Please explain, Excel assignment.

Prepare an amortization table for a 30-year mortgage where the homeowner is borrowing $170,000 at a 3.75% interest rate. In addition to the monthly table, provide a summary table showing the interest paid, principal paid, and ending balance on a yearly basis. Create three separate graphs illustrating interest paid over time, principal paid over time, and ending balance over time for the 30 annual periods in the summary table.

Repeat the analysis, changing the interest rate to 8.75% and comment (briefly) on the impact of mortgage rates on home affordability.

17-1 Consider a 6 percent 10-year bond purchased at face value($1000). Assuming a reinvestment rate of 5 percent, calculate

1. The interest on interest =
2. the total dollar return =
3. the realized compound yield =

Merger Bid

Hastings Corporation is interested in acquiring Vandell Corporation. Vandell has 1 million shares outstanding and a target capital structure consisting of 30% debt; its beta is 1.10 (given its target capital structure). Vandell has $8.85 million in debt that trades at par and pays an 7.2% interest rate. Vandell’s free cash flow (FCF₀) is $2 million per year and is expected to grow at a constant rate of 5% a year. Both Vandell and Hastings pay a 30% combined federal and state tax rate. The risk-free rate of interest is 6% and the market risk premium is 6%.

Hastings Corporation estimates that if it acquires Vandell Corporation, synergies will cause Vandell’s free cash flows to be $2.4 million, $2.7 million, $3.4 million, and $3.63 million at Years 1 through 4, respectively, after which the free cash flows will grow at a constant 5% rate. Hastings plans to assume Vandell’s $8.85 million in debt (which has an 7.2% interest rate) and raise additional debt financing at the time of the acquisition. Hastings estimates that interest payments will be $1.5 million each year for Years 1, 2, and 3. After Year 3, a target capital structure of 30% debt will be maintained. Interest at Year 4 will be $1.460 million, after which the interest and the tax shield will grow at 5%.

Indicate the range of possible prices that Hastings could bid for each share of Vandell common stock in an acquisition. Round your answers to the nearest cent. Do not round intermediate calculations.

The Financial Industry Regulatory Authority(FINRA) explanation and history?

National Association of Securities Dealers(NASD) explanation and history?

Consider the following two projects, and assume a company's cost of capital is 15 percent. Find the IRR and NPV of each project. Which projects add value to the company? If the company can choose only a single project, which project should it choose? Please show through excel sheets and equations.

For each of the scenarios below, explain the shift(s) in:

 Demand :

 Supply :

 Federal Funds Rate (FFR) :

 Money Supply (MS) :

a) The Fed increases reserve requirements.

b) The Fed conducts an open market purchase.

c) The Fed lowers the discount rate below the current equilibrium federal funds rate.

d) The Fed reduces reserve requirements and sterilizes this by conducting an open market sale of securities. (The term “sterilize” means to leave the Federal Funds Rate (FFR) unchanged)

Assume that the 1-year zero-coupon bond is sold at $89.78 and the yields to maturity for the coupon bonds selling at market prices equal to their face values are 11% and 13% for 1-year and 1.5-year issues respectively. Coupons are paid every 6 months and face values are $100 for all the bonds.

(a) Calculate the spot rate curve (s_0.5, s₁, s_1.5).

(Keep your answer in decimal format 4 decimal places, e.g. 0.1234. Do not give in percent format e.g. 12.34%.)

     s_0.5:     s₁:      s_1.5 :

(b) Compute the quasi-modified duration for each of these bonds. (Keep 2 decimal places, e.g. xx.12.)

     Zero-coupon bond:

11% coupon bond:  

    13% coupon bond:  

(c)  Determine the current price of an 14% coupon bond with face value $100 and 18 months to maturity. (Keep 2 decimal places, e.g. xx.12.)

What are the 10 principles of financial management and their definitions?

Discuss the advantages and disadvantages of ETFs (Exchange Traded Funds) to the banking industry.

Question 1

A local government board hired you to recommend which of the two possible sites should be chosen for a new recycling facility. Location A is much closer to the city center, and thus the average hauling distance would only be 2 miles, while Location B being outside of the city would result in an average hauling distance of 5 miles. Public funds will have to be used to pay for the leasing cost of the site, which would be $50,000 a year for Location A and $10,000 a year for Location B, as well as for the hauling cost which is $200 per mile for each trip. Assuming 3,000 trips will be made per year, which location should be chosen based on the overall cost?

Question 2 :

Metal ABC produces sheets of metal. Its fixed cost in year 2019 is $1,000,000. The variable cost is $400 per sheet. a. Find the break-even quantity assuming the selling price is $500 per sheet. b. Find the price and quantity that will result in maximum profit, assuming the demand function is ? = $10,000 − 6?. How much profit will be made using the profit-maximizing price and quantity values?

Question 3 :

A package delivery company is contemplating building a new shipping center. The most recent shipping center, 10,000 square feet large, was built in 2005, at a cost of $500,000. The new shipping center will be 15,000 square feet large. Using the power-sizing cost-estimating model, estimate the cost of building a new shipping center now, using the assumptions below to construct a weighted cost index value for 2005 and for today. Use 0.90 for the cost-capacity factor. The dollar cost of building a shipping center can be broken down into the cost of labor (20%), materials (35%), and equipment (45%). The cost index for labor is 120 in 2005, and 150 today. The cost index for materials is 180 in 2005 and 170 today. The cost index for equipment is 140 in 2005 and 200 today.

Question 4 Milana just deposited $10,000 in her account. Assuming the annual interest rate is 8%, how many years will it take before her account balance reaches $23,000? (Please make sure you use the time value of money Excel functions)

My dream car costs $15,000

A) Calculate the monthly payments on your dream car if the annual interest rate is 4%, and the term of the loan is 5 years.

B) Calculate how much you would have to save every month to purchase your dream car in 5 years if your savings account pays 7% APR. Due to inflation, the cost of the car will increase by .5% per year over the next 5 years. (i.e. calculate the new 'F' value before the monthly payments A).