for $935.23. The bonds have a face value of $1,000 and mature in 10
years. What is the expected percentage price increase in these
bonds each year (the capital gain yield)?
2. A six-year project has an initial requirement of
$350,000 for fixed assets and $50,000 for net working capital. All
the net working capital will be recouped at the end of the project.
The annual operating cash flow is $150,000 and the discount rate is
10 percent.
- 1 Some 8 0 Percent Semiannual Coupon Bonds Are Selling For 935 23 The Bonds Have A Face Value Of 1 000 And Mature In 1 (15.28 KiB) Viewed 72 times
c) What is the Profitability Index?
(a) Fill in the chart as appropriate (there will not be entries in every cell) 0 1 2 3 4 5 6 YEAR Fixed Assets OCF Working Capital Total Cash Flow