Suzanne opens an account at a local bank on January 1, 2004 with a deposit of 4000 dollars. On October 1, 2004 she withdraws 1430 dollars. On April 1, 2005 she withdraws 850 dollars. And on April 1, 2007 she deposits 2090 dollars. Find the total present value of these transactions on July 1, 2006, if the account earns interest at a nominal rate of 7.6 percent convertible quarterly.

The solutions I've found on the website have not taken into account the future deposit and are incorrect, any suggestions?

You have just purchased a home and taken out a $ 520000 mortgage. The mortgage has a 30​-year term with monthly payments and an APR​ (with semi-annual​ compounding) of 7.44 %. ​(Note: Be careful not to round any intermediate steps less than six decimal​ places.)

a. How much will you pay in​ interest, and how much will you pay in​ principal, during the first​ year?
b. How much will you pay in​ interest, and how much will you pay in​ principal, during the twentieth year​ (i.e., between 19 and 20 years from​ now)?

The Down Towner is considering a project with a life of 4 years that will require $164,800 for fixed assets and $42,400 for net working capital. The fixed assets will be depreciated using the Year 2018 bonus depreciation method. At the end of the project, the fixed assets can be sold for $37,500 cash and the net working capital will return to its original level. The project is expected to generate annual sales of $195,000 and costs of $117,500. The tax rate is 24 percent and the required rate of return is 13 percent. What is the project's net present value?

Question 1

(a) If Company A has a price per share of $40 and an earnings per share of $10, and Company B has a price per share of $30 and earnings per share of $3,what is the P/E  

multiple of each.Which Company has a higher expected future earnings growth rate and why?

(b) How do we calculate the Times Interest Earned Ratio ? What does it tell us ?

(c) Why might a lender be more focused on liabilities - to- Assets Ratio rather than Debt- to- Equity Ratio ?

rev: 02_05_2014_QC_44397

I and my husband Jose have total amount of $150,000 in our savings account. We have 3 school going kids. We want to buy a new home, a new car and keep funds for children higher education.

We finalized to buy a home for $760,000. We may use $120,000 of our savings as a down payment on it. For balance financing the mortgage specialist/agent gave us the following options:

1. Option 1: a 25-year mortgage/loan, with semi-monthly payments (at the end of each period). The interest rate on the mortgage is 3.26% APR (annual percentage rate) compounded semi-annually.

Ques 1. What will the semi-monthly payment be on the Option 1 mortgage?

Please use (display + name) the excel function/ formula. Also please attach the screenshots/ photos of the excel sheet solution.

Option 2: a monthly payment of $2,900 to be made at the end of each period. The interest rate with this option would be 3.60% APR (annual percentage rate) compounded semi-annually.

Ques 2. How many years will Option 2 mortgage be amortized over?

Please use (display + name) the excel function/ formula. Also please attach the screenshots/ photos of the excel sheet solution.

Ques 3. To buy a new car of $45,000 (including taxes). In exchange of our old car for $10,000 and $10,000 from our savings as a down payment, the car dealer would provide the $25,000 balance as a 5-year loan paid semi-monthly at 4.8% APR compounded semi-monthly. What will the payment be on the loan for the car as per below information?

Please use (display + name) the excel function/ formula. Also please attach the screenshots/ photos of the excel sheet solution.

Jack is considering adding work jeans and T-shirts to the items he stocks in his general store provided that his payback period is less than 2.5 years. He estimates that the initial cost of inventory will be $6,750. The remodeling expenses required for this addition are $18,200. Jean and T-shirt sales are expected to produce net cash inflows of $10,200, $14,500, and $16,600 over the next three years, respectively. Jack _____ add the jeans and T-shirts to his offerings as the payback period is _____ years.

Multiple Choice

• should; 1.67

• should; 3.67

• should; 2.02

• should not; 3.67

• should not; 2.02

You must evaluate a proposal to buy a new milling machine. The base price is $165,000, and shipping and installation costs would add another $12,000. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $82,500. The applicable depreciation rates are 33%, 45%, 15%, and 7%. The machine would require a $8,000 increase in net operating working capital (increased inventory less increased accounts payable). There would be no effect on revenues, but pretax labor costs would decline by $31,000 per year. The marginal tax rate is 35%, and the WACC is 13%. Also, the firm spent $5,000 last year investigating the feasibility of using the machine.

1. How should the $5,000 spent last year be handled?
   1. The cost of research is an incremental cash flow and should be included in the analysis.
   2. Only the tax effect of the research expenses should be included in the analysis.
   3. Last year's expenditure should be treated as a terminal cash flow and dealt with at the end of the project's life. Hence, it should not be included in the initial investment outlay.
   4. Last year's expenditure is considered as an opportunity cost and does not represent an incremental cash flow. Hence, it should not be included in the analysis.
   5. Last year's expenditure is considered as a sunk cost and does not represent an incremental cash flow. Hence, it should not be included in the analysis

2. What is the initial investment outlay for the machine for capital budgeting purposes, that is, what is the Year 0 project cash flow? Round your answer to the nearest cent.

3. What are the project's annual cash flows during Years 1, 2, and 3? Round your answer to the nearest cent. Do not round your intermediate calculations.

   Year 1 $

   Year 2 $

   Year 3 $

4. Should the machine be purchased?

Highway 65, Inc., is going to elect six board members next month. Betty Brown owns 16.8 percent of the total shares outstanding. a. What percentage of stock is needed to have one of her friends elected under the cumulative voting rule? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What percentage of stock is needed to have one of her friends elected under the staggered cumulative voting rule under which shareholders vote on two board member(s) at a time? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

The market price of a stock is $21.98 and it is expected to pay a dividend of $1.59 next year. The required rate of return is 11.86%. What is the expected growth rate of the dividend?

Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))

A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a rate of 8%.

The probability distribution of the risky funds is as follows: Expected Return Standard Deviation Stock fund (S) 17 % 35 % Bond fund (B) 14 18 The correlation between the fund returns is 0.09. a-1. What are the investment proportions in the minimum-variance portfolio of the two risky funds. (Do not round intermediate calculations. Enter your answers as decimals rounded to 4 places.) a-2. What is the expected value and standard deviation of its rate of return? (Do not round intermediate calculations. Enter your answers as decimals rounded to 4 places.)

How to do this question through excel?

An employee plans to invest $8,000 per year in a retirement fund at the beginning of each of the next 10 years. The employee believes she will earn 14% on her investments in each of the next 7 years and 9% in each of the last 3 years before she retires.

How much money will the employee have in the retirement fund when she retires?