An employer uses a final pay formula to determine retirement payouts to its employees. The annual payout is 3 percent of the average salary over the employees’ last three years of service times the total years employed. Calculate the annual…
In February 2009 Treasury 6s of 2026 offered a semiannually compounded yield of 3.5965%. Recognizing that coupons are paid semiannually, calculate the bond’s price. Include settlement date, maturity date, coupon rate, YTM and Price.
A sausage company just issued a 10-year 12% coupon bond. The face value of the bond is $1,000 and the bond makes semiannual coupon payments. If the bond is trading at $867.25, what is the bond’s yield to maturity
You are determining whether your company should undertake a new project and have calculated the NPV of the project using the WACC method when the CFO, a former accountant, notices that you did not use the interest payments in calculating…
1) Based on the following information calculate the holding period return:P0 = $10.00P1 = $12.00D1 = $1.22 2) Risk & Return and the CAPM.Based on the following information, calculate the required return based on the CAPM:Risk Free Rate = 3.5%Market…
Rock is sold to contractors who use the product in construction projects. Needs to increase sales by advertising. Spend $100,000 advertising campaign. currently sells 25,000 tons for a total revenue of $5,000,000.Direct Labor……………$1,500,000Variable production overhead………..200,000fixed production overhead……………..350,000 Selling and admministrative…
The following are monthly percentage price changes for four market indexes. Month DJIAS&P 500Russell 2000 Nikkel1 0.03 0.02 0.04 0.042 0.07 0.06 0.10 -0.023 -0.02 -0.01 -0.04 0.074 0.01 0.03 0.03 0.025 0.05 0.04 0.11 0.026 -0.06 -0.04 -0.08 0.06…
You’ve observed the following returns on Mary Ann Data Corporation’s stock over the past five years: 34 percent, 16 percent, 19 percent, – 21 percent, and 8 percent. a. What was the arithmetic average return on Mary Ann’s stock over…
1. Cash for Clunkers:A clunker that travels 12,000 miles a year at 15 mpg uses 800 gallons of gas a year. A vehicle that travels 12,000 miles a year at 25 mpg uses 480 gallons a year. The government claims…
Economic order quantity (EOQ). Tennindo Inc. believes that it will sell 4 million zen-zens, an electronic game, this coming year. Note that this figure is for annual sales. The inventory manager plans to order zen-zens forty times over the next…
