quiz week 7 - 15 yr Tbond 10% annual 2 yr zero coupon treas...

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1 apr of 2/10 net and 1/10 net 30 apr of 2/10 net is 37.25% apr= (% disc) x (100%-disc%) 0.01 1% 1% x 100%-1% 99% 1.0101010101010100% 2 Cost of RE 2007 2008 2009 What was NI? 100 100 150 2008-$0 2009-$50 initial pay tax paid 3 $10,000 investment munis 5% $500-exempt tax $500 0 40% tax bracket bonds 8% $800-40% 320 Best Investment Pref stock 6% $600-exempt $420 72 4 20 yr bond $1,000 face value $849.54 semi ann payments $50 Rr=12% Mazx price pay? 5 Last div $10 10.6 growth 6% r-g 10.6 265 price req ret 10% .1-.04 0.04 400 250 6 A B A B -400 -250 NPV $443.37 $43.37 $89.01 WACC-10% 130 120 IRR 14.30% 24.22% 120 80 MIRR 12.29% 16.91% 100 80 PI $1.11 $1.36 130 70 100 90 7 compound int formula 12% annual 12% monthly 1.13 0.13 0.13 11% semi 1.11 11% daily 1.12 0.12 0.12 (1+r) n (1+.01) 12 (1+.055) 2 (1+.11/365) 365
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8 bond price fluctuations 10 yrs zero coupon treas zero coupon loses more on 10 yr whe
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Unformatted text preview: 15 yr Tbond 10% annual 2 yr zero coupon treas 2 yr T-bond annual 9 NPV=60 cash flows=50 for 5yr WACC=12% Payback per? 10 WACC? 40% debt / 60% stock equity 40% 2.000% .08*.4*(1-.4)+.6 .02+.048 tax rate 40% 60% 25 price = D=2/P=25 g=0 60% r-g 2/25=.08 40% 11 avg cash gain or loss monthly sales 9000 Inc 9000 purchase 2400 Exp 4000 overhd 1600 5000 1st 2nd 40% pay 1st month 3600 5400 60% pay 2nd month Disc-36 1/30 net 60 3564 8964 5400 4000 4964 R d =8% P =25 D =2 365 days (total credit days-disc%) 365 365 0.12 12.50% 30-1% 2999.00% 12.17 0.12 12.30% AT $500 5% $480 4.80% $528 5.28% en rates go up 180.24-60.00=120 70 20 50 50 50 50 2.4 50 50 50 50 6.80% 6.72% 8...
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This note was uploaded on 11/15/2010 for the course FINANCE FI515 taught by Professor Haertel during the Spring '10 term at DeVry Denver.

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quiz week 7 - 15 yr Tbond 10% annual 2 yr zero coupon treas...

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