Sunday
April 19, 2015

Homework Help: Business: Finance

Recent Homework Questions About Finance

business finance
a coy invests 250000 which is expected 2 generate d following cash flow 80000,60000;45000;20000;10000: for 5yrs.wot is d payback period ?
Friday, April 17, 2015 at 3:06pm

Accounting/Finance
Temte Corporation is authorized to issue 1,000,000 shares of no-par common stock and 250,000 shares of 6 percent, $25 par value, cumulative preferred stock. These events affected stockholders’ equity during the first year of operations: 1. 125,000 shares of common stock ...
Friday, April 17, 2015 at 1:03pm

finance
Assume you just deposited ksh 100,000 into a bank account. The current real interest rate is 2%, and inflation is expected to be 6% over the next year. What nominal rate would you require from the bank over the next year? How much money will you have at the end of one year? If...
Wednesday, April 15, 2015 at 5:22am

Corporate Finance
If PV is $45,000 and the Average Rate of Inflation is 3% with 4 years until Retirement, what is the FV?
Monday, April 13, 2015 at 1:36pm

History
As a result of the Industrial Revolution, British and French financiers built up enormous reserves of capital. Seeking to earn high rates of return on their investments, they helped to finance all of the following except: (choose one) a. The Suez Canal in Egypt, which ...
Monday, April 13, 2015 at 7:51am

Finance
Patricia and Joe Payne are divorced. The divorce settlement stipulated that Joe pay $520 a month for their daughter Suzanne until she turns 18 in 3 years. Interest is 18% a year. How much must Joe set aside today to meet the settlement?
Sunday, April 12, 2015 at 9:33pm

business math
Jen purchased a condo in Naples Florida for $699,000. She put 20% down and financed the rest at 5% for 35years. What are Jens total finance charge?
Sunday, April 12, 2015 at 3:39pm

Finance
A bank is willing to give you a Rs1,000,000 home mortgage at 12% interest, compounded semiannually. The loan will be amortised over 25 years, but the interest rate is fixed for only the first 5 years. What is the monthly mortgage payment for the first five years? Rs 1000,000...
Friday, April 10, 2015 at 12:59pm

Finance
A caller informs you that it will take a $70,000 down payment and the investelemt will return $10,000 a year for the next 10 years. He tells you that you that the investment will return 14 percent. If current interest rates are 8 percent, what is the present value of this ...
Thursday, April 9, 2015 at 1:49pm

Finance
P4.3 Assuming you purchased a share of stock for $50 one year ago, sold it today for $60, and during the year received 3 dividend payments totaling $2.70, calculate the following. a. Income b. Capital gain (or loss) c. Total return (1) In dollars (2) As a percentage of the ...
Saturday, April 4, 2015 at 8:47pm

finance
The bonds we discussed in class have positive convexity. What does a bond need to have in order for convexity to be negative? Do you know of such instruments?
Saturday, April 4, 2015 at 1:57pm

finance
You are a risk manager that needs to hedge the IR risk on a portfolio of bonds. Your hedging instruments are futures and swaps. Discuss how you would go about mitigating sensitivity to changes in the interest rates. You may consider either bucketing the risk or using a ...
Saturday, April 4, 2015 at 1:57pm

finance
I give you a flat yield curve from 0 to 4 years: 2%. You have a five year swap contract that pays annually and want to use it to extend the curve to 5 years. How low can the swap par rate go before forward between 4 and 5 years goes negative?
Saturday, April 4, 2015 at 1:56pm

finance
Two bonds A and B have the same yield to maturity. A prices at 90 while B prices at 110. Which one has the higher coupon?
Saturday, April 4, 2015 at 1:56pm

finance
You have a discount bond with a time to maturity of one year. The market price of this instrument is 97%. You want the model price to match it while you build you yield curve with ED futures; the contracts price as follows: 1st = 99, 2nd = 98, 4th =97. What is the price of the...
Saturday, April 4, 2015 at 1:55pm

Finance
The following balance sheet extract relates to the Allied Insurance Company Bonds Payable $1,000,000 Preferred Stock $2,000,000 Common Stock $3,000,000 Additional Information: 1. The bonds are 8%, annual coupon bonds, with 9 years to maturity and are currently selling for 90% ...
Saturday, April 4, 2015 at 11:26am

personal finance
Future value calculations are also referred to as: A. discounting. B. add-on interest. C. compounding. D. simple interest. D?
Friday, April 3, 2015 at 8:14pm

personal finance
PSI, a financial services consultant, estimates that over _____ million U.S. households have a net worth in excess of $1 million. A. 4 B. 5 C. 10 D. 20 D ?
Friday, April 3, 2015 at 7:48pm

personal finance
Money market funds usually offer all the following advantages except: A. higher returns than savings or checking accounts. B. deposit insurance. C. wire transfer privileges. D. check writing privileges. B?
Friday, April 3, 2015 at 7:39pm

personal finance
Which one of the following is not a financial intermediary? A. Security dealers B. Insurance companies C. Real estate investment trusts D. Pension funds D?
Friday, April 3, 2015 at 7:22pm

Please Help me with a Finance - Loan problem
A company borrows $170000, which will be paid back to the lender in one payment at the end of 5 years. The company agrees to pay monthly interest payments at the nominal annual rate of 7% compounded monthly. At the same time the company sets up a sinking fund in order to repay...
Wednesday, April 1, 2015 at 5:00pm

Finance - Loans problem please help
A company borrows $170000, which will be paid back to the lender in one payment at the end of 5 years. The company agrees to pay monthly interest payments at the nominal annual rate of 7% compounded monthly. At the same time the company sets up a sinking fund in order to repay...
Wednesday, April 1, 2015 at 11:44am

Finance - Loans problem
Reiny the answer 307.33 you posted at the bottom is coming up incorrect. please if you can help i would be very grateful. A company borrows $170000, which will be paid back to the lender in one payment at the end of 5 years. The company agrees to pay monthly interest payments ...
Wednesday, April 1, 2015 at 12:12am

Finance - Loans problem
Can someone please explain how this problem is laid out to solve.A company borrows $170000, which will be paid back to the lender in one payment at the end of 5 years. The company agrees to pay monthly interest payments at the nominal annual rate of 7% compounded monthly. At ...
Tuesday, March 31, 2015 at 8:28pm

Finance - Loans problem
A company borrows $170000, which will be paid back to the lender in one payment at the end of 5 years. The company agrees to pay monthly interest payments at the nominal annual rate of 7% compounded monthly. At the same time the company sets up a sinking fund in order to repay...
Tuesday, March 31, 2015 at 8:15pm

math
1. Macon Steinberg purchased a motor scooter with an installment loan that has an APR of 16 percent. The scooter sells for $1,687.00 The store financing required a 20 percent down payment and 30 monthly payments. What was the finance charge? Answer: $69.19 2. Round and ...
Sunday, March 29, 2015 at 4:53pm

math
1. Shawn Fitzgerald finds a suitable property and agrees upon a selling price of $137,900. The mortgage company requires a 20% down payment and Shawn chooses to finance the property for 30 years at 8%. What is the total amount of interest charged, rounded to the nearest whole ...
Sunday, March 29, 2015 at 4:46pm

Math questions
1. Shawn Fitzgerald finds a suitable property and agrees upon a selling price of $137,900. The mortgage company requires a 20% down payment and Shawn chooses to finance the property for 30 years at 8%. What is the total amount of interest charged, rounded to the nearest whole ...
Saturday, March 28, 2015 at 2:03pm

Personal Finance
The global economy seems to be in a debt crisis. The National Debt (what we owe) of the United States is now over $18 Trillion dollars and growing every day. Our Gross Domestic Product (our income) is around $16 Trillion. That means our debt is more than our income. Does this ...
Friday, March 27, 2015 at 2:35pm

Co-operate Finance
As the investment analyst for King breweries you are required to analyze the automated loom system in the Castle larger production line. The old system was purchased 5 years ago for $200,000. It falls in the accelerated cost recovery 5 year class and it has 5 years of ...
Tuesday, March 24, 2015 at 12:00pm

finance
investment requires an initial oulay of 105,000 and will generate cash inflow of 20000 for 11 years. What is the NPV using discount rate of 8%
Monday, March 23, 2015 at 10:35pm

finance
Earnings are expected to grow at 11 percent for the next year. Using the company’s historical average PE as a benchmark, what is the target stock price in one year?
Wednesday, March 18, 2015 at 7:00pm

FINANCE
Below is a list of account balances for Currie Hospital as of December 31, 2013. Prepare a balance sheet as of December 31, 2013, in proper form. (Hint: You will need to compute the net assets account. Assume that all net assets at the beginning of the year are unrestricted...
Sunday, March 15, 2015 at 6:18pm

finance
You want to have $2 million in real dollars in an account when you retire in 30 years. The nominal return on your investment is 8 percent and the inflation rate is 5.3 percent. What real amount must you deposit each year to achieve your goal? (Do not round intermediate ...
Saturday, March 14, 2015 at 4:10pm

Finance
A firm's bond's have a maturity of 10 years with a $1,000 face value, an 8 percent semiannual coupon, are callable in 5 years at $1,050, and currently sell at a price of $1,100. What are their yield to maturity and their yield to call? What return should investors ...
Saturday, March 14, 2015 at 3:08pm

Corporate Finance
Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large, publicly traded firm that is the market share leader in radar detection systems (RDSs). The company is looking at setting up a manufacturing plant overseas to produce a new line ...
Saturday, March 14, 2015 at 10:55am

Finance
Antiques ‘R’ Us is a mature manufacturing firm. The company just paid a dividend of $11.45, but management expects to reduce the payout by 4.5 percent per year, indefinitely. Required: If you require a return of 11 percent return on this stock, what will you pay for...
Wednesday, March 11, 2015 at 5:07pm

Finance
As an investor, you are considering an investment in the bonds of the Conifer Coal Company. The bonds, which pay interest semiannually, will mature in 8 years, have a coupon rate of 9.5% on a face value of $1,000. Currently, the bonds are selling for $872. a. If you required ...
Tuesday, March 10, 2015 at 5:44pm

Finance
The manager for a growing firm is considering the launch of a new product. If the product goes directly to market, there is a 40 percent chance of success. For $171,000, the manager can conduct a focus group that will increase the product’s chance of success to 55 percent...
Sunday, March 8, 2015 at 1:49pm

Finance
We are evaluating a project that costs $670,000, has a five-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 59,000 units per year. Price per unit is $44, variable cost per unit is $24, ...
Sunday, March 8, 2015 at 1:48pm

Finance
We are evaluating a project that costs $1,120,000, has a ten-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 64,000 units per year. Price per unit is $50, variable cost per unit is $25...
Sunday, March 8, 2015 at 1:48pm

Finance
You have been hired as a consultant for Pristine Urban-Tech Zither, Inc. (PUTZ), manufacturers of fine zithers. The market for zithers is growing quickly. The company bought some land three years ago for $1.42 million in anticipation of using it as a toxic waste dump site but ...
Sunday, March 8, 2015 at 1:42pm

Finance
Aria Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows: Year Unit Sales 1 87,000 2 100,000 3 114,000 4 109,000 5 90,000 Production of the implants will require $1,660,000 in net working capital to start and additional net ...
Sunday, March 8, 2015 at 1:40pm

Finance
you have to replace a copy machine and you have 2 offers. both offers 3 year leases. offer 1 requires an up-front payment of $1700 with additional payments of $1200 at the beginning of years 2 and 3. The firm is also charged one-half of 1 cent, ($0.005), for each sheet printed...
Saturday, February 28, 2015 at 7:38am

finance
Below are three different pairs of bonds and their recent yields. Pick one pair (pairs are labebed 1, 2 and 3 below) and 1) explain the primary factors that contribute to making the yields of the two bonds in your pair differ. While there may be a single factor, there will be ...
Wednesday, February 25, 2015 at 2:32pm

Finance
Calculate, to the nearest cent, the future value FV of an investment of $10,000 at the stated interest rate after the stated amount of time. HINT [See Example 1.] 5% per year, compounded daily (assume 365 days/year), after 11 years work:10,000(1+0.05/365)^(365)(11)=17331.&#...
Tuesday, February 24, 2015 at 4:21pm

Finance
the existing or current (spot) 1-, 2-, 3-, and 4-year zero coupon Treasury security rates were as follows: 1R1 = 0.30%, 1R2 = 0.90%, 1R3 = 1.30%, 1R4 = 1.45% Using the unbiased expectations theory, calculate the 1-year forward rates on zero coupon Treasury bonds for years 2, 3...
Monday, February 23, 2015 at 3:39pm

Finance
Silva Motors just paid a dividend of $2, i.e., D0 = $2.00. The dividend is expected to grow by 100% during Year 1, by 50% during Year 2, and then at a constant rate of 5% thereafter. If Silva's required rate of return is rs = 12%, what is the value of the stock today?
Sunday, February 22, 2015 at 2:25pm

Finance
You have been living in the house you bought 6 years ago for $250,000. At that time, you took out a loan for 80% of the house at a fixed rate 25-year loan at an annual stated rate of 9.5%. You have just paid off the 72th monthly payment. Interest rates have meanwhile dropped ...
Thursday, February 19, 2015 at 9:24pm

Finance
You are interested in a new Ford Taurus. After visiting your Ford dealer, doing your research on the best leases available, you have three options. (i) Purchase the car for cash and receive a $1,900 cash rebate from Dealer A. The price of the car is $19,000. (ii) Lease the car...
Thursday, February 19, 2015 at 9:09pm

Finance
You are interested in a new Ford Taurus. After visiting your Ford dealer, doing your research on the best leases available, you have three options. (i) Purchase the car for cash and receive a $1,900 cash rebate from Dealer A. The price of the car is $19,000. (ii) Lease the car...
Thursday, February 19, 2015 at 8:32pm

Finance
You have been living in the house you bought 6 years ago for $250,000. At that time, you took out a loan for 80% of the house at a fixed rate 25-year loan at an annual stated rate of 9.5%. You have just paid off the 72th monthly payment. Interest rates have meanwhile dropped ...
Thursday, February 19, 2015 at 8:25pm

Finance
You have been living in the house you bought 5 years ago for $300,000. At that time, you took out a loan for 80% of the house at a fixed rate 20-year loan at an annual stated rate of 9.0%. You have just paid off the 60th monthly payment. Interest rates have meanwhile dropped ...
Thursday, February 19, 2015 at 5:34pm

Finance
Bob bought an 8.5% annual coupon bond at par. One year later, he sold the bond at a quoted price of 98. During the year, market interest rates rose and inflation was 3%. What real rate of return did Bob earn on this investment?
Thursday, February 19, 2015 at 2:32am

Math
Frank paid very well finance rate of 1.5% on the first $500 and 1% at any amount above $500 how much did he pay at the unpaid balance was $741.23
Tuesday, February 17, 2015 at 1:26am

Finance
After deciding to buy a new car, you can either lease the car or purchase it on a 3-year loan. The car costs $32,000. The lease offer is for $450/month for 36 months, with only $99 due up front. If you buy the car with a 3-year loan, the APR is 7% with monthly compounding. You...
Sunday, February 15, 2015 at 9:19am

Finance
If the APR is 7% with monthly compounding, compute the quarterly rate
Saturday, February 14, 2015 at 1:51pm

Finance
You have an investment with 10 semi-annual cash flows of $1000. The first payment is 6 months from today. If the EAR is 11% what is the present value of this investment?
Saturday, February 14, 2015 at 1:46pm

Finance
Gene's Art Gallery is notoriously known as a slow-payer. The firm currently needs to borrow $27,500 and only one company will deal with them. The terms of the loan call for daily payments of $100. The first payment is due today. The interest rate is 21.9%, compounded daily...
Saturday, February 14, 2015 at 1:45pm

Finance
You just acquired a mortgage in the amount of $249,000 at 6.75% interest, compounded monthly. Equal payments are to be made at the end of each month for 30 years. How much of the first loan payment is interest? (Assume each month is equal to 1/12 of a year)
Saturday, February 14, 2015 at 1:42pm

Finance
You are planning to save for retirement over the next 15 years. To do this, you will invest $1,100 a month in a stock account and $500 a month in a bond account. The return on the stock account is expected to be 7%, and the bond account will pay 4%. When you retire, you will ...
Saturday, February 14, 2015 at 1:40pm

Finance
The Joseph Company has a stock issue that pays a fixed dividend of $3.00 per share annually. Investors believe the nominal risk-free rate is 4 percent and that this stock should have a risk premium of 6 percent. What should be the value of this stock? TO compute, use the ...
Monday, February 9, 2015 at 4:49pm

Corporate Finance
Newcastle auto plc has a current cash flow of 4.4 million and pays no dividends. The Present value of the company ´s future cash flows is 74 million. The company is entirely financed with equity and has 800.000 shares outstanding. Assume the dividend tax is zero. ...
Monday, February 9, 2015 at 4:08pm

personal finance
Hal Thomas wants to establish a savings fund from which a community organization could draw $800 a year for 20 years. If the account earns 3 percent, what amount would he have to deposit now to achieve this goal? (Round time value factors to 3 decimal places and final answer ...
Friday, February 6, 2015 at 5:15pm

Finance
Monthly fee $5, check-processing fee of 20 cents, average of 32 checks written per month. Round the answer to the nearest cent.
Friday, February 6, 2015 at 4:00pm

Finance
If you put $10,000 at the end of each year into a savings account that pays interest at the rate of 5 percent a year, how much would you have after 4 years? Use the Appendix B. Round the answer to the nearest cent. Round FV-factor to three decimal places.
Friday, February 6, 2015 at 3:43pm

Finance
Determine the annual net cost of these checking accounts: a. Monthly fee $4, check-processing fee of 20 cents, average of 23 checks written per month
Thursday, February 5, 2015 at 12:00pm

Finance
Your parents are retired and have expressed concern about the really low interest rates they’re earning on their savings. They’ve been approached by an advisor who says he has a “sure-fire” way to get them higher returns. What would you tell your parents ...
Thursday, February 5, 2015 at 11:48am

Finance
Given an interest rate of 6.25% compounded annually, how much would you accumulate if you started with $3,250 and then contributed $1,950 per year (at the end of each year) for 13 years? Is this correct? Calculate each FV and sum? PV1 = 3,250 i = 6.25% N = 13 FV = PV2 = 1,950 ...
Tuesday, February 3, 2015 at 9:59pm

Finance
Given an interest rate of 6.25% compounded annually, how much would you accumulate if you started with $3,250 and then contributed $1,950 per year (at the end of each year) for 13 years?
Tuesday, February 3, 2015 at 9:00pm

Healthcare finance
You are considering starting a walk-in clinic. Your financial projections for the first year of operations are as follows: Revenues (10,000 visits) $400,000 Wages and benefits 220,000 Rent 5,000 Depreciation 30,000 Utilities 2,500 Medical Supplies 50,000 Administrative ...
Sunday, February 1, 2015 at 6:41pm

Healthcare finance
You are considering starting a walk-in clinic. Your financial projections for the first year of operations are as follows: Revenues (10,000 visits) $400,000 Wages and benefits 220,000 Rent 5,000 Depreciation 30,000 Utilities 2,500 Medical Supplies 50,000 Administrative ...
Sunday, February 1, 2015 at 6:39pm

Healthcare Finance
You are considering starting a walk-in clinic. Your financial projections for the first year of operations are as follows: Revenues (10,000 visits) $400,000 Wages and benefits 220,000 Rent 5,000 Depreciation 30,000 Utilities 2,500 Medical Supplies 50,000 Administrative ...
Sunday, February 1, 2015 at 6:38pm

personal finance
As a college senior, Jessica was offered a new credit card that allowed her to take a 10% discount on the first month's purchases. She accepted the offer and made purchases that totaled $156.19. How much did she owe after the discount was deducted from the $156.19?
Thursday, January 29, 2015 at 3:43pm

Finance
The Health Corp issued an 12%, 15 yr bond 5 yrs ago. At the time of issue the bond's par value was $1,000. Comparable bonds are yielding 10% today. What must Health Corp's bond sell for in today's market to yield 20% (YTM) to the buyer? Assume bond pays interest ...
Wednesday, January 28, 2015 at 8:11pm

personal finance
Which type of tax is calculated on a per-item basis?
Wednesday, January 28, 2015 at 4:50pm

Finance
Assume personal income was $28 million last year. Personal outlays were $20 million and personal current taxes were $5 million. a. What was the amount of disposable personal income last year? Disposable personal income (DPI) = personal income – personal current taxes DPI...
Wednesday, January 28, 2015 at 3:42pm

f
You have just purchased a new warehouse. To finance the purchase, you’ve arranged for a 35-year mortgage for 85 percent of the $3,100,000 purchase price. The monthly payment on this loan will be $17,200. What is the APR on this loan? What is the EAR on this loan?
Wednesday, January 28, 2015 at 3:04pm

history
where did the united states get the most of the money to finance world war 1
Tuesday, January 27, 2015 at 9:17pm

Education/college
I had to create some learning goals for a personal Finance course (I am pretending to teach. I have these learning goals that I need to make less ambiguous. Can you help me? Balance a checkbook Understanding the banking process Identify pros and cons of credit cards Assess ...
Saturday, January 24, 2015 at 3:06pm

Finance
A speculator sells a stock short for $70 a share. The company pays a $2 annual cash dividend. After a year has passed, the seller covers the short position at $60. What is the percentage return on the position (excluding the impact of any interest expense and commissions)? ...
Tuesday, January 20, 2015 at 12:47am

Finance
A bond that has a $1,00 par value (face value)and a contract or coupon interest rate of 10.1 percent. Interest payment are $50.50 and are paid semiannually. The bonds have a current value $1,125 and will mature in 10years. The firms marginal tax rate is 34 percent.
Saturday, January 17, 2015 at 1:18am

Finance
A bond that has a $1,00 par value (face value)and a contract or coupon interest rate of 10.1 percent. Interest payment are $50.50 and are paid semiannually. The bonds have a current value $1,125 and will mature in 10years. The firms marginal tax rate is 34 percent.
Friday, January 16, 2015 at 11:54pm

Finance
1. Following is the projected net income stream associated with the use of Zartek technology. (Note: this net income stream does not take into account that Zartek’s owners invested $2,000 to develop Zartek in Year 0.) Globus Maximus Enterprises would like to buy the ...
Sunday, December 28, 2014 at 5:58pm

Math and Finance
If May invests $5,000 compounded annually at 8%, how much money will she have at the end of 8 years?
Sunday, December 28, 2014 at 3:10pm

Personal finance
A 10 year bond has a coupon rate of 7% annually and a principal payment of $1000.00. Other similar bonds are paying 9% annually. To determine the value of this bond you must find the interest factors, IF at: A) 9% for 10 periods b) 9% for 20 periods c) 4.5% for 20 periods d) 4...
Sunday, December 28, 2014 at 12:34pm

finance
which of the following investments paid the highest rate of return? (a) a corporate bond that paid $72 per year in interest and that cost $600 to purchase (b) a money market fund that paid 8 percent interest (c) a corporate stock that cost $40 to buy and that paid dividends of...
Sunday, December 21, 2014 at 12:30pm

finance
A young couple was involved in a multi-level marketing business for a number of years under the wife’s name. The husband used his money and made a loan of RM 20000(about 6000 US dollar) from an Islamic bank to start the business. The profit gained from the business is ...
Friday, December 19, 2014 at 10:06pm

Finance
Cash Equation: Bettendorf Corporation has a book net worth of $17,800. The company's long-term debt is $6,900. Its net working capital, excluding cash, is $1,600. Its fixed assets are $21,300. How much cash does the company have? If the current liabilities are $2,575, what...
Wednesday, December 17, 2014 at 3:50pm

Finance
Due to a recession, expected inflation this year is only 2.75%. However, the inflation rate in Year 2 and thereafter is expected to be constant at some level above 2.75%. Assume that expectations theory holds and the real risk-free rate is r* = 3%. If the yield on 3-year ...
Monday, December 15, 2014 at 5:31pm

Finance
Fjord Luxury Liners has preferred shares outstanding that pay an annual dividend equal to $7 per year. If the current price of Fjord preferred shares is $94, what is the after-tax cost of preferred stock for Fjord?
Thursday, December 11, 2014 at 3:22pm

Finance
Your great aunt Mary passed away and left you and inheritance of $5,000.00. Since you don't have a need for the money in the near future, which of the following would be the best place to put the $5,000.00? a) a savings account earning 1% interest b) a checking account c) ...
Thursday, December 11, 2014 at 3:07pm

Finance
You were hired as a consultant to Giambono Company, whose capital structure is 40% debt, 15% preferred stocks, and 45% common stock equity. The after-tax cost of debt is 6.00%, the cost of preferred stocks is 7.50%, and the cost of common stock equity is 13.00%. What is its WACC?
Thursday, December 11, 2014 at 12:44pm

Finance math
Consider the project with the following expected cash flows: Year Cash flow 0 -$400,000 1 $100,000 2 $120,000 3 $850,000 •If the discount rate is 0%, what is the project's net present value? •If the discount rate is 2%, what is the project's net present value...
Tuesday, December 9, 2014 at 5:27pm

finance
A stock has a beta of 2.0. A security analyst who specializes in studying this stock expects its return to be 24%. Suppose the risk-free rate is 6 percent and the market-risk premium is 10 percent. Is the stock overvalued or undervalued relative to the market’s ...
Monday, December 8, 2014 at 9:58pm

Finance
A family purchased a new ski boat for $20,000. The loan agency required a down payment and financed the balance for 36 months with an APR of Determine the total finance charge and monthly payment for the loan.
Sunday, December 7, 2014 at 3:56pm

business finance
Your client is 40 years old, and she wants to begin saving for retirement, with the first payment to come one year from now. She can save RM5,000 per year, and you advise her to invest it in the stock market, which you expect to provide an average return of 9 percent in the ...
Friday, December 5, 2014 at 4:24am

business finance
You want to buy a small house that costs RM100,000. You have RM10,000 for a down payment and repaid in equal installments at the end of each of the next 3 years. The interest rate is 7 percent compounded annually. a. Calculate how much you need to pay for each year. b. Set up ...
Friday, December 5, 2014 at 4:19am

Finance
Jessie purchased a notebook for $10,500 using a credit card. She considers two repayment plans. i She makes the minimum monthly payment of $300 offered by the credit card and no other charges are applicable. ii She makes monthly payments of $900 and no other charges are ...
Thursday, December 4, 2014 at 9:51am

Finance
A manufacturing company is thinking of launching a new product. The company expects to sell $950,000 of the new product in the first year and $1,500,000 each year thereafter. Direct costs including labor and materials will be 45% of sales. Indirect incremental costs are ...
Wednesday, December 3, 2014 at 7:06pm

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