See the attached file.
question 1 (a-d)
question 6 (a-d)
a. What is the company's average annual rate of sales growth from 2006 through 2008?
b. How long, on average, was Better Mouse Trap taking to collect on its receivable accounts in 2008? (Assume all of the company's sales were on credit.)
c. Was Better Mouse Trap more or less profitable in 2008 than it was in 2006? Justify your answer using at least two ratios.
d. Was Better Mouse Trap more or less liquid at the end of 2008 than it was at the end of
2006? Justify your answer using at least two ratios.
Question 6: (Bond valuation) 10 points
According to the Yahoo Finance Bond Center, dealers are currently offering the US government's 8.5% 2020 Treasury Bond for "142.12." Answer the following questions about the bond:
a. What is the price in dollars of the bond?
b. What is the amount of the coupon interest payment you would receive each year if you bought the bond? (assume annual payments)
c. How many payments would you receive if you bought the bond and held it to maturity? (In other words, how many years from now does the bond have to go before it matures?)
d. What is the bond's Yield to Maturity, or YTM, assuming you purchased it for the current offering price?© BrainMass Inc. brainmass.com October 17, 2018, 1:11 am ad1c9bdddf
The solution has two questions relating to ratio calculations and bond valuation. Please note the questions in the attached file are more but the solution is only for Q 1 and Q 6
Dyer Drilling Co.
The shares of the Dyer Drilling Co. sell for $60. The firm has a P/E ratio of 15. Forty percent of earnings is paid out in dividends. What is the firm's dividend yield?
Stan Pearl owns 300 shares of Royal Optical Company stock, which he bought for $16 per share. He is in a 35 percent tax bracket. It is the first week in December, and he has already received the full cash dividend for the year of $1.20 per share. For his tax bracket, dividends are now taxed at 15 percent. The stock is currently selling for $301⁄8. He has decided to sell the stock and after paying broker commissions, his net proceeds will be $30 per share. His tax rate on capital gains is also 15 percent (the capital gains are long-term). How much in total taxes will Stan Pearl pay this year for his investment in Royal Optical Company? Consider dividend income as well as capital gains.
The bonds of Goldman Sack Co. have a conversion premium of $55. Their conversion price is $40. The common stock price is $42. What is the price of the convertible bonds?View Full Posting Details