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- A company has an 8% bond that has a face value of $1000 and matures in 30 years. Assume that coupon payments are made semi-annually. The bonds are...
A record company bought the rights to an artist’s music catalogue and they expect to receive royalty payments of $60,000 per year forever (a perpetuity). What is this cash flow worth? Assume interest rates are 3.3%.
A) $181,818B) The value is infinite.C) $363,636D) $1,818,182E) $60,000- Given the following, calculate the intrinsic value per share of Company XYZ’s stock: Corp. Value - $26 million Bonds Outstanding - $10 million ST Liabilities - $350 thousand LT Growth Rate – 6% Beta – 1.2 Shares Outstanding – 1.5 millionA) $11.06B) $24.23C) $12.52D) $17.33E) $10.43
