon rate of 12.00%, and a par value of $1000. What is the bond's capital gain or loss yield?

Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72.

 

–2.36%

–2.34%

 

 

 

7.94%

8.18%

 

 

 

10.30%

 

 

 

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Question 155 ptsSkip to question text.

 

A stock is expected to pay a dividend of $1.65 at the end of the year. The required rate of return is rs = 9.32%, and the expected constant growth rate is g = 7.2%. What is the stock's current price?

Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72.

 

$77.09

$59.96

 

 

 

$79.43

$95.78

 

 

 

$77.87

 

 

 

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Question 165 ptsSkip to question text.

 

Consider the following information and then calculate the required rate of return for the Global Equity Fund, which includes 4 stocks in the portfolio.  The market's required rate of return is 14.75%, the risk-free rate is 5.95%, and the Fund's assets are as follows:

Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72.

 

Stock

Investment

Beta

A

   $215,000

1.35

B

$335,000

0.75

C

    $555,000

–0.45

D

$1,055,000

1.98

 

 

 

17.84%

 

           

 

 

 

12.68%

16.59%

 

 

 

12.05%

15.65%

 

 

 

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Question 1710 ptsSkip to question text.

 

You were analyzing a stock and came up with the following probability distribution of the stock returns.  What is the coefficient of variation on the company's stock?

Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72.

 

State of the Economy

Probability of State Occurring

Stock's Expected Return

Boom

20.00%

22.15%

Normal

46.00%

17.35%

Recession

34.00%

9.50%

 

 

 

0.2129

 

       

 

 

 

0.3803

0.3194

 

 

 

0.3042

0.2586

 

 

 

Subject Mathematics
Due By (Pacific Time) 08/30/2015 11:59 pm
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