Middleton Expects to Buy a 9.5% Coupon, 15 years Bond Today When It is First Issued by Alex PLC: Accounting Assignment, CSU, Australia

University CSU
Subject Accounting

Question 1:

a. Middleton expects to buy a 9.5% coupon, 15 years bond today when it is first issued by Alex PLC. If interest rates suddenly rise to 12.5%, what happens to the value of Middleton’s bond? Why? (Word limit 20 – 30 words)

b. A corporate bond has a face value of $1 000, a coupon rate of interest of 10.5% per annum, payable semi-annually, and 20 years remaining to maturity. The market interest rate for bonds of similar risk and maturity is currently 8.5% per annum.

Required:

  1. What is the coupon payment of the bond?
  2. What is the present value of the bond?
  3. If the coupon payment is payable annual (based on the same information), what is the value of the bond?

Are You Searching Answer of this Question? Request Australian Writers to Write a plagiarism Free Copy for You.

Question 2:

a. Briefly discuss the relationship between the following: (Word limit 50-70 words)

  1. Share price and investors required rate of return
  2. Share price and dividend growth rate.

b. Otama LTD has an issue of preference shares outstanding that pays a $2.85 dividend every year. If this issue currently sells for $77.32 per share, what is the required return?

c. Price Tigers LTD expects to pay a $3.25 per share dividend next year. The company pledges to increase its dividend by 5.1% per year, indefinitely. If you require a return of 11% on your investment, how much will you pay for the company’s share?

Question 3:

The cash flows shown below were extracted from the accounts of Jason Taylor, a music shop owner.

The cash flows shown below were extracted

  1. Prepare a statement of cash flows using the direct method.
  2. Outline some cash flow warning signals.

Question 4:

Selected information for two companies competing in the catering industry is presented in the table below:

Selected information for two companies competing in the catering industry

Get Solution of this Assessment. Hire Experts to solve this assignment for you Before Deadline.

Required:

a. Calculate the following ratios for Lawson and Dawson:

  1. Current ratio.
  2. Return on Assets (ROA).
  3. Return on Equity (ROE).

b. From your calculations in Part (a), explain which entity is in a more favorable position.

c. Discuss two limitations of ratio analysis as a fundamental analysis tool.

Get Help By Expert

Seek help in completing your accounting assignment? Want to score high marks at Charles Sturt University (CSU) university in Australia? In order to become a master, you must take the help of expert Australian assignment writers of Australia Assignment Help who are doing Ph.D. in Accounting courses.  Our writers provide fast and accurate accounting assignment help.

Online Exam & Assignment Writing Services

50000+ Orders Delivered

4.9/5
5 Star Rating

Confidential & Secure Assignment Help For

Assessment Answer

Online Exam

Case Study Answers

TAFE & VET Levels

Tutorial Solutions

Summative & Individual

GBA & Reflective

MCQ Quiz & Test Help

Sample Assignment Download

BSBHRM405 Support Recruitment, Selection and Induction of Staff Assessment Answer
At present in every country is comprised of a huge number of companies and organizations providing their services. In both small or a big organization, there are certain departments. Few…
Business
HI5019-Strategic Information Systems For Business And Enterprise T2 Assessment-Holmes Institute Australia
Introduction: Part 1 1. The current organizational structure: 2. What operational problems (e.g., inefficiency, errors) do you think the organization could experience because of this structure?. 3. What is the…
Business

UP TO 50 % DISCOUNT

Instant Paper Writing Services by Native Australian Writers

Plagiarism Free Solutions
100% Original Work
24*7 Online Assistance
Native PhD Experts
Hire a Writer Now

Get help with Homework Assignments, Papers, and Projects