Time Value of Money, Bond Valuation, and Stock Valuation – savvyessaywriters.net | Savvy Essay Writers
Time Value of Money, Bond Valuation, and Stock Valuation – savvyessaywriters.net | Savvy Essay Writers
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Please answer questions from each chapter (professor will assign the # of which one you will do) each question must be 100+ words. If references use please citeCh. 5:Questions 3 & 4 (Question and Problems section): Microsoft® Excel® templates provided for Problems 3 and 41(3) – Calculating Present Values [LO2] For each of the following, compute the present value:2(4) – Solve for the unknown interest rate in each of the following:Ch. 6:Questions 2 & 20 (Questions and Problems section)3(2) – Present Value and Multiple Cash Flows [LO1] Investment X offers to pay you $4,700 per year for eight years, whereas Investment Y offers to pay you $6,700 per year for five years. Which of these cash flow streams has the higher present value if the discount rate is 5 percent? If the discount rate is 15 percent?4(20) – Calculating Loan Payments [LO2, 4] You want to buy a new sports coupe for $79,500, and the finance office at the dealership has quoted you an APR of 5.8 percent for a 60-month loan to buy the car. What will your monthly payments be? What is the effective annual rate on this loan?Ch. 7:Questions 3 &11 (Questions and Problems section)5(3) – Valuing Bonds [LO2] Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 23 years to maturity, and a coupon rate of 5.8 percent paid annually. If the yield to maturity is 4.7 percent, what is the current price of the bond?6(11) – Valuing Bonds [LO2] Union Local School District has a bond outstanding with a coupon rate of 3.7 percent paid semiannually and 16 years to maturity. The yield to maturity on this bond is 3.9 percent, and the bond has a par value of $5,000. What is the price of the bond?Ch. 8:Questions 1 & 6 (Questions and Problems section): Microsoft® Excel® template provided for Problem 67(1) – Stock Values [LO1] The Jackson–Timberlake Wardrobe Co. just paid a dividend of $1.95 per share on its stock. The dividends are expected to grow at a constant rate of 4 percent per year indefinitely. If investors require a return of 10.5 percent on The Jackson–Timberlake Wardrobe Co. stock, what is the current price? What will the price be in three years? In 15 years?8(6) – Stock Valuation [LO1] Suppose you know that a company’s stock currently sells for $63 per share and the required return on the stock is 10.5 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. If it’s the company’s policy to always maintain a constant growth rate in its dividends, what is the current dividend per share?Ch. 99(1) – Interest Rates/APR What is the Rule of 72 and why is it important?We cannot compare two loans based on APR if they do not have the same compounding period. How can we make them comparable?10(2) – Markets : Explain the difference between organized and unorganized, primary and secondary, and money and capital markets. Why is it so important to know this difference?11(4) – Which Time Value of Money (TVM) inputs are used to calculate the yield on a bond?12(5) – Describe the dividend discount model for stock valuation –13(6) – What are the five inputs to any Total Value of Money (TVM) problem?