please answer A, B & C they are apart of the same question You are the junior financial manager at texaco gas station and you have been asked to provide the calculations for the following scenarios to assist a client: A. Fourth giant foundation issued a bond 2 years ago which had a maturity at that time of 15 years. Coupon payments are made semi-annually with an annual interest rate of 6%. If the face value of the bond is $1,000 calculate the value of the bond today which has a required rate of return of 7.5%. B. The value of a bond today is $1,055 and matures in 12 years’ time and a coupon rate of 10.5% paid annually. What is the yield to maturity when the par value of the bond is $1,000? C. Juan Limited ordinary stock currently trades at $8 per share on the Jamaica Stock Exchange and pay dividends today amounting to $1.36. Analysts anticipate that dividends will grow at a rate of 10% annually. i. Calculate the investors required rate of return on the stock.
Debenture Valuation
A debenture is a private and long-term debt instrument issued by financial, non-financial institutions, governments, or corporations. A debenture is classified as a type of bond, where the instrument carries a fixed rate of interest, commonly known as the ‘coupon rate.’ Debentures are documented in an indenture, clearly specifying the type of debenture, the rate and method of interest computation, and maturity date.
Note Valuation
It is the process to determine the value or worth of an asset, liability, debt of the company. It can be determined by many processes or techniques. Many factors can impact the valuation of an asset, liability, or the company, like:
please answer A, B & C they are apart of the same question
You are the junior
asked to provide the calculations for the following scenarios to assist a client:
A. Fourth giant foundation issued a bond 2 years ago which had a maturity at that
time of 15 years. Coupon payments are made semi-annually with an annual interest rate
of 6%. If the face value of the bond is $1,000 calculate the value of the bond today which
has a required
B. The value of a bond today is $1,055 and matures in 12 years’ time and a coupon rate of
10.5% paid annually. What is the yield to maturity when the par value of the bond is
$1,000?
C. Juan Limited ordinary stock currently trades at $8 per share on the Jamaica Stock
Exchange and pay dividends today amounting to $1.36. Analysts anticipate that
dividends will grow at a rate of 10% annually.
i. Calculate the investors required rate of return on the stock.
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