If $2,000 is invested at 7% annual interest compounded continuously, how much will accumulate in 2 years?
Please show how you get the answers 1. A $50 dollar computer program is on sale for $37.50. What is the percent decrease? 2. Peggy earns $10.68 per piece as a garment worker. What are her total wages if she had the following production rate? Monday 81, Tuesday 88, Wednesday 92, Thursday 93, and Friday 89. 3. Find the or
On April 30th,2007, Empire Bank loaned $100,000 to a customer on a one year, 9% note: a) Compute the interest for the year ended December 31st, 2007 and 2008 for the customers note. b) How much in total would the customer pay the bank if he pays off the note early, say on November 30th, 2007
You intend to purchase a 10-year, $1,000 face value bond that pays interest of $60 every 6 months. If your nominal annual required rate of return is 10 percent with semiannual compounding, how much should you be willing to pay for this bond?
Please answer the following two problems: 1: Interest Rate Parity The current 90-day interest rate in the United States is 1 percent. The current 90-day interest rate in France is 2 percent. The current spot rate for the French franc (FF) is $0.18679/FF. If the interest rate parity (IRP) holds between the United States an
(See attached file for full problem description) Fill in the blanks on the financial statements provided. Then, calculate return on assets (ROA), total asset turnover, and book value per share (assume 50 million shares outstanding). All dollar figures are in thousands.
7/1 Warr corporation just paid a dividend of $1.50 a share (i.e., D0 =$1.50). the dividend is expected to grow 5 percent a year for the next 3 years, and then 10 percent a year thereafter. What is the expected dividend per share for each of the next 5 years? 7/6 A stock is trading at $80.00 per share. The stock is expecte
If I have a home loan for $224,000.00 at a 8% variable monthly interest rate for 30 years what is my monthly payments and can you show me how you got it? Also suppose I had to move within in one year and the interest payments over the first year were $17,852, would it be better to rent the property if it would cost me $1400.0
Suppose you deposit $10,000 dollars for 2 years at a rate of 10%. calculate the return (A) if the bank compounds annually (n = 1) Round your answer to the hundredth's place. Now calculate the return (A) if the bank compounds quarterly (n=4). Now calculate the return (A) if the bank compounds monthly (n=12). Now calculate th
Circle the one best answer. Circle the correct one 1. The amortization of premium on bonds payable a. will increase bond interest expense. b. should take place over a period not to exceed 40 years. c. will decrease bond interest expense. d. will increase bond interest revenue. 2. A corporation issued $600,000 of 8%, 5
Prepare a 700-1,050 word response for this Mini-case: You will need to follow all assumptions in the Mini-case precisely and carefully to complete the following: a. Identify the steps necessary to financially plan and forecast for 2005, 2006, and 2007, b. Project future years using the growth rate assumptions
The Ness Company sells $5,000,000 of five-year, 10% bonds at the start of the year. The bonds have an effective yield of 9%. Present value factors are below: 10% 9% PV factor 1 year 0.90909 0.91743 PV factor 2 years 0.82645 0.84168 PV factor 3 years 0.75131 0.77218 PV factor 4 years 0.
An old lady known to you as "Granny" has been evaluating an investment proposal from her son, Uncle Sal. Sal suggests that the investment is "too good to pass up," but based on past performance, Granny is suspicious. After doing some research, Granny has determined that Sal's investment has a high risk of default, for which sh
Greg Miller wants to buy a new automobile. The dealer has the exact car Greg wants, and has given Greg two payments options: (1) pay the full cash price of $19,326 today, or (2) pay only $2,000 down today and then make four more annual payments of $5,000 each beginning one year from today. Greg doesn't have the cash needed t
1) The treasurer of Riley Coal Company is asked to compute the cost of fixed income securities for her coroporation. Even before making the calculations, she assumes the aftertax cost of debt is at least 2 percent less than that for preferred stock. Based on the following facts, is she correct? Debt can be issued at a y
The following information is available for the Parker Company: Credit sales during 2005 $100,000 Allowance for doubtful accounts at December 31, 2004 1,200 Account receivable deemed worthless and written off during 2005 1,600 During 2005 Parker estimated that its bad debt expense should be 1% of all credit sales. As
(See attached files for full problem descriptions) 17 problems all together. The first 12 are multiple choice. Problems 13 through 17 are short answer problems. Pages 8-10 are four tables at the end that may help. Please show all computations, clearly labeled. Please send this to me in a Word document. The entire thing
A business invests $10,000 in a savings account for two years. At the beginning of the second year, an additional $3500 is invested. At the end of the second year, the account balance is $15,569.75. What was the annual interest rate? keywords: solving, solve, evaluate, evaluating, finding, find
Bob has a rich uncle who wishes to help with his education. He will invest in a bond fund paying 4% compounded semi-annually and maturing in 18 years. How much should he invest if he wants the value of his bond fund to be worth $85,000 when it matures? _____ ?
A child's grandparents purchased a $10,000 bond fund maturing in 18 years to be used for her college education. The bond fund pays 4% compounded semi-annually. How much will the bond fund be worth at maturity?
What is the WACC for the following business that is 40% financed by common stock and 60% financed by debt
What is the WACC for the following business that is 40% financed by common stock and 60% financed by debt, if the tax rate is 20%. The stock pays no dividends and is priced at $14 and is expected to rise to $16 in one year's time. The bonds are selling for 102% of par value, 3 years to maturity and have a coupon rate of 10%.
Warrants: Exercise Value of Warrants, Price of Warrants, Effect of different factors (life, variability, growth rate of stock price, dividend policy) on warrant's price, coupon interest rate on the bonds with warrants that the company wishes to sell.
Maese Industries Inc. has warrants outstanding that permit holders to purchase 1 share per warrant at a price of $25. a. Calculate the exercise value of the firm's warrants if the common sells at each of the following prices: (1) $20, (2) $25, (3) 30, (4) $100. (Hint: A warrant's exercise value is the difference between the s
I borrowed 33 1/3 percent of the appraised value to purchase a comercial property. The lender charged me interest at the rate of 11% per annum. My interest for the first ayear amounted to 5,315.51. What was the appraised value of the property and how did you get it?
Cal owes $10,000 now, a lender will carry the debt for five more years at 10 percent interest. In this particular case, the amount owed will go up by 10 percent per year for 5 years. The lender then will require that Cal pay off the loan over the next 12 years at 11 percent interest. What will his annual payment be? 2) I
(See attached file for full problem description) --- Rollins Corporation has a target capital structure consisting of 20 percent debt, 20 percent preferred stock, and 60 percent common equity. Assume the firm has insufficient retained earnings to fund the equity portion of its capital budget. Its bonds have a 12 percent cou
# 22 page 233 Columbus shipping co is negotiating with 2 banks for a 100,000 loan. Bankcorp of Ohio requires a 20 percent compensating balance, discounts the loan, and wants to be paid back in four quarterly payments. Cleveland bank requires a 10 percent compensating balance does not discount the loan but wants to be paid b
Question # 10: If the interest rate in the United Kingdom is 8% the interest rate in the US is 10%, the spot exchange rate is $1.75/£ and interest rate parity holds, what must the one-year forward exchange rate? Question # 11 Suppose all of the conditions in question 10 hold except that the forward rate of exchange i
1) Bank A offers to lend me the required funds on a loan in which interest must be paid monthly, and the quoted rate is 8 percent. Bank B will charged 9 percent, with interest due at the end of the year. What is the difference in the effective annual rates charged by the two banks? 2) A corporation is growing at a constant r
David Company acquired 60 percent of Mark Company for $300,000 when Mark's book value was $400,000. On that date, Mark had equipment (with a 10-year life) that was undervalued in the financial records by $60,000. Also, buildings (with a 20-year life) were undervalued by $40,000. Two years later, the following figures are reporte
A.After 12 months of making extra payments, what will be the loan balance? B. .After 12 months of making the regular payment and investing the $50, what will be the loan balance? C. Under the regular payment and investing option, excluding the tax due on the interest earned, what is the investment balance after 12 months? D.Compare the scenarios of investment versus prepayment by examining the 60th payment, which occurs at the end of the fifth year. What is the difference between the (a) interest portion of that payment, (b) tax deduction for interest, and (c) principal balance? Finally, how much is in the investment account? See others also.
The data you will need for the prepayment scenario include the following. Loan Balance: $135000 Current Payment: $990.62 Additional Payment: $50.00 Loan Interest Rate: 8.0% Loan Interest Deductibility: YES Investment Rate Return: 6.00%* Tax Bracket: 30.00% Investment Type: After-Tax *The Investment rate ret