26 Jul WHAT PRICE DID YOU PAY FOR THE BOND?
s earni Show more Yesterday Dexters Laboratory paid a dividend of $4.20 a share on its common stock. The firms earnings and dividends are expected to grow indefinitely at 5% and the market requires a 15% rate of return on Dexters common stock. Ten years ago you purchased a convertible debenture of Dexters Lab. At that time the bond had 20 years left to maturity and its yield to maturity was 12% a year compounded semi-annually. The $1000 par value bond pays an annual coupon of 14% compounded semi-annually. The bond is convertible into Dexters common stock at a conversion price of $25 a share. {a} What price did you pay for the bond? {b} What annual internal rate of return did you earn over the last 10 years if you convert the bond today? {c} What annual rate of return did you earn over the last 10 years if instead of converting you surrender the bond when it is called today at $1090? Show less
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.