Dizzy Corp. bonds bearing an annual coupon rate of 12%, pay coupons semi-annually, have 3 years remaining to maturity, a $1,000 face value, and are currently priced at $1,150 per bond. What is the yield to maturity as an annual stated rate (APR)?

A project costs $55,000, will be depreciated straight-line to zero over its 4 year life, and will require a net working capital investment of $5,000 up-front. The firm has a tax rate of 35% and a required return of 15%. The project generates an annual operating cash flow (OCF) of $22,000. What is the project’s NPV?

Supreme, Inc. has 6 percent coupon bonds on the market that have 12 years left to maturity. The bonds make annual payments. If the YTM on these bonds is 7 percent, the current bond price is:          

A firm has 1,500,000 shares outstanding. If 5 directors will be elected, how many shares do you need to control to assure yourself a seat on the board under cumulative voting procedures?

The following two bonds (A and B) make semi-annual payments. They are both identical, except for the coupon rate. What is the price of bond B?  Note: find bond A’s missing yield to maturity (YTM) first, use it for bond B’s YTM, then find bond B’s price. All variables have to be entered in half-year terms! Do not round you intermediate answers.                                                                          Bond A           Bond B                         Face Value                      $1,000             $1,000                         Coupon Rate as APR      10%                7%                         Years to maturity               15                  15                         Price                           $1,200.00                 ?

A firm has 1,000,000 shares outstanding. If 7 directors will be elected, how many shares do you need to control to assure yourself a seat on the board under cumulative voting procedures?

Calculate the NPV of the following project cash flow using a discount rate of 6%: Yr 0 = $-900; Yr 1 = $-80; Yr 2 = $100; Yr 3 = $300; Yr 4 = $500; Yr 5 = $500

A preferred stock that pays a constant dividend of $4.50 forever currently sells for $78. What is the required rate of return for this stock?

How much would you pay for a share of ABC Corporation stock today if the next dividend will be $5 per share, your required return on equity investments is 10%, and the stock is expected to be worth $110 one year from now?

What are the distributions to shareholders by a corporation called?