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Finance

Monthly Payment of a Car

I plan to buy a new car. The price is $30,000 and I will make a down payment of $4,000. My annual interest rate is 10% and I intend to pay for the car over five years. What will be my monthly payment?

Present Value of a Growing Perpetuity

I am evaluating a growing perpetuity product from a large financial services firm. The product promises an initial payment of $24,000 at the end of this year and subsequent payments that will thereafter grow at a rate of 0.02% annually. If you use a discount rate of 0.07% for investment products, what is the present value of thi

Calculating project IRR, NPV and depreciation

Introduction You will assume that you still work as a financial analyst for Aero-Botics, Inc. The company is considering a capital investment in a new machine and you are in charge of making a recommendation on the purchase based on a given rate of return of 12%. Task 4. Capital Budgeting for a New Machine A few months h

Price elasticity and its applications

Over the last year your boss has noticed that it would be useful for your firm to understand how consumers behave when variables in the market change and how these changes affect the total revenue for your product. You have been asked to do an analysis for your product, Good A, by addressing the following questions and reporting

Public Finance Discussion

Please help with this question: Write ideas to evaluate these possible sources of revenue: Public-private partners, Non-profits, Bond issuance, Grants Multi-level government financing and the Effects of taxation. 1 How would you identify the sources of funds for a local project? 2: Address the role financial efficiency w

Liabilities and Balance Sheets of Financial Institutions

1. Consider the following assets and liabilities: I. Discount loans II. U.S. government securities III. Secondary reserves IV. Small time deposits V. Commercial loans VI. Savings accounts Bank liabilities include: A. I, IV, and VI only B. II, III, and V only C. II, III, an

Cost Stucture: WACC

You are a consultant to Pillbriar Company. Pillbriar's target capital structure is 36% debt, 14% preferred, and 50% common equity. The interest rate on new debt is 7.8%, the yield on the preferred is 7.00%, the cost of retained earnings is 11.75%, and the tax rate is 38%. The firm will not be issuing any new stock. What is Pillb

Chase Bank Risk Assessment

List one benefit of risk management, as well as the rationale behind the selection of the risk management technique. Also conduct a risk assessment on Chase bank to show how risk management contributes to stakeholder wealth maximization.

Select the best investment proposal.

Slot Precision Services, Inc. has five alternative broaching machines/processes that are being studied. Only one will be chosen and the data is shown below. Recommend the choice for management that uses the internal rate of return criterion. Compare this with the decision with that of a Present Worth criterion. Submit your solu

Why don't retailers donate unsold clothes to charity?

Advice columnist Ann Landers has attacked a practice engaged in by some clothing retailers in her column. The retailers will slash or tear items they have been unable to sell and throw them away instead of giving the merchandise to employees or low income people. Ann was puzzled by this behavior. The only plausible explanation s

Effective and Nominal Annual Interest

1. What is the effective interest rate if nominal annual interest is 14.8% computed monthly? 2. What is the effective interest rate if nominal annual interest is 12.68% computed continuously? 3. What is the effective interest rate if nominal annual interest is 10.68% computed every 2 months? 4. What nominal annual inter

Thoughts Regarding Corporate Finance

Hi, I need some assistance understanding the following topic. Topic: What are the most critical concepts involved with successful capital structure patterns? Can certain steps be overlooked? Why or why not?

Health, economics and finance

1. Sketch the QALY diagram and determine how many QALYs are achieved during the year by the typical patient in a 1-year clinical trial who belongs to the treatment group and has a baseline HUI2 health state of 133111 and a 1-year HUI2 health state of 112111. The typical patient in the control group has a baseline HUI2 health sta

Discussion of Financial Scandals

Hi, I need some assistance constructing 3-4 paragraphs in order to help develop a concept (with some good references) on the following question: Question: If a financial institution is caught up in a financial scandal, would you expect its value to fall by more or less than the amount of any fines and settlement payments?

Create a price index.

Create a price index for Green Bay Packer fans using the following basket of goods with 1997 prices as the base year. Quantities Prices In 1997 1997 1998 90 lbs of cheese $2.50/lb $2.0/lb 12 flannel shirts

Cash Flows and Decision Making

A company has a metal bending machine and is considering a replacement for the machine. If repaired, the existing machine can be used for another 5 years. The existing machine will have no salvage value at the end of 5 years if kept for that period; however, the firm can sell the existing machine today to another firm for $4,500

Short and Long-Term Pricing Strategy

Propose a short-term and long-term pricing strategy for the product or service you researched including how the strategies would be implemented. Assess how your proposal ultimately maximizes profits. Please try an answer in a couple paragraphs for my assistance in starting. Thank you.

Report the Change in Household Income

Visit: www.census.gov/main/www/a2z/I Go to this site and click on "Income Data." Report the change in Household Income for the last year to year period listed. Also view the data to see how this has been allocated by race. What do you learn from these demographics?

Estimating return on given stock

You have the following information for Starbucks: Current EPS is $1.79. The current dividend is $.68 per share. The return on equity is 24%. The current price is $49.22. Hint: Get the payout rate. a. Use the dividend discount model (also known as the constant growth model) to estimate the return for Starbucks. b. A

EMI Calculations

During the course of your education, you have borrowed $65,000 in student loans. You plan to make monthly payments in order to repay the debt. The interest rate is fixed at 6.8% APR (compounding is monthly). a. If the loan is for 10 years, find the monthly payment. b. Right after your 38th payment, you get a huge bon

Use comparable to estimate the price.

You have the following information on Proctor & Gamble (PG) and Johnson & Johnson (JNJ): PG: P-E (which is Price/EPS) = 22.42 JNJ: EPS = 3.14 a. Using PG as a comparable, estimate JNJ's price: ______________ b. The current price of JNJ is about $69.50 per share. How does your estimate compare to the current price (high,