Questions from Corporate Finance

Q: Calculate book value per share, dividend yield, dividend payout,

Calculate book value per share, dividend yield, dividend payout, market‐to‐book ratio, earnings per share, and price‐to‐earnings ratio given the following information: shareholders’ equity is $945,000...

Q: Stephen has learned that his great‐aunt intends to give him

Stephen has learned that his great‐aunt intends to give him $ 5,000 each year he is studying at university. Tuition must be paid in advance, so Stephen would like to receive his payments at the beginn...

Q: How are trusts distinct from corporations?

How are trusts distinct from corporations?

Q: You bought a bond last year for $102.50 and

You bought a bond last year for $102.50 and just sold it for $98.50. What has happened to the interest rate over that period?

Q: Use the average dividend payout ratio from years 1 and 2,

Use the average dividend payout ratio from years 1 and 2, and the forecast net income figure from Practice Problem 29, to estimate the total amount of dividends that will be paid by the company in yea...

Q: Construct a balance sheet and income statement for the business, assuming

Construct a balance sheet and income statement for the business, assuming no income tax.

Q: For each of the following YTM figures, calculate the price and

For each of the following YTM figures, calculate the price and current yield for a two‐year, 7‐percent, annual‐pay bond with a face value of $1,000. a . YTM = 6 percent b . YTM = 7 percent c . YTM = 8...

Q: For each of the following YTM figures, calculate the price and

For each of the following YTM figures, calculate the price and current yield for a 10‐year, 5‐percent, semiannual‐ pay bond with a face value of $1,000. a . YTM = 4 percent b . YTM = 5 percent c . YTM...

Q: The shares of Corine ’ s Candies Inc. are currently trading

The shares of Corine ’ s Candies Inc. are currently trading at $18.20. There are four million shares outstanding. The company ’ s 2016 net income was $5.2 million. Find the market value of equity for...

Q: At maturity, each of the following zero coupon bonds (pure

At maturity, each of the following zero coupon bonds (pure discount bonds) will be worth $1,000. For the following each bond, fill in the missing quantity in table. Assume semi‐annua...