In: Finance
You are interested in arranging financing to purchase a new car from Bloomington Cars, Inc. The car that you want has a sticker price of $42,000, an instant rebate of $3,500, a fair market value of $39,000, and a great sound system. The salesperson, while smoothing over his comb-over, taps his pinky ring on the hood of the car and tells you, “You picked the best car we have. I can also kick in a free Bloomington Cars coffee mug.” Since you love the car, you hop up and down and say, “Sold! I’ll take it.” You sign a loan contract for 60 monthly payments based on a rate of 7.3% per year and drive home with your new car and coffee mug, listening to that great sound system. (Your market rate of return for the risks you pose for a car loan is 5.5%.)
What is your monthly payment (rounded to two places)?
Group of answer choices
$802.25
$777.78
$767.81
$707.98
None of the above
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Question 21 pts
How much value did you destroy in pursuit of that great sound system and your free coffee mug (rounded to two places)?
Group of answer choices
$499.86
$1,197.03
$3,000.06
$2,324.09
None of the above
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Question 31 pts
What would have been a “fair” monthly payment (rounded to two places)?
Group of answer choices
$744.95
$837.61
$735.39
$767.43
None of the above
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Question 41 pts
Based on Questions #1 and #3, how much are you overpaying each month (rounded to two places)?
Group of answer choices
$26.82
$17.46
$8.24
$32.87
None of the above
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Question 51 pts
If you come to your senses in 12 months and realize what a bad deal you negotiated and would like to pay off this bad loan, how much do you owe (rounded to two places)?
Group of answer choices
$36,854.88
$33,014.89
$8,859.51
$31,878.28
None of the above
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Question 61 pts
How much interest will you pay in the first year of the loan (rounded to two places)?
Group of answer choices
$9,213.72
$2,592.00
$6,621.72
$3,452.28
None of the above
In: Finance
Southern airline inc.announced that its net income in the first quarter jumped percent to $100 million as number of passenger climbed. The airline also booked of $40 million from the sales of 2 aircraft. According to the survey of 6 analysts average estimate of the first quarter net income for the airline was $200 miliion. After earning announcement what would be the possible movement of the company's stock. Please explain with any financial concepts and theories?
In: Finance
In: Finance
Write in your own words Define the payback, net present value, internal rate of return, and profitability index methods.
Need 300 words discussion
Don't rewrite already existing chegg answer
In: Finance
A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: |
Year | Cash Flow | ||
0 | –$ | 34,000 | |
1 | 15,000 | ||
2 | 17,000 | ||
3 | 13,000 | ||
What is the NPV of the project if the required return is 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
At a required return of 11 percent, should the firm accept this project? |
Yes
No
What is the NPV of the project if the required return is 24 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
At a required return of 24 percent, should the firm accept this project?
Yes
No
In: Finance
kindly give a one-page paper insights on introducing straight talk about managing business ethics: where we're going and why
In: Finance
Your company is considering investing in one of two mutually exclusive projects. The cost of capital is 11%. The first project Has $25,000 annual cash inflows, a 10-year life, and will cost $120,000 at time zero. The second project has a 7-year life, Annual cash inflows of $20,000 per year, and a cost of $75,000 at time zero. Which project has the highest NPV. Assuming that these projects will most likely be repeated indefinitely into the future, which project would add the most value to the company? Justify your answer using the EAA
In: Finance
In your case study, discuss the following aspects of the real company in the world which must have offering bonds. you can chose any company which you like. 1. Provide a brief introduction of the company, including its name, headquarters, products/services offered, and approximate net worth. 2. Explain how the company is doing with respect to the ratios. Consider debt-to-equity, return on equity, current and quick ratio, working capital ratio, price earnings ratio, and the earnings per share. (chap 2) 3. What are the key features of one of the bonds issued by your chosen company? Discuss how the bond’s terms and collateral can affect the bond’s interest rate. 4. How would a potential investor determine the value and risk of the bond? 5. Explain the concept of the time value of money (TVM) as it applies to the company’s bond offerings.
In: Finance
Benton is a rental car company that is trying to determine whether to add 25 cars to its fleet. The company fully depreciates all its rental cars over four years using the straight-line method. The new cars are expected to generate $240,000 per year in earnings before taxes and depreciation for four years. The company is entirely financed by equity and has a 21 percent tax rate. The required return on the company’s unlevered equity is 11 percent and the new fleet will not change the risk of the company. |
a. |
What is the maximum price that the company should be willing to pay for the new fleet of cars if it remains an all-equity company? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
b. | Suppose the company can purchase the fleet of cars for $610,000. Additionally, assume the company can issue $340,000 of four-year debt to finance the project at the risk-free rate of 4 precent. All principal will be repaid in one balloon payment at the end of the fourth year. What is the APV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
|
In: Finance
You just won the lottery worth $70,000,000. After reading the fine print you learn that you have two options:
Option A: Take the cash value of $47.6 million today (before taxes)
Option B: You are guaranteed to receive 30 graduated payments over 29 years. The first payment is made today. These payments will increase by 5% per year until the final payment. The first payment, received today, equals $1,900,000.
Assuming a required rate of return of 6%, calculate the present value of Option B.
In: Finance
Employee |
Identification |
Deferral Percentage |
Lois |
HC |
6.97% |
Frank |
HC |
8.33% |
Karen |
NHC |
5.00% |
Jeanette |
NHC |
8.00% |
Joyce |
NHC |
2.00% |
Ronnie |
NHC |
5.00% |
Kali |
NHC |
0.00% |
Will the company pass the ADP test? If not, what this firm can do to remedy this situation.
In: Finance
(CO A) Define operating synergies.
What are the two types of operating synergies?
In: Finance
In a bid to gain greater acceptance in Asian markets, Wide Bay Cookies Ltd is evaluating an opportunity to produce and distribute its products from a new manufacturing plant in Vietnam. Wide Bay will invest AUD $3,000,000 to set up the factory and provide working capital for operations. AUD $2,000,000 of this initial outlay will be recovered when the project is terminated in four years’ time. Wide Bay expect to receive 13,000,000,000 Vietnamese Dong (VND) after tax for each of the four years of operation. The current spot rate is AUD VND 15 746.72.
The risk free rate in Australia is 1% while it is 4.45% in Vietnam. You should assume that interest rate parity exists. Wide Bay Cookies works on the assumptions that the one year forward rate predicts the spot rate in one years’ time and that the change in the exchange rate in the first year will be repeated for each year of the project. Wide Bay’s annual required return for the project is 12%.
Rice Paper Ltd is an Australian company that imports Vietnamese products. Rice Paper’s contracts are written in Vietnamese Dong and they agree to take 13,000,000,000 each year from Wide Bay Cookies at the rate of AUD VND 14 000.
a) Ignoring any tax implications, what is the net present value of the project for Wide Bay Cookies if it does not hedge the project’s cash flows?
b) Ignoring any tax implications, what is the net present value of the project for Wide Bay Cookies if it engages in the currency swap?
c) Should Wide Bay undertake the project? Justify your answer.
In: Finance
please unique answer, no handwriting, for safeAssign Pilgirism submission.API style
in Details ,
Portfolio management, program management, project management and organizational project management are key disciplines associated with the modern project management. Discuss relationships among these disciplines by recognizing their similarities and differences.
In: Finance