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##### How much did you borrow for your house if your monthly mortgage payment for a 30 year mortgage at 6.65% APR is $1,600?

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How much did you borrow for your house if your monthly mortgage payment for a 30 year;mortgage at 6.65% APR is $1,600?.. A $218,080.. B. $202,503.. C. $186,926.. D. $233,658.. E. $249,235.. F. $264,812.;Shady Rack Inc. has a bond outstanding with 9.75 percent coupon, paid semiannually, and 17;years to maturity. The market price of the bond is $1,042.43. Calculate the bond?s yield to;maturity (YTM). Now, if due to changes in market conditions, the market required YTM suddenly;increases by 2% from your calculated YTM, what will be the percent change in the market price of;the bond?.. A. -17.09%.. B. -16.39%.. C. -17.76%.. D. -14.01%.. E. -15.66%.. F. -14.87%.;Sanaponic, Inc. will pay a dividend of $6 for each of the next 3 years, $8 for each of the years 4-7;and $10 for the years 8-10. Thereafter, starting in year 11, the company will pay a constant;dividend of $5/year forever. If you require 12 percent rate of return on investments in this risk;class, how much is this stock worth to you?.. A. $37.77.. B. $34.54.. C. $50.50.. D. $45.68.. E. $41.46.. F. $55.99.;Your required rate of return is 15%. What is the net present value of a project with the following;cash flows?.. Year. 0. 1. 2. 3. 4. 5. Cash Flow. -750. 450. 350. 150. 125. -100... A. 26.33... B. 72.15.. C. 15.56.. D. 60.27.. E. 48.68.. F. 37.37.;Please use the following information for this and the following two questions.BB Lean has;identified two mutually exclusive projects with the following cash flows.. Year. 0. 1. 2. 3. 4. 5. Cash Flow Project A -52,000.00. 18,000.00. 17,000.00. 15,000.00. 12,000.00.. Cash Flow Project B-52,000.00. 17,800.00. 10,000.00. 12,000.00. 17,000.00;0;The company requires a 11.5% rate of return from projects of this risk. What is the NPV of project;A?.. A. 5,972.87.. B. 417.37.. C. 1,395.64.. D. 1,624.90.. E. 5,180.35.. F. 972.57.;What is the IRR of project B?.. A. 12.06%.. B. 12.94%.. C. 13.05%.. D. 20.80%.. E. 13.90%.. F. 14.68%.;At what discount rate would you be indifferent between these two projects?.. A. 3.1177%.. B. 34.1306%.. C. 13.5250%.. D. 26.0812%.. E. 14.7386%.. F. 15.8950%.;A bond with a face value of $1,000 has annual coupon payments of $100. It was issued 10 years;ago and has 7 years remaining to maturity. The current market price for the bond is $1,000.;Which of the following is true: I. Its YTM is 10%. II. Bond?s coupon rate is 9.5%. III. The bond?s;current yield is 10%... A. I, II Only.. B. I, III Only.. C. I, II, and III.. D. III Only.. E. I Only.. F. II, III Only.;Riverhawk Corporation has a bond outstanding with a market price of $1,250.00. The bond has;10 years to maturity, pays interest semiannually, and has a yield to maturity of 9%. What is the;bond?s coupon rate?.. A. 13.61%.. B. 11.31%.. C. 9.77%.. D. 10.54%.. E. 12.08%.. F. 12.84%.;You purchased a stock for $20 per share. The most recent dividend was $2.50 and dividends are;expected to grow at a rate of 8% indefinitely. What is your required rate of return on the stock?.. A. 17.64%.. B. 21.50%.. C. 17.00%.. D. 18.38%.. E. 19.25%.. F. 20.27%.;Sales and profits of Growth Inc. are expected to grow at a rate of 25% per year for the next six;years but the company will pay no dividends and reinvest all earnings. After that, the dividends;will grow at a constant annual rate of 7%. At the end of year 7, the company plans to pay its first;dividend of $4.00 per share. If the required return is 16%, how much is the stock worth today?.. A. $22.80.. B. $15.96.. C. $20.52.. D. $25.08.. E. $18.24.. F. $13.68.;Apple Sink Inc. (ASI) just paid a dividend of $2.50 per share. Its dividends are expected to grow at;26% a year for the next two years, 24% a year for the years 3 and 4, 16% for year 5, and at a;constant rate of 6% per year thereafter. What is the current market value of the ASI?s stock if;companies in this risk class have a 16% required rate of return?.. A. $56.03.. B. $48.35.. C. $51.29.. D. $45.54.. E. $54.27.. F. $42.87.;The Retarded Company?s dividends are declining at an annual rate of 6 percent. The company;just paid a dividend of $4 per share. You require a 16 percent rate of return. How much will you;pay for this stock?.. A. $13.85.. B. $19.20.. C. $17.09.. D. $15.33.. E. $12.57.. F. $21.78.;The dividend yield of a stock is 9 percent. If the market price of the stock is $18 per share and its;dividends have been growing at a constant rate of 6%, what was the most recent dividend paid by;the company?.. A. $1.36.. B. $1.53.. C. $1.02.. D. $1.70.. E. $1.19.. F. $0.85.Last year, Jen and Berry Inc. had sales of $45,000, cost of goods sold (COGS) of 12,000;depreciation charge of $3,000 and selling, general and administrative (SG&A) cost of $10,000.;The interest costs were $2,500. Twenty percent of SG&A costs are fixed costs. If its sales are;expected to be $60,000 this year, what will be the estimated SG&A costs this year?.. A. $12,667.. B. $12,000.. C. $10,636.. D. $11,500.. E. $14,250.. F. $13,250.;You require a risk premium of 3.5 percent on an investment in a company. The pure rate of;interest in the market is 2.75 percent and the inflation premium is 3 percent. US Treasury bills;are risk free. What should be the yield of the US Treasury bills? Use multiplicative form... A. 5.58%.. B. 6.09%.. C. 5.06%.. D. 6.35%.. E. 5.32%.. F. 5.83%.;Bonds X and Y are identical, including the risk class. The only difference between A and B is in the;coupon payment as shown below.... Bond X. Bond Y. Face value. $1,000. $1,000. Annual Coupon Payment. $120. $130. Payment Frequency. Semiannual. Annual. Years to maturity. 15. 15. Price. $919.43.?... What is the price of bond Y?.. A. $925.88.. B. $940.92.. C. $1,007.15.. D. $956.95... E. $973.44.. F. $989.75.

Paper#76756 | Written in 18-Jul-2015

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