An investor buys a property for $608,000 with a 25-year mortgage and monthly payments at 8.10% APR. After 18 months the investor resells the property for $667,525. How much cash will the investor have from the sale, once the mortgage is paid off?
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operating cash flow. find the operating cash flow for the year for robinson and sons if it had sales of $81,200,000,,, cost of goods of $35,500,000, sales and administrative costs of $6,200,000, depreciation expense of $7,000,000, and a tax rate 0f 30%. the operating cash flow is ....... (round to the nearest dollar)
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A company is projected to generate free cash flows of $100 million per year for the next 3 years (FCFF1, FCFF2 and FCFF3). Thereafter, the cash flows are expected to grow at a 3.0% rate in perpetuity. The company's cost of capital is 7.0%. What is your estimate for its enterprise value? Answer in millions, rounded to one decimal place (e.g., $213,456,789 = 213.5).
In: Finance
The JG Investment Bank is about to issue a new series of 10 year bonds. The bonds will have a $1000 face value and will be rated AA by a respected Bond Rating Agency. Currently, the yield to maturity on AA rated bonds is 210 basis points above the yield on similar maturity government bonds. The bonds will make annual coupon payments.
a) If the YTM on 10 year government bonds is 2.8%, what
coupon rate should JG choose if it wants the bonds to sell at par?
b) If JG issues 1,500 bonds, how much capital will they
raise from the sale?
c) Two years later, the YTM on 8 year gov't bonds has
risen to 3.2%. If the yield on AA rated bonds is still 210 basis
points higher than a gov't bond, what is the new price of the
bond?
d) JG's bonds now sell at: (1) a Premium, (2) par, or
(3) a discount?
In: Finance
In: Finance
What types of taxes do we pay as an international student throughout the year and to whom?
In: Finance
The U.S. inflation rate is expected to be 3 percent over the next year, while the European inflation rate is expected to be 1.25 percent. The current spot rate of the euro is $1.19. Using purchasing power parity, the expected spot rate at the end of one year is $____.
1.19 | ||
1.20 | ||
1.21 | ||
1.22 |
In: Finance
In: Finance
Due to a recession, expected inflation this year is only 2.75%. However, the inflation rate in Year 2 and thereafter is expected to be constant at some level above 2.75%. Assume that the expectations theory holds and the real risk-free rate (r*) is 2.5%. If the yield on 3-year Treasury bonds equals the 1-year yield plus 1.5%, what inflation rate is expected after Year 1? Round your answer to two decimal places
In: Finance
To find the portfolio corresponding to an expected rate of return of 0.11 per year, riskless asset with a interest of 6% per year and a risky asset with an expected rate of return of 14% per year and a standard deviation of 20%.
In: Finance