### Annual year-end payments

How do I start this problem? Jim Rodriguez is borrowing $50,000 for his small business. If he pays equal annual installments for 5 years and 6% interest, what are his annual year-end payments?

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How do I start this problem? Jim Rodriguez is borrowing $50,000 for his small business. If he pays equal annual installments for 5 years and 6% interest, what are his annual year-end payments?

Building Financial Models. The following tables contain financial statements for Dynastatics Corporation. Although the company has not been growing, it now plans to expand and will increase net fixed assets (that is, assets net of depreciation) by $200,000 per year for the next 5 years and forecasts that the ratio of revenues to

Using Percentage of Sales. Eagle Sports Supply has the following financial statements. Assume that Eagle's assets are proportional to its sales INCOME STATEMENT, 2003 Sales $950 Costs 250 Interest 50 Taxes 150 Net Income $500 BALANCE SHEET, YEAR-END 2002 2003 20

1. Mark Harrywitz proposes to invest in two different stocks, X and Y. He expects a return of 12% from X and 8% from Y. The standard deviation of returns is 20% for X and 10% for Y. The correlation coefficient between the returns is .2. a. Compute the expected return and the standard deviation of the following portfolios

Biogenetics, Inc plans to retain and reinvest all of their earnings for the next 30 years. Beginning in year 31, the firm will begin to pay a $12.00 per share dividend. The dividend will not subsequently change. Given a required return of 15%, what should the stock sell for today?

J& J just issued a bond with a $1,000 face value and a coupon rate of 7%. If the bond has a life of 30 years, pays annual coupons and the yield to maturity (YTM) is 6.8%, what will be the bond sell for?

Janice Smith wishes to accumulate $8,000 by the end of 5 years by making equal annual end-of-year deposits over the next five years. If Janice can earn 7 percent on her investments, how much must she deposit at the end of each year to meet this goal?

Sunshine Corporation is considering several long-term investments. Management wants to accept the two best projects, given the following data: Project A B C D E Present value of . . . . . . . $24,000 $44,000 $15,000 $30,000 $50,000 net cash inflows . . . . . . 20,000 40,000 1

A. Under a strict command and control framework, supple abatement standards are se equally across polluters. Assume the total abatement target is 30 units. Show the cost implications using three graphs, each of a different polluter with a unique MAC curve drawn to depict a low cost abater, a moderate cost abater and a high cos

Looking at the planning model, I have to run out the projections to 2007. What would happen if the firm would continue to expand at 10% and relied on new issues of debt to make up any required external financing. Would the standard measures of leverage, such has the debt ratio and the interest cover start to spin out of control?

The company is considering an investment that costs $785,000 today and has a salvage value in 10 years of $137,714, but the company is not sure how much net annual cash inflow will be provided by the investment. The company has a discount rate of 7%. How do I compute the net amount of annual cash inflow required to break even.

1) Projects c and d both have normal cash flows. In other words, there is an up-front cost followed over time by a series of positive cash flows. Both projects have the same risk and a WACC equal to 10 percent. However, Project c has a higher internal rate of return than Project d. Assume that changes in the WACC have no effect

6. Three mutually exclusive alternatives requiring different investment levels are being considered. The life of all three is 20 years with no salvage value. The MARR is 15%. Al A2 A3 Investment $ 60,000 $ 30,000 $ 100,000 Cash flow per year $ 10,692 $ 6,162 $ 17,000 Return on total inv. 17.1% 20.0%

3. An inventor offers to sell you patent rights to a device for $100,000. You have data to suggest a 35% chance of market success yielding net cash flows of $200,000 per year for 5 years. If not a success, no revenues are expected. With MARR equal to 20%, construct a decision tree and analyze the expected present worth. Would yo

Please show formulas and explanation. Camping USA uses 6 yards of nylon for each tent produced. On April 1, Camping had 48 yards of nylon on hand. If Camping desired an ending inventory of 30 yards of nylon and plans to produce 120 tents during the month, how many yards of nylon should the company purchase during April?

If a stock consistently goes down (up) by 2.1% when the market portfolio goes down (up) by 1.5% then what is the beta (b)?

What is the effect (increase, decrease, no effect) of a cash dividend payment on the following ratios (all else equal) Times Interest Earned and Long-term Debt to Equity? What is the effect (increase, decrease, no effect) of selling inventory for profit on the following ratios (all else equal) Times Interest Earned and Long

You have the following information for a country for 2005, with all price indexes utilizing 1995 as the base year: The export price index is 120, the import price index is 130, the quantity index of exports is 115, and the quantity index of imports is 100. Calculate the commodity terms of trade and the income terms of trade for

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1. Compounding: Suppose someone invested 2 dollars on January 1, 1776 at 3.3 percent interest compounded yearly. a) How much interest would the investment be worth on January 1, 2001 (225 years later)? b) Suppose the interest rate were 6.6 percent instead of 3.3 percent. What would the investment be worth? c) Suppose the i

Capital 1. Capital can be defined as the funds supplied by investors. a. True b. False IRR 2. The internal rate of return is that discount rate which equates the present value of the cash outflows (or costs) with the present value of the cash inflows. a. True b. False Relevant cash flows 3. When calculating t

Intermediate term loan for 1,000,000 to be paid off in equal installments at the end of each of the next 5 years. The interest rate is 14%, what is the annual payment.

Cost of equity is 16%; the before tax cost of debt is 13% ; the marginal tax rate is 40%. Stock sells at book value. I need to calculate the after tax weighted average cost of capital using the following balance sheet. Assets Liabilities and Equity Cash

Biogenetics Inc plans to retain and reinvest all of their earnings for the next 30 years. Investors believe that at the end of year 31 the firm will pay a dividend of $12 per share. The dividend will increase at a 6% rate annually thereafter. Given a return of 15%, what is the selling price of the stock?

What is an easy to understand explanation of tit for tat pricing?

I'm working with a cross-section of the NLSY97 (using the program Stata). I'm a new econometrics grad student. I'm trying to make sure I understand how these datasets work but I'm almost embarrassed to ask this question: the observations are linked somewhere in the dataset right? What I mean is, its not just statistics on th

You are considering buying the stock of two very similar companies. Both companies are expected to earn $3 per share this year. However, Company D is expected to pay all of its earnings out as dividends, while Company G is expected to pay out only one-third of its earnings, or $1. D's stock price is $20. . Both companies are equ

Shares of Darwin, Inc. sell for $20 per share. 40% of earnings are paid in dividends. What is the dividend yield? Earnings are $100,000, and there are 10,000 shares of stock outstanding.

US Sports Company projects the following sales: April May June $75,000 $95,000 $110,000 Ninety percent of US' sales are on credit with 60 percent of receivables collected in the month after the sale and the rest of receivables are collected in the second month after the sale. February sales were

MICROLIMP'S account receiveables total $4,000,000 on annual sales of $400 million. What is the companys average collection period?