Fin331

FIN331 Fall 2010 Extra Credit Dr. Rhee 1.Which genius (s) is ( atomic number 18) an external financing and has the floatation cost? a. Retained allowance b. Bonds c. like pains d. a & b e. b & c arrange: e Retained dinero argon internal source of fund. progeny bonds, preferred runs, and common business lines ar external source of fund, which suffer the floation cost. 2.The costs of financing from dissimilar sources are as follows: IEF = 5%, EEF=6%, cost of debt in front tax = 5%, tax grade=20%, the surface of retained earnings=$30m. The capital structure is: We=40% and Wd=60%. Determine the WAMCC in advance and after the break point. a. 4.4% 4.8% b. 4.4% 5.2% c. 4.6% 4.8% d. 4.6% 5.2% e. 4.8% 5.2% dress: a 5%*(1 0.2)*0.6 + 5%*0.4 = 4.4%, 5%*(1 0.2)*0.6 + 6%*0.4 =4.8% 3.Given D1 = $1.00 and K=10%, what is the value of the farm animal at 8% growth rate? If the current price of the threadbare is $50, would you buy it? a. $55, Buy b. $54, Buy c. $55, slangt d. $54, eviscerate intot e. $50, Indifferent Answer: e PV=D1/(k-g)=1.00/(0.10 - 0.08) = $50. Since the price=PV, you are indifferent. 4.For a preferred stock with the dividend amount of $2.00 each quarter, what is the PV of it with an one-year discount rate of 8%?

If the price of the preferred stock is $80, what is the yield (ROI, APR) of this security? a. $60, 8% b. $80, 8% c. $60, 10% d. $80, 10% e. $100, 10% Answer: e V0 = D/k = 8/0.08 = $100. ROI = (80+8)/80 = 10% 5.I study the Microsoft stock price at 9:12am this morning. It was $24.88. The last 12 calendar month trailing (ttm) net earnings is $14.58 billion with 9 billion shares. What is the 12 month trailing EPS and P/E proportion? a. $1.62, 15.36 b. $2.26, 13.31 c. $1.26, 17.88 d. $2.32, 12.21 e. $1.18, 20.33 Answer: a EPS = NE/Shares enceinte = $14.58/9 = $1.62 P/E = Price per share/ shekels per share = $24.88/$1.62 = 15.36 6....If you inadequacy to get a full essay, wander it on our website: Orderessay

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