Business & Finance homework help. These are answers for several problems for a finance class; however, the professor wants the answers and calculations done in excel. Please complete this through excel (DO NOT COPY AND PASTE THEM). Excel has to do all the calculations
6.1
- The Ask price is $10,000 x 107.5391% = $10,753.91
- The Bid price is $10,000 x 100.0391% = $10,003.91
6.8
If your marginal tax rate is 21 percent, the after-tax or equivalent tax exempt yield on the taxable bond is
9.5% (1 – 0.21) = 7.51%
6.15
Before the rating change:
Vb = ($1,000(6.5%)/2) {[1-(1/(1 + 0.072/2)2(15))]/0.072/2} + 1,000/(1 + 0.072/2)2(15)
Solving for Vb, we get $936.4268335.
Before the rating change:
Vb = ($1,000(6.5%)/2) {[1-(1/(1 + 0.072/2)2(15))]/0.072/2} + 1,000/(1 + 0.072/2)2(15)
Solving for Vb, we get $936.4268335.
On a financial calculator: PMT = 32.50, FV = 1,000, I = 7.20/2 = 3.60, N = 15(2) = 30=> PV = -936.4268335
After the rating change:
Vb = ($1,000(6.5%)/2) {[1-(1/(1 + 0.085/2)2(15))]/0.085/2} + 1,000/(1 + 0.085/2)2(15)
Solving for Vb, we get $832.2098283.
On a financial calculator: PMT = 32.50, FV = 1,000, I = 8.5/2 = 4.25, N = 15(2) = 30=> PV = -832.2098283
$ change in Vb = $832.2098283 – $936.4268335 = -$104.2170052
% change in Vb = ($832.2098283 – $936.4268335)/$936.4268335 = -$104.2170052/$936.4268335 = -11.129%
8.1
- With cumulative voting, the total number of votes available is 75,000,000 (= 15 million shares outstanding x 5 directors). If there are six candidates for the five board positions, the five candidates with the highest number of votes will be elected to the board and the candidate with the least total votes will not be elected. In this example, the minimum number of votes needed to ensure election is one sixth of the 75 million votes available, or 12,500,000 votes. If one candidate receives 12,500,000, the remaining votes together total 62,500,000. No matter how these votes are spread over the remaining 5 director candidates, it is mathematically impossible for each of the 5 to receive more than 12,500,000. This would require more than 5 x 12,500,000 votes, or more than the 62,500,000 votes that remain.
- With straight voting, the vote on the board of directors occurs one director at a time. Thus, the number of votes eligible for each director is 15,000,000, the number of shares outstanding. The minimum number of votes needed to ensure election is one half 15 million votes available, or 7.5 million.
