Problem 7-39, Rance Electric’s stock
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
What’s the stock’s P/E ratio?
What’s the stock’s P/E ratio?
Complete the table of growth rates, stock prices, and P/E ratios.
At what price must Trend-Line’s stock be selling at? What part is due to assets in place and what part is due to growth opportunities?
Consider a bond issued by a German company with a par value, years to maturity, an annual coupon rate, and a yield to maturity. Calculate the current price of the bond in euros.
Consider a bond issued by a Japanese company that sells for a certain percentage of its par value. The bond has a coupon rate paid annually and matures in a specific number of years. Determine the yield to maturity of this bond.
Consider a company that has bonds on the market making annual payments, with a certain number of years to maturity, a par value, and selling for a specific price. At this price, the bonds yield a certain percentage. Determine the coupon rate on the bonds.
Consider a company that issued bonds with a certain number of years to maturity a year ago at a coupon rate. The bonds make semiannual payments and have a par value. If the yield to maturity (YTM) on these bonds is a specific percentage, determine the current price of the bond in dollars.
Consider a company that issued bonds with a certain number of years to maturity a couple of years ago at a coupon rate. The bonds make semiannual payments. If these bonds currently sell for a specific percentage of par value, determine the yield to maturity (YTM).
Consider a corporation that has bonds on the market with a certain number of years to maturity, a known YTM, a par value, and a current price. The bonds make semiannual payments. Determine the coupon rate on these bonds.
You discover a zero-coupon bond that has a certain par value and a specific number of years until maturity. The yield to maturity on this bond is given as a percentage. Calculate the dollar price of the bond, assuming semiannual compounding periods.