Finance Answers

Dynamite Industries paid a dividend of RM1.65 for its common stock yesterday. The
dividends of company are expected to grow at 9% per year indefinitely. If the risk free
rate is 3% and investors' risk premium on this stock is 8%, what is the estimate value
of Dynamite Industries stock 2 years from now?

The price of Dwayne Corporation stock is expected to be RM68 in 5 years. Dividends
are anticipated to increase at an annual rate of 10 percent from the most recent
dividend of RM1.00. If your required rate of return is 15 percent, how much are you
willing to pay for Dwayne stock now?

Sweatshirt Inc’s ROE is 20%. It’s dividend payout ratio is 70%. The last dividend, just
paid, was RM2.00. If its dividends are expected to grow at the company's internal
growth rate indefinitely, what is the current value of the company's common stock if
its required return is 18%?

Sweatshirt Inc’s ROE is 20%. It’s dividend payout ratio is 70%. The last dividend, just
paid, was RM2.00. If its dividends are expected to grow at the company's internal
growth rate indefinitely, what is the current value of the company's common stock if
its required return is 18%?

In 2000 Jengka Inc. issued bonds with an 8 percent coupon rate and a RM1,000 face
value. The bonds will mature on March 1, 2025. If an investor purchased one of
these bonds on March 1, 2012, determine the yield to maturity if the investor paid
RM1,100 for the bond.

Power of Tower Inc. has bonds that mature in 6½ years with a par value of RM1,000.
They pay a coupon rate of 9% with semiannual payments. If the required rate of
return on these bonds is 11% what is the bond's current value?

Buttercup Inc. just issued RM1,000 par 30-year bonds. Each bond was sold for
RM1,107.20 and pay interest semiannually. Investors require a rate of 7.75% on the
bonds. What is the bonds' coupon rate?

You have been accepted to study international economics at the International
Banking College (IBC) in Kuala Lumpur. You will need RM10,500 every 6 months
(beginning today) for the next three years to cover tuition and living expenses. Mom
and Dad have agreed to pay for your education, and want to make one deposit today
in a bank account earning 6% interest, compounded semiannually. How much must
they deposit now so that you can withdraw RM10,500 at the beginning of each
semester over the next 3 years?

If you put RM200 in a savings account at the beginning of each year for 10 years and
then allow the account to compound for an additional 10 years, how much will be in
the account at the end of the 20th year? Assume that the account earns 10% and
round to the nearest RM100.

A deferred annuity will pay you RM500 at the end of each year for 10 years,
however the first payment will not be made until three years from today (payments
will be made at the end of years 3 through 12). What amount will you have to deposit
today to fund this deferred annuity? Use an 8% discount rate and round your answer
to the nearest RM100.