SECTION BI Question 2 Your analysis of Exxa Capital Berhad's indicated that the beta is 1.6. The risk-free rate instrument return is 3.85% and the current market return is 8.15%. The following is the capital structure of Exxa Capital Berhad: 4 Capital Bonds Details RM900 per unit and total outstanding bond issue is 3,000 units Total valuation is RM2.5 million Total value of outstanding common stock is RM12 million Preferred stocks Common stocks Table 1: Exxa Capital's Capital Structure The company's tax rate is 24%. Cost of Capital 6.89% 9.5% 6.14%

SECTION BI Question 2 Your analysis of Exxa Capital Berhad's indicated that the beta is 1.6. The risk-free rate instrument return is 3.85% and the current market return is 8.15%. The following is the capital structure of Exxa Capital Berhad: 4 Capital Bonds Details RM900 per unit and total outstanding bond issue is 3,000 units Total valuation is RM2.5 million Total value of outstanding common stock is RM12 million Preferred stocks Common stocks Table 1: Exxa Capital's Capital Structure The company's tax rate is 24%. Cost of Capital 6.89% 9.5% 6.14%

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Term in years: 3 4 Rate: 1.8% 2.25% 2.30% 2.66% 3.13% The table above shows the interest rates available from investing in risk-free U.S. Treasury securities with different investment terms. What is the present value (PV) of cash flows from an investment that yields $5,000 at the end of each year for the next four years? O A. $22,639 O B. $15,093 OC. $18,866 O D. $26,412
A firm raises capital by selling $10,000 worth of debt with flotation costs equal to 2% of its par value. If the debt matures in 10 years and has an annual coupon interest rate of 11%, what is the bond's YTM? Question content area bottom Part 1 The bond's YTM is enter your response here%. (Round to two decimal places.)
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2. What is the yield to maturity of this corporate bond assuming that for every payment, including the maturity par value payment, the probability of default is 2% and the loss given default is 45% 1. Coupon $60 2. 10yrs to maturity 3. Cost of $1,035 4. Par value of $1,000
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QUESTION 2.b Consider you are ready to make your first investment in the following three investment alternatives: Alternative 1: Maxis bond that pays 10% on its par value in interest, sells for RM850, and matures in 12 years. For bonds of this risk class, you believe that a 12% rate of return should be required. Alternative 2: Axiata preferred stock paying a dividend of RM6 and selling for RM40. Your required rate of return is 14% Alternative 3: Digi common stock selling for RM50. The stock recently paid a RM5 dividend. The company’s return on equity is 16% and the company keeps 60% of the profits for reinvestment. You think a reasonable required rate of return for the stock is 18%. Required: b. Based your answer in (a) choose the best alternative(s) for your investment and provide the reason.Note: No need excle formula , thank you
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Pls do fast ...i will give like for sure Try to give solution in typed form.. need workings to be shown please
I corporate bond offering 10%, muncipal hand offering 7% interest with other conditions remaining the same, which one is a investment 1 is 20% Assume your better. tax bracket 2 what are the limitations of financial statements and financial ratio analyses 2.
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5. A securities firm has provided the balance sheet below. Assets ($ millions) $ 34 Liabilities and Equity ($ millions) Short-term funding Cash $ 27 Debt securities 175 Bonds 300 Equity securities 400 Debentures 197 Other assets 12 Equity 97 Total Assets $ 621 Total Liabilities and Equity $ 621 The debt securities have an annual 7.25% coupon rate, 22 years to maturity and a yield to maturity of 6.75%. The market value of the equity securities and the other assets is equal to their book value. The firm has 500,000 shares outstanding and the price per share is $35.67. a. Calculate the firm's aggregate indebtedness to net capital ratio. b. Calculate the firm's highly liquid assets to total liabilities ratio. Based on the firm's ratios from a and b, is it in compliance with Rule 15C 3-1? Why or why not? C.
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