Loan Consolidated Incorporated​ (LCI) is offering a special​ one-time package to reduce Custom​ Autos' outstanding bills to one​ easy-to-handle payment plan. LCI will pay off the current outstanding bills of ​$244,000 for Custom Autos if Custom Autos will make an annual payment to LCI at an interest rate of 11% over the next 5 years.  

a. What are the annual payments of the​ loan?

b. What is the amortization schedule for this loan if Custom Autos wants to pay off the loan before the loan maturity in

5 years?

c. When will the balance be half paid​ off?

d. What is the total interest expense on the loan over the 5 ​years?

(round to the nearest cent)

Ross has decided that he wants to build enough retirement wealth that, if invested at 5 percent per year, will provide him with $5,000 of monthly income for 30 years. To date, he's saved nothing, but he still has 20 years until he retires. How much money does he need to contribute per month to reach his goal?

What is a side effect? How is it treated in capital budgeting analysis? Give an example. What are you trying to achieve when you deal with side effects in your analysis?

Given the following cash inflow at the end of each year, what is the future value of this cash flow at 3%, 10% and 18% interest rates at the end of year 7?

Year   Cash Inflow
1 $15,000
2 $22,000
3 $28,000
4 $0
5 $0
6 $0
7 $160,000

What is the future value of this cash flow at 3% interest rate at the end of year 7?

What is the future value of this cash flow at 10% interest rate at the end of year 7?

What is the future value of this cash flow at 18% interest rate at the end of year 7?

round to the nearest cent

REQUIREMENT:

Choose any TWO companies listed in the construction sector of the Main Market of Bursa Malaysia.

1. Using the relevant profitability ratios (supported with detailed workings), analyse and explain the trends in the companies’ ratios over the past five years (2013 - 2017).

2. Compare the companies’ financial performance based on the calculated ratios.

3. Outline the companies’ strengths and weaknesses as revealed by your analysis.

4. What are some potential problems and limitations of the financial ratio analysis when evaluating and comparing the two companies?

5. What are some qualitative factors that should be considered when evaluating the companies?

[Total: 60 Marks]

Titanic Corporation has 10 million share outstanding, selling currently at a price of $50 per share. The company expects earnings per share next year to be $7.50. The company retains one-third of each year's earnings and reinvests these funds in projects with an expected return of 15% (thus, ROE is 15%)

What Rate of return do the shareholders require?

Suppose that, unexpectedly, the company announces plans to retain an additional $3 per share for the next ten years. These additional funds will be invested in ten separate perpetual projects, each with an expected rate of return of 9%. The required rate of return on the new projects would be the same as the current required return. As a result of this announcement. Titans Stock price is?

Do you think Titanic is more of a growth company before or after this announcement?

How do I arrive at the solution below for this problem?

Assuming the firm is operating at full capacity and using the data in the table below, forecast Orwell's AFN for the coming year? Last year's sales = S0 $451,000 Last year's accounts payable $40,000 Sales growth (ΔS) $140,000 Last year's notes payable $10,000 Last year's total assets = A0* $103,000 Last year's accruals $10,000 Last year's profit margin = PM 0.25 Target payout ratio 0.4

Solution: -9,471,051,197.67

Jeremy earned $102,100 in salary and $8,100 in interest income during the year. Jeremy’s employer withheld $11,000 of federal income taxes from Jeremy’s paychecks during the year. Jeremy has one qualifying dependent child who lives with him. Jeremy qualifies to file as head of household and has $32,700 in itemized deductions. (Use the tax rate schedules.) Assume the original facts except that Jeremy has only $7,000 in itemized deductions. What is Jeremy’s tax refund or tax due?

How to arrive at the solution below for this pratice problem? Solution: -22,037,756.82

Assuming the firm is operating at only 50% capacity and using the data in the table below, forecast Orwell's AFN for the coming year? Last year's sales = S0 $136,000 Last year's accounts payable $40,000 Sales growth (ΔS) $9,000 Last year's notes payable $10,000 Last year's total assets = A0* $248,000 Last year's accruals $10,000 Last year's profit margin = PM 0.03 Target payout ratio 0

Discuss a management strategy used to retain or increase cash. Share an example of a time when you’ve used a similar strategy in your personal finances. How are the applications of these strategies similar or different for businesses and individuals?

Give 5 benefits of supply chain management with an example of how a NYS (New York State) Corporation is employing this type of management to run its operations. For full credits, give the profile of each NYS corporation that you name.

You and your lovely and/or handsome spouse have decided the purchase a new home with a loan for $260,000. The mortgage you chose offers a contract rate of 4.5%, a maturity of 30 years, and requires the payment of 3 points. What is the annual effective cost of borrowing for this loan if you make your scheduled payments for the full 30 years?

Greta, an elderly investor, has a degree of risk aversion of A = 4 when applied to return on wealth over a one-year horizon. She is pondering two portfolios, the S&P 500 and a hedge fund, as well as a number of 1-year strategies. (All rates are annual and continuously compounded.) The S&P 500 risk premium is estimated at 9% per year, with a SD of 18%. The hedge fund risk premium is estimated at 5% with a SD of 25%. The returns on both of these portfolios in any particular year are uncorrelated with its own returns in other years. They are also uncorrelated with the returns of the other portfolio in other years. The hedge fund claims the correlation coefficient between the annual returns on the S&P 500 and the hedge fund in the same year is zero, but Greta is not fully convinced by this claim.

a-1. Assuming the correlation between the annual returns on the two portfolios is indeed zero, what would be the optimal asset allocation? (Do not round intermediate calculations. Enter your answers as decimals rounded to 4 places.)

s&p =

Hedge =

a-2. What is the expected risk premium on the portfolio? (Do not round intermediate calculations. Enter your answers as decimals rounded to 4 places.)

Suppose that Home Depot decides to add a coffee shop in the middle of the store to encourage more browsing by customers. This business will hire some additional employees, but analysts believe the coffee shop will require the store general manager to work 15 more hours per week. This will increase the general manager’s salary by $15,862.00 per year. Home Depot has a 40.00% tax rate, a 12.00% cost of capital, and is evaluating this project over a 6.00-year period. What is the net opportunity cost to adding the coffee shop? (HINT: Value the extra gain in the manager’s salary. EXPRESS as a positive number)

Justin Owens is an analyst for an equity mutual fund that invests in British stocks. At the beginning of 2008, Owens is examining domestic stocks for possible inclusion in the fund. One of the stocks that he is analyzing is British Sky Broadcasting Group (London Stock Exchange: BSY). The stock has paid dividends per share of £9, £12.20, and £15.50 at the end of 2005, 2006, and 2007, respectively. The consensus forecast by analysts is that the stock will pay a dividend per share of £18.66 at the end of 2008 (based on 19 analysts) and £20.20 at the end of 2009 (based on 17 analysts). Owens has estimated that the required rate of return on the stock is 11 percent.

A. Compare the compound annual growth rate in dividends from 2005 to 2007 inclusive (i.e., from a beginning level of £9 to an ending level of £15.50) with the consensus predicted compound annual growth rate in dividends from 2007 to 2009, inclusive.

B. Owens believes that BSY has matured such that the dividend growth rate will be constant going forward at half the consensus compound annual growth rate from 2007 to 2009, inclusive, computed in Part A. Using the growth rate forecast of Owens as the constant growth rate from 2007 onwards, estimate the value of the stock as of the end of 2007 given an 11 percent required rate of return on equity.

C. State the relationship between estimated value and r and estimated value and g