A closed-end fund starts the year with a net asset value of $21 . by year-end , NAV equals $20.5 . At the beginning of the year , the fund is selling at a 3% premium to NAV. By the end of the year, the fund is selling at a 4% discount to NAV . the fund paid year-end distributions of income and capital gains of 2.50$ . what is the rate of return to an investor in the fund during the year ?
In: Finance
Techworld is expecting to pay out a dividend of $2.23 next year (year 1). After that it expects its dividend to grow at 5 percent per annum for the next five years (for years 2 to 6). What is the dividend that is expected to be paid in year 4? (to nearest cent; don’t include $ sign)
In: Finance
4. The one year interest rate in Europe is -0.50%. The one year US rate is 0.20%. The EURUSD rate is 1.0700. What should the one year EURUSD forward rate be? GIVE YOUR ANSWER OUT TO FOUR DECIMAL PLACES.(3)
5. If the one year EURUSD forward rate is 1.1000 what are the steps one can take to earn a riskless profit? (3)
In: Finance
Ayura is offered mortgage rates of 3.13% on a 15-year and 5.70% on a 30-year. She is able to make either payment and is buying a house with an initial loan balance of $189,000. Her lender is offering 2.5 discount points and she will pay $5,700 is third party expenses. She is able to earn 9.8% investing in the S&P 500. Answer each of the following:
a. What is her monthly payment for each loan?
b. What is the lender's yield on each loan?
c. What is the effective borrowing cost of each loan?
d. Based on present value computations which loan is a better option for her?
In: Finance
A ten-year annuity immediate pays 2000 at the end of the first year, and payments increase by 100 each year. If the annuity yields 6% annual effective interest, determine the Macaulay duration.
In: Finance
1. Derek will deposit $1,692.00 per year into an account starting today and ending in year 5.00. The account that earns 14.00%. How much will be in the account 5.0 years from today?
2. Derek has the opportunity to buy a money machine today. The money machine will pay Derek $10,304.00 exactly 15.00 years from today. Assuming that Derek believes the appropriate discount rate is 14.00%, how much is he willing to pay for this money machine?
In: Finance
You have are in the 5th year of a $300,000 5/1, 30 year ARM with caps of 3/2/5 and an initial (composite) rate of 4.5% (Index of 2.5% + margin of 2%). Your current monthly payments of P+I equal $1,520.06. By the end of Year 5, interest rates have increased substantially and the "index" is now at 6.5%. What will your new monthly payment be for Year 6. [Hint: find the loan principal amount then recast for remaining 25 years at new rate].
In: Finance
What is the value of receiving $5,000 per year starting in one year for 10 years assuming a 3% interest rate?
What if the $5,000 per year cash flows start in 9 years and continue for 12 years?
In: Finance
1. A company's fiscal year may:
Select one:
A. Be any portion of a year including a month or quarter
B. Be for a period either greater or less than 12 months
C. Be the same as the calendar year
D. All of the above are true of a company's fiscal year
2. David Bash's Landscaping Company has compiled the following list of account balances of various assets, liabilities, revenues and expenses on December 31, 2016, the end of its first year of operations.
|
Common stock |
$50,400 |
|
Accounts payable |
10,000 |
|
Salary expense |
18,000 |
|
Repairs expense |
3,200 |
|
Dividends |
20,000 |
|
Truck |
34,000 |
|
Equipment |
25,200 |
|
Notes payable |
32,800 |
|
Cash |
70,400 |
|
Supplies expense |
6,400 |
|
Service revenue |
87,200 |
|
Gasoline expense |
3,200 |
The retained earnings for David Bash’s Landscaping on December 31,
2016 are:
Select one:
A. $12,600
B. $56,400
C. $36,400
D. $ 2,800
3.
In computing the price-earnings ratio, the current per share market price of the firm's common stock is divided by the:
Select one:
A. Earnings per common share
B. Net income for the year
C. Dividends per common share
D. Par value per common share
4.
The 2016 financial statements for Bloomington Company show the following:
|
Cost of goods sold |
$242,000 |
|
Inventory, Beginning Balance |
$50,000 |
|
Inventory, Ending Balance |
$52,000 |
|
Accounts Payable, Beginning Balance |
$70,000 |
|
Accounts Payable, Ending Balance |
$66,000 |
Cash paid for merchandise is:
Select one:
A. $248,000
B. $244,000
C. $240,000
D. $236,000
5.
The full disclosure principle:
Select one:
A. States that personal contact and financial information for each member of senior management for the company be disclosed.
B. Requires that company maintain a record of activities separate from the economic and personal activities of its owners.
C. Requires that a business disclose all significant financial facts and circumstances in a company’s annual report.
D. States that sales revenue should be recorded when services are performed or goods are sold.
E. None of the above
6.
The revenue recognition principle:
Select one:
A. States that the recording of revenue should be based on reliable and verifiable evidence.
B. Only requires that sales revenue must be earned before it is recorded on the income statement.
C. Only requires that sales revenue must be realized or realizable before it is recorded on the income statement.
D. States that sales revenue should be recorded when services are performed or goods are sold.
E. None of the above
In: Accounting
Derek will deposit $2,706.00 per year into an account starting today and ending in year 25.00. The account that earns 10.00%. How much will be in the account 25.0 years from today?
In: Finance