QUESTION 2 points e Answer Bonds issued by VIX Industries have a ...

  1. Home
  2. Homework Library
  3. Business
  4. Finance
  5. QUESTION 2 points e Answer Bonds issued by VIX Industries have a ...

QuestionQuestion

Transcribed TextTranscribed Text

QUESTION 2 points e Answer Bonds issued by VIX Industries have a par value of $1,000. The bonds are currently selling for $885.5 50. They have 10 years remaining to maturity. The coupon rate is 8% and the coupon payment is paid semiannually. What is the bonds yield to maturity? Oa.9.82% (b.10.57% Oc.11.39% (d.7.26% QUESTION 2 2 points Save Answer WMT Enterprise has bonds with face value of $1,000 on the market making annual payments, with 10 years to maturity, and selling for $1,146.80. At this price, the bonds yield 6%. What must the coupon rate be on Merton Enterprise is bonds? Oa.6% Ob.60 Oc.8% O d.80 QUESTION 3 2 points Save Answer A MU Industries bond has a 10% coupon rate and a $1,000 face value. Interest is paid semiannually, and the bond has 15 years to maturity. If investors require an 8% yield, what is the bond is value? Oa $1,172.9 Ob.$948.7 Od.$1,138.2 QUESTION 2 points Save Answer ABC Co. has just paid a cash dividend of $2.1 per share. Investors require a 16% return from investments such as this If the dividend is expected to grow at a steady 9% per year, what is the current value of the stock? Oa $34.9 (b.$32.7 Oc.$36.3 O d.$30.1 QUESTION 2 points Save Answer Following Question 4. what will the stock be worth in five years? Oa $59.68 (b.$50.31 O° $52.25 O d.$56.73 QUESTION 6 2 points Save Answer XYZ Corporation will pay a $4.5 per share dividend next year. The company pledges to increase its dividend by 4% per year, indefinitely. If you require a 10% return on your investment, how much will you pay for the company stock today? O $71.43 (b.$43.75 Oc.$75 Od.$41.67 QUESTION 7 1 points ve Answer Suppose we observe a stock selling for $40 per share. The next dividend will be $1 per share. and you think the dividend will grow at 12% per year forever. What is the dividend yield? Oa 14.5% Ob.12% Oc.2.5% QUESTION 8 1 points Save Answer Following Question 7. what is the capital gains yield? Oa.12% (b.2.5% 0° 14.5% Od.2.8% QUESTION 2 points Save Answer Following Question 7. what is the total required return? Oa 14.5% (b.2.5% c.2.8% Od.14.8% QUESTION 10 2 points Save Answer TXN. Inc. has an issue of preferred stock outstanding that pays a $6.3 dividend every year, in perpetuity. If this issue currently sells for $78.86 per share, what is the required return? Oa 74.86% Ob.7.42% Oo 79.89% Od.7.99% QUESTION 11 2 points Save Answer BGN, Inc. just paid a dividend of $4. The dividend is expected to grow at a 30% rate for the next 3 years and at a 10% rate thereafter. What is the value of the stock if the required rate of return 20%? Oa $70.06 b.$87.60 Oc.$75.31 O d.$84.92

Solution PreviewSolution Preview

These solutions may offer step-by-step problem-solving explanations or good writing examples that include modern styles of formatting and construction of bibliographies out of text citations and references. Students may use these solutions for personal skill-building and practice. Unethical use is strictly forbidden.

    By purchasing this solution you'll be able to access the following files:
    Solution.xlsx.

    $23.00
    for this solution

    PayPal, G Pay, ApplePay, Amazon Pay, and all major credit cards accepted.

    Find A Tutor

    View available Finance Tutors

    Get College Homework Help.

    Are you sure you don't want to upload any files?

    Fast tutor response requires as much info as possible.

    Decision:
    Upload a file
    Continue without uploading

    SUBMIT YOUR HOMEWORK
    We couldn't find that subject.
    Please select the best match from the list below.

    We'll send you an email right away. If it's not in your inbox, check your spam folder.

    • 1
    • 2
    • 3
    Live Chats