Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

John invested the following amounts in three stocks

04/01/2021 Client: saad24vbs Deadline: 24 Hours

WACC




Question 1



1 / 1 point


Garden Tools Inc. has bonds, preferred stock, and common stocks outstanding. The number of securities outstanding, the current market price, and the required rate of return for these securities are stated in the table below. The firm’s tax rate is 35%.


Calculate the firm's WACC adjusted for taxes using the market information in the table.


Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box)




The Number of Securities Outstanding


Selling price


The Required Rate of Return


Bonds


1,407


$1,191


11.18%


Preferred Stocks


5,418


$54.71


16.81%


Common Stocks


1,383


$66.58


12.81%






Question 2



1 / 1 point


Tall Trees, Inc. is using the net present value (NPV) when evaluating projects. You have to find the NPV for the company’s project, assuming the company’s cost of capital is 8.42 percent. The initial outlay for the project is $307,089. The project will produce the following after-tax cash inflows of


Year 1: 126,050


Year 2: 91,170


Year 3: 28,946


Year 4: 194,652


Round the answer to two decimal places.




Question 3



1 / 1 point


What is the yield to call of a 30-year to maturity bond that pays a coupon rate of 10.65 percent per year, has a $1,000 par value, and is currently priced at $945? The bond can be called back in 4 years at a call price $1,086. Assume annual coupon payments.


Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box)


You should use Excel or financial calculator.




Question 4



1 / 1 point


Find the modified internal rate of return (MIRR) for the following series of future cash flows if the company is able to reinvest cash flows received from the project at an annual rate of 11.87 percent.The initial outlay is $390,200.


Year 1: $158,700


Year 2: $164,600


Year 3: $167,700


Year 4: $133,700


Year 5: $184,100


Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box)


Cost of new equity Gordon Model




Question 5



1 / 1 point


Calculate the cost of new common equity financing of stock R using Gordon Model


Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box)






Last Year Dividend


Growth Rate of Dividends


Selling Price of Stock


Floatation Costs


Cost of Common Equity


Stock R


$2.82


2.8%


$67.38


$2.50


?



.


Yield to Maturity of bond, annually




Question 6



1 / 1 point


What is the yield to maturity of a 29-year bond that pays a coupon rate of 12.61 percent per year, has a $1,000 par value, and is currently priced at $1,417? Assume annual coupon payments.


Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box).


You should use Excel or financial calculator.


Value of preferred stock, expected rate of return on preferred stock, Required rate of return using CAPM




Question 7



1 / 1 point


Giant Co. has just issued preferred stock with a par value of $100 and an annual dividend rate of 9.08 percent. If your required rate of return is 8.34 percent, how much will you be willing to pay for one share of this preferred stock?


Round the answer to two decimal places.


Payback period, discounted payback period




Question 8



1 / 1 point


Find the Discounted Payback period for the following project. The discount rate is 10%




Project X


Initial Outlay


$17,559


Year 1


$5,049


Year 2


$5,966


Year 3


$5,776


Year 4


$8,719


Round the answer to two decimal places.


Value (price) of bond, annually




Question 9



1 / 1 point


Fresh Water, Inc. sold an issue of 18-year $1,000 par value bonds to the public. The bonds have a 9.22 percent coupon rate and pay interest annually. The current market rate of interest on the Fresh Water, Inc. bonds is 8.25 percent. What is the current market price of the bonds?


Round the answer to two decimal places.


Yield to Maturity of bond, semi-annually




Question 10



1 / 1 point


A few years ago, Spider Web, Inc. issued bonds with a 11.42 percent annual coupon rate, paid semiannually. The bonds have a par value of $1,000, a current price of $742, and will mature in 22 years. What would the annual yield to maturity be on the bond if you purchased the bond today?


Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box)


You should use Excel or financial calculator.


IRR




Question 11



1 / 1 point


Find the internal rate of return (IRR) for the following series of future cash flows. The initial outlay is $744,700.


Year 1: 180,700


Year 2: 179,900


Year 3: 143,100


Year 4: 188,800


Year 5: 145,700


Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box)


You should use Excel or financial calculator.




Management of Current Assets




Question 12



1 / 1 point


Cheesburger and Taco Company purchases 17,596 boxes of cheese each year. It costs $28 to place and ship each order and $6.80 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders.


 How many orders will be placed each year? Round the answer to the whole number


Value (price) of zero-coupon bond, semi-annually




Question 13



1 / 1 point


Black Water Corp. just issued zero-coupon bonds with a par value of $1,000. The bond has a maturity of 22 years and a yield to maturity of 14.62 percent, compounded annually. What is the current price of the bond?


Round the answer to two decimal places.


Cost of debt A/T, B/T




Question 14



1 / 1 point


Black Hill Inc. sells $100 million worth of 13-year to maturity 11.39% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $973 for each $1,000 bond. What is the before-tax cost of capital for this debt financing?


Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box)


You should use Excel or financial calculator.


Beta portfolio




Question 15



1 / 1 point


John invested the following amounts in three stocks:


Security


Investment


Beta


Stock A


$456,215


1.65


Stock B


$550,513


1.84


Stock C


$524,507


2.11


Calculate the beta portfolio.


Round the answers to two decimal places.


https://learn.umuc.edu/d2l/img/0/Shared.Main.actShow.png?v=10.6.5.3892-164View Feedback




PI




Question 16



1 / 1 point


Find the profitability index (PI) for the following series of future cash flows, assuming the company’s cost of capital is 8.33 percent. The initial outlay is $483,373.


Year 1: $185,753


Year 2: $189,885


Year 3: $123,634


Year 4: $132,577


Year 5: $133,678


Round the answer to two decimal places.


Value (price) of bond, semi-annually




Question 17



1 / 1 point


14 years ago, Delicious Mills, Inc. issued 30-year to maturity bonds that had a 9.32 percent annual coupon rate, paid semiannually. The bonds had a $1,000 face value. Since then, interest rates in general have changed and the yield to maturity on the Delicious Mills bonds is now 9.39 percent. Given this information, what is the price today for a Delicious Mills bond?


Round the answer to two decimal places.


Portfolio expected return




Question 18



1 / 1 point


Jack holds a portfolio with the following securities:


Security


Investment


Return


Stock A


568,880


       7.1%


Stock B


507,031


       16.5%


Stock C


392,412


       7.4%


Calculate the expected return of portfolio. Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box)


https://learn.umuc.edu/d2l/img/0/Shared.Main.actShow.png?v=10.6.5.3892-164View Feedback




Project Initial Outlay, Operating cash flow, After-Tax cash flow from selling the old asset




Question 19



1 / 1 point


El Dorado Storage has the following projections for Year 1 of a capital budgeting project.


Sales $299,666


Variable costs $122,928


Fixed costs adn selling, general and administrative expenses $12,822


Depreciation Expense $26,980


Tax Rate 35%


Calculate the operating cash flow for Year 1. Round the answer to two decimals


Bonds quotes, bond current yield




Question 20



1 / 1 point


For a bond selling for $809, with a par value of $1,000 and a coupon rate of 12.49 percent, the current yield is _____.


Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box)


HPR, APR, EAR




Question 21



1 / 1 point


Sarah purchased 100 shares of General Electric stock at a price of $58.65 three months ago. She sold all stocks today for $65.18. During the year the stock paid dividends of $2.31 per share. What is Sarah’s holding period return


Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box)


https://learn.umuc.edu/d2l/img/0/Shared.Main.actShow.png?v=10.6.5.3892-164View Feedback




Cost of pr. stock, cost of retained earnings, cost of common equity using CAPM




Question 22



1 / 1 point


The Yo-Yo Corporation tries to determine the appropriate cost for retained earnings to be used in capital budgeting analysis. The firm’s beta is 1.25. The rate on six-month T-bills is 3.41%, and the return on the S&P 500 index is 9.57%. What is the appropriate cost for retained earnings in determining the firm’s cost of capital?


Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box).


Operating, Financial, and Total Leverage




Question 23



1 / 1 point


La Cucaracha Pest Control, Inc. is reviewing its financial condition. The firm's operating leverage is 2.78. The firm’s financial leverage was of 2.99. What is the firm’s degree of combined (total) leverage of La Cucaracha Pest Control, Inc. ?


Expected return on stock using probabilities




Question 24



1 / 1 point


Calculate the expected return on stock of Alfa Inc. :


State of the economy


Probability of the states


Percentage returns


Economic recession


60%


4.2%


Steady economic growth


14%


5.3%


Boom


Please calculate it


18.2%


Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box)


https://learn.umuc.edu/d2l/img/0/Shared.Main.actShow.png?v=10.6.5.3892-164View Feedback




Gordon Model - value of the stock, expected rate of return; one year holding period




Question 25



1 / 1 point


The last dividend of Delta, Inc. was $3.06, the growth rate of dividends is expected to be 5.64 percent, and the required rate of return on this stock is 8.39 percent. What is the stock price according to the constant growth dividend model?


Round the answer to two decimal places.


 

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

University Coursework Help
Top Essay Tutor
Helping Hand
Writer Writer Name Offer Chat
University Coursework Help

ONLINE

University Coursework Help

Hi dear, I am ready to do your homework in a reasonable price.

$77 Chat With Writer
Top Essay Tutor

ONLINE

Top Essay Tutor

I have more than 12 years of experience in managing online classes, exams, and quizzes on different websites like; Connect, McGraw-Hill, and Blackboard. I always provide a guarantee to my clients for their grades.

$80 Chat With Writer
Helping Hand

ONLINE

Helping Hand

I am an Academic writer with 10 years of experience. As an Academic writer, my aim is to generate unique content without Plagiarism as per the client’s requirements.

$75 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

Decision making, Problem Solving, Critical Thinking, and Clinical Reasoning: Pick one of these subjects and discuss its role in leadership. - Citic heavy industries co ltd - Project management at arnold palmer hospital case study - Learnscapes for health care marketing - Jainism vs sikhism worksheet rel 133 - Data analysis for quality improvement - West marine case study - British museum room 41 - State theatre melbourne seating review - Executive Program Practical Connection Assignment - Boyz n the hood discussion questions - Equal Pay/Equal Work - Hu2000 week 5 assignment - Huff's model of trading area analysis - The espresso lane to global markets case study solution - Libs 150 quiz 1.1 key concepts answers - Because of their doctrine of ahimsa jains are - A&f case study - Sample brd document for mobile app - Ethical Paper - Garcia corporation purchased a truck by issuing an - As quickly as simile - Glenn flothe alaska state trooper - Section 1910.37 osha general industry standards - Tweetdeck comn - Control of microbial growth lab - Topic: Energy Budget and Habitability (CIP3) - Ethics in psychology worksheet - 1905 shirtwaist kansas city mo bargain mansions - Eaton 9130 rackmount ups - Ashworth college refer a friend - How does mcdonald's create value for customers - On History & Identity (250 Words) - Jetson tk1 development kit - Administering the woodcock reading mastery test - Justice denied in massachusetts poem analysis - To win us to our harm - Finanic - Small hunter class rules - Week-6 - Hau lee supply chain uncertainty framework - Delta sigma theta dallas - Back and forth synonym - West midlands autistic society - Manegerial Finanace Question - How to cite fasb asc - Alwaysrain irrigation inc would like to determine capacity requirements - The Respiratory System - Functions in java ppt - Thermo king fault code 66 - Cqc registered manager list - Airedale chiller fault codes - Co op housing port moody - Folkway violations - Case study - Gars 3 interpretation guide - How do poseidon and zeus interact in this book - Waltham motors division case study answers - Breastfeeding persuasive speech - How to use acetone to remove acrylic nails - Mass media multiple choice questions - Climate Change Report_NEED in 6 HOURS - Notice of non compliance construction - Culturally Responsive Practice - Pencil thin moustache chords - Maximum sustainable yield forestry - Electronic résumés have an attractive highly formatted appearance - Wireshark summary report - Social media isolation argumentative essay - Sean enright sunday world - Dane - Response - Sold services on account t chart - Army prt 4 for the core - Rock paper scissors lizard spock java program code - Extenuating circumstances cardiff university - Types of switching in networking ppt - How many eggs do echidnas lay - Dual output buck boost converter - Is-921.a test answers - Plan de santa barbara - Tú [conseguir, servir, morir, pedir, dormir, repetir] - Week 2 Assignment: Analysis of Personal Beliefs and Biases - Certificate iii in patisserie - 304 delma street weslaco tx - Royal adelaide hospital employment - Nanda nursing diagnosis for lymphedema - Describe the difference between hester's clothing and her child's - Colonial adventure tours case answers chapter 3 - Ideal diode mosfet circuit - International business management - Desiderata for controlled medical vocabularies in the twenty first century - Why is partnership working important in health and social care - University of greenwich extenuating circumstances - Information Technology - Need in 24 hours - Essay - The angular shape of ozone molecule consists of - A firefighter 50.0 m away - The manager of a store selling tea