Description
Rest attched in the file total 34 question
1 Problem 102 Bond value [LO3]
Applied Software has $1,000 par 
Compute the current price of the 

Price 
(a) 10 percent 
$ 
(b) 15 percent 
$ 
(c) 12 percent 
$ 

2.
value:
1.00
points
Problem 104 Bond value [LO3]
Barryâ€™s Steroids Company has 
If the percent yield to maturity 
Principal repayment 
% 
3.
value:
1.00
points
Problem 105 Bond value [LO3]
Essex Biochemical Co. has a $1,000 
Compute the price of the bonds for 

Price 
(a) 25 years 
$ 
(b) 15 years 
$ 
(c) 4 years 
$ 

rev: 04_27_2012
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my workeBook
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5.
value:
1.00
points
Problem 1011 Effect of maturity on bond price [LO3]
Refer to.mhhe.com/connect/0073530727/Images/Table%20102.JPG”>Table 
(a) 
Assume the interest rate in the 
Maturity 
Bond 
10 Years 
$ 
20 years 

30 years 


(b) 
Assume the interest rate in the 
Maturity 
Bond 
10 Years 
$ 
20 years 

30 years 


(c) 
Assume the interest rate in the 





(d) 
Assume the interest rate in the 





6.
value:
1.00
points
Problem 1013 Effect of yield to maturity on bond price [LO3]
Tom Cruise Lines, Inc., issued 



Real rate of return 
4 
% 
Inflation premium 
5 

Risk premium 
5 




Total 
14 
% 




Assume that five years later the 
Compute the new price of the bond. 
New price 
$ 
rev: 07132011
7.
value:
2.00
points
Problem 1014 Analyzing bond price changes [LO3]
(a) 
Find the present value of 3 
Present value 
$ 
(b) 
Add the answer obtained in partato 1,000.(Round “PV Factor” to 3 decimal 
Present value 
$ 
8.
value:
2.00
points
Problem 1017 Deep discount bonds [LO3]
Lance Whittingham IV specializes 
(a) 
What is the current price of the 
Current price 
$ 
(b) 
By what percent will the price of 
Price increases by 
% 
rev: 07132011
check
my workeBook
Link.mhecloud.mcgrawhill.com/” title=”Reference Information”>references
9.
value:
1.00
points
Problem 1019 Approximate yield to maturity [LO3]
Bonds issued by the Tyler Food 
Compute the approximate yield to 
Approximate yield to 
10.
value:
2.00
points
Problem 1022 Bond valuesemiannual analysis [LO3]
You are called in as a financial 
(a) 
Compute the price of the bonds 
Price of the bonds 
$ 
(b) 
With 15 years to maturity, if 
New price 
$ 
11.
value:
1.00
points
Problem 1024 Preferred stock value [LO4]
Bedford Mattress Company issued 
(a) 
What was the original issue price?(Round your answer to 2 decimal places.Omit the “$” sign in your response.) 
Original price 
$ 
(b) 
What is the current value of this 
Current value 
$ 
12.
value:
1.00
points
Problem 1026 Preferred stock rate of return [LO4]
Grant Hillside Homes, Inc., has 
What is the required rate of 
Rate of return 
% 
13.
value:
1.00
points
Problem 1028 Common stock value [LO5]
Laser Optics will pay a common 
Compute the current price of the 
Current price 
$ 
14.
value:
2.00
points
Problem 1029 Common stock value under different market
conditions [LO5]
Ecology Labs, Inc., will pay a 
(a) 
Compute the price of Ecology Labs’ 
Price 
$ 
(b) 
Assume K_{e}, the required 
New price 
$ 
(c) 
Assume the growth rate (g) goes up 
New price 
$ 
(d) 
Assume D_{1}is $7.50; what will be the new price? Assume K_{e}is 
New price 
$ 
15.
value:
2.00
points
Problem 1031 Common stock value based on determining growth
rate [LO5]
Justin Cement Company had the 
Year 
Earnings 

2006 
$ 
10.00 

2007 
10.50 

2008 
11.03 

2009 
11.58 

2010 
12.16 


The earnings per share have grown 
(a) 
Project earnings and dividends for 
2011 

Earnings 
$ 

Dividend 
$ 


(b) 
If the required rate of return (K_{e}) 
Anticipated stock 
$ 
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16.
value:
1.00
points
Problem 1032 Common stock required rate of return [LO5]
A firm pays a $9.80 dividend at 
Compute the required rate of 
Rate of return 
% 
17.
value:
4.00
points
Problem 1035 Common stock value based on PV calculations [LO5]
Beasley Ball Bearings paid a $4 
(a) 
Compute the anticipated value of 

Anticipated 
D_{1} 
$ 
D_{2} 
$ 
D_{3} 
$ 
D_{4} 
$ 

(b) 
Calculate the present value of 

PV 

D_{1} 
$ 

D_{2} 

D_{3} 

D_{4} 



Total 
$ 




(c) 
Compute the price of the stock at 
Price of the stock 
$ 
(d) 
Calculate the present value of the 
Price of the stock 
$ 
(e) 
Compute the current value of the 
Current value 
$ 
(f) 
Use formula given below to show 
P_{0} 
= 
D_{1} 
K_{e}? g 
Current value 
$ 
(g) 
If current EPS is equal to $5.329 
Stock price 
$ 
(h) 
By what dollar amount is the stock 
Amount 
$ 
(i) 
In regard to the stock price in 



(1) 
D_{1}increases 

(2) 
K_{e}increases 

(3) 
g increases 


18.
value:
1.00
points
Problem 112 Cost of capital [LO2]
Speedy Delivery Systems can buy a 
(a) 
Compute the weighted average cost 
Weighted average cost 
% 
(b) 
Which project(s) should be 






19.
value:
1.00
points
Problem 113 Effect of discount rate [LO2]
A brilliant young scientist is 
What is the difference between the 

Present 

PV at 5% rate 
$ 

PV at 10% rate 





Difference 
$ 





20.
value:
1.00
points
Problem 115 Aftertax cost of debt [LO3]
Calculate the aftertax cost of 
Yield 
Corporate 
Cost 

a. 
4.0 
% 
10 
% 
% 

b. 
6.6 



20 






c. 
6.0 



20 







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