Chapter 5 Corporate Financial Management, Third Edition
LEVEL A (BASIC)
A1-A17
A1. (Bond valuation) A $1,000 face value bond has
A2. (Bond valuation) Find the missing information
A3. (Bond valuation), General Electric made
A4, (Bond valuation) RCA made a coupon payment yesterday
A5, (Yield to maturity) New Jersey Lighting has a 7%
A6. A6. (Yield to maturity) Marstel Industries has a 9.2%
A7. (Yield to maturity) Kraft’s 5.75% coupon bond that matures
A8. (One-period dividend discount model) Mead is expected to pay a $1.40
A9. (Two-period dividend discount model) New England Electric has
A10. (Dividend discount model) Assume RHM is expected
A11. (Expected return) Northern States Power has
A12. (Required return for a preferred stock) James River $3.38 preferred
A13. (Required return for a preferred stock) Sony $4.50 preferred is selling
A14. (Stock valuation) Suppose Toyota has nonmaturing (perpetual) preferred
A15. (Stock valuation) Let’s say the Mill Due Corporation is expected
A16. (Growth rate) Suppose Toshiba has a payout ratio of 55%
A17. (Valuing a perpetual bond) Suppose a bond pays $90 per year forever
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