1. Suppose you know a company's stock currently sells for $50 per share and the required return on the stock is 15 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. Required:If it's the company's policy to always maintain a constant growth rate in its dividends, what is the current dividend per share?rev: 09_18_2012 $3.82 $3.49 $6.98 $3.75 $3.31 3. You expect to receive $18,000 at graduation in two years. You plan on investing it at 10 percent until you have $92,000. How long will you wait from now? (Do not round your intermediate calculations.)rev: 09_17_2012 21.41 years 19.12 years 15.12 years 21.03 years 17.12 years 6. You want to have $2 million in real dollars in an account when you retire in 50 years. The nominal return on your investment is 10 percent and the inflation rate is 5.5 percent. What real amount must you deposit each year to achieve your goal? (Do not round your intermediate calculations.)rev: 09_18_2012 $12,061.84 $1,718.35 $12,664.93 $12,544.31 $11,458.74 9. The appropriate discount rate for the following cash flows is 9 percent compounded quarterly.Year Cash Flow 1 $800 2 800 3 0 4 1,000 ________________________________________Required:What is the present value of the cash flows?rev: 09_17_2012 $2,115.71 $2,143.85 $2,101.82 $580.47 $2,059.78 10. Teddy's Pillows has beginning net fixed assets of $469 and ending net fixed assets of $546. Assets valued at $317 were sold during the year. Depreciation was $38. What is the amount of net capital spending? $115 $39 $432 $77 $267 13. Find the EAR in each of the following cases.Required:(a) 6% compounded quarterly (b) 6% compounded monthly (c) 17% compounded daily (d) 13% with infinite compounding 18. A firm has sales of $4,650, costs of $2,450, interest paid of $160, and depreciation of $455. The tax rate is 35 percent. What is the value of the cash coverage ratio? 6.44 17.81 13.75 9.28 10.91 27. Grohl Co. issued 8-year bonds a year ago at a coupon rate of 11 percent. The bonds make semiannual payments. If the YTM on these bonds is 9 percent, what is the current bond price?rev: 09_18_2012 $1,102.23 $1,070.96 $1,464.03 $718.96 $1,112.23 CLICK HERE TO GET THE ANSWER !!!! 1. Suppose you know a company's stock currently sells for $50 per share and the required return on the stock is 15 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. Required: If it's the company's policy to always maintain a constant growth rate in its dividends, what is the current dividend per share? rev: 09_18_2012 $3.82 $3.49 $6.98 $3.75 $3.31 3. You expect to receive $18,000 at graduation in two years. You plan on investing it at 10 percent until you have $92,000. How long will you wait from now? (Do not round your intermediate calculations.) rev: 09_17_2012 21.41 years 19.12 years 15.12 years 21.03 years 17.12 years 6. You want to have $2 million in real dollars in an account when you retire in 50 years. The nominal return on your investment is 10 percent and the inflation rate is 5.5 percent. What real amount must you deposit each year to achieve your goal? (Do not round your intermediate calculations.) rev: 09_18_2012 $12,061.84 $1,718.35 $12,664.93 $12,544.31 $11,458.74 9. The appropriate discount rate for the following cash flows is 9 percent compounded quarterly. Year Cash Flow 1 $800 2 800 3 0 4 1,000 ________________________________________ Required: What is the present value of the cash flows? rev: 09_17_2012 $2,115.71 $2,143.85 $2,101.82 $580.47 $2,059.78 10. Teddy's Pillows has beginning net fixed assets of $469 and ending net fixed assets of $546. Assets valued at $317 were sold during the year. Depreciation was $38. What is the amount of net capital spending? $115 $39 $432 $77 $267 13. Find the EAR in each of the following cases. Required: (a) 6% compounded quarterly (b) 6% compounded monthly (c) 17% compounded daily (d) 13% with infinite compounding 18. A firm has sales of $4,650, costs of $2,450, interest paid of $160, and depreciation of $455. The tax rate is 35 percent. What is the value of the cash coverage ratio? 6.44 17.81 13.75 9.28 10.91 27. Grohl Co. issued 8-year bonds a year ago at a coupon rate of 11 percent. The bonds make semiannual payments. If the YTM on these bonds is 9 percent, what is the current bond price? rev: 09_18_2012 $1,102.23 $1,070.96 $1,464.03 $718.96 $1,112.23 CLICK HERE TO GET THE ANSWER !!!!

1.
Suppose you know a company's stock currently sells for $50 per share and the required return on the stock is 15 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield.
   
Required:
If it's the company's policy to always maintain a constant growth rate in its dividends, what is the current dividend per share?

rev: 09_18_2012
 
$3.82
 
$3.49
 
$6.98
 
$3.75
 
$3.31
3.
You expect to receive $18,000 at graduation in two years. You plan on investing it at 10 percent until you have $92,000.
How long will you wait from now? (Do not round your intermediate calculations.)

rev: 09_17_2012
 
21.41 years
 
19.12 years
 
15.12 years
 
21.03 years
 
17.12 years
6.
You want to have $2 million in real dollars in an account when you retire in 50 years.
The nominal return on your investment is 10 percent and the inflation rate is 5.5 percent.
What real amount must you deposit each year to achieve your goal? (Do not round your intermediate calculations.)

rev: 09_18_2012
 
$12,061.84
 
$1,718.35
 
$12,664.93
 
$12,544.31
 
$11,458.74
9.
The appropriate discount rate for the following cash flows is 9 percent compounded quarterly.

Year    Cash Flow
 1           $800              
 2             800              
 3          0              
 4     1,000              
________________________________________

Required:
What is the present value of the cash flows?

rev: 09_17_2012
 
$2,115.71
 
$2,143.85
 
$2,101.82
 
$580.47
 
$2,059.78
10.
Teddy's Pillows has beginning net fixed assets of $469 and ending net fixed assets of $546.
Assets valued at $317 were sold during the year. Depreciation was $38. What is the amount of net capital spending?
 
$115
 
$39
 
$432
 
$77
 
$267
13.
Find the EAR in each of the following cases.
Required:
(a)    6% compounded quarterly
    
(b)    6% compounded monthly
    
(c)    17% compounded daily
    
(d)    13% with infinite compounding
    
18.
A firm has sales of $4,650, costs of $2,450, interest paid of $160, and depreciation of $455.
The tax rate is 35 percent. What is the value of the cash coverage ratio?
 
6.44
 
17.81
 
13.75
 
9.28
 
10.91
27.
Grohl Co. issued 8-year bonds a year ago at a coupon rate of 11 percent.
 The bonds make semiannual payments. If the YTM on these bonds is 9 percent, what is the current bond price?

rev: 09_18_2012
 
$1,102.23
 
$1,070.96
 
$1,464.03
 
$718.96
 
$1,112.23

                                        


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