A $1 payment is to be made each year for 22 years. The effective annual rate of interest is 8.25%. If the first payment is one year from now, the present value of these payments is $10.
In which one of the following ranges is the present value of these payments if the first payment is 22 years from now?
A. <$1.80
B. >=$1.80 and <$1.86
C. >=$1.86 and <$1.92
D. >=$1.92 and <$1.98
E. >=$1.98
In: Finance
You expect to receive $1,000 in one year, and $4,000 in three years. If the interest rate is 12% compounded monthly, what is the present value of all cash flows?
Group of answer choices
$3,739.98
$5,600.00
$6,739.71
$3,683.15
In: Finance
A 5-year bond with a face value of $1000 has a coupon rate of 6%, with semiannual payments. What is the coupon payment for this bond per 6-month period? A. $60 B. not enough information C. $30
In: Finance
Consider a growing perpetuity that will pay $250 in one year. Each year after that, you will receive a payment that is 7% larger than the last payment. This pattern of payments will continue forever. If the interest rate is 10%, then the value of this perpetuity is closest to:
$5561 $8333 $6215 $4000
In: Finance
At the end of its third year of operations, the Sandifer Manufacturing Co. had $4,500,000 in revenues, $3,375,000 in cost of goods sold, $450,000 in operating expenses which included depreciation expense of $150,000, and a tax liability equal to 35 percent of the firm's taxable income. What is the net income of the firm for the year?
Complete the income statement for Sandifer Manufacturing Co.: (Round to the nearest dollar.)
|
Revenues = |
$ |
|||||
|
Less: |
Cost of Goods Sold = |
$ |
||||
|
Equals: |
Gross Profit = |
$ |
||||
|
Less: |
Operating Expenses = |
$ |
||||
|
Equals: |
Net Operating Income = |
$ |
||||
|
Less: |
Interest Expense = |
$ |
0 |
|||
|
Equals: |
Earnings before Taxes = |
$ |
||||
|
Less: |
Income Taxes = |
$ |
||||
|
Equals: |
Net Income = |
$ |
||||
In: Finance
A 10%, five-year corporate bond issue with a par value of $1,000 pays coupon on a semi-annual basis. The market discount rate at the time of the issue was 12% and has remained unchanged. Which of the following facts is most likely correct regarding the bond issue? A. The bond is priced at par. B. The bond is selling at a price below par. C. The bond offers an excessive coupon rate.
In: Finance
In: Finance
Question 1: Construct the balance of payment table for Japan for the year 2010 which is comparable in format to Exhibit 3.1, page 66 (this page number from the version 6e, if you cannot find it, please let me know), to calculate the missing information data (Services; balance current account; balance on financial account; Statistical discrepancies). The table is provided on the second page. Please show your clearly calculation and explanation to support each number.
A summary of the Japanese Balance of Payments for 2000 (in $ billion)
|
Credits |
Debits |
|
|
Current Account |
||
|
(1) Exports |
898.91 |
|
|
(1.1) Merchandise |
615.81 |
|
|
(1.2) Services |
117.30 |
|
|
(1.3) Factor income |
165.80 |
|
|
(2) Imports |
-717.72 |
|
|
(2.1) Merchandise |
?? |
|
|
(2.2) Services |
-135.56 |
|
|
(3.3) Factor income |
-47.65 |
|
|
(3) Unilateral transfer |
6.18 |
-16.85 |
|
Balance on current account |
?? |
|
|
[(1) + (2) + (3)] |
||
|
Capital Account |
||
|
(4) Direct investment |
-6.78 |
-50.17 |
|
(5) Portfolio investment |
198.56 |
-71.04 |
|
(5.1) Equity securities |
71.44 |
-25.04 |
|
(5.2) Debt securities |
127.12 |
-46.00 |
|
(6) Other investment |
-86.67 |
-91.00 |
|
Balance on financial account |
?? |
|
|
[(4) + (5) + (6)] |
||
|
(7) Statistical discrepancies |
?? |
|
|
Overall balance |
31.98 |
|
|
Official Reserve Account |
-31.98 |
Question 2 : 1. Explain the following terms on the table
a] Merchandise trade
b] Trade balance
c] Service
d] Invisible trade
e] Factor income
f] Unilateral transfers
In: Finance
Your friend offers to pay you an annuity of $8,500 at the end of each year for 3 years in return for cash today. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity?
In: Finance
The current cost of graduate school tuition is $15,771 per
year.
The cost of tuition is rising at 7% per year.
You plan to attend graduate school for 3 years starting 3 years
from now.
How much do you have to invest today if your savings account earns
2.53% APR compounded annually to just fund your tuition?
In: Finance