Page 1 of 4 goldey-beacom college corporate finance (fin623) i.

Document Preview:

Page 1 of 4 Goldey-Beacom College Corporate Finance (FIN623) I. Elsaify Final Exam Spring II, 2013 Warning You have promised, and are expected to, complete this Exam alone. You are not to discuss the Exam, or any part of it, in any way with anybody under any circumstances. Any evidence to the contrary will result in a failing grade in the course and a violation of the Academic Honor Code. Instructions: 1. Your Answer must be submitted by hand by 1:00pm Saturday, 4/27/2013 2. Your name must be written on every page. 3. Your Answer cannot exceed the Exam 4 pages. Page 2 of 4 1. (15 Points) Mr. Alert Tucker of Pleasant Valley, Ohio is an investor who is interested in allocating part of his portfolio to investment-grade corporate bonds with 15-year maturity. He recently received two proposals to choose from. Prudential: A 7% coupon bond that sells for $1,100. Coupon payments are made semiannually. Morgan Stanley: A 6% coupon bond that sells for $980. Coupon payments are made annually. a. Calculate each option YTM and CY. b. If Prudential bond can be called at the end of five years at a call value of 950, calculate YTC. c. If Morgan Stanley bond can be called at the end of seven years at a call value of 985, calculate YTC. Answer a. Bond N PMT FV PV I=YTM CY Prudential Morgan Stanley b. Bond N PMT CV PV YTC Prudential c. Bond N PMT CV PV YTC Morgan Stanley Page 3 of 4 2. (15 Points) DesinceLogic is a fast growing company that distributes 20% of its earnings as dividends. An institutional investor plans to hold the company stock for 10 years. The investor seeks 15% rate of return, and expects the stock to be traded at 30 times earnings at the end of 10 years. Current earning is $4/share (E0=4). Earning with grow at a rate of 21% during the first year, and decline by 3% every year during the following 4 years reaching 9% in year 5. The growth rate will continue to be 9% for the remaining 5 years. a. Use the combined earnings and dividend model to determine the current…







Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10