Chapter 7 Test Review Problem 7-1 Bond valuation Callaghan Motors’ bonds have 5 years remaining to maturity. Interest is paid annually‚ they have a $1‚000 par value‚ the coupon interest rate is 6.5%‚ and the yield to maturity is 11%. What is the bond’s current market price? Round your answer to the nearest cent. Annual Interest Payment = Par Value * Coupon Rate $1‚000 * 6.5%= 65 Financial Calculator N= 5 I/YR= 11% PMT= -65 FV= -$1‚000 Find PV? Bond’s Current Market Price= 833.68 Problem7-2
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1. a) b) c) d) A firm has the following items on its balance sheet: Cash $20‚000‚000 inventory 134‚000‚000 Notes Payable to bank 31‚500‚000 common stock ($10 par; 1‚000‚000) 10‚000‚000 Retained earnings 98‚500‚000 Describe how each of these account would appear after: A cash dividend of $1 per share Cash will decrease by $1‚000‚000. Retained earnings will decrease by $1‚000‚000. All other accounts are not affected. A 10 percent stock dividend (fair market value of stock is $13 per
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FP/101_r6 - Week Eight Quiz| | | |1) Investing in the stock market is a good way to meet which of the following savings goals?||A.||A vacation next summer||B.||A new car in 3 years||C.||College in 15 years||D.||A down payment on a house in 4 years|||2) What should you do if you don’t want to spend a lot of time managing your investments?||A.||Get out of the game. Successful investing requires time and attention. If you don’t have the time to devote to it‚ you shouldn’t do it. ||B.||Invest in last
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This article summarizes that college debt keeps increasing every year because college tuition is getting more and more expensive. They also say that each university tries to see what money they can bring in to help students pay for tuition. When students get out of college they have to pay the debt back after a six month period grace. To cut some of the costs they are trying to combine some of the colleges together so the tuition rates are not as high‚ as if they were separate universities. Now that
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honors college program is about. I then furthered my research about SMBHC and coincidently ran into more people that are in it or have graduated. From my sources‚ I derived that SMBHC is one of the top honors college programs in the nation and that apparently it is a “real honors college” compared to other honor college programs around the nation. I decided it would be of my best interest to give myself a challenge in my courses by joining the honors college. I felt that the honors college would better
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Why People Have Celebrity Worship Syndrome Cause/Effect Essay – Writing #1/2 Written Communication Skills IV Elva Ma July 16‚ 2013 Denise Redmond‚ Conestoga College Why People Have Celebrity Worship Syndrome Do you have your favorite star? How often do you focus on her? Is this kind of worship influence your daily life? If so‚ be careful‚ you may have celebrity worship syndrome. “Celebrity worship” is not uncommon these days. General speaking it is an obsessive and addictive
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Salvus Capital Advisors Pvt. Ltd A research report on Investment in the Indian Education Sector A research report on Investment in Indian Education Sector TABLE OF CONTENTS Overview ........................................................................................................................................................................................ 3 Regulation .............................................................................................................
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College Ripoff Ed O’Bannon‚ who played basketball at UCLA from 1991-1995‚ recently won a major victory for thousands of college athletes throughout America. He sued the NCAA and EA sports for using his likeness in video games. He went unpaid‚ although he helped make companies like EA sports and the NCAA lots of money‚ because he was a college athlete‚ and it is against NCAA policy to receive any money for your likeness or your popularity. The supreme court ruled that any player in an EA sport video
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Investment Strategy and Portfolio Management - Case of study: Kaplan Capital Introduction For organisations operating in unpredictable and competitive markets‚ it becomes a challenge for fund managers to create an optimal investment portfolio for their companies and their clients. Fund managers are presented with various prospects in emerging markets‚ equities‚ real estate‚ corporate bonds‚ government bonds‚ hedge funds‚ financial derivatives‚ and other alternative investments options. With
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The television show Malcolm in the middle is a must see comedy. The American television classic‚ which was created by Linwood Boomer‚ first broadcasted on January 9‚ 2000 until May 14‚ 2006 on the network FX. Throughout the seven seasons in which it was aired‚ it released over one hundred fifty one episodes and received numerous awards such as seven Emmys and one Grammy award. Malcolm defends Reese was the one hundred and thirty eighth episode that aired on December 15th‚ 2005. Malcolm is the middle
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