BUS-F 420 Lecture Notes - Discounting, Interest Rate, Coenzyme F420

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halbright

25 Mar 2023

School

IU South Bend, IUSB

Department

Undergraduate Business

Course

BUS-F 420

Professor

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Document Summary

__________________ are fixed-income securities: common stocks, shares, bonds, all of the above. Addleson corp. has a ,000 par value bond outstanding that was issued for 30 years 5 years ago at a coupon rate of 15%. What is it yielding if it is selling for . 81: 10, 14, 16. 91% =rate(years owned, coupon pmt, selling price (-), par value: 18% Holding all other variables constant, as market interest rates increase, bond prices ____: decrease, increase, remain unchanged, none of the above. 4 three ,000, 8% coupon rate bonds have 2, 10 and 20 years until maturity respectively. If interest rates move up to 10%, the following bond prices will occur: . 36, . 54, and . 39. Which term goes with which price? two years/. 39, 10 years/. 54, 20 years/. 36: two years/. 54, 10 years/. 39, 20 years/. 36". =pv( interest rate, year to maturiity, coupon pmt, face value) two years/. 39, 10 years/. 36, 20 years/. 54: two years/. 54, 10 years/. 36, 20 years/. 36.

Related Questions

***URGENT*** please answer…….instructions are there

Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year, A total of 600,000 shares of common stock were outstanding. The interest rate on the bond payable was 10%, the income tax rate was 40%, and the dividend per share of common stock was $ 0.75 last year and $ 0.40 this year. The market value of the company's common stock at the end of this year was $28. All of the company's sales are on account.

Required:

Compute the following financial ratios for this year:

1. Times interest earned ratio.

2. Debt-to-equity ratio.

3. Equity multiplier.

(For all requirements, round your answers to 2 decimal places.)

1. Times interest earned ratio.
2. Debt-to-equity ratio.
3. Equity multiplier.

ThatDude

Required information

[The following information applies to the questions displayed below.]

Data for Hermann Corporation are shown below:

Per unit Percentage of sales

Selling price $75 100%

Variable expenses 51 68

Contribution margin $24 32%

Fixed expenses are $ 75,000 per month and the company is selling 4,000 units per month.

Required:

1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,900, the monthly sales volume increases by 100 units, and the total monthly sales increase by $7,500?

1.b. Should the advertising budget be increased?

Complete this question by entering your answers in the tabs below.

Req 1A

How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,900, the monthly sales volume increases by 100 units, and the total monthly sales increase by $7,500? (Do not round intermediate calculations.)

Net operating income ____ by ____

ThatDude

*************URGENT* please answer. Directions are there. Very urgent

Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year, A total of 910,000 shares of common stock were outstanding. The interest rate on the bond payable was 12%, the income tax rate was 40 %, and the dividend per share of common stock was $ 0.75 last year and $ 0.40 this year. The market value of the company's common stock at the end of this year was $ 23.50. All of the company's sales are on account.

Required:

Compute the following financial data for this year:

1. Earnings per share. (Round your answer to 2 decimal places.)

2. Price-earnings ratio. (Round your intermediate calculations and final answer to 2 decimal places.)

3. Dividend payout ratio. (Round your intermediate calculations and final answer to 2 decimal places.)

4. Dividend yield ratio. (Round your intermediate calculations and final answer to 2 decimal places.)

5. Book value per share. (Round your answer to 2 decimal places.)

1. Earnings per share
2. Price-earnings ratio
3. Dividend payout ratio		%
4. Dividend yield ratio		%
5. Book value per share

ThatDude

BUS-F 420 Lecture Notes - Discounting, Interest Rate, Coenzyme F420

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