QuickHelper

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About QuickHelper

Levels Tought:
Elementary,High School,College,University,PHD

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Accounting,Applied Sciences See all
Accounting,Applied Sciences,Business & Finance,Chemistry,Engineering,Health & Medical Hide all
Teaching Since: May 2017
Last Sign in: 353 Weeks Ago
Questions Answered: 20103
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  • MBA, PHD
    Phoniex
    Jul-2007 - Jun-2012

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  • Corportae Manager
    ChevronTexaco Corporation
    Feb-2009 - Nov-2016

Category > Accounting Posted 26 May 2017 My Price 11.00

Risk and Return Problem Sets

Question description

 

I am needing some help with financial problems that have to be done on an Excel Format and would appreciate, if possible showing showing step-by-step on how to arrive at these answers both in excel notation and using a formula approach as well to arrive at the answers in order to help me gain a better understanding of the problems. Here are the following problems:

Problem 7-21: Compute Bond Price Compute the price of a 3.8 percent coupon bond with 15 years left to maturity and a market interest rate of 6.8 percent. (Assume interest payments are semiannual.) Is this a discount or premium bond?

Problem 7-27: Yield to Maturity A 5.65 percent coupon bond with 18 years left to maturity is offered for sale at $1,035.25. What yield to maturity is the bond offering? (Assume interest payments are semiannual.)

Problem 8-19: Value a Constant Growth Stock Financial analysts forecast Safeco Corp.’s (SAF) growth rate for the future to be 8 percent. Safeco’s recent dividend was $0.88. What is the value of Safeco stock when the required return is 12 percent?

Problem 8-21: Expected Return Ecolap Inc. (ECL) recently paid a $0.46 dividend. The dividend is expected to grow at a 14.5 percent rate. At a current stock price of $44.12, what is the return shareholders are expecting?

Problem: 9-33: Risk, Return, and Their Relationship Consider the following annual returns of Estee Lauder and Lowe’s Companies:

 

Estee Lauder

Lowe’s Companies

Year 1

23.4%

--6.0%

Year 2

--26.0

16.1

Year 3

17.6

4.2

Year 4

49.9

48.0

Year 5

--16.8

--19.0

Compute each stock’s average return, standard deviation, and coefficient of variation. Which stock appears better? Why?

Would appreciate any help I can receive on these difficult problems and would like to receive an answer back to these problems, if possible, in less than a day since it would help give me a chance to go through Excel and see how to format these problems showing both an excel notation and financial formulas when it comes to showing step-by-step problem setups on how I am arriving at those answers to answer the questions. Thanks!

Answers

(10)
Status NEW Posted 26 May 2017 07:05 PM My Price 11.00

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