Final ExamCalculate the Future Value of an Annuity that has the following characteristics: (a) PMT: $2 032 (b) RATE: 6% and (c) NPER: 10.Determine how much you would be willing to pay for an annuity due that has the following characteristics: (a) PMT: $10 250 (b) RATE: 4.25% and (c) NPER: 30.How much would you be willing to pay for a bond that pays semi-annual coupon payments and has the following characteristics: (a) Years to Maturity: 10 (b) YTM: 7% and Coupon Rate: 6.35%.What is the maximum price that you would be willing to pay for a no-growth stock that has the following characteristics: (a) Dividend (Has Paid): $3.65 and (b) Required Rate of Return: 8%.What is the maximum price that you would be willing to pay for a constant growth stock that has the following characteristics: (a) Dividend (Has Paid): $2.62 (b) Growth: 6.5% and (c) Required Rate of Return: 7.5%.What is the maximum price that you would be willing to pay for a non-constant growth stock that has the following characteristics: (a) Non-Constant Growth Rate: 12.3% (b) Constant Growth Rate: 6.3% (c) Dividend: $3.13 and (d) Required Rate of Return: 7.3%.What is the current yield on a bond that has the following characteristics: (a) Price: $926.32 (b) Coupon Rate: 3.6% (c) YTM: 4.21% and (d) NPER: 10.Calculate the YTM on a bond with the following characteristics: (a) Price: $1 123 (b) Coupon: $46.23 and (c) NPER: 10.Calculate Company A’s weighted average cost of debt given the following information: (a) Tax Rate: 15% (b) Average Price of Outstanding Bonds: $852.32 (c) Coupon Rate: 4.25% (d) NPER: 15 (e) Debt: $15 000 000 (f) Equity: $10 000 000 and (g) Preferred Stock: $2 000 000.Calculate Company B’s weighted average cost of equity given the following information: (a) Dividend: $2.33 (b) Growth Rate: 6.3% (c) Price: $53.20 (d) Debt: $13 000 000 (e) Equity: $8 000 000 and (f) Preferred Stock: $2 000 000.Calculate Company C’s weighted average cost of preferred stock given the following information: (a) Dividend Payments: $4.23 (b) Price of Preferred Stock: $95.60 (c) Debt: $13 000 000 (d) Equity: $9 000 000 and (e) Preferred Stock: $3 000 000.Calculate Company D’s weighted average cost of capital given the following information: (a) Tax Rate: 26% (b) Average Price of Outstanding Bonds: $1 123.50 (c) Coupon Rate (Debt): 6.5% (d) NPER (Debt): 15 (e) Dividend: $3.26 (f) Growth Rate: 4.5% (g) Price: $35.20 (h) Dividend on Preferred Stock: $2.36 (i) Price of Preferred Stock: $52.30 (j) Debt: $13 000 000 (k) Equity: $9 000 000 and (l) Preferred Stock: $5 000 000.Note: For Problems 13 through 18 use the data provided in Table 1Table 1: Cash Flow SummaryYearProject AProject B0-60000-40000128 90015000225 00016000318 00017000416 00018000If Company XYZ has a WACC of 7% and the two projects are independent which project would you accept based upon NPV rules?If Company XYZ has a WACC of 13% and the two projects are mutually exclusive which project would you accept based upon NPV rules?What is the Internal Rate of Return for Project A?What is the Profitability Index for Project B?What is the Payback Period for Project B?What is the Crossover Rate for Project’s A and B?Calculate the difference between daily and annual compounding given the following information: (a) PV: $13 000 (b) NPER: 25 and (c) RATE: 8.5%.Calculate the PMT on a mortgage given the following information: (a) PV: $250 000 (b) RATE: 3.65% and NPER: 25.Calculate the present value of a lump sum payment with the following characteristics: (a) RATE: 6.3% (b) NPER: 20 and (c) FV: $65 230.Calculate the RATE given the following characteristics: (a) PV: $36 985 (b) FV: $65 200 and (c) NPER: 12.Calculate the NPER given the following characteristics: (a) PV: $25 000 (b) FV: $134 000 and (c) RATE: 12.20%.Calculate the RATE given the following characteristics: (a) PMT: $15 320 (you are paying) (b) FV: $230 000 and (c) NPER: 10.Calculate the required rate of return on a company’s stock that has the following characteristics: (a) Constant Growth Rate: 6.5% (b) Price: $45.25 and (c) Dividend (Has Been Paid): $3.50.
