Questions
You have just sold your house for $ 1,100, 000 in cash. Your mortgage was originally...

You have just sold your house for $ 1,100, 000 in cash. Your mortgage was originally a​ 30-year mortgage with monthly payments and an initial balance of $ 800,000. The mortgage is currently exactly​ 18½ years​ old, and you have just made a payment. If the interest rate on the mortgage is 7.75 % ​(APR), how much cash will you have from the sale once you pay off the​ mortgage? ​(Note: Be careful not to round any intermediate steps less than six decimal​ places.)

Cash that remains after payoff of mortgage is ​[...]? Round to the nearest dollar.

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how do a corporation leverage transfer pricing and how import duties might influence transfer pricing policies?

how do a corporation leverage transfer pricing and how import duties might influence transfer pricing policies?

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You have just won a very special prize, a "consol" bond that pays $30,000 every six...

You have just won a very special prize, a "consol" bond that pays $30,000 every six months (semi-annual payment) forever. The only caveat is that the first payments is given 5.5 years from now. You are not that enthusiastic about waiting that long. In fact, you really want to simply receive 13 quarterly payments with the first payment starting one quarter from now. If the APR is 12% compounded monthly, what is the quarterly payment amount you want to receive instead? For your answer round to the nearest dollar, do not enter the dollar ($) sign, and use commas for the thousands. For example, if you obtained $1,240.75 then enter 1,241

solve step by step

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Use Black-scholes formula to calculate: Assume S = $62.50, σ = 0.20, r = 0.03, div...

Use Black-scholes formula to calculate:

Assume S = $62.50, σ = 0.20, r = 0.03, div = 0.0, on a $60 strike call and 81 days until expiration. Given a delta = 0.7092, gamma = 0.0582, and theta = -0.0158, what is the approximate call price, using the delta, gamma, theta approach, after 1 day, assuming a $0.50 rise in the stock price? Show details.

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STATEMENT OF CASH FLOWS   W.C. Cycling had $55,000 in cash at year-end 2014 and $25,000 in...

STATEMENT OF CASH FLOWS   W.C. Cycling had $55,000 in cash at year-end 2014 and $25,000 in cash at year-end 2015. The firm invested in property, plant, and equipment totaling $250,000. Cash flow from financing activities totaled   $170,000.
a.   What was the cash flow from operating activities?

b.   If accruals increased by $25,000, receivables and inventories increased by $100,000,
and depreciation and amortization totaled $10,000, what was the firm’s net income?

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​Beryl's Iced Tea currently rents a bottling machine for $ 53000 per​ year, including all maintenance...

​Beryl's Iced Tea currently rents a bottling machine for $ 53000 per​ year, including all maintenance expenses. It is considering purchasing a machine​ instead, and is comparing two​ options: A. Purchase the machine it is currently renting for $ 150000. This machine will require $ 20000 per year in ongoing maintenance expenses. B. Purchase a​ new, more advanced machine for $ 250000. This machine will require $ 15000 per year in ongoing maintenance expenses and will lower bottling costs by $ 10000 per year.​ Also, $ 40000 will be spent upfront training the new operators of the machine. Suppose the appropriate discount rate is 8 % per year and the machine is purchased today. Maintenance and bottling costs are paid at the end of each​ year, as is the rental of the machine. Assume also that the machines will be depreciated via the​ straight-line method over seven years and that they have a​ ten-year life with a negligible salvage value. The marginal corporate tax rate is 30 %. Should​ Beryl's Iced Tea continue to​ rent, purchase its current​ machine, or purchase the advanced​ machine? To make this​ decision, calculate the NPV of the FCF associated with each alternative.​ (Note: the NPV will be​ negative, and represents the PV of the costs of the machine in each​ case.)

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(Real options and capital budgeting​) You have come up with a great idea for a​ Tex-Mex-Thai...

(Real options and capital budgeting​) You have come up with a great idea for a​ Tex-Mex-Thai fusion restaurant. After doing a financial analysis of this​ venture, you estimate that the initial outlay will be $5.7 million. You also estimate that there is a 50 percent chance that this new restaurant will be well received and will produce annual cash flows of $760,000 per year forever​ (a perpetuity), while there is a 50 percent chance of it producing a cash flow of only ​$240,000 per year forever​ (a perpetuity) if it​ isn't received well.

a. What is the NPV of the restaurant if the required rate of return you use to discount the project cash flows is 12 ​percent?

b. What are the real options that this analysis may be​ ignoring?

c. Explain why the project may be worthwhile even though you have just estimated that its NPV is​ negative?

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DEF stock currently trades at $112. Use the chart for the questions. Call Premiums Put Premiums...

DEF stock currently trades at $112. Use the chart for the questions.

Call Premiums

Put Premiums

Strike

Jan.

Feb.

Jan.

Feb.

105

7.50

7.75

.50

.60

110

6.25

6.50

.65

.75

115

1.15

1.20

3.25

3.62

120

.75

.95

8.10

8.85

1. What is the exercise value of the 115 Feb. put option? Round intermediate steps to four decimals and your final answer to two decimals. Do not use currency symbols or words when entering your response.

2. Assuming that the annual risk-free rate is 5% and the time until expiration is 6 months, an investor could earn an arbitrage profit by shorting a synthetic 110 Jan. put option and buying a 110 Jan. put option in the marketplace.

a. true

b. false

3. Suppose that you decided to set up a short strip position using the Jan. 105 options. Find your profit/loss if the stock trades for $110 when the options expire. Round intermediate steps to four decimals and your final answer to two decimals.

$350

4. Suppose that you decided to set up a long strap position using the Feb. 110 options. Find your profit/loss if the stock trades for $127 when the options expire. Round intermediate steps to four decimals and your final answer to two decimals.

$2,025

I've bolded the answers I got and I would just like to check my work. Thank you!

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STATEMENT OF CASH FLOWS W.C. Cycling had $55,000 in cash at year-end 2014 and $25,000 in...

STATEMENT OF CASH FLOWS W.C. Cycling had $55,000 in cash at year-end 2014 and $25,000 in cash at year-end 2015. The firm invested in property, plant, and equipment totaling $250,000. Cash flow from financing activities totaled $170,000. a. What was the cash flow from operating activities? b. If accruals increased by $25,000, receivables and inventories increased by $100,000, and depreciation and amortization totaled $10,000, what was the firm’s net income?

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If a firm’s ROE is low and management wants to improve it, explain how using more...

If a firm’s ROE is low and management wants to improve it, explain how using more debt might help.

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Profit margins and turnover ratios vary from one industry to another. What differences would you expect...

Profit margins and turnover ratios vary from one industry to another. What differences would you expect to find between the turnover ratios, profit margins, and DuPont equa- tions for a grocery chain and a steel company?

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1- Your firm is has equity of $2,460,000.00 and debt of $1,480,000.00 and the cost of...

1- Your firm is has equity of $2,460,000.00 and debt of $1,480,000.00 and the cost of the equity is 11.70% and the cost of the debt is 6.60%. Given that the tax rate is 15.00%, what is your firm's weighted average cost of capital (WACC)? (enter your value as a percent (i.e. 20.5 for 20.5%) tolerance is 0.1)

2- Your firm is has equity of $2,270,000.00 and debt of $4,060,000.00. The firm has been estimate to have a beta of 1.50 and the expected market risk premium (MRP) is 4.72% with the risk-free rate at 3.58%. The firm just recently issued bonds which traded at $905.58 on it's issue date and they have a 10-year maturity (assume standard corporate bonds). The stated rate on the bonds was 3.60%. What is your firm's weighted average cost of capital (WACC) if the tax rate is 30.00%? (enter your value as a percent (i.e. 20.5 for 20.5%) tolerance is 0.1)

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In 1895, the first a sporting event was held. The winner's prize money was $130. In...

In 1895, the first a sporting event was held. The winner's prize money was $130. In 2007, the winner's check was $1,173,000. (Do not round your intermediate calculations.)

Required:
(a) What was the percentage increase per year in the winner's check over this period?
(Click to select)  8.52  8.57  -24.12  8.47  8.37
(b) If the winner's prize increases at the same rate, what will it be in 2040?
   (Click to select)  17,430,895.58  17,697,884.24  130.00  16,653,153.67  17,167,814.42

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Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment...

Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.32 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $1.735 million in annual sales, with costs of $650,000. The project requires an initial investment in net working capital of $250,000, and the fixed asset will have a market value of $180,000 at the end of the project. The tax rate is 21 percent.

a. What is the project’s Year 0 net cash flow? Year 1? Year 2? Year 3? (Do not round intermediate calculations. Enter your answers in dollars, not millions of dollars, e.g., 1,234,567. A negative answer should be indicated by a minus sign.)
b.

If the required return is 12 percent, what is the project's NPV? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Year 0: _____

Year 1: _____

Year 2: _____

Year 3: _____

NPV: ______

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The Kretovich Company had a quick ratio of 1.2, a current ratio of 3.0, a days...

The Kretovich Company had a quick ratio of 1.2, a current ratio of 3.0, a days sales outstanding of 36.5 days (based on a 365-day year), total current assets of $795,000, and cash and marketable securities of $130,000. What were Kretovich's annual sales? Do not round intermediate calculations. Round your answer to the nearest dollar.

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