Fin 515 Week 3 Homework Essay

260 words - 2 pages

FIN515_HOMEWORK3_DeANGELA L. DIXON

Problem 5-1
Maturity 12
YTM 9%
PYMT $80.00
FV $1,000.00
PV $928.39

Problem 5-2
MATURITY 12
COUPON RATE 10%
PV -$850.00
FV $1,000.00
PMT $100.00
RATE 12.48%

Problem 5-6
RISK FREE 3%
INFLATION 3%
6%
TREASURY SECURITY 6.3%
MRP 0.3%

Problem 5-7
MATURITY 16
COUPON RATE 10%
PMT 50.00
FV $1,000.00
YTM 4.25%
PV $1,085.80
...view middle of the document...

Problem 6-1
STOCK BETA
$35,000.00 0.8%
$40,000.00 1.4%
$75,000.00
PORTFOLIO BETA 1.12%

Problem 6-2
RISK FREE 6%
MARKET RETURN 13%
BETA 0.7%
RATE OF RETURN 10.9%

Problem 6-7
a. RISK FREE 9%
MARKET RETURN 14%
BETA 1.3%
RATE OF RETURN 15.5%

b. RISK FREE 10% RISK FREE 8%
MARKET RETURN 13% MARKET RETURN 13%
BETA 1.3 BETA 1.3
RATE OF RETURN 16.5% RATE OF RETURN 14.5%

c. RISK FREE 9% RISK FREE 9%
MARKET RETURN 16% MARKET RETURN 13%
BETA 1.3 BETA 1.3
RATE OF RETURN 18.1% RATE OF RETURN 14.2

Other Papers Like Fin 515 Week 3 Homework

Fin 534 Week 10 Homework Set 5

718 words - 3 pages FIN 534 Week 10 Homework Set 5 Use the following information for Questions 1 through 3: Boehm Corporation has had stable earnings growth of 8% a year for the past 10 years and in 2013 Boehm paid dividends of $2.6 million on net income of $9.8 million. However, in 2014 earnings are expected to jump to $12.6 million, and Boehm plans to invest $7.3 million in a plant expansion. This one-time unusual earnings growth won’t be maintained, though

Hw Week 4 Fin 515 Essay

791 words - 4 pages - .05) = $3.60/($70)(.95) = $3.60 / ($70)(.95) = $3.60 / ($66.50) = 0.0541253 ~ 5.41% (9-5) Cost of Equity: DCF Summerdahl Resort’s common stock is currently trading at $36 a share. The stock is expected to pay a dividend of $3.00 a share at the end of the year (D1 = $3.00), and the dividend is expected to grow at a constant rate of 5% a year. What is its cost of common equity? rs = Cost of Common Equity = ?, D1 = $3, P0 = $36, g = .05 DCF

Week 1 Fin 515 Solutions

1898 words - 8 pages . What does the phrase limited liability mean in a corporate context? The phrase limited liability means that the investors liability will only be limited to the investments he/she made in that corporation and his/her personal assets will be unaffected. For example if the corporation gets sued by someone, that person can only claim the assets of that corporation not the assets of the investors. 3. Which organizational forms give their owners

Fin 515 Project Week 7

694 words - 3 pages (16-1) Cash Management Williams & Sons last year reported sales of $10 million and an inventory turnover ratio of 2. The company is now adopting a new inventory system. If the new system is able to reduce the firm’s inventory level and increase the firm’s inventory turnover ratio to 5 while maintaining the same level of sales, how much cash will be freed up? 10/2=5 Inventory = Sales / inventory turnover ration 10/5=2 5-2=3 (16-2

Fin Week Homework 2

832 words - 4 pages States District Court for the Northern District of Illinois) Hoodes would win. The activities he did not violate any law. He didn’t get involved in insider trading. Base on this Hoodes wins. 3 Chapter 51.5 Ultramares Doctrine Texscan Corporation (Texscan) was a corporation located in Phoenix, Arizona. The company was audited by Coopers & Lybrand (Coopers), a national CPA firm that prepared audited financial statements for the

Fin 515 Week 1 and 2 Solution

2862 words - 12 pages as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form. Answer: The three main forms of business organization are (1) sole proprietorships, (2) partnerships, and (3) corporations. In addition, several hybrid forms are gaining popularity. These hybrid forms are the limited partnership, the limited liability partnership, the professional corporation, and the s corporation. The

Fin 515 Home Work Week 2

573 words - 3 pages 3-1 Daily Sales Outstanding = 20 days; Average daily sale = $20,000; Accounts receivable/Sales = Daily sales outstanding AR/20000 = 20 AR = 20,000 x 20 = 400,000 3-2 Multiplier equity/Asset = 2.5; 1+x = 2.5 X = 2.5 -1.00 = 1.5 Debt Ratio = TL/TA 1.5/2.5 = 0.60 which is 60% D/A = 1-0.40 = 0.60 or 60% 3-3 Book value per share = Common equity/ Shares outstanding Book Value = 6,000,000,000/800,000,000 = 7.50

Week 3 Fin/370

267 words - 2 pages The risk associated with initiative and financial status of Disney provides an array of information to include development, and future performances. Increased competitor pressure internationally and domestically provides challenges and leads to additional marketing challenges to remain at the top of the food chain in the Theme Park Industry. The financial status of the United States economy and international economic struggles provides challenges

Fasb Codification Week 3 Homework

1142 words - 5 pages AC540 Week 3 Assignment Please complete the below problems and submit your answers in the Week 3 Dropbox. See "Syllabus/Due Dates for Assignments & Exams" for due date information. 1. In the Course Home tab of your course shell, click on “FASB Codification Access.” Scroll to the bottom of the page and click on “For tutorials please click on the link here.” Watch and listen to the four tutorial modules and answer the following

International Corporate Finance/Fin Gm571 Week 3

1782 words - 8 pages Lawrence Sports Simulation Team International Corporate Finance/FIN GM571 Alternative Working Capital Policies to Consider The short-term financing strategy Lawrence Sports (LS) is not efficacious. It is in need of improvement and is a problem that LS must consider an alternative working capital policy. The current policy places LS in an overly dependent financial position on the company’s primary customer, Mayo Stores. When Mayo

Fin 370 Week 3 Team Paper

1217 words - 5 pages Ethics and Compliance Alvin Short, Monyetta Soco, Heidy Lavaire, Kim Ford, Joseph Monday FIN 370 27 January 2014 Lyndi Day Strategic planning or what is sometimes called “long range planning” determines where Disney would be headed business wise in the next few years or more and what initiatives Disney will use to get there. Strategic planning is just one of the different steps to be performed in achieving a solid plan. As Disney encounters

Related Essays

Homework Week 3 Essay

988 words - 4 pages Homework Week 3 September 22, 2013 DeVry University Online Operant conditioning sometimes referred to as instrumental conditioning is a method of learning that occurs through rewards and punishments for behavior. Through operant conditioning, an association is made between a behavior and a consequence for that behavior. A good example of Operant conditioning is: employees finishing projects to receive praise or promotions (Cherry, 2013

Week 3 Homework Essay

1601 words - 7 pages WEEK 3 Homework * * * What is the relationship between a firm’s life cycle stage and its ability to accurately forecast sales? Why is this the case, and how do capital suppliers respond?  Why is so much emphasis placed on forecasting sales and cash balances in building proformas and projections? * * * Professor, class,  * * There is a tight relationship between a firm's life cycle stage and its ability to

Fin 370 Week 3 Team Essay

889 words - 4 pages fin 370 week 3 team Strategic Initiative Paper Veronica Johnson Melissa Herrera Nick Engelke Carlos Martinez Gary Gilberthorp FIN/370 April 21,2014 Junius Jaubert Strategic Initiative Paper Starbucks Strategic Initiative expanding globally and reaching new customers is the goal of Starbucks Corporation. To produce more revenue as well as excel above the competing international coffee organizations. Starbucks Corporation must not only

Fin 534 Week 10 Homework Set 5

718 words - 3 pages FIN 534 Week 10 Homework Set 5 Use the following information for Questions 1 through 3: Boehm Corporation has had stable earnings growth of 8% a year for the past 10 years and in 2013 Boehm paid dividends of $2.6 million on net income of $9.8 million. However, in 2014 earnings are expected to jump to $12.6 million, and Boehm plans to invest $7.3 million in a plant expansion. This one-time unusual earnings growth won’t be maintained, though