HW 10, Problem 3, parts a-b (2 points)
In late September 2016, the US Treasury issued three T-Bills, and they had issued a one-year T-Bill on September 15, 2016:
4-Week
13-Week
26-Week
52-Week
Issue Date
9/29/2016
9/29/2016
9/29/2016
9/15/2016
Maturity Date
10/27/2016
12/29/2016
3/30/2017
9/14/2017
Face Value per $100
100
100
100
100
Price per $100
99.987556
99.936806
99.787667
99.363000
A. Calculate the bank discount rate for each security using the formula given in the chapter (=(FV – Price)/FV * 360/M, where M is the number of days until maturity) and using the DISC function.
B. Calculate the bond equivalent yield for each security using the formula given in the chapter (=(FV – Price)/Price * 365/M, where M is the number of days until maturity) and using the YieldDisc function.
HW 11
The Claustrophobic Solution, Inc. |
|||||||||
2017 |
2016 |
2015 |
2014 |
2013 |
|||||
EPS |
$1.10 |
$1.05 |
$1.00 |
$0.95 |
$0.90 |
||||
Payout Ratio |
60% |
||||||||
Stock Price |
$10.00 |
||||||||
Flotation Costs (Equity) |
7% |
||||||||
Shares Outstanding |
30,000,000 |
||||||||
Debt-Equity Ratio |
0.5 |
||||||||
WeightDebt |
33.33% |
||||||||
WeightEquity |
66.67% |
||||||||
After-tax Cost of Debt |
9.00% |
||||||||
EPS Growth Rate |
4.76% |
5.00% |
5.26% |
5.56% |
|||||
Average EPS Growth Rate |
5.15% |
||||||||
Dividend2018 |
$0.69 |
||||||||
Cost of RE |
12.08% |
||||||||
Cost of New Equity |
12.61% |
||||||||
WACC |
|||||||||
With Retained Earnings |
11.06% |
||||||||
With New Equity |
11.40% |
Create the table above. Everything in blue needs to be a formula.
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