In-Class Bond Problems
Noncallable bonds that mature in 10 years were recently
issued by Sternglass Inc. They have a par value of $1,000
and an annual coupon of 5.5%. If the current market
interest rate is 7.0%, at what price should the bonds sell?
Which of the following statements is CORRECT?
a. The more depreciation a firm has in a given year, the
higher its EPS, other things held constant.
b. Typically, a firm's DPS should exceed its EPS.
c. Typically, a firm's EBIT should exceed its EBITDA.
Class 3 problems
Analysis of Financial Statements
35. If the CEO of a large, diversified, firm were filling out a
fitness report on a division manager (i.e., "grading" the
manager), which of the following situations would be likely to
cause the manager to
Time Value of Money
You plan to analyze the value of a potential investment by
calculating the sum of the present values of its expected cash flows.
Which of the following would lower the calculated value of the
a. The cash f