Week 2 BUS 401 - A) Calculate the value of each investment...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Week 2 Alternative Investments Complete the Mini Case on page 254 and submit to instructor. In parts "a" to "d," clearly label the calculation of the required ratios and solve using Excel. Use formulas to calculate the ratios and format the cells to insert a comma if there is more than three numbers. Round to the nearest whole number. In parts "b" and "c," justify your answer in a crisp statement not to exceed 50 words each.
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: A) Calculate the value of each investment based on your required rate of return 6% - bond 7% - preferred stock 15% - common stock Bond par value: 1,000 Interest rate: 7.625% Maturity: 10 years Selling for: 986 (.07625 x 1000) = 76.25 76.25 / (1+ .07625) 1 + 76.25 / (1+ .07625) 2 + 76.25 / (1+ .07625) 3 ....
View Full Document

This note was uploaded on 08/29/2011 for the course BUSINESS 101 taught by Professor All during the Spring '11 term at Ashford University.

Ask a homework question - tutors are online