The bonds mature in 8 years, have a face value of $1,000, and a yield to maturity of 8.5%. What is the price of the bonds? 50*11.44+1000*.5138 = 1086 • 5-13 Yield to Maturity and Current Yield You just purchased a bond that matures in 5 years. The bond has a face value of $1,000 and has an 8% annual coupon. The bond has a current yield of 8.21%.
References.........................................................................................................................9 Situation & Strategic Issues and Problems The J.C. Penney Brand James Cash Penney founded J.C. Penney in 1902. With more than 2000 stores across the country, Mr. Penney believed in treating his customers the way he wanted to be treated. Over the years, the company has continued to grow and expand their annual sales. Penney customers were able to shop for appliances, house wares, electronics, sporting goods, and apparel for the family in one location. In addition, the company’s mail order catalog help boost annual sales in excess of $1 billion by their 50th birthday (Ofek & Avery, 2013, p. 2).
By the end of 1989, Nordstrom department stores sales were close to $3 billion with one of the highest profit margins in the industry. Nordstrom which went public in 1971 (NYSE: JWN), has been managed by the Nordstrom family, who until present day still own about half of the company. The family has maintained the philosophy of the company’s founder: “offer the customer the best in service, selection, quality, and value”. This philosophy has helped Nordstrom gain a considerable market share while enjoying over 20 years of uninterrupted earnings growth [Stevenson 1989]. During
Lowe’s being apart of the top four retailers with home center segment represented 90% of their industry revenues, which was highly concentrated. Since many home centers were located close to one another, the industry was competitive, extremely within their price points. Lowe’s however by economic growth the company was extremely affected, for about seventy five per cent of homeowners completed a renovation project on their property annually. Lowe’s enlarge its store and product selection in the 1990s to cater to the do-it-yourself homeowner. The rapid growth of Lowe’s leaded to opening stores in Mexico and Canada within 2008.
Winston has $10 billion in total as- sets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 800 million shares of common stock outstanding. What is Winston’s market/book ratio? Answer Market value per share =$75 Common equity= 6,000,000 Number of share outstanding =800,000,000 Market to book ration = $75/(6,000,000/800,000,000) 6,000,000/800,000,000=.75 Market to book ration= 75/.75= 100 3-4 Price/Earnings Ratio A company has an EPS of $1.50, a cash flow per share of $3.00, and a price/cash flow ratio of 8.0.
With 142,000 employees and more than 500 branches worldwide, Costco focus on providing inexpensive product in big box. Many of its products are up to 50% cheaper compared to other stores such as Wal-mart and BJ Wholesale Ralphs. In 2008 Costco was ranked as the 14th most admired company in the United States (CNNMoney, 2008) Costco’s financial strength and diversification enables the company to maintain its strong market position in the industry. According to OneSource (2009), the company reported revenues of $72 billion in 2008, which was a 2% increase compared with $62 billion the previous year. According to the Costco Wholesale Corporation Company Profile (Datamonitor, 2009), 78.5% of total revenue comes from the United States, the company’s largest geographical market, it is an increase of 10.4% from 2007.
Target is #38 on the Fortune 500’s annual ranking of America’s largest corporations. While Target Corporation is the second-largest discount retailer in the United States behind Wal-Mart it still does pretty well for itself. Chairman, President, and CEO Gregg Steinhafel expressed how well they were doing and continuing to grow in his letter to Target’s shareholders in the 2011 annual report. Steinhafel discusses their differentiated product assortment, ambitious store remodel program, increased investment, and their fun and aspirational marketing approach. Steinhafel goes on to say that they have set goals for the future.
Winston has $10 billion in total as- sets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 800 million shares of common stock outstanding. What is Winston’s market/book ratio? Answer Market value per share =$75 Common equity= 6,000,000 Number of share outstanding You must Login to view the entire essay.
Answer the following questions. During the year, total liabilities increased $100,000 and stockholders' equity decreased $70,000. What is the amount of total assets at the end of the year? 4. 1500 As of December 31, 2014, Stoneland Company has assets of $3,500 and stockholders' equity of $2,000.
Short Term Objective: Increase sales revenue by 30% over the next 3 years while reducing the cost of sales by 5% per year. Also, increase the earnings by 24% over the next 3 years. Long Term Objective: To become the premier financial firm in the world. What is the business model and how will it drive IDS’s growth? IDS representatives had the most success in small towns and mid sized communities in the Midwest where the cost of doing business was low and competition was not as strong as larger metropolitan areas.