Shady rack inc. | Business & Finance homework help


Question 1

 

How abundantly did you borrow for your branch if your monthly hypothecation reimbursement for a 30 year hypothecation at 6.65% APR is $1,700?

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A.

$249,235

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B.

$218,080

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C.

$264,812

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D.

$202,503

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E.

$233,658

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F.

$186,926

6 points  

Question 2

 

Shady Rack Inc. has a association ungathered delay 10 percent coupon, remunerated semiannually, and 15 years to ripeness. The negotiate expense of the association is $1,039.55. Calculate the association’s furnish to ripeness (YTM). Now, if due to shifts in negotiate conditions, the negotiate claimd YTM suddenly increases by 2% from your congenial YTM, what allure be the percent shift in the negotiate expense of the association?

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A.

-17.76%

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B.

-15.66%

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C.

-14.01%

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D.

-14.87%

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E.

-16.39%

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F.

-17.09%

6 points  

Question 3

 

Sanaponic, Inc. allure pay a dividend of $6 for each of the proximate 3 years, $8 for each of the years 4-7, and $10 for the years 8-10.  Thereafter, starting in year 11, the community allure pay a firm dividend of $8/year unwanderingly.  If you claim 18 percent admonish of repay on bombardments in this promote tabulate, how abundantly is this accumulation desert to you?

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A.

$37.77

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B.

$55.99

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C.

$45.68

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D.

$50.50

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E.

$41.46

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F.

$34.54

6 points  

Question 4

 

Your claimd admonish of repay is 12%. What is the net offer appraise of a design delay the forthcoming specie flows?
 

Year

0

1

2

3

4

5

Cash Flow

-750

450

350

150

125

-100

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A.

15.56

 

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B.

48.68

 

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C.

26.33

 

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D.

60.27

 

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E.

72.15

 

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F.

37.37

 

          

6 points  

Question 5

 

Please use the forthcoming counsel for this and the forthcoming two questions.

BB Lean has attested two mutually restricted designs delay the forthcoming specie flows.
 

Year

0

1

2

3

4

5

Cash Flow Design A

-52,000.00

18,000.00

17,000.00

15,000.00

12,000.00

9,000.00

Cash Flow Design B

-52,000.00

17,800.00

10,000.00

12,000.00

17,000.00

22,000.00

 

The community claims a 11.5% admonish of repay from designs of this promote.
 
What is the NPV of design A?

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A.

972.57

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B.

5,972.87

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C.

417.37

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D.

1,395.64

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E.

1,624.90

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F.

5,180.35

6 points  

Question 6

 

What is the IRR of design B?

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A.

12.06%

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B.

14.68%

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C.

13.90%

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D.

13.05%

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E.

12.94%

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F.

20.80%

6 points  

Question 7

 

At what remittance admonish would you be careless betwixt these two designs?

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A.

13.5250%

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B.

14.7386%

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C.

34.1306%

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D.

15.8950%

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E.

3.1177%

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F.

26.0812%

6 points  

Question 8

 

A association delay a countenance appraise of $1,000 has annual coupon reimbursements of $100. It was issued 10 years ago and has 7 years retaining to ripeness. The popular negotiate expense for the association is $1,000. Which of the forthcoming is true: I. Its YTM is 10%. II. Bond’s coupon admonish is 10%. III. The association’s popular furnish is 10%.

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A.

III  Only

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B.

I, II, and III

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C.

I, III  Only

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D.

II, III  Only

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E.

I  Only

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F.

I, II  Only

6 points  

Question 9

 

Riverhawk Corporation has a association ungathered delay a negotiate expense of $1,050.00.  The association has 10 years to ripeness, pays divide semiannually, and has a furnish to ripeness of 9%.  What is the association’s coupon admonish?

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A.

12.84%

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B.

9.77%

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C.

10.54%

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D.

12.08%

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E.

11.31%

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F.

13.61%

6 points  

Question 10

 

You purchased a accumulation for $24 per divide. The most new dividend was $2.50 and dividends are expected to amplify at a admonish of 8% indefinitely. What is your claimd admonish of repay on the accumulation?

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A.

17.00%

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B.

17.64%

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C.

18.38%

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D.

21.50%

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E.

20.27%

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F.

19.25%

6 points  

Question 11

 

Sales and produce of Growth Inc. are expected to amplify at a admonish of 25% per year for the proximate six years but the community allure pay no dividends and reinvest all hues. After that, the dividends allure amplify at a firm annual admonish of 7%. At the end of year 7, the community plans to pay its primeval dividend of $4.00 per divide. If the claimd repay is 16%, how abundantly is the accumulation desert today?

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A.

$22.80

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B.

$15.96

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C.

$13.68

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D.

$25.08

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E.

$18.24

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F.

$20.52

6 points  

Question 12

 

Apple Sink Inc. (ASI) proportioned remunerated a dividend of $2.50 per divide.  Its dividends are expected to amplify at 26% a year for the proximate two years, 24% a year for the years 3 and 4, 16% for year 5, and at a firm admonish of 6% per year thereafter.  What is the popular negotiate appraise of the ASI’s accumulation if companies in this promote tabulate feel a 16% claimd admonish of repay?

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A.

$54.27

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B.

$56.03

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C.

$45.54

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D.

$42.87

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E.

$51.29

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F.

$48.35

6 points  

Question 13

 

The Retarded Company’s dividends are reduced at an annual admonish of 4 percent.  The community proportioned remunerated a dividend of $4 per divide.  You claim a 16 percent admonish of repay.  How abundantly allure you pay for this accumulation?

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A.

$13.85

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B.

$19.20

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C.

$15.33

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D.

$17.09

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E.

$21.78

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F.

$12.57

6 points  

Question 14

 

The dividend furnish of a accumulation is 10 percent. If the negotiate expense of the accumulation is $18 per divide and its dividends feel been amplifying at a firm admonish of 6%, what was the most new dividend remunerated by the community?

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A.

$1.53

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B.

$0.85

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C.

$1.70

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D.

$1.02

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E.

$1.19

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F.

$1.36

6 points  

Question 15

 

Last year, Jen and Berry Inc. had sales of $40,000, absorb of goods sold (COGS) of 12,000, derogation inculpate of $3,000 and selling, open and professional (SG&A) absorb of $10,000. The divide absorbs were $2,500. Thirty-five percent of SG&A absorbs are unwandering absorbs. If its sales are expected to be $60,000 this year, what allure be the estimated SG&A absorbs this year?

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A.

$12,667

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B.

$11,500

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C.

$10,636

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D.

$12,000

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E.

$13,250

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F.

$14,250

6 points  

Question 16

 

You claim a promote bribe of 3.5 percent on an bombardment in a community. The guiltless admonish of divide in the negotiate is 2.5 percent and the inflation bribe is 3 percent.  US Treasury bills are promote unimpeded. What should be the furnish of the US Treasury bills? Use multiplicative create.

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A.

6.35%

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B.

6.09%

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C.

5.58%

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D.

5.06%

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E.

5.32%

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F.

5.83%

6 points  

Question 17

 

Bonds X and Y are same, including the promote tabulate. The solely distinction betwixt A and B is in the coupon reimbursement as shown underneath.
 

 

Bond X

Bond Y

Face appraise

$1,000

$1,000

Annual Coupon Payment

$120

$130

Payment Frequency

Semiannual

Annual

Years to ripeness

15

15

Price

$950.39

?


 
                What is the expense of association Y?

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A.

$1,007.15

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B.

$925.88

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C.

$989.75

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D.

$956.95

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E.

$940.92

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F.

$973.44