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-   -   I need help doing my finance homework (https://www.askmehelpdesk.com/showthread.php?t=495529)

  • Aug 6, 2010, 10:37 AM
    iceberg1002
    I need help doing my finance homework
    1.
    If you set up an annual sinking fund account to retire $1,000,000 debt in 10 years
    @10% interest, how much will you have to pay into account annually?

    2.
    The prevailing (bank) interest rate is currently 10% per year. If an annuity pays
    $1,000 annually for the next 10 years, what is such an annuity worth today?

    3.
    If the bond that matures in 10 years with the face (redemption) value of $1,000
    pays coupon interest of $100 per year while the prevailing interest rate is 15%,
    how much should the bond sell for?


    4.
    If a firm’s
    is 3, and the market return is 10%, what is the required return on the
    firm’s stock if the risk-free rate is 5%?

    5.
    If this company pays $8 dividend /share, what is the rational price of this firm’s
    stock? If the stock currently trades at $80, is this a “must-buy” or “must sell”?
    Why?
  • Aug 6, 2010, 10:50 AM
    Curlyben
    Thank you for taking the time to copy your homework to AMHD.
    Please refer to this announcement: https://www.askmehelpdesk.com/financ...-b-u-font.html

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