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Question 1: (10 points). (Bond valuation) Calculate the value of a bond that matures in 12 years and has $1,000 par value. The annual coupon interest rate is 9 percent and the market’s required yield to maturity on a comparable-risk bond is 12 percent. Round to the nearest cent.

The value of the bond is

Question 2: (10 points). (Bond valuation) Enterprise, Inc. bonds have an annual coupon rate of 11 percent. The interest is paid semiannually and the bonds mature in 9 years. Their par value is $1,000. If the market’s required yield to maturity on a comparable-risk bond is 14 percent, what is the value of the bond? What is its value if the interest is paid annually and semiannually? (Round to the nearest cent.)

a. The value of the Enterprise bonds if the interest is paid semiannually is	$
b. The value of the Enterprise bonds if the interest is paid annually is	$

Question 3: (10 points). (Yield to maturity) The market price is $750 for a 20-year bond ($1,000 par value) that pays 9 percent annual interest, but makes interest payments on a semiannual basis (4.5 percent semiannually). What is the bond’s yield to maturity? (Round to two decimal places.)

The bond’s yield to maturity is

%

Question 4: (10 points). (Yield to maturity) A bond’s market price is $950. It has a $1,000 par value, will mature in 14 years, and has a coupon interest rate of 8 percent annual interest, but makes its interest payments semiannually. What is the bond’s yield to maturity? What happens to the bond’s yield to maturity if the bond matures in 28 years? What if it matures in 7 years? (Round to two decimal places.)

The bond’s yield to maturity if it matures in 14 years is		%
The bond’s yield to maturity if it matures in 28 years is		%
The bond’s yield to maturity if it matures in 7 years is		%

Question 5: (15 points). (Bond valuation relationships) Arizona Public Utilities issued a bond that pays $70 in interest, with a $1,000 par value and matures in 25 years. The markers required yield to maturity on a comparable-risk bond is 8 percent. (Round to the nearest cent.) For questions with two answer options (e.g. increase/decrease) choose the best answer and write it in the answer block.

Question	Answer
a. What is the value of the bond if the markers required yield to maturity on a comparable-risk bond is 8 percent?	$
b. What is the value of the bond if the markers required yield to maturity on a comparable-risk bond increases to 11 percent?	$
c. What is the value of the bond if the market’s required yield to maturity on a comparable-risk bond decreases to 7 percent?	$
d. The change in the value of a bond caused by changing interest rates is called interest-rate risk. Based on the answer: in parts b and c, a decrease in interest rates (the yield to maturity) will cause the value of a bond to (increase/decrease):
By contrast in interest rates will cause the value to (increase/decrease):
Also, based on the answers in part b, if the yield to maturity (current interest rate) equals the coupon interest rate, the bond will sell at (par/face value):
exceeds the bond’s coupon rate, the bond will sell at a (discount/premium):
and is less than the bond’s coupon rate, the bond will sell at a (discount/premium):
e. Assume the bond matures in 5 years instead of 25 years, what is the value of the bond if the yield to maturity on a comparable-risk bond is 8 percent? $ 960.07 Assume the bond matures in 5 years instead of 25 years, what is the value of the bond if the yield to maturity on a comparable-risk bond is 11 percent?	$
f. Assume the bond matures in 5 years instead of 25 years, what is the value of the bond if the yield to maturity on a comparable-risk bond is 7 percent?	$
g. From the findings in part e, we can conclude that a bondholder owning a long-term bond is exposed to (more/less) interest-rate risk than one owning a short-term bond.

Question 6: (5 points). (Measuring growth) If Pepperdine, Inc.’s return on equity is 14 percent and the management plans to retain 55 percent of earnings for investment purposes, what will be the firm’s growth rate? (Round to two decimal places.)

The firm’s growth rate will be

7.70

%

Question 7: (10 points). (Common stock valuation) The common stock of NCP paid $1.29 in dividends last year. Dividends are expected to grow at an annual rate of 6.00 percent for an indefinite number of years. (Round to the nearest cent.)

a. If your required rate of return is 8.70 percent, the value of the stock for you is:	$
b. You (should/should not) make the investment if your expected value of the stock is (greater/less) than the current market price because the stock would be undervalued.

Question 8: (10 points). (Measuring growth) Given that a firm’s return on equity is 22 percent and management plans to retain 37 percent of earnings for investment purposes, what will be the firm’s growth rate? If the firm decides to increase its retention rate, what will happen to the value of its common stock? (Round to two decimal places.)

a. The firm’s growth rate will be:	8.14%
b. If the firm decides to increase its retention ratio, what will happen to the value of its common stock? An increase in the retention rate will (increase/decrease) the rate of growth in dividends, which in turn will (increase/decrease) the value of the common stock.

Question 9: (10 points). (Relative valuation of common stock) Using the P/E ratio approach to valuation, calculate the value of a share of stock under the following conditions:

• the investor’s required rate of return is 13 percent,

• the expected level of earnings at the end of this year (E₁) is $8,

• the firm follows a policy of retaining 40 percent of its earnings,

• the return on equity (ROE) is 15 percent, and

• similar shares of stock sell at multiples of 8.571 times earnings per share.

Now show that you get the same answer using the discounted dividend model. (Round to the nearest cent.)

a. The stock price using the P/E ratio valuation method is:	$
b. The stock price using the dividend discount model is:	$

Question 10: (10 points) (Preferred stock valuation) Calculate the value of a preferred stock that pays a dividend of $8.00 per share when the market’s required yield on similar shares is 13 percent. (Round to the nearest cent.)

a. The value of the preferred stock is

$

Per share

Part 1 ( essay ) : E-commerce Business Plan

Write an e‐commerce business plan. Explain who will be the target customers, what products or services will be sold to customers, what value you plan to offer to customers to attract them to your business, how the business will earn a profit, and what technologies will need to be in place for the e‐commerce plan to be successful. Explain any other relevant requirements for the success of your e‐commerce business plan. Your plan should be between 500 and 1000 words.

Part 2: short comment ( required text book: O’Brien, J.A. Marakas, G. Introduction to Information Systems: Essentials for the e-Business Enterprise (16th edition), McGraw-Hill Higher Education, Boston, MA.)

Identify one topic from chapters 9, 10, 11 or 12 that you found most interesting and useful for you personally and professionally. Do NOT chose one topic from every one of these four chapters–only one topic out of these four chapters. Explain why you found this topic to be most interesting and useful for your education and preparation for your future professional goals. Your comment should be between 250 and 500 words

Part 3: (Integration)
Why is it important and useful for organizations to have cross-functional, integrated enterprise systems rather than separate, disconnected silos? If you were hired by Texas A&M University at Corpus Christi as a consultant and asked for recommendations about how this university can better achieve cross-functional integration across the enterprise with the help of information and communication technologies, what recommendations would you make? Explain how your recommendations can be implemented and what benefits can be derived for students, professors, members of the staff and administrators and for other stakeholders of this university from cross-functional integration. [Your comment should be between 300 and 500 words].

In the paper you are required to develop a short history of where the U.S. macroeconomy has been (last 5 years or so), currently is, and is expected to go covering all the major measures (real gdp, employment, inflation, interest rates, etc.). You are also expected to examine how the financial sector (banks and interest rates) and monetary policy combine to provide a means for macroeconomic management. Develop a paper that describes recent historical and current macroeconomic conditions in the U.S. domestic economy. In your report you should discuss the major National Income and Product Account (NIPA) components (eg. GDP, C, I, G, Net Exports, etc.) and address how they have been changing over the last five years or so. Discuss economic growth, employment and inflation conditions, and the business cycle. Also develop a financial market (interest rate) perspective where you examine money, financial markets, and federal reserve policy. Use sources from the FED, especially the most recent minutes from a Federal Open Market Committee FOMC) meeting. 

1. At the end of your first day, you’re confused to see your factory workers continuing to work well past the end of their 8-hour shift. You then go to the factory supervisor (who reports to you) to express concern because the factory does not have the budget to pay so many workers overtime. The supervisor smiles at you and explains that the factory meets production goals by making the factory workers work off the clock. The workers are well aware of this expectation and went along with it in order to keep their jobs. You’re shocked to learn this illegal practice had become part of the company culture, but the supervisor explains that the company’s CEO (who is your boss) is well aware of this expectation.

This does not need to be a paper. Just a discussion piece.

Please see attached 2 files for 1st Project:

* Project’s outline/requirements from the professor

* Old projects from 2013 – 99% turn-it-in. This file will be used as the “base” for my project. It has old data from 2013 – s/b all replaced by new data (from 2016 is possible and/or available).

I attached old project so you can see how it was done in the past and also my project is on AT&T too. Please make sure to use current info and calculations.