Ngata Corp. issued 22-year bonds 2 years ago at a coupon rate of 10.2 percent. The bonds make semiannual payments. If these bonds currently sell for 108 percent of par value, what is the YTM?

A stock had returns of 17 percent, 17 percent, 13 percent, 17 percent, 19 percent, and 10 percent over the last six years. What is the geometric return for the stock?

Assume you have been investing $30,000 a year for the past 4 years into an investment brokerage account. Today, your portfolio is valued at $150,000. What rate of return was earned on your investment?

Sister Pools sells outdoor swimming pools and currently has an after-tax cost of capital of 11.6 percent. Al’s Construction builds and sells water features and fountains and has an after-tax cost of capital of 10.3 percent. Sister Pools is considering building and selling its own water features and fountains. The initial cash outlay for this project would be $90,000. The expected net cash inflows are $17,000 a year for seven years. What is the present value of the Sister Pools project?

Ava’s Market is considering opening a new location with an initial cost of $200,000. This location is expected to generate cash flows of $32,500, $88,500, $120,000, and $200,000 in Years 1 to 4. What is the payback period?

Which one of the following choices best fits the definition of a vertical acquisition? The purchase

Jetright Corporation has a target capital structure of 60 percent common stock and 40 percent debt. Its cost of equity is 10 percent, and the cost of debt is 6 percent. The relevant tax rate is 40 percent. What is Jetright’s weighted average cost of capital?

Which of the following will decrease the effective annual rate (EAR) of a loan?

You are considering a project with the following cash flows: $800 in Year 1; $1800 in Year 2; and $1900 in Year 3. What is the present value of these cash flows at a discount rate of 8 percent?

X Corp. has sales of $750,000, costs of $470,000, depreciation expense of $90,000, interest expense of $30,000, and a tax rate of 30 percent. What is the net income for the firm?