Entries by mary WAMBUGU

Question Last year, a company issued 6% coupon rate 10-year bonds. These bonds were trading at $1,000 face value at time of issue. Between last year and this year, the company’s default spread increased by 1%, but nothing else changed. This year, the company’s bonds will most likely be trading at: A) $1,000 C) $1,000 D) cannot determine

Question Last year, a company issued 6% coupon rate 10-year bonds. These bonds were trading at $1,000 face value at time of issue. Between last year and this year, the company’s default spread increased by 1%, but nothing else changed. This year, the company’s bonds will most likely be trading at: A) < $1,000 B) […]

 

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7 . The cost of not taking the discount on trade credit of ! ’10 net 30 is equal to` 1. 57. 75% $. 59. 67“ . 2. 50. 4 4 80

7 . The cost of not taking the discount on trade credit of ! ’10 net 30 is equal to` 1. 57. 75% $. 59. 67“ . 2. 50. 4 4 80   Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code “Newclient”

 

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James Smith is interested in buying the stock of First National Bank. While the bank’s management expects no growth in the near future, James is attracted by the dividend income. Last year the bank paid a dividend of $5.50. If James requires a return of 10.0 percent on such stocks, what is the maximum price he should be willing to pay for a share of the bank’s stock? (Round answer to 2 decimal places, e.g. 15.25.)

James Smith is interested in buying the stock of First National Bank. While the bank’s management expects no growth in the near future, James is attracted by the dividend income. Last year the bank paid a dividend of $5.50. If James requires a return of 10.0 percent on such stocks, what is the maximum price […]

 

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