Calculating Cost of Equity Stock in Country Road Industries has a beta of .85. The market risk premium is 8 percent, and T- bills are currently yielding 5 percent. The company’s most recent dividend was $ 1.60 per share, and…
1. Three stocks have share prices of $12, $75, and $30 with total market values of $400 million, $350 million and $150 million respectively. If you were to construct a price-weighted index of the three stocks what would be the…
1. AR store issued 15 year bonds one year ago at a coupon rate of 6.1%. The bonds make semi-annual payments. If the YTM on these bonds is 5.3%, what is the current bond price? 2. NH Co. issued 15…
1: Marisa has a policy with replacement cost coverage and 80% co-insurance, and has a loss of $100,000 on her house. The replacement cost is $400,000 and the total policy coverage is $300,000. Since the loss is less than the…
Backwater Corp. has 6 percent coupon bonds making annual payments with a YTM of 5.5 percent. The current yield on these bonds is 5.85 percent. How many years do these bonds have left until they mature? Page Enterprises has bonds…
1) Find the discount and proceeds on a $3,260 face-value note for nine months if the discount rate is 9.5%. (use the bankers rule) The discount is $ ? (round to the nearest cent as needed)The proceeds are $ ?…
Assume that in 2008 a gold dollar coin minted in 1905 sold for $43,235. For this to have been true, the rate of return is % for the lucky numismatist. (Do not include the percent sign (%). Round your answer…
Vickrey Technology has had net income of $2,000,000 in the current fiscal year. There are 1,000,000 shares of common stock outstanding along with convertible bonds, which have a total face value of $8 million. The $8 million is represented by…
Scenario: An employee is entering a work area and slips on a wet floor. After going to the emergency room, it has been determined that the employee has a sprained left wrist. Questions: 1. What are some of the direct…
We are purchasing a 28-day Treasury bill, during a normal year (non-leap year), and want to find out both the discount rate and the investment rate. If we purchase the bill for $998, what are the two rates? If we…
