A professor has two daughters that he hopes will one day go to college. Currently, in-state students at the local University pay about $22,478.00 per year (all expenses included). Tuition will increase by 3.00% per year going forward. The professor's oldest daughter, Sam, will start college in 16 years, while his youngest daughter, Ellie, will begin in 18 years. The professor is saving for their college by putting money in a mutual fund that pays about 7.00% per year. Tuition payments are at the beginning of the year and college will take 4 years for each girl. (Sam's first tuition payment will be in exactly 16 years)

The professor has no illusion that the state lottery funded scholarship will still be around for his girls, so how much does he need to deposit each year in this mutual fund to successfully put each daughter through college. (ASSUME that the money stays invested during college and the professor will make his last deposit in the account when Sam, the OLDEST daughter, starts college.)

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.

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

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

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.

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?

​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.)

(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?

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

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!

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?

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

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?

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)