You are purchasing a house and your bank is giving you a special mortgage that will require annual payments for

25 years. The amount borrowed now is $350,000 and the first mortgage payment will be in one year.

a. Using C as the payment​ amount, indicate on a timeline all of the cash flows from your perspective related to this mortgage​ (outflows should be indicated as a negative​ number).

b. What will your payments be if the interest rate is 3.2 % per​ year?

c. What will your payments be if the interest rate is 6.2 % per​ year?

d. Comparing your answers in parts b and​ c, when interest rates increased by 3 %

The three little pigs received a loan for $9000 at an effective annual interest rate of 4% from BBW Bank to make repairs on their brick house. They will repay the loan, starting one year after the loan was disbursed, by making annual payments equal to 6 times the amount of interest due until they can make a final payment of no more than $475. Determine how many payments they will make and the amount of the final payment.

(a) The three little pigs will make____________ payments.

(b) The final payment will be for $______________.

Please give correct answers!

The Sisyphean Company is planning on investing in a new project. This will involve the purchase of some new machinery costing​ $450,000. The Sisyphean Company expects cash inflows from this project as detailed​ below:

The appropriate discount rate for this project is​ 16%.

The NPV for this project is closest​ to:

Lonnie Davis has been a general partner in the Highland Partnership for many years and is also a sole proprietor in a separate business. To spend more time focusing on his sole proprietorship, he plans to leave Highland and will receive a liquidating distribution of $50,500 in cash and land with a fair market value of $115,500 (tax basis of $145,250). Immediately before the distribution, Lonnie’s basis in his partnership interest is $412,000, which includes his $57,000 share of partnership debt. The Highland Partnership does not hold any hot assets.

a. What is the amount and character of any gain or loss to Lonnie?

b. What is Lonnie’s basis in the land?
c. What is the amount and character of Lonnie’s gain or loss if he holds the land for 13 months as investment property and then sells it for $161,000?
d. Assume there are no gains from the sale of other Section 1231 in the same tax year. What is the amount and character of Lonnie’s gain or loss if he places the land into service in his sole proprietorship and then sells it 13 months later for $161,000?

Exhibit 1
Company Shares   Beginning of year price Dividend per share End of year price

Birch    250 $ 40    $2.45    $39.00
Walnut 150    $ 8.00    $1.05 $8.50

Maple    300    $20.00    none $23.00

Cherry 400    $27.00 $1.25 $ 26.25

Use Exhibit 1. The table shows your stock
positions at the beginning of the year, the
dividends that each stock paid during the
year, and stock prices at the end of the year.
What is your portfolio percentage return? A. less than 5.65 percent
B. more than 5.65 percent but less than
6.10 percent
C. more than 6.10 percent but less than
6.55 percent
D. more than 6.55 percent but less than
7.00 percent
E. more than 7.00 percent

Commercial banks have become increasingly involved in real estate market. Plot the percent change from a year ago of real estate loans made by commercial banks (FRED code: REALLN) and discuss the relationship between the booms and busts in real estate lending and the expansions and recessions of the U.S. economy ?

In London, interest paid on pounds is 1.11%. In New york, interest paid on dollars is 3.27%. The Spot rate is $1.5512/ pound. The One year forward rate is $1.5529/ Pound. The spread on borrowing & lending rates is zero. The bid ask spread is Zero. The arbitrageur has no money of his own but can borrow up to 1,000,000 of any local currency. A. what is the covered yield on dollars( if the investor borrows pounds in London) and covered yield on pounds( if the investor borrows dollars in New york) B. Identity the steps and timing of this covered interest arbitrage, and compute the amounts involved at each state (including the gain at the end). C. The ROA is very low. How does an arbitrageur create acceptable ROE from covered interest arbitrage?

Suppose that you are contemplating an investment in an apartment building. Use the information provided below to answer the questions that follow: Type of Property: Apartment Building Number of Units: 30 Average Rent: $1,500 per unit per month Expected Growth in Rents: 5% per year Vacancy and Collection Losses: 5% of Potential Gross Income Other Income: $50 per unit per month Expected Growth in Other Income: 3% per year Operating Expenses: 35% of Effective Gross Income Capital Expenditures: 4% of Effective Gross Income Selling Expenses: 5% of Future Selling Price Going-Out Cap Rate: 6.5% Expected Purchase Price: $5.25 million Loan Terms: Loan Amount: 85% of purchase price Interest Rate: 4.5% per year with monthly payments and monthly compounding Amortization Term: 30 years a. What is the net present value of the before-tax unlevered cash flows if you assume a five-year holding period and a discount rate of 12%? b. What is the internal rate of return of the before-tax levered cash flows if you still assume a five-year holding period?

How can Consumer Data identify business trends?

1.1 Which of the following statements regarding The Statement of Financial Position is true? A The Statement of Financial Position reflects the financial position of an enterprise for the entire financial period being reported. B The Statement of Financial Position reflects the financial position of an enterprise only on a specific date C The Statement of Financial Position is a measure of the profit or loss that the enterprise has made over a certain period, usually one year D The Statement of Financial Position does not take into account transactions in respect of the owners of the enterprise

1.2 Which of the following statements regarding Equity is false? A Equity is the interest of the owner(s) in the net assets of the enterprise B The Equity of an enterprise is affected by the capital contribution and drawings made by the owner C Equity is affected by changes in income and expense accounts D None of the above (1)

1.3 The monetary columns of an account in the General Ledger are added vertically. This is known as A Summing B Balancing C Casting D Posting (1) 2 JS15

1.4 Which of the following errors will not be revealed by balancing the trial balance? A Inventory to the value of R5 000 was incorrectly posted to the Furniture and Fittings account B The Prepaid Expenses account of R 4 500 was incorrectly entered on the credit side of the trial balance. C The balance on Trade Creditors was incorrectly calculated to be R 56 000 instead of R 54 000 and entered on the Credit side of the trial balance D The balance of Accrued expenses account of R 12 000 was omitted in full. (1)

1.5 Which of the following is a IFRS accepted method used to determine the cost of inventories for financial reporting? A Last–in-Last-Out B Weighted Average C Variable costing D Absorption costing

Business A and business B are both retailers, but seem to take a different approach to this trade according to the information available, which consists of a table of ratios: Required: 1) Discuss what this information indicates about the differences in each business’s approach. 2) If one of them prides itself on personal service and the other on competitive prices, which do you think is which, and why? 3) Based on the given information, which business tends to require more external financing and what types of external financing you would recommend. Ratio Business A Business B Return on capital employed 20% 17% Return on owners' equity 30% 18% Average settlement period for accounts receivable 63 days 21 days Average settlement period for accounts payable 50 days 45 days Gross profit percentage 40% 15% Profit percentage 10% 10% Inventory turnover period 52 days 25 days

A zero-coupon bond with $1000 face value has 10-year to maturity. If this bond is currently trading at $463.20. What is this bond’s YTM (i.e., required rate of return)?

What is the coupon rate for a bond with three years until maturity, a price of $953.46, and a yield to maturity of 6%? Assume the bond’s face value is $1,000.

Kodak has a bond with 10 year until maturity, a coupon rate of 10%, and selling for $1,200. This bond pays coupon payment annually. What is the yield to maturity of this bond?