What is the coupon rate for the bond? Assume semi-annual payments Answer as a percent Bond Coupon Rate Yield Price Apple B 2.3% $990.90

a. Given the following information, calculate the expected value for Firm C's EPS. Data for Firms A and B are as follows: E(EPSA) = $5.10, and OA = $3.63; E(EPSB) = $4.20, and B = $2.98. Do not round intermediate calculations. Round your answer to the nearest cent. E(EPSC): $ A B C с Firm A: EPSA Firm B: EPSB Firm C: EPSc b. You are given that oc = $4.12. Discuss the relative riskiness of the three firms' earnings using their respective coefficients of variation. Do not round intermediate calculations. Round your answers to two decimal places. CV The most risky firm is -Select- ✓ Probability 0.1 0.2 0.4 0.2 0.1 ($1.68) $1.80 $5.10 $8.40 $11.88 (1.20) 1.34 4.20 7.06 9.60 (2.57) 1.35 5.10 8.85 12.77

Consider an economy with distress costs and corporate tax rates. Consider further a firm with EBIT corporate tax rate tau 0.3. What is the optimal leverage ratio (D/V)? 100 constant, rA 10%, rD 5%, distress costs 0.0005*D^2,

Consider the basic setup of the Diamond-Dybvig (1983) model. Specifically, there are three periods, denoted t = 0, 1, 2, a single consumption good, and an illiquid investment opportunity that pays gross return 1 if liquidated at t = 1, or gross return 2.2 if liquidated at t = 2. There are 500 people in the economy, each endowed with 1 unit of the consumption good at t = 0. At t = 1, exactly 200 will randomly realize that they need to consume at t = 1 (the early consumers), the remaining 300 people will need to consume at t = 2 (the late consumers). The utility derived from consumption is 1 − (1/c1) 2 for early consumers, 1−(1/c2) 2 for late consumers, where the subscript denotes the time of consumption. Suppose a bank can offer an asset that is more liquid, with gross returns Rd 1 = 1.33 and Rd 2 = 1.71 (depending on the time of liquidation). (i) Calculate the bank’s profit after t = 2. In other words, what amount of funds remains at the bank once all depositors have withdrawn? Now…

6 Suppose Blooper's financials are as follows: See SPREADSHEET 9.1 Inputs Initial Investment Salvage value Initial revenue Initial expenses Inflation rate Discount rate ok Acct receivable as % of sales Investment as % of expenses Tax rate 150 Spreadsheet Name Investment 20 Salvage 150 Initial revenue 100 Initial expenses 5.0% 1.1% 1/4 15.0% 21.0% Inflation Discount rate AR Inv_pct Tax rate Calculate Blooper's working capital in each year of its project. Year Working Capital 0 1 23 4 5 6 CO

3. Company WACC is 20%. Debt interest rate is 4% and D/ E ratio is 1,6. What is the cost of equity? HOW YOU CALCULATE THIS WITH EXCEL AND USING EXCEL FORMULAS?

What is the risk premium for a company that has a yield rate of 6.12% when the risk-free rate is 4.78% ? Select one:   a. None of these are correct. b. 10.90% c. 4.78% d. 6.12% e. 1.34%

PW vs Interest Rate 90,000 80,000 70,000 IRR = 9.41% IRR = 20.21% 60,000 %3D 50,000 IRR = 17.26% 40,000 30,000 20,000 10,000 Interest Rate, % -10,000 Do DOT SOLID -20,000 Referring to the graph, write the Decision Table telling which alternative to choose as a function of the interest rate. Present Worth, $

Let R=700 and R_I=400 and let p=1/3. What is the % gain by offering two contracts rather than one? O 66% O 25% 300 33%

4. We only have OMR 800,000 to invest. Which do we select based on Weighted average profitability index method ?   Project NPV Investment PI A 430,000 500,000   B 241,250 225,000   C 394,250 375,000   D 262,000 575,000