Question 2 [12 points]
Your solution to the question was:
Suppose a stock had an initial price of $59 per share, paid a dividend of $1.50 per share
during the year, and had an ending share price of $50. Answer the following questions:
Note: Please make su
Question 2 [6 points]
Your solution to the question was:
The next dividend payment by X-cell Inc. will be $3.00 per share. The dividends are
anticipated to maintain a 15 percent growth rate, forever. Suppose X-cell Inc.'s stock
currently sells for $32 per
Question 2
First Simple Bank pays 6 percent simple interest on its savings account balances, whereas First
Complex Bank pays 6 percent interest compounded annually.
If you made a $12,000 deposit in each bank, how much more money would you earn from your
F
QUESTION 4
Weber Inc. has current assets of $4,000, net fixed assets of $8,000, current liabilities of $800, and long-term
debt of $3,000.
a) What is the value of the shareholders' equity account for this firm?
The correct answer was: $8,200.00
To calcula
Question 2 [2 points]
Your solution to the question was:
Weber Inc. has 2 percent coupon bonds on the market that have 5 years left to maturity.
The bonds make annual payments. The face value is $1000. If the YTM on these bonds
is 6 percent, what would ea
Question 2 [6 points]
Your solution to the question was:
Suppose that the NASDAQ, with a beta of 1, has an expected return of 12 percent and
Treasury bills provide a risk-fee return of 6 percent.
Note: Please make sure your final answers are accurate to t
Question 2 [18 points]
Your solution to the question was:
Examine the following book-value balance sheet for Segura Corporation.
Assets
Liabilities and Net Worth
Cash and short term assets
300000
Bonds, coupon=8%, paid annually(maturity=10yrs, current yie
Question 4 [14 points]
Your solution to the question was:
The authorized share capital of Bentley Inc. is 130,000 shares. Currently, 60,000 shares
are issued and outstanding. The equity is currently shown in the company's books as
follows:
Common stock
Re