9. Marley Company received a seven-year, zero-interest-bearing note on February 22, 2008, in exchange for property it sold to O'Rear Company. There was no established exchange price for this property and the note has no ready market. The prevailing rate of interest for a note of this type was 7% on February 22, 2008, 7.5% on Dec
Find the exact interest. Use 365 days in a year, and use the exact number of days in a month. Round to the nearest cent, if necessary.
1. Find the exact interest. Use 365 days in a year, and use the exact number of days in a month. Round to the nearest cent, if necessary. $1080 at 11 1/2% for 80 days A) $124.20 B) $27.22 C) $26.04---my answer D) $27.60 2. Find the sum of the first five terms of the geometric sequence. a = 5, r = 4 A) 1715 B
You are offered the opportunity to buy a note for $10,000. The note is certain to pay $2000 at the end of each of the next 10 years. If you buy the note, what rate of interest will you receive on this investment (to nearest %) a. 15% b. 100% c. 20% d. 16% e. insufficient information to compute
You have just taken out a 30 year, $120,000 mortgage on your new home. This mortgage is to be repaid in 360 equal monthly installments. If the stated (nominal) annual interest rate is 14.75 percent, what is the amount of the INTEREST portion of the FIRST monthly installment? a. $1,475 b. $1,472 c. $1,493 d. $17,700 e. insuf
Find a recent article related to the economic goals of the President of the United States or Congress. Do you think these goals are politically driven, or are they clearly in the best interest of the country? Explain your answer. Be sure to site your source and include the URL if taken from the Internet
I need help in the attached type of questions. Kindly provide calculations to clarify. #1: Consider the following information about one of Sony's channels (and keep in mind that sales minus cost of goods sold results in $ gross margin): Sony's selling price (to its wholesalers) on a 42" television = $600. Sony's wholes
Investors expect the inflation rate to be 7% next year, to fall to 5% during the following year, and then to remain at a rate of 3% thereafter. Assume that the real risk free rate, r*, will remain at 2% and that maturity risk premiums on Treasury securities rise from zero on very short term securities to a level of .2% for 1-ye
7. The Splitz Corporation borrowed $5 million with a promise to repay $5.5 million in one year. The corporation had 10 million shares outstanding worth $2 each at the time of the borrowing. Splitz earned $5 million during the year. What is the debt-holder's contingent claim; how much does the debt-holder receive; and how much do
1. The Unzip Snap Company had net earnings of $127,000 this past year. Dividends were paid of $38,100 on the company's equity of $1,587,500. The estimated growth for Unzip is: (A) 2.4% (B) 5.6% (C) 7.2% (D) 16.8% 2. Which is closest to the value of a bond described in The Wall Street Journal as 12s 2006? The current year
Problem 1: Funding your retirement you plan to retire in exactly 20 years. Your goal is to create a fund that will allow you to receive $20,000 at the end of each year for the 30 years between retirement and death (a psychic told you would die exactly 30 years after you retire). You know that you will be able to earn 11%
Compensating Balances. Suppose that Dynamic Sofa (a subsidiary of Dynamic Mattress) has a line of credit with a stated interest rate of 10 percent and a compensating balance of 25 percent. The compensating balance earns no interest. a. If the firm needs $10,000, how much will it need to borrow? b. Suppose that Dynamic's
Suppose the current one-year interest rate is 6%. One year from now, you believe the economy will start to slow and the one-year interest rate fell to 2%. The one-year interest rate will then rise to 3% the following year, and continue to rise by 1% per year until it returns to 6%, where it will remain from then on. a. If you
1. Implication of IRP. Assume that interest rate parity exists. You expect that the one-year nominal interest rate in the U.S. is 7%, while the one-year nominal interest rate in Australia is 11%. The spot rate of the Australian dollar is $.60. You will need 10 million Australian dollars in one year. Today, you purchase a one-yea
The president of a company is in the process of setting rates on 1 year CDs and on 4 year, fixed rate automobile loans. The automobile loans will be financed primarily by issuing 1 year CDs. The yield curve is presently upward sloping, suggesting that these fixed rate loans should be priced carefully. Based on the following info
48. In 1958 the average tuition for one year at an Ivy League school was $1,800. Thirty years later, in 1988, the average cost was $13,700. What was the growth rate in tuition over the 30-year period? 49. Cleveland Corporation has 100,000 shares of common stock outstanding, its net income is $750,000, and its P/E is
What is the present value of the tuition payments if the interest rate is 5% per year (private school)?
Can you help me get started with this assignment? Your oldest daughter is about to start kindergarten at a private school. Tuition is $10,000 per year, payable at the beginning of the school year. You expect to keep your daughter in private school through high school. You expect tuition to increase at a rate of 5% per year
A. Discuss how the debt capacity of a governmental entity is determined. b. Evaluate the effect of refunding or reorganizing existing debt obligations. c. Analyze various funding alternatives that can be used to support debt obligation. d. Describe how rating agencies evaluate governmental risk.
1) You have found three investments choices for a one-year deposit: 10% APR compounded monthly, 10% APR compounded annually, and 9% APR compounded daily. Compute the EAR for each investment choice. (Assume that there are 365 days in the year.) 2) Oppenheimer Bank is offering a 30-year mortgage with an EAR of 5 3/8%. If you pl
Problem 1: Mike Smith wanted to open up a baseball hat shop. He needs to know how many hats that must be sold in a year to break even. The stores fixed costs for the year are estimated at $85,000. He is planning on selling the hats for $20.00 a piece. His cost per hat is $10.50. a. Find the operating break
On December 31, 2005 Ed Abbey Co performed environmental consulting services for Hayduke Co. Hayduke was short of cash and Abbey Co agreed to accept a $200,000 zero interest bearing note due December 31, 2007, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 10%. Abbey is much m
1. The City of Melonville hires Ace Construction Company to build its new City Hall. Integrity Insurance agrees to be liable for Ace's performance of its contract. The City of Melonville has Integrity and Ace both sign the contract which provides that Ace and Integrity will be "jointly and severally" liable for the performance.
On the first day of 7th grade, your rich uncle, Mort, encouraged you to save $30 of your allowance each month. On the first day of 8th grade, you receive the following email from Uncle Mort. "I am proud that you have been saving. I will pay you 10% on the balance that you saved in 7th grade and 10% on the balance of your savings
Job Order costing, consulting Lee Consulting computes the cost of each consulting engagement by adding a portion of firmwide support costs to labor cost of the consultants on the engagement. The support costs are assigned to each consulting engagement using a cost driver rate based on consultant labor costs. Lee Consulting's
Please provide at least 300 words for this problem. If I can buy a car today for $5,000 and it is worth $10,000 in extra income next year because it enables me to get a job as a traveling anvil seller, should I take out a loan out from Larry the Loan Shark at a 90% interest rate if no one else will give me a loan? Will I be
A) The values of outstanding bonds change whenever the going rate of interest changes. Generally speaking, short-term interest rates are much more volatile than long-term interest rates. With that, short-term bond prices are more sensitive to interest rate changes than are long-term bond prices. Is this true or false? Expl
1. The owner of an antique car, priced at ?50.000, wants to sell it and receives the following offers: a) ?5.000 at the moment of the sale and the rest in 6 equal payments at the end of every two months of ? 8.169,75 each. b) 12 monthly payments of ? 4.897,20, starting the first one at the moment of the sale. Which
Present Value: A company is expected to yield a profit at the rate of $55,000 per year. Assume that money will earn interest at the nominal rate of 6% compounded continuously. What is the present value of the company (a) for 10 years and (b) forever?
Please help with the following problem. What is the ending balance from an initial deposit of $4,250 at 12% compounded quarterly for 6 years? Find the present value of $5,000 in 5 years at 10% compounded annually. Find the value of an annuity in which $1,100 is deposited at the end of each year for 5 years, at an inter
How long will it take to save $4500 for a down payment on a new car if you make deposits of $250 every 3 months into account yielding 5.3% compounding quarterly?
Actually, this question has more to do with EBIT and the relationship to the economy. Let's say my company, Company A has no debt and a market value of $150,000. My EBIT is projected at $14,000. If the economy expands, EBIT will be 30% higher - as a contrast, if there's a recession, my EBIT will be 60% lower. I really want t