1. BUS 401

    Which of the following statments regarding the cost of preferred stock is true? a.It is typically found by solving for an annuity’s discount rate. b. It is tpically found by solving for an annuity's due's discount rate. C. It is found similarly to a perpetuity's discount ...
  2. Finance

    what is the value of a preferred stock when the dividend rate is 14% on a $100 value? the appropriate discount rate for a stock of this risk level is 12%
  3. managerial Economics

    If a stock is expected to pay an annual dividend of $20 forever, what Is the approximate present value of the stock, given that the discount Rate is 5%?
  4. Finance math

    Consider the project with the following expected cash flows: Year Cash flow 0 -$400,000 1 $100,000 2 $120,000 3 $850,000 •If the discount rate is 0%, what is the project's net present value? •If the discount rate is 2%, what is the project's net present value? •If the ...
  5. Finance

    To finanance a purchase a company will sell 10 year bonds paying 6.6% per year at the market price of $1062. Preferred stock paying a $2.05 dividend can be sold for 25.93. Common stock is cirrently seeling for 54.29 per share and the firm paid a 2.92 dividend last year. ...
  6. introduction to business

    The rate the feds charges members banks for short term loans is called: A.reserve requirement b. discount rate c. margin rate d. federal rate My answer is B Discount rate can someone please verify...thanks in advance
  7. Finance

    You purchase XYZ company's perpetual preferred stock, which pays a perpetual annual dividend of $8 per share. If the appropriate discount rate for this investment is 14%, what is the price of one share of stock? Thank You! 8/.14 = 57.14
  8. principles of finance

    You are considering the of xyz company's perpetual preferred stock, which pays a perpetual divend of $8 per. If the appropriate discount rate for this investment is 14%, what is the price of one share of this stock? Thank you. Preferred stock differs from common stock in that ...
  9. investing

    new millenium company's stock sells at a P/E ratio of 21 times earnings. it is expected to pay dividends of $2 per share in each of the next 5 years and to generate an EPS of $5 i year 5. using the dividends-and-earnings model and a 12% discount rate, compute the stock's ...
  10. Financing and Accounting

    How would I find the formula for these problems? Please help me.. I would really appreciate it.. thank you Calculate the present value of the following: $7,000 in 5 years at an annual discount rate of 6% $7,000 in 5 years at a semiannual discount rate of 6% $7,000 in 5 years ...
  11. finance (higher interest rate)

    A higher interest rate (discount rate) would? A. reduce the price of corporate bonds B. reduce the price of preferred stock C. reduce the price of common stock D. all of the above I remember reading about the relationship between interest and bonds/stocks. When the FR raises ...
  12. Business

    Based on this financial info where a company's Beta Year = 2008, the Company's commons stock = 0.85, the Risk-Free Rate of Return = 5%, and the Market Risk Premium = 6%. Use the dividend growth model to calculate the Company's Common Stock in 2008. Stock 1 = 1.5, Stock 2 = 0....
  13. Accounting

    How would I find the formula for these problems? Please help me.. I would really appreciate it.. thank you Calculate the present value of the following: $7,000 in 5 years at an annual discount rate of 6% $7,000 in 5 years at a semiannual discount rate of 6% $7,000 in 5 years ...
  14. math

    A share of common stock has just paid a dividend of $2.00. If the expected long-run growth rate for this stock is 7%, and if investors require an 11% rate of return, what is the price of the stock?
  15. math 106

    In this question we will check if a discount is actually a discount. Say you are to borrow $100 for a year at a simple interest rate of 10%. Determine the discount D and the proceeds P for this loan. Next take another look at the situation. You take away P dollars and at the ...
  16. Math

    In this question we will check if a discount is actually a discount. Say you are to borrow $100 for a year at a simple interest rate of 10%. Determine the discount D and the proceeds P for this loan. Next take another look at the situation. You take away P dollars and at the ...
  17. Accounting

    Jack Hammer invests in a stock that will pay dividends of $2.00 at the end of the first year; $2.20 at the end of the second year; and $2.40 at the end of the third year. Also, he believes that at the end of the third year he will be able to sell the stock for $33. What is the...
  18. Math

    Jack Hammer invests in a stock that will pay dividends of $2.00 at the end of the first year; $2.20 at the end of the second year; and $2.40 at the end of the third year. Also, he believes that at the end of the third year he will be able to sell the stock for $33. What is the...
  19. math bus 105

    Calculate (a) interest and maturity value, (b) discount period, (c) bank discount, and (d) proceeds. Assume ordinary interest. (Round answers to nearest hundredths) Date of note Face value Length of note Interest rate Bank discount rate Date of discount Feb. 12 $80,000 150 ...
  20. math

    A man makes a simple discount note with a face value of $2,200, a term of 140 days, and a 9% discount rate. Find the discount.
  21. Math

    What is the value of a stock that grows at a supernormal rate of 18% for the first four years, and then slows down to a constant growth rate of 10%? An annual dividend of $2.00/share was just paid, and the rate of return on common stock is 13%. Possible Solution: For a ...
  22. Math

    A man makes a simple discount note with a face value of $2,300, a term of 140 days, and a 9% discount rate. Find the discount. (use the banker’s rule.)
  23. math

    I need to calculate the effective interest rate of a simple discount note $21,750 at an ordinary bank discount rate of 7.91% for 120 days find the effective rate
  24. Finance

    Damon Enterprises' stock is currently selling for $25.00 per share. The stock's dividend is projected to increase at a constant rate of 7% per year. The required rate of return on the stock, rs, is 10%. What is Damon's expected price 4 years from today?
  25. math

    a man has a simple discount note for $6,400 at an ordinary bank discount rate of 8.53% for 40 days what is the effective interest rate
  26. math

    what is the effective interest rate of a simple discount note for $2700 at a bank discount rate of 12.25%, for 36 months?
  27. Accounting

    What is the value of a stock that grows at a supernormal rate of 18% for the first four years, and then slows down to a constant growth rate of 10%? An annual dividend of $2.00/share was just paid, and the rate of return on common stock is 13%.
  28. Finance

    A common stock is just paid an annual dividend of $2 yesterday. The dividend is expeccted to grow at 8% annually for the next 3 years, after which is will grow at 4% in perpetuity. The appropriate discount rate is 12%. What is the priceof the stock? What I know: Differential ...
  29. accounting

    a simple discount note for $6,600 at a ordinary bank discount rate of 8.61% for 60 days. What is the effective interest rate? Round to the nearest tenth of a percent
  30. math

    1. A 120-day simple discount promissory note for $12,000 with a simple discount rate of 9% was signed on July 14. It was discounted on August 30 at 9.5%. Find the proceeds at the time of the sale. 2. 8. A $15,000 T-bill is purchased at a 3.85% discount rate for 16 weeks. Find...
  31. Finance

    Emerson Electric common stock is selling for $36.75. par value is $5. stock recently paid $1.32 in dividend and the firm's earnings per share increased from $1.49 to $3.06 in the past 5 years. The firm expects to grow at the same rate in the future. What is the value of stock...
  32. investment

    eddy is considering a stock purchase. the stock pays constant annual dividend of $2.00 per share, and is currently trading at $20 . Eddy's required rate of return for this stock is 12%. should he buy this stock?
  33. investments

    eddy is considering a stock purchase. the stock pays constant annual dividend of $2.00 per share, and is currently trading at $20 . Eddy's required rate of return for this stock is 12%. should he buy this stock?
  34. math/Finance

    I want to know the formula to use 1. A 120-day simple discount promissory note for $12,000 with a simple discount rate of 9% was signed on July 14. It was discounted on August 30 at 9.5%. Find the proceeds at the time of the sale. 2. 8. A $15,000 T-bill is purchased at a 3.85...
  35. investing

    (Dividend discount Model) Assume RHM is expected to pay a total cash dividend of $56.60 next year and its dividends are expected to grow at a rate of 6% per year forever. Assuming annual dividend payments, what is the current market value of a share of RHM stock if the ...
  36. VBS 2010

    Write a Web program to calculate the discount rate and interest rate for a bond. If a bond is purchased for n dollars and sold one year later for m dollars, then the discount rate is m-2/m and the interest rate is m-n/n, where each is expressed as a percent.
  37. Finance

    we have two stocks Stock A and Stock B, Both stocks have the same expected rate of return 11%, but have different Standard Deviation 12%, and 20% respectively. based on the information above can we conclude that any rational risk-averse investor will add stock A to a well ...
  38. business

    In calculating the bank discount when discounting an interest-bearing note, which one of the following is not used in the calculation? A. Discount period B. Bank discount rate C. Principal proceeds B is my answer
  39. checking answers please help

    1. $5000.00 compunded annually at 6% for 5 years= $6,691.1279 or $6,312.38? 2. $5000.00 compounded quartley at 6% for 5 years= $6,719.5819 or 8,744.37? 3. $5000.00 compounded quartley at 65 FOR 5 YEARS= $6,734.2750 or 3,64.86? 4. $5000.00 COMPOUNDED ANNUALLY FOR AT 6% FOR 6 ...
  40. Finance

    1. $5000.00 compunded annually at 6% for 5 years= $6,691.1279? 2. $5000.00 compounded quartley at 6% for 5 years= $6,719.5819? 3. $5000.00 compounded quartley at 65 FOR 5 YEARS= $6,734.2750? 4. $5000.00 COMPOUNDED ANNUALLY FOR AT 6% FOR 6 YEARS= $7,092.5956...
  41. personal finance

    Jo owns 150 shares of Delta General stock. She purchased the stock for $24 a share. She sold the stock for $30 per share. The commissions required to buy and sell her stock cost her $120. Assuming that she received no dividends (income) during the time she owned the stock, ...
  42. Math Help!!!!!

    4) Jim has been offered a substantial cash discount if he pays an invoice 60 days earlier. One bank will loan him the needed money at 11% simple interest rate. A second bank will also loan him the money, but at bank discount rate. What is the maximum discount rate that Jim can...
  43. Finance

    Carnation needs to buy a $12,500 part the part company is offering cash discount terms of 4/10, n30. Carnation has a tight cash flow, wants to discount a 180 day note dated February 12 with a maturity value of $10,300. Bank offers a discount rate of 6%. Should carnation ...
  44. Correted Bob can you re-check?

    So i pretty much had them right the first time with the first set of answers i just needed to round up? 1. $5000.00 compounded annually at 6% for 5 years= $6,691.13? 2. $5000.00 compounded quartley at 6% for 5 years= $6,719.58? 3. $5000.00 compounded quartley at 65 FOR 5 YEARS...
  45. maths

    a man holds a note of $6,000 that has an interest rate of 13% annually the note was made on march 17 and is due november 11 he sells the note to a bank on june 14 at a discount rate of 12% annually find the proceeds on the third-party discount rate.
  46. math

    a man holds a note of $6,000 that has an interest rate of 13% annually the note was made on march 17 and is due november 11 he sells the note to a bank on june 14 at a discount rate of 12% annually find the proceeds on the third-party discount rate. Ok now I m a little confused
  47. math

    Home health signed a 90,000 note at 11 1/2% simple interest for 180 days for electronic equipment, on October 1. On February 18, the note was sold to another firm at a discount rate of 12 1/2%. Find a) the discount period, b) the discount, and c) the proceeds.
  48. Finance

    Stormy Weather has no attractive investment opportunities. Its return on equity equals the discount rate, which is 10%. Its expected earnings this year are $2 per share. Find the stock price, P/E ratio, and growth rate of dividends for plowback ratios of Plowback Ratio - 0 ...
  49. finace

    16. Which of these three stock would you rather own if you rate of discount is 5%? a. stock that currently earns $2 per share whose earnings are growing 3% each year. b. stock that currently earns $1 per chare whose earnings are growing 4% each year. c. sock that currently ...
  50. Finance

    whited inc. stock sells for $35.25 constant rate 4.50% per year required rate return is 11.50% what is stock expected price 5 years from now
  51. Finance

    A firm has $3 million market value and it sells preferred stock with a par value of $100. If the coupon rate on the preferred stock is 9% and the preferred stock trades at $95, what is the cost of preferred stock financing?
  52. principles of finance

    You are considering the purchase of XYZ Company's preferred stock, which pays a perpetual annual dividend of $8 per share. If the appropriate discount rate for this investment is the price of one share of syock? need a answer by tonight. Thank You!
  53. Business Math

    What is the (net price equivalent rate-in decimals, Single Equivalent discount rate-in decimals, trade discount and net price)of a digital camera with List price $450 and chain discount 8/3?
  54. Finance

    The Joseph Company has a stock issue that pays a fixed dividend of $3.00 per share annually. Investors believe the nominal risk-free rate is 4 percent and that this stock should have a risk premium of 6 percent. What should be the value of this stock? TO compute, use the ...
  55. adult education

    California Clinics, an investor-owned chain of ambulatory care clinics, just paid a dividend of $2 per share. The firm’s dividend is expected to grow at a constant rate of 5% per year, and investors require a 15 % rate of return on the stock. 1. What is the stock’s value? ...
  56. math (pre-calc)

    Analyzing a Stock. The beta, B of a stock represents the relative risk of a stock compared with a market basket of stocks, such as Standard and poor's 500 Index of stocks. Beta is computed by finding the slope of the line of best fit between the rate of return of the stock and...
  57. math problem

    Real Versus Nominal Returns. A foreign stock market provided a rate of return of 95 percent. The inflation rate in this country during the year was 80 percent. In the United States, in contrast, the stock market return was only 12 percent, but the inflation rate was only 2 ...
  58. Finance

    Assume a stock has just paid a $2.00-per-share dividend. Analysts believe that future dividends will grow at a 4% rate forever, and investors require an 11% return on their investment in this stock. What should the stock’s price be? $18.18 $28.57 $29.71 $31.71
  59. Business math

    A watch with a list price of $889.00 is sold by a wholesaler at a net cost of $545.75. Find the single trade discount rate being offered. round to the nearest tenth of a percent 889.00*61.4? since trade discount equals list price * trade discount percentage? 54.58 would be the...
  60. algebra

    The following note was discounted at 16%. Find (a) the discount period, (b) the discount, and (c) the proceeds. Date loan was made: March 15 Face Value: $6000 Length of Loan: 75 days Rate: 6% Date of Discount: April 5
  61. value of common stock

    • Emerson Electric common stock that is selling for $80 with a par value of $5. This stock recently paid a $2.10 dividend, and the firm’s earnings per share have increased from $2.40 to $4.48 in the past 5 years. An equivalent amount of growth in the dividend is expected. ...
  62. math trade discount

    In addition to the regular trade discount of 25% and a volume purchase discount of 8.33333333% from the manufacturer, Appliance Warehouse is offered a further 5% discount for orders places in January. a. What is the list price on an electric range whose net price works out to ...
  63. Finance Challenge

    The new RDS project is somewhat riskier than a typical project for DEI, primarily because the plant is being located overseas. Management has told you to use an adjustment factor of 3 percent to account for this increased riskiness. Calculate the appropriate discount rate to ...
  64. math

    Compute the hurdle rate above based on the following.1. Note payable bank $2,000,000.00 with rate of 7.5%, The company has a tax rate of 30%.2. Bank Mortgage Loan $1,000,000.00 with rate of 6% The company has a tax rate of 30%.3. Preferred stock $750,000.00 with coupon rate 10...
  65. Math

    A student ticket to a flower show costs $6.00 plus a 5% handling fee. The local schools receive a special group discount. A scholl can determine the total cost of tickets by using the formula below. T = Total cost N = Nmber of tickets purchased D = Discount rate T = n(6+6(.05...
  66. Finance

    Hooks Athletics, Inc., has outstanding a preferred stock with a par value of $30 that pays a dividend of $2.50. The preferred stock is redeemable at the option of the stockholder in 10 years at a price equal to $30. The stock may be called for redemption by the company in 15 ...
  67. Busniness Finance

    I am having some difficulties with week four lab. The explanation for problem skips a step and I do not know how to get the answer. (Weighted average cost of capital). As a member of the Finance Department of Ranch Manufacturing, your supervisor has asked you to compute the ...
  68. Finance

    Can anyone explain to me how to use this formula? Cost of failing to take a cash discount Disc  ount percent 100 percent Discount percent 3   60 Final due date  Discount period I am trying to calculate Assume the proceeds from the loan with the compensating balance ...
  69. FINANCE 200

    You receive $5000 three years from now. The discount rate is 8 percent. What is the value of your investment two years from now? (Multiply 5000 by .926 (one year discount rate at 8%) Will it be worth $9,260?
  70. finance

    . Suppose you just inherited an gold mine. This gold mine is believed to have three years worth of gold deposit. Here is how much income this gold mine is projected to bring you each year for the next three years: Year 1: $49,000,000 Year 2: $61,000,000 Year 3: $85,000,000 ...
  71. math

    The buying and selling commission schedule shown below is from a well-known online discount brokerage firm.? Taking into consideration the buying and selling commissions in the schedule find annual rate of interest earned by each investment? Transaction Size Commission Rate $0...
  72. Math

    At a sale Jean received a discount of $10.00 on a coat marked $80.00. What was the rate of the discount?
  73. buisness math

    the single equivalent discount rate of the trade discount 3/3/1 is
  74. Accounting

    How can I find the supernormal growth rate and constant growth rate of a stock? V = D1/k-g V = the value of the stock D1 = the dividend next period k = the required rate of return g = constant growth rate I'm confused on how to combine the constant growth rate formula with the...
  75. Finance

    Teddy Company paid a $3.50 dividend this year (D0 = $3.50). Next year the company expects to pay a $4.00 dividend (D1 = $4.00). The stock's dividend is expected to grow at a rate of 15 percent a year until three years from now (t = 3). After this time, the stock's dividend is ...
  76. College Math

    Trade Discount at 12% add 3% what is the net cost equivalent rate of the series discount?
  77. math

    find the discount on proceeds on a 3,270 face value note for 6 months if the discount rate is 9.5 percent
  78. Math

    Color pencils are six dollars and the discount rate is 5% find the price of each product after a discount is applied
  79. finance

    Kuai, I need help in this part: Debt: 227,000 7.4 percent coupon bonds outstanding, 25 years to maturity, selling for 109 percent of par; the bonds have a $1,000 par value each and make semiannual payments. Common stock: 8,500,000 shares outstanding, selling for $70.70 per ...
  80. Math

    Real Versus Nominal Returns. The Costaguanan stock market provided a rate of return of 95 percent. The inflation rate in Costaguana during the year was 80 percent. In the United States, in contrast, the stock market return was only 12 percent, but the inflation rate was only 2...
  81. Math

    Real Versus Nominal Returns. The Costaguanan stock market provided a rate of return of 95 percent. The inflation rate in Costaguana during the year was 80 percent. In the United States, in contrast, the stock market return was only 12 percent, but the inflation rate was only 2...
  82. finance

    alpha of stock zero return on market 16% risk free rate 5% stock earns a return that exceeds risk free rate by 11% What is the Beta of the stock?
  83. math

    What is the annual percentage yield (APY) of a simple discount note for $7,000 at a bank discount rate of 6%, for 3 months?
  84. math

    what is the bank discount and proceeds on 14000.00 amount due at maturity, Discount rate 3.75% and time of 280 days?
  85. math

    what is the bank discount and proceeds on 20000.00 amount due at maturity, Discount rate 6.25% and time of 180 days?
  86. math

    what is the annual percentage yield (apy) of a simple discount note for $7000 at a bank discount rate of 6% for 3 months?
  87. Math!

    DigiCom has decided to purchase products with a list price of $503.60 and a trade discount of 40%. What is the amount of discount on the products? A, discount amnt d, discount rate L, list price A=dL A=(.40)(503.60) A=201.44 What is the net price of the products? N=L(1-d) N=...
  88. Finance

    Universal Laser, Inc., just paid a dividend of $3.30 on its stock. The growth rate in dividends is expected to be a constant 6 percent per year, indefinitely. Investors require a return of 15 percent on the stock for the first three years, a rate of return of 13 percent for ...
  89. Algebra 2

    Tracey is contemplating the purchase of 100 shares of a stock selling for 15 per share. The stock pays no dividends. Her broker says that the stock will be worth 20 per share in 2 years. What is the annual rate of return on this investment?
  90. math

    Jungle Warehouse signed a 9-month simple discount note with a face value of $5,600. Find the proceeds if the discount rate is 13%
  91. Excel

    How am i to Calculate the appropriate discount using the IF function with an absolute reference to the value listed in cell I1( which is 10%) for any order with a quantity of two or more; otherwise the discount is zero. Place the calculated discount value in the discount ...
  92. Finance

    Currently the risk-free rate equals 5% and the expected return on the market portfolio equals 11%. An investment analyst provides you with the following information: Stock beta Expected return A 1.33 12% B 0.7 10% C 1.5 14% D 0.66 9% Required: 1. Indicate whether each stock is...
  93. Business finance

    Question No 1: Sumi Inc. has policy of paying a Rs. 9 per share dividend every year. If this policy is to continue indefinitely, what will be the value of a share of stock at a 12% required rate of return? Rs. 30 Rs. 45 Rs. 60 Rs. 75 Question No: 2 The XYZ Corporation is ...
  94. Finance

    If our company's bank loan has a 12 interest rate, what is our effective, after-tax interest cost? Assume the tax rate = 38% If our preferred stock is paying a contractual $1.85 annual dividend and has current market price of $13.50, what is our cost of preferred stock? A ...
  95. finance

    If our company's bank loan has a 12 interest rate, what is our effective, after-tax interest cost? Assume the tax rate = 38% If our preferred stock is paying a contractual $1.85 annual dividend and has current market price of $13.50, what is our cost of preferred stock? A ...
  96. math

    You have finally saved 10,000 and are ready to make your first investment. You have the three following alternatives for investing that money: 1) Captial cities ABC Inc. bonds with a par value of $1000 that pays an 8.75 percent on its par value in interest, sells for $1.34 and...
  97. finance

    You have finally saved 10,000 and are ready to make your first investment. You have the three following alternatives for investing that money: 1) Captial cities ABC Inc. bonds with a par value of $1000 that pays an 8.75 percent on its par value in interest, sells for $1.34 and...
  98. Finance

    Suppose your bank account will be worth $15,000.00 in one year. The interest rate (discount rate) that the bank pays is 7%. What is the present value of your bank account today? What would the present value of the account be if the discount rate is only 4%?
  99. umdnj

    A company has preferred stock that can be sold for $21 per share. The preferred stock pays an annual dividend of 3.5% based on a par value of $100. Flotation costs associated with the sale of preferred stock equal $1.25 per share. The company's marginal tax rate is 35%. ...
  100. math

    What formula should i use for this problem.Or how should i solve it stock growth: A stock that sold for $22 at the beginning of the year was selling for $24 at the end of the year. If the stock paid a dividend of $0.50 per share, what is the simple interest rate on an ...
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