REINA_CP_TaskI - 5% Hence, Required rate of return for...

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Answer: 1) We have, Prime bank Loan rate 3.25% So National First bank Interest rate 10.0% Hence Effective Annual rate for National First 10.25% For Regions Best: Interest rate 13.17% Hence, Effective Annual Rate for Region's Best 13.99% 3) We have, Loan Amount $6,950,000.00 APR 8.60% So, Monthly Rate of interest 0.72% Time to maturity 5 So, Number of Payments 60 Hence, Monthly Payment $142,925.09  Task II 1)  For Raytheon Co. Stock Price $46.27 Dividend Paid $0.31 So, Annual Dividend $1.24 Dividend Growth 5% Hence, Required rate of return for Raytheon 7.68% For Boeing Co. Stock Price $68.14 Dividend Paid $0.42 So, Annual Dividend $1.68 Dividend Growth
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Unformatted text preview: 5% Hence, Required rate of return for Rboeing 7.47% For Lockheed Martin Corporation Stock Price $75.15 Dividend Paid $0.57 So, Annual Dividend $2.28 Dividend Growth 5% Hence, Required rate of return for Lockheed Martin Corporation 8.03% 2) Now For AirJet Best Parts, Inc., Average rate of return 7.73% Growth rate 1% Dividend Paid $1.50 Hence, Price of the stock $22.52 3) We have, Required rate of return 7.73% Dividend paid $1.50 So, Price of the preferred stock $19.41 Paid semiannually Paid Monthly years Paid Quarterly...
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This note was uploaded on 07/31/2011 for the course ECON 101 taught by Professor Thielman during the Spring '11 term at DeVry Arlington.

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REINA_CP_TaskI - 5% Hence, Required rate of return for...

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