Financial Analysis

Financial analysis

Problem - 14-5

Amear Kyle - Non-convertible Bonds

PMT= 22.5

Yield =3.75

FV= 1000

N=60

PV=643.93

Problem - 14-13

Captain Nathan Brittles - Convertible Bonds

Face value

1000

Years to maturity

20

Rate

9.000%

Price

70

The conversion feature

Conversion value

$1,400.00

Conversion shares per bond

0.7

Current stock price

$70

Conversion premium

1900%

Problem - 13-5

Howard Beal Co. - Break Even Analysis

a. What is the construction margin of the product?

The construction margin of the product is;

$28 - $16 = $12 , Thus the contribution margin of the company is $12.

b. Calculate the breakeven point in unit sales and dollars

Contribution margin ratio = $12 ÷ $28

Contribution Margin Ratio = 42.85 %

Break Even in Sales $= Total Fixed Cost ÷ contribution margin ratio

Break ...