Loan Amortization:

A loan of $14 100.00 is amortized over 11 years by equal monthly payments at

5.4% compounded monthly.

a) Find the outstanding balances after the payment 39 is done.

b) Find the outstanding balances after the payment 129 is done.

c) Find the amount of Final Payment and fill out the last row.

A firm’s product sells for $12 per unit and the unit variable cost is $8. The operating fixed costs total $100,000 per year. The firm pays $20,000 interest and $3,000 preferred dividends each year. The tax rate = 40%.

1. What is the firm’s operating breakeven point (rounded to the whole unit)?

2. What is the DFL at 50,000 units per year (rounded to the first decimal place)?

3. What is the DOL at 50,000 units per year (rounded to the first decimal place)?

4. What is the DTL at 70,000 units per year (rounded to the first decimal place)?

Specify the causes of the Lehman bankruptcy and insolvency as the firm moved through time.

How have automated retirement platforms changed the way people invest for their retirement? Do you think "set and forget" options like Dimensional Managed DC SmartNest will ultimately disintermediate retirement advisors, or will they remain a link in the product distribution chain?

If SmartNest is a game-changing innovation, why not partner with even larger institutions like Vanguard or Fidelity, which already have the infrastructure and inroads into this market?

EVEN-LI Co. and SOONER Inc. each of the companies buys an identical piece of box-manufacturing equipment at a cost of $3,300, and each estimates the equipment's salvage value of $100. However, each company uses a different method of depreciation. EVEN-LI uses the straight -line method and estimates the useful life of the equipment at 4 years. SOONER uses the double-declining balance method for the first year, switching to straight-line for the remaining years and estimates the useful life of the equipment at 4 years. Assume the following for each company: Revenues in each year were $3,000; expenses, other than depreciation were $1,000. Ignore taxes (0% tax rate) 1) calculate each company's net profit for each of the four years. 2) compare the net profit for the two companies across different years. 3) what are the steps and formulas to solve

Planetary Travel Co. has $240,000,000 in stockholders’ equity. Eighty million dollars is listed as common stock and the balance is in retained earnings. The firm has $500,000,000 in total assets and 2 percent of this value is in cash. Earnings for the year are $40,000,000 and are included in retained earnings. a. What is the legal limit on current dividends? b. What is the practical limit based on liquidity? c. If the company pays out the amount in part b, what is the dividend payout ratio? (Compute this based on total dollars rather than on a per share basis because the number of shares is not given.) d. Sometimes the corporation repurchases its own stock? Why? e. What is the characteristic of beta? f. What are the factors that influenced the Global capital markets? g. The investment banker may advise clients on a continuing basic. What are these advises?

Any company in the U.S. that plans to issue stocks or bonds is required by the Securities and Exchange Commission to provide its balance sheet and income statement to the public. Why is this requirement in place? What kind of information that would be useful to potential investors can be found in these financial statements?

2-3 paragraphs minimun

With the ground broken for the construction of its new home (the Nicol Building), the Sprott School of Business needs someone to supply it with 250 customized computers per year for the next 5 years, and you have decided to bid on the contract. It will cost you $125,000 to install the equipment necessary to start production. The equipment will be depreciated at 30 percent (class 10), and you estimate that it can be salvaged for 20.00% (of the original cost) at the end of the 5- year contract. Your fixed production costs will be $50,000 per year, and your variable production costs should be $600 per computer. You also need an initial investment in net working capital of $13,000. Assuming that your tax rate is 34 percent and you require a 12 percent return on your investment:

1. a) What is the depreciation tax shield in the third year of this project?

2. b) What is the present value of the CCA tax shield?

3. c) What is the minimum price that your company should bid per single computer?

Assuming you believe that Sprott School of Business will pay $975.00 per customized computer, what is the NPV of this project? Should you submit a bid given this new information?

Geary Machine Shop is considering a 4-year project to improve its production efficiency. Buying a new machine press for $944,377 is estimated to result in $252,402 in annual pretax cost savings. The press falls in the MACRS five-year class (Refer to the MACRS table on page 277), and it will have a salvage value at the end of the project of $96,706. The press also requires an initial investment in spare parts inventory of $62,097, along with an additional $7,811 in inventory for each succeeding year of the project. If the shop's tax rate is 0.36 and its discount rate is 0.14, what is the total cash flow in year 4? (Do not round your intermediate calculations.)

(Make sure you enter the number with the appropriate +/- sign)

Compute the interest paid on a 2-year lease for a $27,805 car if the annual rate of depreciation is 13% and the lease's annual interest rate is 4.9%. Round your answer to the nearest dollar.

Firms which need short-term financing have a number of options: trade credit, bank loans, commercial paper, or foreign borrowing. What are the advantages and disadvantages of each source of short-term financing? For which kinds of firms is each source of short-term financing most appropriate?