Get a unique, high-quality and non-plagiarized paper from us today at the most affordable price
Email us : premieredtutorials@gmail.com

## alculating Present Values Imprudential, Inc., has an unfunded pension liability of \$750 million that must be paid in 20 years

Chapter 4: Discounted Cash Flow Valuation
4.7 Calculating Present Values Imprudential, Inc., has an unfunded pension liability of \$750 million that must be paid in 20 years. To assess the value of the firm’s stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 6.25 percent, what is the present value of this liability?4.9 Perpetuities An investor purchasing a British consol is entitled to receive annual payments from the British government forever. What is the price of a consol that pays \$160 annually if the next payment occurs one year from today? The market interest rate is 4.5 percent.

4.11 Present Value and Multiple Cash Flows Conoly Co. has identified an investment project with the following cash flows. If the discount rate is 5 percent, what is the present value of these cash flows? What is the present value at 13 percent? At 18 percent?

YEAR CASH FLOW
1 \$850
2 740
3 1,090
4 1,310

4.13 Calculating Annuity Present Value An investment offers \$7,000 per year for 15 years, with the first payment occurring one year from now. If the required return is 8 percent, what is the value of the investment? What would the value be if the payments occurred for 40 years? For 75 years? Forever?

Chapter 5 Interest Rates and Bond Valuation
5.3 Bond Yields Watters Umbrella Corp. issued 15-year bonds two years ago at a coupon rate of 7.8 percent. The bonds make semiannual payments. If these bonds currently sell for 105 percent of par value, what is the YTM?

5.5 Valuing Bonds Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 25 years to maturity, and a coupon rate of 6.4 per- cent paid annually. If the yield to maturity is 7.6 percent, what is the current price of the bond?

5.17 Bond Yields Wyland Co. wants to issue new 25-year bonds for some much-needed expansion projects. The company currently has 8 percent coupon bonds on the market that sell for \$1,063, make semiannual payments, and mature in 20 years. What coupon rate should the company set on its new bonds if it wants them to sell at par?
6.5 Stock Valuation Shelter, Inc., is expected to maintain a constant 5.2 percent growth rate in its dividends, indefinitely. If the company has a dividend yield of 4.4 percent, what is the required return on the company’s stock?

6.11 Nonconstant Growth Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next 12 years, because the firm needs to plow back its earnings to fuel growth. The company will pay an \$11 per share dividend in 13 years and will increase the dividend by 5.5 percent per year thereafter. If the required return on this stock is 13 percent, what is the current share price?

6.25 Price-Earnings Ratio Consider Pacific Energy Company and U.S. Bluechips, Inc., both of which reported earnings of \$1,100,000. Without new projects, both firms will continue to generate earnings of \$1,100,000 in perpetuity. Assume that all earnings are paid as dividends and that both firms require a 12 percent rate of return.
a. What is the current PE ratio for each company?
b. Pacific Energy Company has a new project that will generate additional earnings of \$220,000
each year in perpetuity. Calculate the new PE ratio of the company.
c. U.S. Bluechips has a new project that will increase earnings by \$440,000 in perpetuity. Calculate the new PE ratio of the firm.

Place your order now for a similar paper and have exceptional work written by our team of experts to guarantee you A Results

Why Choose US

6+ years experience on custom writing
80% Return Client
Urgent 2 Hrs Delivery
Unlimited Free Revisions

#### Looking for a similar assignment. Place your order for a similar paper now and have excellent work written by our team of professionals to ensure you acquire the best grades.

If you find it difficult to balance your work and your studies because you are overwhelmed by other responsibilities, you have come to the right place . With the help of our dependable and simple-to-use essay and research writing service, students are able to focus on work or non-academic-related duties that they are required to carry out and complete all their school work on time .

We assist students who are struggling with their academic endeavors by allowing them to obtain essay assistance from  professional essay writers. We are never late for a deadline. When you ask our writer to write your paper, the assignment can be completed in as little as 12 hours or as long as 2 weeks. The order’s deadline is entirely up to you.

Place an order of your assignment if you are in urgent need of assistance because your essay is due in a few hours/days or you do not know how to complete your professor’s academic assignment. We are here to assist you. You are guaranteed of high grades through our services.

#### How to Place an Order

When you want Premiered Tutorials to do your homework for you, you send the assignment details such as the instructions, due date/deadline, number of pages and college level to the customer support agent online on live chat,  fill in the assignment details at place an order or send the information to our email address premieredtutorials@gmail.com and a customer support agent will respond to you immediately.

Premiered Tutorials has competent writers to handle any of your assignments. Once you place your order, we choose for you the best and competent writer for your assignment based on each writer’s competence in handling a subject.

When the homework is completed, we have a quality assurance team that proofreads the assignment to ensure it meets the required rubric instructions from your professor.

After thorough review of your assignment, we send the paper to the client. In case you need any changes at this point, you can let us know so that we can handle it for you at no extra charge.

#### Why Premiered Tutorials?

If you need professional online homework help at a cheap price from professional and thoroughly vetted online homework helpers, reach out to the best homework help website, Premiered Tutorials.

Whether you are in high school, undergraduate, masters or PhD level, we have the best academic writers to assist you with your homework. We thoroughly vet all our online homework helpers to ensure they are competent to handle our clients’ tasks. Some of the requirements we have is ensuring that they are English Native speakers, have all attended colleges and had high grades in their undergraduate, Masters and PhD classes and have worked as academic writers and delivered high results.

We are a reliable and best essay writing website in the market. Our assignment help services or rather what our clients ask us to do for them include take my online class for me, order an essay cheap, pay someone to write my essay, help with my assignments, history homework help, college homework help, essay writing help online, answers for your homework, pay someone to do my homework for me, homework answers math, pay someone to take my proctored exams and nursing homework assignment help online. As the best website for homework answers, our homework doers also offer cheap essay writing services, online assignment help for all classes

• Law/ Criminal Law
• Nursing
• Information Technology
• Psychology
• Statistics
• Sociology
• History
• Communication
• Culture and Society
• Biology
• Astronomy
• Engineering

The courses indicated above are just but a small group of the types of classes Premiered Tutorials handles.

We have competent homework writers that can handle all academic disciplines regardless of the level of education of our clients.

When we do your homework for you, we write it from scratch to ensure you receive a unique paper. It also ensures that every homework we do for you is free from plagiarism and will help the client to get the highest grades in his or her classes. Any client who manages to consistently use our homework help services is guaranteed of always having the best grades and being one of the top students in the class because we always deliver the best quality for any homework we do for you.

When we complete working on your homework, we deliver the paper to you on time as we are well aware that the work we handle, is time sensitive. Timely deliveries of assignments help our clients get the highest grades because missed deadlines on assignments can result to deductions of marks for late submissions. Therefore, you will always be assured of quality online homework help through Premiered Tutorials whenever you ask us to do your homework for you.

#### Why we should write your Paper

1. Money Return guarantee
2. 0% Plagiarism Rate
3. Guaranteed Privacy
4. Written from scratch by highly qualified writers
5. Communication at Any Time (24/7)
6. Flexible Pricing and Great Discount Programs
7. Timely Deliveries
8. Free Amendments