A P1,000 bond which mature in 10 years and with a bond rate of 5% payable annually is to be redeemed at par at the end of this period. It is sold at P1,030. Determine the yield at this price.

Q: Damron, Incorporated, has 205,000 shares of stock outstanding. Each share is worth $79, so the…

A: The ex-rights price is the market price of shares after the issuance of new rights shares. Due to an…

Q: Sun Life Investment Fund lends $500,000 for each new idea. The Fund's history is that it selects…

A: Given: Amount Sun Life Investment Fund lend for each new idea= $500,000  The Fund's history is that…

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A: Break even analysis is used for identifying the number of units that the firm needs to produce in…

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A: After doing repurchase using the debt the number of shares decreases but cost of capital decreases…

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A: Nominal Interest rate = Real Interest rate + Inflation Real Interest rate = Nominal Interest rate -…

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A: (1) In simple words we can say that foreign exchange market is the market of trading in different…

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A: Beta = 0.85 Risk free rate of return = 4% Market return = 9%

Q: What steps can be  taken to ensure that a management team makes decisions for the better of the…

A: In finance managers are agents who are appointed by the owners of a company. The stakeholders are…

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A: When one company purchases the majority or all of the shares of another, it gains control of the…

Q: JL Bank offers a business loan with an initial amount of 6,000,000 pesos at a rate of 3% compounded…

A: Loan Amortization: It is the most common way of scheduling out  a fixed-rate credit into equivalent…

Q: ABC bought a piece of land in a highly developing area for a purchase price of P4,000,000. Directly…

A: Purchase Price                  P 40,00,000.00 Cots Incurred Buying                    P…

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A: Initial Loan amount is P10,000,000 Initial Interest rate = 20% annually for 10 years but after 5…

Q: - D. Conaider E CRA): 207. E CRe) : 30% a port folio of 2 risky assets A & B where =10% 8:20% =0:4…

A:

Q: A firm has issued P1,000 bonds with a 10-year maturity and a face value of P1,000,000. Quarterly…

A: Face value of the bond = P1,000 Quarterly maturity period (n) = 40 (i.e. 10 years * 4) Quarterly…

Q: Globex Corporation plc shares are currently trading at $5.00 each. Management wishes to raise…

A: Ex-Rights Share price: It is the market value that a stock will hypothetically have following a new…

Q: National Company expects P30,000,00 in earnings next year. Its dividend payout ratio is 40%, and its…

A: Expected earnings = P30,000,000 Dividend payout ratio = 40% Equity to asset ratio = 40%

Q: . The average daily balance on Crandall's credit card is $4,637.23. His APR is 22%. What is his…

A: Annual percentage rate (APR) : It is rate of return calculated for 12 months return. It is given…

Q: A company will need $70,000 in 6 years for a new addition. To meet this goal, the company deposits…

A: Amount needed or accumulated amount (FV) = $70,000 Quarterly interest rate (r) = 0.0275 (i.e. 0.11 /…

Q: Suppose that five years ago a corporation issued a 9-year bond with a coupon rate of 6.50% and the…

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Q: Kelly invested in two stocks. She put 22% into stock A, which has an expected return of 7.3%, and…

A: Expected return refers to the return earn by an investor on the amount invested during a period of…

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A: Depreciation can be defined as the reduction in the value due to wear and tear in asset over a…

Q: e R-Bar-M Ranch in Montana would like a new mechanized barn, which will require a GH¢600,000 initial…

A: Net present value is the difference between the present value of cash flow and initial investment…

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A: Solution:- Minimum Variance Portfolio is that portfolio in which the weights of securities are such…

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A: The dividend discount model states that we can find out the price of a stock based on the present…

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Q: 4.13 A company produces and sells two products at unit contribution margins of P4 for A and P10 for…

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Q: Which of the following statements is true regarding the sensitivity analysis approach to investment…

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Q: what is the difference between Labuan Offshore Financial Centre and Labuan International Business…

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Q: You buy a 10-year $1,000 par value 4.60% annual-payment coupon bond priced to yield 6.60%. You do…

A: Face Value = 1000 Coupon rate = 4.60% Yield to maturity = 6.60% Tax rate = 15%

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A: Risk is the possibility of loss to a company due to unforeseen circumstances. Beta is the measure of…

Q: LENLEN Company is considering on investing in new automated machinery. The machinery will be used…

A: Present value = (C1 * (1+r)-1)+ (C2 * (1+r)-2) + ...... +(Cn * (1+r)-n)  Where r = Required rate of…

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A: Long term bonds are sensitive to interest rates. Investors holding long-duration bonds possess…

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A: Equity financing is the process of raising money from the investors and give ownership to the equity…

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A: Solution:- When an equal amount is deposited each period at end of period, it is called ordinary…

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A: To calculate the minimum sale price for non negative NPV we will calculate the future value of goods…

Q: Sorensen Systems Inc. is expected to pay a $2.50 dividend at year end (D1 = $2.50), the dividend is…

A: WACC is the average cost of capital which can be calculated the multiplying the weight of securities…

Q: Pedro borrows P300,000.00 from lender  ABC today at 12% compounded monthly.          To fulfill his…

A: As you have asked a multiple subpart question, we will answer the first three subparts for you. To…

Q: direct-financing lease

A: A lease refers to the contract between two parties in which one party gives another the right to use…

Q: Fun Tyne plc declares a dividend payment of 20p per share. Ignoring taxes and the time value  of…

A: Solution:- In efficient markets, the price of a security reflects immediate effect of all the…

Q: What would be the appropriate discount rate for this calculation?

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Q: Question 5: BC Analysis A city government is considering increasing the capacity of the current…

A: Benefit cost ratio-It shows the relationship  between  the relative costs  and benefits  of a…

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A: Two asset portfolio expected return:  The anticipated return on an investment is the value assigned…

Q: compute the rate of return.

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Q: Which of the following is not a way that a firm might seek to raise new capital? a. Initial Public…

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Q: Suppose that the coupon rate for a TIPS is 5%. Suppose further that an investor purchases $10,000 of…

A: Under TIPS, the coupon rate is not changed, but Principal is adjusted against Inflation or deflation…

Q: Which of the following is NOT a required disclosure (if applicable), either by the seller or by the…

A: Ans: Confirmation of agency: Every real estate licensee is required to disclose his or her agency…

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: