19) You are given the following information regarding UFSK limited, a listed entity. INumber of outstanding shares100 000Earnings300 000Retention ratio60%91-day Treasury bill rate6%Market risk premium8%UFSK Beta1.2Dividend growth rate stable phase5%Bonds outstanding5 000Par value per bond1000Sermi-annual coupon rate on bonds6%Bond yleld to maturity8%Bond years remaining to maturity4Сегрогate tax rate30%Additional information• UFSK limited recently paid a dividend• UFSK recently signed a deal and expects a super normal gronth in eamings. Thecompany expects earnings to grow by 8% for the first two years then decline by 2% inthe following year, there after a stable growth of 5% is expected into the futureRequireda) As an investment analyst advise your client how much must she expect to pay forUFSK limited stockb) Ascertain the market value of UFSK imited equity.c) Determine the fair value of UFSK imited bondd) Determine the total value of the company's debte) Determine the total value of UFSK imited

91 Day Treasury bill rate ( Risk Free Rate) = 6% Market Risk Premium = 8% Beta = 1.2 Required Return…

Answered: 19) You are given the following…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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2. Calculate the current price of the following bonds. Current date is 01 January 2020 a b C d e f Face value $1,000 $6,000 $5,000 $10,000 $1,000 $2,000 Interest, pa 4% 5% 4.50% 8% 6% 4% Required rate Coupon 5% Annually 6% Nil 6% Semi annual 6.50% Quarterly 8% Semi annual 6% Monthly Maturity 31-Dec-20 1-Jul-21 1-Jul-22 31-Dec-30 31-Dec-40 1-Jul-25
Baghiben
Consider the following three-bond portfolio in which all the bonds are option free: Bond Price Par Value Yield Market Value Duration 9% 5-year $122.4565 $5 million 4% $6,122,823 4.142 5% 20-year $113.6777 $2 million 4% $2,273,555 13.087 5.5% 30-year $126.0707 $2 million 4% $2,521,413 16.290 What is Bond 1’s (9% 5-year) contribution to portfolio duration? A. 3.23 B. 2.33 C. 4.33 D. 3.00
A. Compute the current price of each of the following bonds (assume $1,000 par value): a. 6 year, 6% quarterly bond; 12% market yield b. 20 year zero coupon bond; 6% market yield c. 10 year, 10% semiannual bond; 8% market yield
1. Find the current bond price
00Ucation.com/exl/map/index.html?.con con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%2 JTFA 2021 6 Sved General Corporation purchased $938,000 of bonds with a coupon rate of 10% at face value on December 5, 2021. The market pric the bond was $984,000 on December 31, 2021, Required: Prepare the appropriate journal entry on December 31, 2021, to properly value the bonds assuming the bonds are classified as: (If m entry is required for a transaction/event, select "No journal entry required" in the first account field.) Ignore the journal entry for coupon payment and interest recognition. 1. Trading securities. 2. Securities available-for-sale. 19 3. Held-to-maturity securities. View transaction list Journal entry worksheet Record the unrealized holding gain or loss for securities available-for-sale. Note: Enter debits before credits Transaction General Joumal Debit Credit 2. MacBook Pro DII FA FS FR %23 24 & 4. 6. 8 Q R T Y F H. J K C V command ption…
2. What is the yield to maturity of this corporate bond assuming that for every payment, including the maturity par value payment, the probability of default is 2% and the loss given default is 45% 1. Coupon $60 2. 10yrs to maturity 3. Cost of $1,035 4. Par value of $1,000
A corporate bond sells for $990 currently. It has a 6-year maturity, an annual coupon of $75, and a par value of $1,000. What is their capital gains yield? 8.11% 0.14% 9.47% 0.13%
number of outstanding shares100 000Earnings300 000Retention ratio60%91-day Treasury bill rate6%Market risk premium8%UFSK Beta1.2Dividend growth rate stable phase5%Bonds outstanding5 000Par value per bond1000Semi-annual coupon rate on bonds6%Bond yield to maturity8%Bond years remaining to maturity4Corporate tax rate30%Additional informationUFSK limited recently paid a dividendUFSK recently signed a deal and expects a super normal growth in earnings. The company expects earnings to grow by 8% for the first two years then decline by 2% in the following year, there after a stable growth of 5% is expected into the future.Required:Ascertain the market value of UFSK limited equity.
Nikul
Which of the following is most likely classified as a Held-to-Maturity (HTM) debt investment? Which of the following is most likely classified as a Held-to-Maturity (HTM) debt investment? 30% ownership of Yves St. Laurent stock 10-year bond that will be held for 10 years 100% ownership of a supplier's voting stock a 5-year bond that will be sold tomorrow
5. A securities firm has provided the balance sheet below. Assets ($ millions) $ 34 Liabilities and Equity ($ millions) Short-term funding Cash $ 27 Debt securities 175 Bonds 300 Equity securities 400 Debentures 197 Other assets 12 Equity 97 Total Assets $ 621 Total Liabilities and Equity $ 621 The debt securities have an annual 7.25% coupon rate, 22 years to maturity and a yield to maturity of 6.75%. The market value of the equity securities and the other assets is equal to their book value. The firm has 500,000 shares outstanding and the price per share is $35.67. a. Calculate the firm's aggregate indebtedness to net capital ratio. b. Calculate the firm's highly liquid assets to total liabilities ratio. Based on the firm's ratios from a and b, is it in compliance with Rule 15C 3-1? Why or why not? C.

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