An investment pays $1,900 per year for the first 4 years, $3,800
per year for the next 7 years, and $5,700 per year the following 12
years (all payments are at the end of each year). If the discount
rate is 7.70% compounding quarterly, what is the fair price of this
investment?
Work with 4 decimal places and round your answer to two decimal
places. For example, if your answer is $345.667 round as 345.67 and
if your answer is .05718 or 5.718% round as 5.72.
In: Finance
Can you please implement this in Oracle sql
The email_address from the Customers table
A count of the number of orders
The total amount for each order (Hint: First, subtract the discount amount from the price. Then, multiply by the quantity.)
Return only those rows where the customer has more than 1 order.
Sort the result set in descending sequence by the sum of the line item amounts.
In: Computer Science
The Huff Co. has just gone public. Under a firm commitment agreement, the company received $17.64 for each of the 3.2 million shares sold. The initial offering price was $22.50 per share, and the stock rose to $24.15 per share in the first day of trading. The company paid $984,900 in direct legal and other costs and incurred $340,000 in indirect costs. What was the flotation cost as a percentage of the net amount raised?
A- 38.56%
B-40.32%
C-41.68%
D-40.20%
In: Finance
Suppose that a firm's recent earnings per share and dividends per share are $5.00 and $1.00, respectively. Both are expected to grow at 5 percent. However, the firm's current P/E ratio of 18 seems high for this growth rate. The P/E ratio is expected to fall to 10 within five years. Compute a value for this stock by first estimating the dividends over the next five years and the stock price in five years. Then discount these cash flows using a 12 percent required rate.
In: Finance
Consider a stock that will pay a $2 dividend per year for 10 years (from t=1 till t=10) after which the dividends are expect to increase at the constant growth rate of 3% per year (so, at=11 the dividend will be 2*1.03=$2.06, at t=12 it will be 2.06*1.03, etc. ) and the required return on the stock is 11%
Find the stock price today, the capital gain yield during the first year, the dividend yield during the 15th year
In: Finance
Converse Company has a bond currently outstanding. The bond has a face value of $1,000 and matures in 10 years. The bond makes no coupon payments for the first three years, then pays $40 every six months over the subsequent four years, and finally pays $60 every six months over the last three years. If the required return on these bonds is 6.2 percent compounded semiannually, what is the current price of the bond? (Hint: it may be useful to draw a timeline of the cash flows)
In: Finance
Ellis issues 9.0%, five-year bonds dated January 1, 2016, with a $550,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $572,305. The annual market rate is 8% on the issue date.
Required:
1. Complete the below table to calculate the total bond interest expense over the bonds' life.
2. Prepare a straight-line amortization table for
the bonds’ life.
3. Prepare the journal entries to record the first two interest payments.
In: Accounting
Tullis Construction enters into a long-term fixed price contract to build an office tower for $10,600,000. In the first year of the contract Tullis incurs $1,600,000 of cost and the engineers determined that the remaining costs to complete are $4,800,000. Tullis billed $3,600,000 in year 1 and collected $3,500,000 by the end of the end of the year. How much gross profit should Tullis recognize in Year 1 assuming the use of the percentage-of-completion method?
a. $0
b. $1,050,000
c. $2,650,000
d. $4,250,000
In: Accounting
Suppose that an oil well is expected to produce 12, 00,000 barrels of oil during its first production year. However, its subsequent production (yield) is expected to decrease by 9% over the previous year's production. The oil well has a proven reserve of 10,500,000 barrels. Suppose that the price of oil is expected to be $120 per barrel for the next six years. What would be the present worth of the anticipated revenue trim at an interest rate of 10% compounded annually over the next six years?
In: Economics
In 1999, Sony introduced a new product into the U.S. market.It was Aibo, the first interactive robot dog. It was able to learn its name, respond to commands, dance, and be programmed to perform a variety of actions.
Assume Sony’s variable costs for producing this product were around $700, and market research indicated that the VTC of this product was around $1,400. Recommend a price thatconsumers should be charged for this product, and explain how you considered the factors determining initial-pricing strategy in making your recommendation.
In: Operations Management