1. Knight Transportation, Inc. issued bonds on January 1, 2000 with a face value of $1000 per bond. They are due on Janu...

Get help with any kind of assignment - from a high school essay to a PhD dissertation

  1. Order Custom Essay, Course Work, Research and Term Papers

Knight Transportation, Inc. issued bonds on January

April 14, 2018

  • 1. Knight Transportation, Inc. issued bonds on January 1, 2000 with a face value of $1000 per bond. They are due on January 1, 2003. The coupon rate is 6.10% and the market rate is 5.80%. What is the market value of the bond and why? Use an Excel template and copy the answer to solution window.
  • Assume Chicago Corporation pays a $5.00 dividend and will have a sale price of $200 in one year. The current required rate of return is 20%. What is the current value of the share?


  • 2. Assume the dividend in the next period is $10, the market rate is 12%, and the grow rate is projected at 4%. What is the current value of a share of stock?
  • 3. Crescent Industries management is planning on replacing some machinery in its plant. The projected cash flows are shown below. The firm uses an 18% cost of capital.
  • 4. Net Present Value Calculations

Year

Cash Flow

0

($3,300,000)

1

$875,123

2

$966,222

3

$1,145,000

4

$1,250,399

5

$1,504,455

  • 6. Hathaway, Inc., a resort management company, is refurbishing one of its hotels at the cost of $6.8 million. Management expects this will lead to additional cash inflows of $1.8 million each year, over the next five years. Cost of capital is 12%. Calculate the IRR. Should they go ahead with this project?
  1. 7. Spokane Foundry plans to spend $1,000,000 on new tooling. They are projecting this investment will generate $300,000 a year over the next five years. Depreciation is projected to be $100,000 per year. The tax rate is 30% and they use a 20% discount rate. What is the NPV after taxes taking depreciation into consideration? Should they make the investment?










OUR SERVICE CHARTER






  • 100% Plagiarism-Free Guarantee

    We deliver top-quality essays through employing various measures that seek to improve the content of a given assignment. One of the quality-control systems that we use entails plagiarism checkers. These systems help us to deliver a 100% plagiarism-free papers to our clients. We also value the originality of papers, and we do not resell any submitted paper. It means that every client always gets a unique paper. Additionally, our perfect team of writers is usually keen on the academic writing standards as well as the instructions brief that a client submits. Our team of writers holds matchless competence when it comes to its service delivery. Every member of the team usually has an academic degree, and the team’s diversified skills make it possible for us to have a qualified writer in any client’s area of study. Additionally, our past clients have always given a positive feedback on each of our writers.

  • Better Grades Guarantee

    Our team of writers prides in high-level competence. The writers have the required expertise that enables them to deliver quality papers that match with the requirements of the grading rubric. In the absence of the rubric, we ensure that the writers follow the clients’ instruction brief to the letter. We can confidently assure our clients to expect nothing short of a pass from the papers that we deliver. Importantly, we have qualified writers who handle different areas of study. This diversification enables us to allot clients’ orders to the writer who is well seasoned in the subject area of study. It also enables the team to become more professional due to specialization. Our clients should put their trust in our service delivery and expect to successfully attain high grades at all times. The fact that we offer free revision reflects our dedication in delivering high quality papers that match with our clients’ expectations.

  • Excellent Quality Work

    Grammar is one of the elements that we take seriously in our service delivery. Beside the use of spell checkers, we progressively take our writers through the essentials of a quality paper that features information clarity. Importantly, we encourage our writers to avoid coming up with a paper that deviates from the elements that appear on the client’s instruction brief. It means that the papers that we deliver denote well researched information that is rich in details. Additionally, the papers usually contain exhaustive details on any instruction that a client submitted. It is the tireless application of our writers’ efforts that makes us stand out when it comes to the delivery of excellent quality work. Notably, our writers use quality resources when digging up information that a paper requires. They are usually aware of the sources that contain rich information. Our past clients have proved that we give nothing short of quality work through giving us a positive feedback.

  • Free Revisions

    The papers that we deliver usually reflect a high quality level. However, there is always a room for any additional fine-tuning touch in line with a client’s preference without any additional charges. To begin with, a client has discretion to make a choice on their preferred top writer from our team. Such a writer could have handled past work for the client and received a positive review from the same. It means that the client has confidence of the quality of service that the writer delivers. Secondly, a client has an option of making use of our editing services. Our editors are always on standby to revise the paper and ensure that it matches with the expectations of a client that the instruction brief had detailed. The revision covers content adjustment that removes off-topic details, addition of sources, removal of language style errors, and assessment of the referencing style in order to enhance compliance.




Related Questions