Page 1 of 4 Goldey-Beacom College Corporate Finance (FIN623) I. Elsaify Final Exam Spring II, 2013 Warning You have promised, and are expected to, complete this Exam alone. You are not to discuss the Exam, or any part of it, in any way with anybody under any circumstances. Any evidence to the contrary will result in a failing grade in the course and a violation of the Academic Honor Code. Instructions: 1. Your Answer must be submitted by hand by 1:00pm Saturday, 4/27/2013 2. Your name must be written on every page. 3. Your Answer cannot exceed the Exam 4 pages. Page 2 of 4 1. (15 Points) Mr. Alert Tucker of Pleasant Valley, Ohio is an investor who is interested in allocating part of his portfolio to investment-grade corporate bonds with 15-year maturity. He recently received two proposals to choose from. Prudential: A 7% coupon bond that sells for $1,100. Coupon payments are made semiannually. Morgan Stanley: A 6% coupon bond that sells for $980. Coupon payments are made annually. a. Calculate each option YTM and CY. b. If Prudential bond can be called at the end of five years at a call value of 950, calculate YTC. c. If Morgan Stanley bond can be called at the end of seven years at a call value of 985, calculate YTC. Answer a. Bond N PMT FV PV I=YTM CY Prudential Morgan Stanley b. Bond N PMT CV PV YTC Prudential c. Bond N PMT CV PV YTC Morgan Stanley Page 3 of 4 2. (15 Points) DesinceLogic is a fast growing company that distributes 20% of its earnings as dividends. An institutional investor plans to hold the company stock for 10 years. The investor seeks 15% rate of return, and expects the stock to be traded at 30 times earnings at the end of 10 years. Current earning is $4/share (E0=4). Earning with grow at a rate of 21% during the first year, and decline by 3% every year during the following 4 years reaching 9% in year 5. The growth rate will continue to be 9% for the remaining 5 years. a. Use the combined earnings and dividend model to determine the current…
Why Work with Us
Top Quality and Well-Researched Papers
We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.
Professional and Experienced Academic Writers
We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.
Free Unlimited Revisions
If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.
Prompt Delivery and 100% Money-Back-Guarantee
All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.
Original & Confidential
We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.
24/7 Customer Support
Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.
No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.
Admission Essays & Business Writing Help
An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.
Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.
If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.