Michelle borrows $7, 200 from her father to buy a used car. She repays him after 9 months, at an annual simple interest rate of 6.2%. Find the total amount she repays.

Q: Compare a 5-year Treasury note with a coupon rate of one percent with a 10-year corporate bond with…

A: Corporate bond rate is comprised of several risk parameters such as Inflation premium, default risk…

Q: Hw.74. An office supply company has purchased a light duty delivery truck for $25,000. It is…

A: concept. Internal rate of return  is the rate of return where present value of cash flows associated…

Q: You sell a 50 put for 4 and buy a 55 call for 5. Stock ends at $47. Profit=............

A: An option is a type of financial instrument that is based on the value of underlying securities,…

Q: You have been asked to develop a pro forma statement of cash flow for Betts Distribution Center, an…

A: Base rent per square feet = $7 Number of square feet = 230,000 Total base rent =…

Q: For his business, Nicholas leased equipment valued at $23 000. The terms of the lease required…

A: In contrasts to a fee that the borrower may pay the lender or another party, interest is a payment…

Q: current balance of home is 43,000 at 6.5 % how much is needed to pay off in 11 years ?

A: The current Balance is $40,000 The interest rate is 6.5%  The time period is 11 years To Find:…

Q: Dashboards have the following primary purposes (select all that apply): O Integration with security…

A: Dashboard-It helps to display various types of visual data, usually key metrics and other…

Q: Hedging using forward rates: Assume the hypothetical spot rate between the USD and GBP was 1.6187…

A: Worth of contract in Pounds (GBP)= 200000 So its value in  USD($)=200000*1.6187=$  323740

Q: Banking. Josiah has an income of $137,000 that he is willing to spend over a year. If his bank…

A: bank interest refers to the amount that is being paid by the bank to the account holder for the…

Q: Paola purchases a 10 year annuity immediate with an annual effective rate of interest of 7.0718% and…

A: We have two streams of cash flows with the same PV. We need to find the missing value of X.

Q: An amount of P dollars is borrowed for the given length of time at an annual interest rate of r.…

A: Principal amount is $3200 Interest rate is 9% Time period is 3 months To Find: Simple interest

Q: Assume a call option on euros is written with a strike price of $1.2500/€ at a premium of 3.80¢ per…

A: Call option give you opportunity to buy the currency on the expiration of period and will give you…

Q: Are bio technology company stock is currently selling for $48.35 per share. The earnings per share…

A: The current yield is the dividend per share expressed as a percentage of the Share price. The Price…

Q: ter learning how to value a stock in his Corporate Finance class, Mark Stark decided to put his…

A: The constant growth model is used for the valuations of the stock based on constant growth rate,…

Q: Davis Corporation reported the following financial data for one of its divisions for the year;…

A: Financial ratios such as asset turnover, total asset turnover, or asset turns measure how well a…

Q: Carson Electronics uses 70 percent common stock and 30 percent debt to finance its operations. The…

A: To calculate the WACC we will use the below formula   WACC = (Rd*D)+(Re*E) Where Rd - After tax cost…

Q: The Up and Coming Corporation's common stock has a beta of 1.29. If the risk-free rate is 0.04 and…

A: To calculate the cost of equity capital we will use the below formula   Cost of equity = Risk free…

Q: K's Warehouse has a market value of $900,000. The property in K's is assessed at 45% of the market…

A: The market value of the Warehouse is $900,000 The assessment rate is 45% The tax rate is $62.40 per…

Q: Sixx AM Manufacturing has a target debt—equity ratio of 1.6. Its cost of equity is 0.11, and its…

A: Weight of debt = (D/E)(1+D/E) Where, D/E is debt to equity ratio Weight of debt = 1.61+1.6 =…

Q: ou borrow 300,000 to buy a new house.                 The loan is a conventional 30-year loans and…

A: Borrowed amount is $300,000 Time period is 30 years Monthly payment is of $2,948.01 To Find:…

Q: Integrated Potato Chips just paid a $1 per share dividend. You expect the dividend to grow steadily…

A: concept. according to gordon's growth model , P =  D(1 +g)ke -g where , P = current market price D=…

Q: arithmetic and geometric average time-weighted rates of return

A: The average return on a stock is calculated using the arithmetic return, which does not take…

Q: Filer Manufacturing has 5,766,872 shares of common stock outstanding. The current share price is…

A: The cost of debt refers to the amount of return that the company provides to its creditors. It is…

Q: The cost of preferred stock:  a. is equal to the dividend yield b. is independent of the stock's…

A: Formula for calculating cost of preferred stock is Cost of preferred stock=Annual Preferred…

Q: What is the project’s internal rate of return? Round your answer to two decimal places.   % For the…

A: Data given: Initial cost=$420,000 (computed in the main section) Annual cash flow for 12 years=$…

Q: 1. Suppose the interest rate decreases to 9% as an annual percentage rate. and durations of the two…

A: A bond's duration measures the price sensitivity of the bond due to interest rate change (YTM)..…

Q: Uma Foodstuff Ltd. is a large chain of food stores. The financial statements for Uma Ltd. are given…

A: According to bartleby guidelines , if  question involves multiple sub parts , then 1st sub 3 parts…

Q: A company is considering a new 6-year project that will have annual sales of $237,000 and costs of…

A: Initial cost = $267,000 Sales = $237,000 Costs = $148,000 Depreciation rate for year 2 = 0.32 Tax…

Q: Consider a project that has an initial outlay of $1,200. The firm's cost of capital is 10%. The…

A: Net present value(NPV) of a project is calculated using following equation NPV = -CF0 + CF1/(1+d)1 +…

Q: Argyl Manufacturing is evaluating the possibility of expanding its operations. This expansion will…

A: CONCEPT. whenever project is undertaken , there are various cash inflows and cash outflows…

Q: Airborne Airlines Incorporated has a $1,000 par value bond outstanding with 20 years to maturity.…

A: Yield to maturity is rate of return realized on the bond by holding the bond till the maturity of…

Q: A junk yard pulls parts off of wrecked vehicles and sells them to a wholesaler. If its total revenue…

A: At break even total revenue is the same as total costs. In other words there is no profit and no…

Q: You are a financial adviser working with a client who wants to retire in eight years. The client has…

A: The bank generally provides compounded interest, which means the interest is earned on interest. The…

Q: 7. A 25-year, $10,000 strip bond was issued at a market rate of 9.4% compounded semi-annually. What…

A: A financial instrument known as a "strip bond" is one that sells the principal as well as the…

Q: A project requires an intial investment of $100,000 (at t= 0) and is expected to generate cash flows…

A: The profitability index (PI), also known as the value investment ratio (VIR) or profit investment…

Q: 2.2 An investor enters a futures contract on SBI stock at Rs 534 to w the futures price is Rs 535.…

A: The futures are traded on the stock market with some initial margins only and so there are high…

Q: Q2/ If A= $2000 and i-8% and n=20, what is the future amount? Q3/ Find the effective interest rate…

A:

Q: Maynard Steel plans to pay a dividend of $3.15 this year. The company has an expected earnings…

A: Solution: Share price means the price at which the stock of a firm is trading in the market.…

Q: Which of the following companies will probably have the highest decline in profit if the economy…

A: Degree of operating leverage states or measures how much the operating income of the company will…

Q: If $38,000 is invested for 15 years at 9.4% compounded quarterly and then pays out $9174 at the…

A: Future value of the amount includes the amount that was being deposited and the amount of interest…

Q: ABC Company is conducting a project with an up-front cost at t = 0 of $1,100,000. The project's…

A: We have to find the NPV under two situations here. All the cash flows and probabilities are known.

Q: Find the present amount needed to attain a future amount of F dollars in the given time using an…

A: Discounting The process of arriving at the present value based on future cash flows is known as…

Q: Determine the interest earned after 8 years if $3000 is invested in each of the following accounts.…

A: A). Daily interest rate = Annual rateFrequency of compounding in a year =0.0529365= 0.0001449315…

Q: Pitt Company is considering two alternative investments. The company requires a 12% return from its…

A: IRR is the internal rate of return and is one of the most used capital and is based on the time…

Q: Apolonia Place is an office building that has recently been put up for sale. It is rented by one…

A: Capital budgeting The method of helping investors to make long-term decisions in investments…

Q: 7500 was borrowed for a four-year term at 9% compounded quarterly. The te discounting the loan's…

A: Notes are issued based on the stated interest rate and they can be discounted back at lower interest…

Q: You have information about 4 different companies below in the table. The variable and fixed costs…

A: Degree of operating leverage states or measures how much the operating income of the company will…

Q: Kellogg Company manufactures cereal and other convenience food under its many well-known brands such…

A: Debt is sources of finance and it is cheaper sources of finance and also secured and safe sources of…

Q: ames has a mortgage of $88,500 at 4% for 15 years. The property taxes are $3,700 per year, and the…

A: The PITI payment includes payments for mortgage, insurance and taxes towards the mortgage.

Q: Interest prepaid by the buyer, which may be used to reduce the stated interest rate the lender…

A: Margin in loan is the down payment made on the total cost of the house or asset bought. The loan…

Loans

A loan is a term that we are all familiar with. The processing of loans is one of the most important functions of a bank. It keeps our economy stable and facilitates the implementation of monetary policies. Let's take a look at the different forms of loans and get some answers to some common questions.