Presented below are a number of balance sheet items for Buffalo, Inc. for the current year, 2020.

Prepare a classified balance sheet in good form. Common stock authorized was 400,000 shares, and preferred stock authorized was 20,000 shares. Assume that notes receivable and notes payable are short-term, unless stated otherwise. Cost and fair value of debt investments (trading) are the same. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Building and Equipment.)

. A property is forecasted to generate annual rental income of $80,000 in year 1. Vacancy rate is expected to be 5%, there is also a 5% management fee. Other operating expenses will total $17,500 for year 1. Rent is expected to grow at 5% in years 2 and 3, and other operating expenses are expected to grow at 6% in years 2 and 3. You believe that you can sell the property at the end of year 3 for $900,000. Using a required rate of return of 10%, calculate a fair value of the property today (at t=0). (Show all work.)

a. Assuming a purchase price for the property of $800,000, and an 80 LTV, 5.75%, fixed-rate 25-year loan, calculate the debt service coverage ratio based only on the year 1 NOI.

Derry Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Derry Manufacturing's operations:

Summarized data for 2016 (the first year of operations) for Trenton Products, Inc., are as follows: Sales (200,000 units) $16,000,000 Production costs (210,000 units) Direct material 4,200,000 Direct labor 3,360,000 Manufacturing overhead: Variable 2,520,000 Fixed 2,100,000 Operating expenses: Variable 1,120,000 Fixed 1,280,000

a. Prepare an income statement based on full absorption costing. Only use a negative sign with your answer for net income (loss), if the answer represents a net loss. Otherwise, do not use negative signs with any answers. Round answers to the nearest whole number, when applicable.

Suppose a​ ten-year,

$ 1000 bond with an

8.5 % coupon rate and semiannual coupons is trading for

$ 1034.55

.

a. What is the​ bond's yield to maturity​ (expressed as an APR with semiannual​ compounding)? ___________

b. If the​ bond's yield to maturity changes to

9.9 %

​APR, what will be the​ bond's price?

a. What is the​ bond's yield to maturity​ (expressed as an APR with semiannual​ compounding)?

The​ bond's yield to maturity is? ______ Round to two decimal places

What is the new price of the bond? _____________

You are saving for a new house and you put $20,000 per year in an account paying 8%. The first payment is made today. How much will you have at the end of 3 years?

23. Consider an offer to supply 5 paintings per year to an art gallery in Rome for the next five years. The contract is exclusive, meaning that, if you accept it, you cannot sell paintings to other galleries or other clients. The contract also offers a signing bonus of $100,000. If you were to refuse the contract, you estimate that you would be selling 7 paintings a year, at a price of $45,000 each, for the next 5 years. Assume that your required rate of return is 20%. What is the minimum price per painting (assume the same price for each painting) at which you are willing to accept the contract?

    A. $59,560 B. $39,517 C. $56,312 D. $65,500 E. $41,878

The current price of stock XYZ is 100. In one year, the stock price will either be 120 or 80. The annually compounded risk-free interest rate is 10%. i. Calculate the no-arbitrage price of an at-the-money European put option on XYZ expiring in one year. ii. Suppose that an equivalent call option on XYZ is also trading in the market at a price of 10. Determine if there is a mis-pricing. If there is a mis-pricing, demonstrate how you would take advantage of the arbitrage opportunity.

Derek will deposit $1,528.00 per year for 14.00 years into an account that earns 13.00%, The first deposit is made next year. He has $14,070.00 in his account today. How much will be in the account 36.00 years from today?

Derek will deposit $3,102.00 per year for 9.00 years into an account that earns 5.00%. Assuming the first deposit is made 4.00 years from today, how much will be in the account 35.00 years from today?

A floating rate mortgage loan is made for $100,000 for a 30-year period at an initial rate of 12 percent interest. However, the borrower and lender have negotiated a monthly payment of $800. (a)What will be the loan balance at the end of year 1?

(b) What if the interest rate increases to 13 percent at the end of year 1? How much interest will be accrued as negative amortization in year 5 if the payment remains at $800?