Problem Sets Chapter 5 A1. (Bond valuation) A $1‚000 face value bond has a remaining maturity of 10 years and a required return of 9%. The bond’s coupon rate is 7.4%. What is the fair value of this bond? Calculating PV factor: i= required return = 9% = 0.09 n= 10 years Using Cash Flow of $1000 to calculate present value‚ Cash flow= $1000 PV factor = 1/(1+i)^n = 0.42241 PV = $1000*0.42241= 422.41 Using Coupon Rate to calculate present value of Annuity Cash flow= $1000 * 7.4/100 =
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Question 1 1 out of 1 points The 8 percent annual coupon bonds of the ABC Co. are selling for $880.76. The bonds mature in 10 years. The bonds have a par value of $1‚000 and payments are made semi-annually? What is the before-tax cost of debt? Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. Selected Answer: 9.91 Correct Answer: 9.91 Answer range +/- 0.05 (9.86 - 9.96) Response Feedback: NPER = 10* 2 RATE = ? * 2 = Answer = 4
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“ p c l h n t Ms h m Le H S ei t a k o . a i a a P n frh ligu t d t i po c” o e n s o o hs rj t p e Table of content: Excutive Summary: …………..P.3 Business Plan:………………….P.3 Vision:…………………………….P.3 Main Services:…………………P.3 Evaluating the market:……….P.4 Financial Plan:…………………..P.5 Initial Investment:……………..P.5 Interest Payment:………………P.6 Wages Payment: ………………P.6 Variable cost:…………………..P.7 Fixed cost per year for Selling and Admin activities:……….P.7 Expected number of customers:……………………….P.7
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FIN 571 Week 4 Quiz. 100%. UOP‚ 2014. NEW. Grade A. There are 9 questions total Note: The questions might be in a different order. Please use the find feature in word to locate your questions faster. For customized tutorial service or if you have any questions/concerns‚ please contact me at tutoruop@gmail.com. Thank you :) Please purchase to see answers. Thank you Present value: Tommie Harris is considering an investment that pays 6.5 percent annually. How much must he invest today such that he
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Running head: Juvenile Crime Paper Juvenile Crime Paper CSJ / 200 Undoubtedly‚ juvenile delinquency is very representative since the last century. Juvenile delinquency is one of the criminological problems that is growing every day‚ not only in our country but also worldwide‚ is one of the socially negative actions that will otherwise fixed by law and morality created and accepted by society. Juvenile crime has increased dramatically in recent times‚ becoming
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Business Structure Advice FIN/571 December 12‚ 2013 Business Structure Advice From: Beverly Mahone Sent: December 2‚ 2012 To: John Owner CC: Subject: Advice in starting your business John‚ when starting a business one has several options in the type of business structure to use. The different types of business structures are the sole proprietorship structure‚ the partnership structure‚ the corporation structure‚ the S corporation structure‚ and the limited liability company
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Pro Life or Pro Choice ? The terms "pro-life" and "pro-choice" generally boil down to the question of whether the individual wants to see abortion banned‚ but there’s more to the debate than that. Let’s explore‚ briefly‚ what the central arguments are about. The Pro-Life Issue Spectrum To say that someone is "pro-life" is to say that the person believes that the government has an obligation to preserve all human life‚ regardless of intent‚ viability‚ or quality-of-life concerns. A comprehensive
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Benjamin Carter Hannah Baker ENGL 200 October 15‚ 2013 Unit 2 Essay Many campuses have issues between smokers and non-smokers; Kansas State University does not escape this. Many people on campus are bothered by smoking and smokers. This has led to a call for further smoking restrictions. In 2010 Joshua Madden wrote an editorial in the Kansas State Collegian against more restrictions on smokers. In the article‚ Madden argues that further restrictions against smokers are unnecessary since
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© 2010 devolo AG Aachen (Germany) While the information in this manual has been compiled with great care‚ it may not be deemed an assurance of product characteristics. devolo shall be liable only to the degree specified in the terms of sale and delivery. The reproduction and distribution of the documentation and software supplied with this product and the use of its contents is subject to written authorization from devolo. We reserve the right to make any alterations that arise as the result of technical
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Mission Statement Pros/Positives/Advantages 1) Decision Making Easier Serves as a basis for the business objectives and targets. Decisions are made easier by enabling options to be compared against mission statement. 2) Communication and Motivation The MS puts corporate aims into words that can inspire It gives everyone a sense of common purpose Can inspire effort and ensure all depts work together. This ensures that each department does not move in conflicting decisions
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