Financial Management & Financial Institutions Homework
There are 3 excel attachments that need to be completed in addition to these 3 questions
Your response should be at least 200 words in length.
1. Based upon the Gordon Growth Model, calculate the anticipated market price of a stock that is paying dividends at a constant growth rate of 6.25%, with a recent dividend of $1.00, and a required return rate of 15%. (Show all work/calculations/formulas.)
You would like to consider purchasing a stock that is selling for $90 and pays $2.33 a year in dividends. It is predicted that the stock is going to sell for $114 one year from now, and you would like to earn 15% on the investment. Should you purchase the stock today- based upon the One-Period Valuation Model? And, what should the market price be today? (Show all work/calculations/formulas)
2. What are municipal bonds? We are comparing the equivalent tax-free rate of two investments: 1) A taxable corporate bond that is at a rate of 10%, with a marginal tax of 30%, and 2) A tax-free municipal bond that is at a rate of 8%. Which of the two investments offers a better return considering the tax impact? (Show all work/calculations/formulas.)
3. What is a “stock certificate”? What rights and privileges are offered based upon the type of stock?
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file1.docx preview (1112 words)
Bond Valuation
xxxxxxx’s Name
BBA 3310 Unit VI xxxxxxxxxx
Institution’s Name
xxxxxxxxxxxxx xxxxx all answers directly xx this xxxxxxxxxx When xxxxxxxx xxxxxx Save xxx xxx save this xxxxxxxx using your xxxx xxxx and student ID xx xxx xxxx xxxxx xxxxxx xxx data sheet to Blackboard as x .doc,.docx xx .rtf xxxx when xxx xxx xxxxxxxxx
xxxxxxxx xx(10 xxxxxxxxxxxxx xxxxxxxxxx Calculate the xxxxx xx x bond that matures xx xx xxxxx and xxx $1,000 xxx value. xxx annual coupon interest rate xx 9 percent xxx the market's required yield xx maturity on x comparable-risk xxxx xx 12 percent. Round xx the xxxxxxx cent.
The xxxxx of xxx xxxx xx | 814.17 |
Question 2: xxx points).(Bond valuation) xxxxxxxxxxx xxxx xxxxx have xx xxxxxx coupon rate xx xx percent. xxx xxxxxxxx is paid xxxxxxxxxxxx and the bonds mature in x years. xxxxx xxx value is $1,000. xx the market's required xxxxx xx xxxxxxxx xx x xxxxxxxxxxxxxxx xxxx xx xx percent, what is the value of xxx xxxxx What xx xxx value xx xxx
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file2.docx preview (866 words)
Financial Management
Student’s xxxx
xxxxxxxxxxx’x Name
x
xxxxx upon the Gordon xxxxxx Model, calculate xxx anticipated market price xx x stock that xx xxxxxx dividends xx x xxxxxxxx growth rate xx xxxxxx with x recent dividend of $1.00, xxx a required return rate xx 15%. xxxxx all xxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxx
xxxxxx xxxxxx Model (GGM) is xxx of xxx xxxx xxxxxxxxx and xxxxxx xxxx xxxxx that xxxx to xxxxxx the actual price xx xxx xxxxxx of a xxxxxxx xxxxxx et al. xxxxxx This particular tool has the tendency to analyze xxx value of x company in terms xx its xxxxxx Like, xx it xx trading xxxxxxxxxx xx xxxxxxxxxx The xxxxxxxx can xxxxx xx the xxxxx xxxxxxx xx investing xx xxx to xxxxxx their amount xxxxxx the company xxxx the xxxx xx xxxx particular xxxxxx This particular part of the xxxxxxxxxx is likely to xxxxxxx xxx same xxxxx in xxxxxxxxxxx The formula xx GGM xx as xxxxxxx
Price x xxxxxxxx x Required Rate of Return – Growth xxxx
x xx x 12% - xxxxxxPrice x x
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file3.docx preview (848 words)
NPV Analysis
Student’s xxxx
xxx xxxx Unit xxx Assignment
Institution’x xxxx
xxxxxxxxxxxxx Enter all answers xxxxxxxx in xxxx xxxxxxxxxx xxxx finished select xxxx As, xxx xxxx xxxx document xxxxx xxxx last xxxx and student xx as the xxxx xxxxx xxxxxx the data xxxxx xx Blackboard xx a xxxxxxxxxx or .rtf xxxx xxxx xxx are finished.
Question 1: xxx xxxxxxxxxxxx xxxxxxx xxxxx xxxxxxxxxxxx Dowling Sportswear is considering building a xxx xxxxxxx to xxxxxxx xxxxxxxx xxxxxxxx xxxxx This xxxxxxx xxxxx xxxxxxx an initial xxxx outlay xx xxxxxxxxxx and xxxxx xxxxxxxx annual net xxxx inflows of xxxxxxxx per year for 7 xxxxxx xxxxxxxxx the xxxxxxxxx xxx xxxxx x discount rate xx x percent. (Round to xxx nearest xxxxxxxx
xxxx xx xxx xxxxxxxx rate xx x percent, xxxx xxx xxxxxxxxx NPV is: | x 1,207,736 |
xxxxxxxx 2: (30 points).(Net present value calculation) Big xxxxxxxx makers xx swizzle xxxxxxx is considering the xxxxxxxx xx x xxx xxxxxxx xxxxxxxx machine. This xxxxxxxxxx requires an
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file4.docx preview (989 words)
xxxxxx xxxxxx Analysis
xxxxxxx’s xxxx
BBA xxxx xxxx x xxxxxxxxxx
Institution’s Name
xxxxxxxxxxxxx xxxxx xxx answers xxxxxxxx xx this worksheet. xxxx xxx xxx finished, select Save xxx xxx xxxx xxxx document xxxxx xxxx xxxx name xxx student ID as the xxxx xxxxx xxxxxx xxx data sheet xx xxxxxxxxxx as x .doc, xxxxx xx xxxx file when xxx are xxxxxxxxx
xxxxxxxx xx xxx points total)xxx xxxx balance xxxxx and xxxxxx statement xxxx Carver xxxxxxxxxxx to complete partsa and b:
(15 xxxxxxx Prepare a xxxxxx size xxxxxxx xxxxx for xxxxxx Enterprises. xxxxxxxx the common-size balance xxxxxx xxxxxx xx one xxxxxxx xxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Common−xxxx Balance xxxxx | 2013 | |||
xxxx and marketable xxxxxxxxxx | x | xxx | xxxx | x |
xxxxxxxx xxxxxxxxxx | xxxxx | xxxxx | ||
Inventories | 9,550 | 28.88 | ||
Current assets | $ | xxxxxx | 48.48 | x |
Net xxxxxxxx plant and equipment | xxxxxx | xxxxx | ||
xxxxx xxxxxx | $ | xxxxxx | xxx | x |
Accounts xxxxxxx | x | 7,220 | 21.83 | x |
xxxxx−xxxx debt | xxxxx | 20.56 | ||
Current liabilities | $ | xxxxxx | 42.40 | % |
xxxx−xxxx liabilities | 7,010 | xxxxx | ||
xxxxx liabilities | $ | xxxxxx | 63.61 | % |
Total xxxxxx’ xxxxxx | xxxxxx | xxxxx | ||
Total xxxxxxxxxxx and owners’ equity | $ | 33,060 | xxx | % |
xxx xxxxxxx xxxxxxx a common-size xxxxxx statement xxx Carver xxxxxxxxxxxx Complete xxx common-size xxxxxx statement: xxxxxx xx one decimal xxxxxxx
xxxxxxxxxxxxxxx−xxxx Income Statement | 2013 | |||
Revenues | $ | xxxxxx | 100 | % |
Cost xx goods xxxx | xxxxxxxx | xxxxx | ||
xxxxx |
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