Homework Help for Finance

Jackson Central has a 6-year, 8% annual coupon bond with a $1,000 par value. Earls Enterprises has a 12-year, 8% annual coupon bond with a $1,000 par value. Both bonds currently have a yield to maturity of 6%. Which of these two bonds should you buy if you expect interest rates to increase by 1%? Which if you expect interest rates to decrease by 1%?

The State of Idaho issued $2,000,000 of 7% coupon, 20-year semiannual payment, tax-exempt bonds 5 years ago. The bonds had 5 years of call protection, but now the state can call the bonds if it chooses to do so. The call premium would be 5% of the face amount. Today 15-year, 5%, semiannual payment bonds can be sold at par, but flotation costs on this issue would be 2%. What is the net present value of the refunding? Because these are tax-exempt bonds, taxes are not relevant.

The bonds of ABC Company have received a rating of "A" by S&P. The "A" rating indicates the bonds are _________.

You are considering a new product launch. The project will cost $1,400,000, have a four-year life, and have no salvage value; de- preciation is straight-line to zero. Sales are projected at 180 units per year; price per unit will be $16,000, variable cost per unit will be $9,800, and f xed costs will be $430,000 per year. The required return on the project is 12 percent, and the relevant tax rate is 35 percent. Based on your experience, you think the unit sales, variable cost, and f xed cost projections given here are probably accurate to within

The balance in the firm's cash and equivalents account is needed for operations and is not considered "excess" cash.

Using the financial statements given above, what is Rosnan's 2013 free cash flow (FCF)? Use a minus sign to indicate a negative FCF.

Please show all calculations, I cannot see how to calculate the capital expenditures

Pioneer's preferred stock is currently selling for $33.00 in the market and pays a $3.60/share annual dividend (or $0.90/share quarterly dividend). A. If an investor's required rate of return on Pioneer's preferred stock is 10% p.a., what is the fair Value of the preferred stock for that investor? B. Should the investor purchase pioneer's preferred stock? Why?

1. What are the various types of redemptions of fund shares? If a fund shareholder wants cash quickly from a redemption, what would you recommend?

Which one of the following statements about nonadmitted insurers is true?

Select one:

a. They are not licensed to sell insurance in the United States

b. They are not licensed by any entity to sell insurance

c. They are not licensed to sell insurance by any state Insurance Department

d. They are not licensed to sell insurance in the insured’s home state

explain the features of convertible securities

Project C requires a net investment of $1,000,000 and has a payback period of 5.6 years. You analyze Project C and decide that Year 1 free cash flow is $100,000 too low, and Year 3 free cash flow is $100,000 too high. After making the necessary adjustments ________. Answer A)the NPV of Project C will decrease B)the payback period for Project C will be shorter than 5.6 years C)the IRR of Project C will increase D0the payback period for Project C will be longer than 5.6 years

4) A mortgage banker had made loan commitments for $20 million in 3 months. How many contracts on Treasury bonds futures must the banker write or buy? 5) Duration is defined as the weighted average time to maturity of a financial instrument. Explain how this knowledge can help protect against interest rate risk.

The Wall Street Journal reported the following spot and forward rates for the Swiss franc ($/SF) in June of 2009.

a. Was the Swiss franc selling at a discount or premium in the forward market?

b. What was the 30-day forward premium (or discount)?

c. What was the 90-day forward premium (or discount)?

1.The real risk-free rate is 4%. Inflation is expected to be 3% this year, 5% next year, and then 5% thereafter. The maturity risk premium is estimated to be 0.0003 x (t - 1), where t = number of years to maturity. What is the nominal interest rate on a 7-year Treasury security?

2.

Assume that the real risk-free rate, r*, is 2% and that inflation is expected to be 8% in Year 1, 5% in Year 2, and 4% thereafter. Assume also that all Treasury securities are highly liquid and free of default risk. If 2-year and 5-year Treasury notes both yield 10%, what is the difference in the maturity risk premiums (MRPs) on the two notes; that is, what is MRP5 minus MRP2? Round your answer to two decimal places.

3.

Because of a recession, the inflation rate expected for the coming year is only 3%. However, the inflation rate in Year 2 and thereafter is expected to be constant at some level above 3%. Assume that the real risk-free rate is r* = 2% for all maturities and that there are no maturity premiums. If 3-year Treasury notes yield 2 percentage points more than 1-year notes, what inflation rate is expected after Year 1?

Use the data below to solve for the sustainable growth rates for 2011 to 2015. What is the sustainable growth rate for each year? Based on your analysis of the sustainable growth rate between 2011 and 2015, what are your recommendations for the firm?

Assume Emerson Electric