How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Linda_us Your Own Question

Linda_us
Linda_us, Finance, Accounts & Homework Tutor
Category: Homework
Satisfied Customers: 7139
Experience:  Post Graduate Diploma in Management (MBA)
19873544
Type Your Homework Question Here...
Linda_us is online now
A new question is answered every 9 seconds

Problem 2. Zota Inc., of Chandler, Arizona has a bond issue

Resolved Question:

Problem 2.

Zota Inc., of Chandler, Arizona has a bond issue outstanding with 8 years remaining to maturity, with a coupon rate of 10 percent paid annually, and a Par Value of $1000.

Required:

If the current market value or price of the bond is $814.45, what is the bond’s yield to maturity (YTM)?




Problem 3.

Bilo Inc., of Gilbert, Arizona has floated some zero coupon bonds to finance its capital expenditures. The Par Value of each bond is $1000.

Required:

a. Assuming a market price of $300 with a maturity of 30 years, determine and discuss the bond’s yield-to-maturity.
b. Assuming a market price of $300 and a yield-to-maturity of 8 percent, determine and discuss the holding period.
c. Assuming a holding period of 10 years and a yield-to-maturity of 10 percent, determine and discuss the bond’s current market price.



Common Stock Valuation

Problem 1.

Fabo, Inc., of Tempe, Arizona has maintained a dividend payment of $4 per share for many years. This trend will continue in the foreseeable future. If investors require a 12 percent rate of return on this stock, what is the maximum price that they should pay? Why?

Problem 2.

Senor Duarte Antonio de la Garza, a UOP graduate with Invest Inc., of Phoenix, Arizona is trying to sell you a stock with a current market price of $25.00. The stock’s last dividend (Do) was $2.00, and earnings are dividends are expected to grow at a constant rate of 10 percent. If your required rate of return is 20 percent, should you buy or not buy this stock? Why?

Problem 3.

Corta Inc., of Glendale, Arizona last dividend payment was $1.50. It’s current equilibrium price is $15.75, and its expected growth rate is a constant 5 percent. If your required rate of return is 15 percent, what is your expected dividend yield and expected capital gains yield for the ensuing year if you bought the stock? Discuss your results.
Problem 4.

The Eddo company of Tucson, Arizona has been hard hit by increased competition. Analysts predict that earnings and dividends will decline at a rate 5 percent annually into the foreseeable future. If Eddo’s last dividend (Do) was $2.00, and investors required a rate of return is 15 percent, what will the stock price be in 3 years? Why?


Problem 5

Isakata Inc., of Peoria, Arizona currently pays a dividend of $2.00 per share. Dividends are expected to grow at a rate of 12 percent per year for the next five years and then continue growing thereafter (indefinitely) at a rate of 6 percent per year.

Required:

If your required rate of investment is 15 percent, what is the maximum price that you should pay for each share of Isakata is publicly traded? Why?
Submitted: 1 year ago.
Category: Homework
Expert:  Linda_us replied 1 year ago.
Hi

I can help you with these question. Please let me know your deadline.
Customer: replied 1 year ago.

Need it today


 


by 8:pm

Expert:  Linda_us replied 1 year ago.
I will post the solution before that.
Customer: replied 1 year ago.


please show how you got the answers

Expert:  Linda_us replied 1 year ago.
Sure.
Expert:  Linda_us replied 1 year ago.
THIS ANSWER IS LOCKED!
You can view this answer by clicking here to Register or Login and paying $3.
If you've already paid for this answer, simply Login.
Linda_us, Finance, Accounts & Homework Tutor
Category: Homework
Satisfied Customers: 7139
Experience: Post Graduate Diploma in Management (MBA)
Linda_us and 4 other Homework Specialists are ready to help you
Customer: replied 1 year ago.


Thank you I have some other problems that's not due until tues. are you free to help me out?

Expert:  Linda_us replied 1 year ago.
Yes I would be happy to help. You can request me by writing "FOR LINDA" at start of your post.
Customer: replied 1 year ago.


Ok I will post it today,


 


I have question on the rate formula I was never taught that one is it really as simple as that?


 


Just trying to prepare for my final

Expert:  Linda_us replied 1 year ago.
Its that simple :-)

Let me know if you need any other explanation.

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
< Last | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin Kernersville, NC
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther Woodstock, NY
  • Thank you so much for taking your time and knowledge to support my concerns. Not only did you answer my questions, you even took it a step further with replying with more pertinent information I needed to know. Robin Elkton, Maryland
  • He answered my question promptly and gave me accurate, detailed information. If all of your experts are half as good, you have a great thing going here. Diane Dallas, TX
 
 
 

Meet The Experts:

 
 
 
  • Manal Elkhoshkhany

    Tutor

    Satisfied Customers:

    4522
    More than 5000 online tutoring sessions.
< Last | Next >
  • http://ww2.justanswer.com/uploads/BU/BusinessTutor/2012-2-2_115741_Kouki2.64x64.jpg Manal Elkhoshkhany's Avatar

    Manal Elkhoshkhany

    Tutor

    Satisfied Customers:

    4522
    More than 5000 online tutoring sessions.
  • http://ww2.justanswer.com/uploads/ComputersGuru/2010-02-13_051118_Photo41.JPG LogicPro's Avatar

    LogicPro

    Engineer

    Satisfied Customers:

    3458
    Expert in Java C++ C C# VB Javascript Design SQL HTML
  • http://ww2.justanswer.com/uploads/LI/lindaus/2012-6-10_04811_IMG20120609164157.64x64.jpg Linda_us's Avatar

    Linda_us

    Finance, Accounts & Homework Tutor

    Satisfied Customers:

    3124
    Post Graduate Diploma in Management (MBA)
  • http://ww2.justanswer.com/uploads/chooser77/2009-08-18_162025_Chris.jpg Chris M.'s Avatar

    Chris M.

    M.S.W. Social Work

    Satisfied Customers:

    2385
    Master's Degree, strong math and writing skills, experience in one-on-one tutoring (college English)
  • http://ww2.justanswer.com/uploads/JawaadAhmed/2009-6-27_12137_SIs_SHadi.jpg F. Naz's Avatar

    F. Naz

    Chartered Accountant

    Satisfied Customers:

    1988
    Experience with chartered accountancy
  • http://ww2.justanswer.com/uploads/JK/jkcpa/2011-1-16_182614_jkcpa.64x64.jpg Bizhelp's Avatar

    Bizhelp

    CPA

    Satisfied Customers:

    1876
    Bachelors Degree and CPA with Accounting work experience
  • http://ww2.justanswer.com/uploads/avremote/photoa.jpg Seanna's Avatar

    Seanna

    Tutor

    Satisfied Customers:

    1781
    3,000+ satisfied customers, all topics, A+ work
 
 
 
Chat Now With A Tutor
Linda_us
Linda_us
3125 Satisfied Customers
Post Graduate Diploma in Management (MBA)