Finance Answers

UFO Company has issued a perpetual bond paying $50 coupon interests each year indefinitely. This perpetual bond, with a face value of $1000, is currently trading at a price of 1,500.
Calculate the current interest rate of UFO’s perpetual bond.

UFO Company has issued a perpetual bond paying $50 coupon interests each year indefinitely. This perpetual bond, with a face value of $1000, is currently trading at a price of 1,500.
Calculate the current interest rate of UFO’s perpetual bond.

Given the following information relating to the yields to maturity on several one- year, zero-coupon bonds:
Bond Yield (%)
US Treasury 3.0
AAA Corporate 3.3
A Corporate 3.9
BB Corporate 4.8
a. Find the price of a one-year, zero-coupon corporate bond with a AAA rating.
b. Find the credit spread on the AAA-rated corporate bonds.
c. Find the credit spread on the A-rated corporate bonds.
d. Find the credit spread on the BB-rated corporate bonds.
e. In what way does the credit spread change with the bond rating?

As a stockholder in Randolph Corporation, you receive its annual report. In the financial statements, Randolph has reported that the after-tax (net) income is $300 million. With 150 million shares of common stock outstanding, Randolph announced to distribute $100 million of dividends to its shareholders. The stock is now sold for $20 per share.
a. Assume that Randolph Corporation does not have any outstanding debt. The current share price reflects the fair value of the Corporation.
i. Find the market value of Randolph Corporation before the ex-dividend date,
ii. Find the market value of Randolph Corporation after the ex-dividend date,
iii. Find the price per share of Randolph Corporation after the ex-dividend date,

Beckheart is seeking fi nancing for its inventory. Safe-Proof
Warehouses off ers space in their facility for Beckheart’s inventory.
They off er loans with a 15 percent APR equal to 60 percent of the
inventory. Monthly fees for the usage of the warehouse are $500 plus
0.5 percent of the inventory’s value. If Beckheart has saleable inventory
of $2 million, answer the following:
a. How much money can the fi rm borrow?
b. What is the interest cost of the loan in dollars over a year?
c. What is the total amount of fees to be paid in a year?
d. What is the eff ective annual rate of using Safe-Proof to fi nance
Beckheart’s inventory?

2. Mr. Shil Wants to record the financial transactions of his newly started business. Discuss what accounting steps/stages he need to adhere so that the transactions can be duly recorded and processed in order to prepare the financial statements.

Outline the three options to determine which depreciation method to choose for non-current assets.

Payments of $ 670 are being made at the end of each month for 5 years at an interest of 8% compounded monthly. Calculate the Present Value.

suppose mr arsalan's basic salary is 12000.calculate the allowances (house rent,utility bills,conveyance allowanc).Also,find the provident fund and gratuity?

Prepare the cash flow statement from investing activities of Alpha Creative Ltd for the year ended March31, 2019
Plant acquired 160000
Claim received for loss of plant in fire 45500
Unsecured loans given to subsidiaries 595000
Interest on loan received from subsidiary companies 72500


Also give reasons for the classification of above activities as inflow /outflow