Your pickup truck is high mileage and needing replacement. You
have purchased a brand new F250 XLT 4 door pickup truck. You were
able to negotiate a total cost of $38,000 for this vehicle. For
convenience, you decided to trade your vehicle in, and the
dealership is offering $5,000 for your car as a trade in. You have
decided to finance this vehicle for 7 years through Texas Tech
Federal Credit Union for 4.9%.
After making payments on your vehicle for two years, what is the
balance remaining on the loan?
$ 26,885 

$ 28,435 

$ 24,694 

$ 25,000 
In: Finance
In your opinion, can employers expect highly engaged employees who seek to improve the performance of the firm if they continue to use nonstandard work arrangements? Justify your answer.
In: Finance
Question 3
The chance of loss could be increased or decreased by different conditions which are called hazards. For each of the following, identify the type of hazard.
a) A motorist drives too fast.
b) A man fakes an accident to collect money from an insurer.
c) The new state regulation that require insurers not paying any claims in case of suicide.
Question 4
a) Explain how a society benefits from loss prevention.
b) Give at least three examples of lossprevention programs supported by insurance companies.
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Pybus, Inc. is considering issuing bonds that will mature in 25 years with an annual coupon rate of 11 percent. Their par value will be $1000, and the interest will be paid semiannually. Pybus is hoping to get a AA rating on its bonds and, if it does, the yield to maturity on similar AA bonds is 10.5 percent. However, Pybus is not sure whether the new bonds will receive a AA rating. If they receive an A rating, the yield to maturity on similar A bonds is 11.5 percent. What will be the price of these bonds if they receive either an A or a AA rating?
In: Finance
Please construct an Excel spreadsheet to solve this problem.
In: Finance
Maria is the sole proprietor of an antique store that is located in a rented warehouse. The business has a $ 200,000 outstanding loan with the local bank but no other debt obligations. Last week, the loan, which has a monthly payment of $ 1,500, was not paid. There are no specific assets pledged as security for the loan. Due to a sudden and unexpected downturn in the economy, the store is just unable to generate sufficient funds to pay the overdue loan payment as well as the payments due over the next two months. Maria is considering selling all of the lighting fixtures in her building which will raise enough funds to make three loan payments. The bank has suggested to Maria that she sell off all her inventory. And it appears that the bank has withdrawn at least one loan payment from Maria’s personal bank account. 1) Can you suggest a strategy to help Maria with the sale of the lighting fixtures? 2) What is the impact of her selling off all her inventory? 3) Has the bank acted improperly by withdrawing the missed loan payment from Maria’s personal account given that this loan was made to her business ?
In: Finance
The 2017 financial statements for Growth Industries are presented below.
INCOME STATEMENT, 2017  
Sales  $  370,000  
Costs  235,000  
EBIT  $  135,000  
Interest expense  27,000  
Taxable income  $  108,000  
Taxes (at 35%)  37,800  
Net income  $  70,200  
Dividends  $  42,120  
Addition to retained earnings  28,080  
BALANCE SHEET, YEAREND, 2017  
Assets  Liabilities  
Current assets  Current liabilities  
Cash  $  6,000  Accounts payable  $  13,000  
Accounts receivable  11,000  Total current liabilities  $  13,000  
Inventories  33,000  Longterm debt  270,000  
Total current assets  $  50,000  Stockholders’ equity  
Net plant and equipment  310,000  Common stock plus additional paidin capital  15,000  
Retained earnings  62,000  
Total assets  $  360,000  Total liabilities and stockholders' equity  $  360,000  
Sales and costs are projected to grow at 20% a year for at least the next 4 years. Both current assets and accounts payable are projected to rise in proportion to sales. The firm is currently operating at 75% capacity, so it plans to increase fixed assets in proportion to sales. Interest expense will equal 10% of longterm debt outstanding at the start of the year. The firm will maintain a dividend payout ratio of 0.60.
What is the required external financing over the next year
In: Finance
Perfect Lawns and Gardens is a small lawn equipment manufacturer. The company is analyzing a proposed project. It expects to sell 3,000 push lawn mowers, give or take 15 percent. The expected variable cost per unit is $95 and the expected fixed costs are $125,000 per year. Both cost estimates are considered accurate within a plus or minus 5 percent range. The sale price is estimated at $180 a unit, give or take 2 percent. The project requires $240,000 of fixed assets, which will be worthless when the project ends in four years. The assets will be depreciated according to the 5year MACRS depreciation schedule. Also required is $65,000 of net working capital investment to start the project. The tax rate is 21 percent and the required rate of return is 12 percent. What is the net present value of the worstcase scenario? What is the IRR of the worstcase scenario?
In: Finance
High Flyer, Inc., wishes to maintain a growth rate of 16.25 percent per year and a debtequity ratio of .95. The profit margin is 4.7 percent, and total asset turnover is constant at 1.07.  
a.  What is the dividend payout ratio? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) 
b.  What is the maximum sustainable growth rate for this company? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) 

I have solved the question two different ways and I keep getting thosee answers above and it says they are wrong please help me!
In: Finance
Max Wholesaler borrowed $5,000 on a 12%, 120day note. After 45 days, Max paid $1,750 on the note. Thirty days later, Max paid an additional $1,500. Use ordinary interest.
a. Determine the total interest using the U.S.
Rule. (Round your intermediate balances and interest
amounts to the nearest cent. Round your final answer to the nearest
cent.)
Total interest amount $
b. Determine the ending balance due using the U.S. Rule. (Round your intermediate balances and interest amounts to the nearest cent. Round your final answer to the nearest cent.)
Ending balance due $
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A U.S. Treasury bond will pay a lump sum of $1,000 exactly 3 years from today. The nominal interest rate is 6%, semiannual compounding. Which of the following statements is CORRECT?









In: Finance
Given  Principal $13,500, Interest Rate 9%, Time 240 days (use ordinary interest)  
Partial payments:  On 100th day, $3,800  
On 180th day, $2,500 
a. Use the U.S. Rule to solve for total interest
cost. (Use 360 days a year. Do not round intermediate
calculations. Round your answer to the nearest
cent.)
Total interest cost
$
b. Use the U.S. Rule to solve for balances. (Use 360 days a year. Do not round intermediate calculations. Round your answer to the nearest cent.)
On 100th day  On 180th day  
Balance after the payment  $  $ 
c. Use the U.S. Rule to solve for final payment.
(Use 360 days a year. Do not round intermediate
calculations. Round your answer to the nearest
cent.)
Final payment
$
In: Finance
Wilde Software Development has a 12% unlevered cost of equity. Wilde forecasts the following interest expenses, which are expected to grow at a constant 4% rate after Year 3. Wilde’s tax rate is 25%.
Year 1  Year 2  Year 3  
Interest Expenses  80  100  120  
a. What is the horizon value of the interest tax shield? 

b. What is the total value of the interest tax shield at Year 0? 
In: Finance
Is the Efficient Market Hypothesis wrong if someone with inside (confidential) information is able to make a profit on trades?
In: Finance
The value of outstanding bonds change whenever the going rate of interest changes. In general, shortterm rates are more volatile than longterm rates. Therefore, shortterm bond prices are more sensitive to interest rate changes than are longterm bond prices. Is this statement true or false? Make up a reasonable example using a shortterm and a longterm bond to help answer the question.
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