GB550: Financial Management | Unit 3 Details and Rubric
This assignment is assessing learning outcome:
GB550-2: Calculate the value of a firm through the use of discounted cash flow analysis.
Problems:
1. Complete problem: Yield to Maturity for Annual Payments
XYZ Corporation’s bonds have 14 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 10%. The bonds sell at a price of $950. What is their yield to maturity? Show your work.
Complete problem: Required Rate of Return Show your work.
Suppose rRF = 5%, rM = 10%, and rA = 12%. a. Calculate Stock A’s beta.
b. If Stock A’s beta were 2.0, then what would be A’s new required rate of return?
2. Complete problem: Portfolio Beta
You have a $2 million portfolio consisting of a $100,000 investment in each of 20 different stocks. The portfolio has a beta of 1.1. You are considering selling $100,000 worth of one stock with a beta of 0.9 and using the proceeds to purchase another stock with a beta of 1.4. What will the portfolio’s new beta be after these transactions? Show your work.
Prepare this Assignment as a Word® document. List each question, followed by your answer.
Once completed, submit your Assignment to the Unit 3 Assignment Dropbox. The Assignment is due Tuesday 11:59 p.m. ET of their assigned unit.
What Students Are Saying About Us
.......... Customer ID: 12*** | Rating: ⭐⭐⭐⭐⭐"Honestly, I was afraid to send my paper to you, but you proved you are a trustworthy service. My essay was done in less than a day, and I received a brilliant piece. I didn’t even believe it was my essay at first 🙂 Great job, thank you!"
.......... Customer ID: 11***| Rating: ⭐⭐⭐⭐⭐
"This company is the best there is. They saved me so many times, I cannot even keep count. Now I recommend it to all my friends, and none of them have complained about it. The writers here are excellent."
"Order a custom Paper on Similar Assignment at essayfount.com! No Plagiarism! Enjoy 20% Discount!"
