Bonds YTM Mr. Will is a friend of Mr. Chandra. Mr. Will currently holds the bond of Depma, Corp. which has a par value of $100,000,000. The bond still has 18 years to mature. The bond makes semiannual payment with a coupon rate of 8.06%. Mr. Will offers the price of $110,145,246.91 for Depma Corp. bond to Mr. Chandra. Calculate the YTM! b. Stocks Valuation Mr. Chandra is also interested in investing his money in the shares of CF, Inc. CF, Inc. has just paid a cash dividend as much as $3. The dividend is expected to grow at a rate of 20% for the next two years and then fall off to 3.06% thereafter. The required rate of return in 8%. Calculate the intrinsic value of the stocks.
Debenture Valuation
A debenture is a private and long-term debt instrument issued by financial, non-financial institutions, governments, or corporations. A debenture is classified as a type of bond, where the instrument carries a fixed rate of interest, commonly known as the ‘coupon rate.’ Debentures are documented in an indenture, clearly specifying the type of debenture, the rate and method of interest computation, and maturity date.
Note Valuation
It is the process to determine the value or worth of an asset, liability, debt of the company. It can be determined by many processes or techniques. Many factors can impact the valuation of an asset, liability, or the company, like:
4a. Bonds YTM
Mr. Will is a friend of Mr. Chandra. Mr. Will currently holds the bond of Depma, Corp. which has a par value of $100,000,000. The bond still has 18 years to mature. The bond makes semiannual payment with a coupon rate of 8.06%. Mr. Will offers the price of $110,145,246.91 for Depma Corp. bond to Mr. Chandra. Calculate the YTM!
b. Stocks Valuation
Mr. Chandra is also interested in investing his money in the shares of CF, Inc. CF, Inc. has just paid a cash dividend as much as $3. The dividend is expected to grow at a rate of 20% for the next two years and then fall off to 3.06% thereafter. The required
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