John smith4 Essay Example | Topics and Well Written Essays - 250 words

John smith4 - Essay Example Secondly, during his voyages, Captain John Smith made the first map of the region. This map also led to the discovery of Jamestown and people we able to access the town using the maps made by the captain. The article is written to appreciate the contributions that one Captain John Smith made towards making Jamestown one of the earliest towns to be inhabited in the history of America. It also seeks to appreciate the significant strides that the town has taken in the last 400 years. The articles intended audience is the people of Jamestown. The article will help them appreciate where the town has come from and the strides it has taken to be where it is today and also celebrate the people who have helped the town like Captain John Smith. I was interested in captain Smith voyages in which he travelled over 1500 miles with a bowing boat. These were the excursions that made him draw up the map of Jamestown. I was also interested in how the town decided to commemorate Captain John Smith by having a similar voyage to which he had 400 years

Introduction to Finance - coursework Research Paper

Introduction to Finance - coursework - Research Paper Example ary if the interest rate in the market goes down to 5 % the investor will try more n more to get a hold on organization's bond since your bond is paying higher interest rates than that prevailing in the market. Therefore the bond prices will go up. Bondprices = (60000 / 2 ) x {1 - (1+ .05 / 2 )-2x15 } / ( .05 / 2) + 1,000,000 / ( 1 + .05 / 2 )2 x 15 = 1104651.463 > 1000,000 (par value) if the bond's prices for a company are going higher It will add value to the name of the company and the stock prices will also go up for such a company f) The Expected rate of reurn = dividend yield + capital gain (Bearly & Myers, 2001) Dividend yield = next dividend payment / current price of the stock = Do x (1 + g) / price of the stock Here, Do = last dividend payment = 3.21 g = 7% price of stock = 75.529 Dividend yield = Do x (1 + g) / price of the stock = 3.21 x (1+ .07) / 75.529 = .04547 Capital gain yield = (P1 - Po) / Po = (73 - 75.529 ) / 75.529 = -0.0334 rate of reurn = 0.04547 - 0.0334 = 0.1199 = 11.99% f) the current valuue of stock: Po = Do (1+g)/(Ks-g) Po = 3.21(1+.07)/(0.1199-.07) Po = 68.83. Recommendations Currently the bonds of the company are being traded at $874,420. this price is very much below the par value of the stock . the bond has a coupon rate of 6% attached to it while the current interest rate prevailing in the market is 7.4152%. the company is offering an interest that is below the prevailing interest rate and hence the investors find a low interest in company's bond which is resulting in the decline of price. "If overall interest rates in the market later fall, prices of existing, higher interest-rate bonds generally will rise. That's because the existing bonds are more attractive to buyers than new, lower interest-rate...Therefore the bond prices will go up. Currently the bonds of the company are being traded at $874,420. this price is very much below the par value of the stock . the bond has a coupon rate of 6% attached to it while the current interest rate prevailing in the market is 7.4152%. the company is offering an interest that is below the prevailing interest rate and hence the investors find a low interest in company's bond which is resulting in the decline of price. "If overall interest rates in the market later fall, prices of existing, higher interest-rate bonds generally will rise. That's because the existing bonds are more attractive to buyers than new, lower interest-rate bonds and, as a result, are typically offered at higher prices (seligman, 2007)". This debt through bonds make the firm risky since it is covering 50% of the total rrquirement by APEX. APEX requires a total financing of $2,000,000 and the bond are issued for $1,000,000. Covering half of your financing requirement through debt exposes the organization to greater risk and reduces the credibility of investors towards organization. Mr. Thinkard should wait for time when the interest rates in the market falls below the coupon rate on bonds. this will cause increase in bond price and Mr.