FINC 300

Homework #4G

(Bonds Quotes)

Assume that today's date is February 15, 2015. Robin Hood Inc. bond is an annual-coupon bond. Par value of the bond is $1,000.  Calculate annual coupon interest payments. 

  The answer should be calculated to two decimal places

Your Answer:

:

Homework #5A

#12

(Value and Expected rate of return on preferred stock?

Giant Co. has issued preferred stock with a par value of $100 and an annual dividend rate of 8.25 percent. If your required rate of return is 9.34 percent, how much will you be willing to pay for one share of this preferred stock?

Round the answer to two decimal places

Your answer

Homewok #5B

(Value of Common Stock, Expected Rate of return on Common Stock)

#13

The last dividend of Delta, Inc. was $10.68, the growth rate of dividends is expected to be 4.16 percent, and the required rate of return on this stock is 12.24 percent. What is the stock price according to the constant growth dividend model?

Round the answer to two decimal places.

Your Answer:

Homework #5C

(CAPM, Beta portfolio, Portfolio expected return)

#14

Try to determine the required rate of return on Tilden Woods Corporation’s common stock. The firm’s beta is 2.36. The rate on a 10-year Treasury bond is 2.64 percent, and the market risk premium is 6.93 percent.

Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box)

Your Answer:

Homework #5E

(HPR, Annualized holding period return, Effective annual rate on investment)

#15

You purchased 100 shares of General Motors stock at a price of $100.06 one year ago. You sold all stocks today for $97.22. During the year, the stock paid dividends of $3.55 per share. What is your holding period return?

Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box)

Your Answer:

Homework #5E

(HPR, Annualized holding period return, Effective annual rate on investment)

#16

You purchased 100 shares of General Motors stock at a price of $100.06 one year ago. You sold all stocks today for $97.22. During the year, the stock paid dividends of $3.55 per share. What is your holding period return?

Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box)

Your Answer:

Homework #6A

(Payback period and Discounted payback period)

#17

Find the Payback period for the following project

The answer should be calculated to two decimal places

Your answer?

Homework #6B

(NPV)

#18

Find the net present value (NPV) for the following series of future cash flows, assuming the company’s cost of capital is 6.79 percent. The initial outlay is $413,468.

Year 1: 179,021

Year 2: 125,121

Year 3: 185,550

Year 4: 165,183

Year 5: 181,126

Round the answer to two decimal places.

Your Answer:

Homework #6C

(IRR and MIRR annually and semi-annually)

#19

A project has an initial outlay of $1,563. It has a single cash flow at the end of year 9 of $5,631. What is the internal rate of return (IRR) for the project?

Round the answer to two decimal places in percentage form.

Homework #6D

(Profitability Index)

#20

Find the profitability index (PI) for the following series of future cash flows, assuming the company’s cost of capital is 9.35 percent. The initial outlay is $499,411.

Year 1: $168,243

Year 2: $173,856

Year 3: $120,235

Year 4: $177,391

Year 5: $156,689

Round the answer to two decimal places.

Your Answer: