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Tarea 9 Finanzas Corp

This document contains solved problems and their step-by-step workings related to finance topics like bond valuation, stock valuation, and preferred stock valuation. Some key problems covered include calculating inflation rate given nominal and real returns, determining the coupon rate needed for new bonds to sell at par value, valuing stocks given growth rates and required returns, and calculating the required return on preferred stock given its price and dividend amount.

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67 views7 pages

Tarea 9 Finanzas Corp

This document contains solved problems and their step-by-step workings related to finance topics like bond valuation, stock valuation, and preferred stock valuation. Some key problems covered include calculating inflation rate given nominal and real returns, determining the coupon rate needed for new bonds to sell at par value, valuing stocks given growth rates and required returns, and calculating the required return on preferred stock given its price and dividend amount.

Uploaded by

vuzo123
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as XLSX, PDF, TXT or read online on Scribd
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PROBLEMAS CAPITULOS 8 Y 9

HUGO CORONA PLATT


A01685094

21 DE MARZO DE 2020
PROFESOR TITULAR: DR. LUIS HUMBERTO S
PROFESOR TUTOR: MTRA. KARLA MACIAS G
ULOS 8 Y 9

UIS HUMBERTO SANTACRUZ MEDINA


KARLA MACIAS GONZALEZ
12. Nominal and real returns. An investment offers a total return of 12% over the
coming year. Jerome Dowell thinks the total real return on this investment will be only
7%. What does Jerome believe the inflation rate will be over the next year?

Nominal 12% 1.12


Real 7% 1.07
Inflation rate 5% Nominal/Real - 1

21. Bond Yields. RAK Co wants to issue new 20 year bonds for some much needed expansion
projects. The company currently has 5.7% coupon bonds on the market that sell for $1,048.
have a par value of $1,000, make seminannual payments, and mature in 20 years.
What coupon rate should the company set on its new bonds if it wants them to sell at par?

Par value 1000


Coupon bond 5.7%
Payments 2
Interes 28.5 Par value * Coupon bond/Payments
Bond Price 1048
Mature 20
NPER 40 Payments x Mature
Coupon rate 5% Rate
1. Stock Values. The Nearside Co just paid a dividend of $2.07 per share on its stock. The
dividends are expected to grow at a constant rate of 4.3% per year indefinitely. If investors
require a return of 11% on the stock, what is the current price? What will the price be in
3 years? In 15 years?

Dividend 2.07
Expected growth 4.3%
Required Return 11% 1.11
Current price 27.83 Dividend x Return / Return - Expected Growth
Years 3
Price 3 38.07 Current Price x Growth ^ 3
Years 15
Price 15 133.17 Current Price x Growth ^ 15

7. Stock Valuation. Gruber Corp pays a constant $8.50 dividend on its stock. The company will mantain
this dividend for the next 11 years and will then cease paying dividends forever. If the required return
on this stock is 9.5%, what is the current share price?

Dividend price 8.5


Years 11
Return 9.5%
PVIFA 6.7098
Current Price 73.81 PVIFA x Years
8. Valuing Preferred Stock. Meteora Inc has an issue of preferr
pays a $3.75 dvidend every year in perpetuity. If this issue curr
share, what is the required return?

Preferred Stock 3.75


Price 81
Required Return 5% Preferred Stock / Price

y will mantain
uired return
ora Inc has an issue of preferred stock outstanding that
n perpetuity. If this issue currently sells for $81 per

eferred Stock / Price

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