FINANCE

Sigchi4life
Category:
Business & Finance
Price: $5 USD

Question description

I want someone to tutor me to show what formula I should use
to get the answers.  I don't only need
the answer key.


Assume you are given the following



relationships for the Clayton Corporation:



Sales/total assets



1.8



Return on assets (ROA)



4%



Return on equity (ROE)



8%



1.Calculate Clayton's profit margin.



Round your answer to two decimal places.



%



2.Calculate Clayton's debt ratio. Round



your answer to two decimal places.



%



#2



Stock R has a beta of 1.8, Stock S has



a beta of 0.65, the expected rate of return on an average
stock is



13%, and the risk-free rate is 4%. By how much does the
required



return on the riskier stock exceed the required return on
the riskier



stock exceed that on the less risky stock?



#3



Wilson Wonders's bonds have 7 years



remaining to maturity. Interest is paid annually, the bonds
have a



$1,000 par value, and the coupon interest rate is 9%. The
bonds sell



at a price of $1,095. What is their yield to maturity? Round
your



answer to two decimal places



#4



DPS CALCULATION



Thress Industries just paid a dividend



of $4.00 a share (i.e., D0 = 4.00). The dividend is expected
to grow



5% a year for the next 3 years and then at 11% a year
thereafter.



What is the expected dividend per share for each of the next
5 years?



Round your answers to the nearest cent.



a.D1 = $ 



B



C



D



#5



PREFERED STOCK RATE OF RETURN



What will be the nominal rate of return



on a perpetual preferred stock with a $100 par value, a
stated



dividend of 8% of par, and a current market price of (a)
$57, (b)



$85, (c) $95, and (d) $134? Round the answers to two decimal
places.



#6



Assume that the average firm in your



company's industry is expected to grow at a constant rate of
6% and



that its dividend yield is 8%. Your company is about as
risky as the



average firm in the industry, but it has just successfully
completed



some R&D work that leads you to expect that its earnings
and



dividends will grow at a rate of 50% [D1 = D0(1 + g) =
D0(1.50)] this



year and 20% the following year, after which growth should
return to



the 6% industry average. If the last dividend paid (D0) was
$2.25,



what is the value per share of your firm's stock? Round your
answer



to the nearest cent. Do not round your intermediate
computations.(NON



CONSTANT GROWTH VALUATION)



#7 REPAYING A LOAN



While Mary Corens was a student at the



University of Tennessee, she borrowed $12,000 in student
loans at an



annual interest rate of 8.10%. If Mary repays $1,500 per
year, how



long (to the nearest year) will it take her to repay the
loan?



#8 CASH FLOWS



The Moore Corporation had operating



income (EBIT) of $950,000. The company's depreciation
expense is



$237,500. Moore is 100% equity financed, and it faces a 40%
tax rate.



1. What is the company's net income?





2. What is its net cash flow?



#9 PRICE EARNING RATION



Needham Pharmaceuticals has a profit



margin of 5.5% and an equity multiplier of 2.5. Its sales
are $100



million and it has total assets of $60 million. What is its
ROE?



Round your answer to two decimal places.



#10 INCOME STATEMENT



Pearson Brothers recently reported an



EBITDA of $7.5 million and net income of $1.5 million. It
had $1.875



million of interest expense, and its corporate tax rate was
40%. What



was its charge for depreciation and amortization?




#11 PRESENT VALUE OF A SINGLE PAYMENT



What is the present value of a security



that will pay $10,000 in 5 years if securities of equal risk
pay 9.2%



annually?



#12



PUT CALL PARITY



The current price of a stock is $32,



and the annual risk-free rate is 6%. A call option with a
strike



price of $29 and 1 year until expiration has a current value
of



$7.30. What is the value of a put option written on the
stock with



the same exercise price and expiration date as the call
option? Round



your answer to the nearest cent.





#13  DEFAULT RISK
PREMIUM



A Treasury bond that matures in 10



years has a yield of 5%. A 10-year corporate bond has a
yield of 10%.



Assume that the liquidity premium on the corporate bond is
0.8%. What



is the default risk premium on the corporate bond?



#14 EXPECTED RATE OF RETURN



Washington-Pacific invests $5 million



to buy a tract of land and plant some young pine trees. The
trees can



be harvested in 10 years, at which time W-P plans to sell
the forest



at an expected price of $10 million. What is W-P's expected
rate of



return? Round your answer to two decimal places.



#15  yield to maturity
and current



yield



You just purchased a bond that matures



in 15 years. The bond has a face value of $1,000 and has an
8% annual



coupon. The bond has a current yield of 8.37%. What is the
bond's



yield to maturity? Round your answer to two decimal places.



%



#16  number of period
for a maturity



You have $48,564.75 in a brokerage



account, and you plan to deposit an additional $2,500 at the
end of



every future year until your account totals $400,000. You
expect to



earn 9.4% annually on the account. How many years will it
take to



reach your goal?



#17 required of return



Assume that the risk-free rate is 3.5%



and that the expected return on the market is 10%. What is
the



required rate of return on a stock that has a beta of 0.8?



%



18



Assume you have been given the



following information on Purcell Industries:



Current stock price = $16



Strike price of option = $11



Time to maturity of option = 2 months



Risk-free rate = 6%



Variance of stock return = 0.15



d1 = 0.28449



N(d1) = 0.48652



d2 = 0.0532



N(d2) = 0.64298



According to the Black-Scholes option



pricing model, what is the option's value? Round your answer
to the



nearest cent.





attachement



Attachments:



FINANCE FINAL.docx
(16K)



You cannot edit a question once one or more tutorials have
been posted.



tassycorp Not confirmed



Rating :No Rating



Questions Asked: 1



Tutorials Posted: 0


tassycorp



(6)



|  Tutorial Bucket  | Logout



Home



Get Tutoring



Get Paid



My Account



Ask a Question



How Does This Work?



|



My Pending Questions



|



Recently Viewed Questions



|


Leave Feedback



Unpurchased Tutorials


|



Recent Tutorials


|



Topics



Studypool has helped 1,244,100 students
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1828 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors