Chapter 8: 3, 4, 5, and 6
3. Global Toys Inc., imposes a payback cutoff of three years for its international investment
projects. If the company has the following two projects available, should it accept either of
Calculating the Number of Periods. Calculating Rates of Return. In
2011, an 1880-O Morgan silver dollar sold for $13,113. What was the
rate of return on this investment?
calculation of rate
Chapter 6: 16
App Store Co. issued 20-year bonds one year ago at a coupon rate of 6.1%. The bond makes
semiannually payments. If the YTM on these bonds is 5.3%, what is the current bond price?
The bond was issued a year ago, so theres 19 years
Chapter 12: 3, 5, 6, and 15
Chapter 13: 1
12-3 Calculating Cost of Equity. Stock in CDB Industries has a beta of .90. The
market risk premium is 7 percent, and T-bills are currently yielding 3.5 percent.
CDBs most recent dividend was $1.80 per share, and