{"id":111643,"date":"2023-01-04T13:54:33","date_gmt":"2023-01-04T13:54:33","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/fin-tany-company-business-finance-homework-help\/"},"modified":"2023-01-04T13:54:33","modified_gmt":"2023-01-04T13:54:33","slug":"fin-tany-company-business-finance-homework-help","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/fin-tany-company-business-finance-homework-help\/","title":{"rendered":"Fin tany company | Business &#038; Finance homework help"},"content":{"rendered":"<div>\n<p><span>I. Tany Company issues a new series of bonds and the following data pertains to these bonds:<\/span><br \/><span>Issuing date: 1-Jan-08<\/span><br \/><span>Par value: $1,000<\/span><br \/><span>Sold at: $1,000<\/span><br \/><span>The coupon interest: 12%<\/span><br \/><span>The bond matured in 30 years<\/span><br \/><span>Coupon payments made: 2 times per year<\/span><br \/><span>(June 30 and December 31)<\/span><\/p>\n<p><span>1. Find the YTM on 1-Jan-08\u00a0<\/span><br \/><span>2. Assuming that the interest rate has fallen to 10% after 5 years\u00a0<\/span><br \/><span>a. Find the price of the bond\u00a0<\/span><br \/><span>b. Find current yield\u00a0<\/span><br \/><span>c. Find capital gain yield\u00a0<\/span><br \/><span>d. Find total return\u00a0<\/span><\/p>\n<p><span>Before maturing date by 5.5 years, The Company sold the bonds for 916.42<\/span><\/p>\n<p><span>3. At selling time, find\u00a0<\/span><br \/><span>a. current yield\u00a0<\/span><br \/><span>b. capital gain yield\u00a0<\/span><br \/><span>c. total return\u00a0<\/span><\/p>\n<p><span>II. ABC Company&#8217;s has the following data:\u00a0<\/span><br \/><span>Current stock price 10.75<\/span><br \/><span>Last dividend paid 0.75<\/span><br \/><span>Required rate of return 8%<\/span><br \/><span>Assume that dividend is expected to grow at a constant rate, g, in the future.\u00a0<\/span><br \/><span>Assume that the company has strong financial conditions and it is classified with low risk.\u00a0<\/span><br \/><span>1. Assume rs is expected to remain at 8%, after 5 years from now find the stock price for ABC Company?\u00a0<\/span><\/p>\n<p><span>III. Hanna Company has the following data:\u00a0<\/span><br \/><span>The financial manager expect to have a period of rapid growth.<\/span><br \/><span>Earnings and dividends are expected to grow as follows:<\/span><br \/><span>during the next 2 years at a rate of 14%<\/span><br \/><span>during year 3 at a rate of 13%<\/span><br \/><span>and thereafter at a rate of 6%<\/span><br \/><span>the last dividend payment was 1<\/span><br \/><span>the required rate of return on the stock is 10%<\/span><\/p>\n<p><span>1. Find the value of the stock now\u00a0<\/span><br \/><span>a. Expected share price year 1 {E(P1)}\u00a0<\/span><br \/><span>b. E(P2)\u00a0<\/span><br \/><span>c. dividend yield for year 1 2 3\u00a0<\/span><br \/><span>d. capital gain yield for year 1 2 3\u00a0<\/span><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>I. Tany Company issues a new series of bonds and the following data pertains to these bonds:Issuing date: 1-Jan-08Par value: $1,000Sold at: $1,000The coupon interest: 12%The bond matured in 30 yearsCoupon payments made: 2 times per year(June 30 and December 31) 1. Find the YTM on 1-Jan-08\u00a02. Assuming that the interest rate has fallen to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-111643","post","type-post","status-publish","format-standard","hentry","category-education"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/111643","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=111643"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/111643\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=111643"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=111643"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=111643"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}