Solving rate of return with excel

Assignment Help Accounting Basics
Reference no: EM13115354

Here is the info I have for the problem I need to solve:

You have two investment opportunities. One will have a 10% rate of return on an investment of $500; the other will have an 11% rate of return on a principal of $700.

You would like to take an advantage of the higher yield investment but have only $500 available.

What is the maximum rate of return that you would pay to borrow the $200 need to take advantage of the high yield investment?

Reference no: EM13115354

Questions Cloud

Transaction fee of underwriting : Sherman Brothers, Inc., sold 4 million shares in its IPO, at a price of $18.50 per share. Management negotiated a fee (the underwriting spread) of 7% on this transaction.
Determining holding period return : The return an investor earns on a bond over a period of time is known as the holding period return, defined as interest income plus or minus the change in the bond's price, all , all divided by the beginning bond price.
Weighted average costs of capital of china corporation : China Corp. has a current capital structure of $18 million in secured bonds paying 6.5% annual interest, $8 million in preferred stock with a par value of $50 per share and an annual dividend of $3.80 per share
How many liters of o2 can be made : how many liters of o2 can be made from 342g H2o2 if the density of o2 is 1.428g.
Solving rate of return with excel : You have two investment opportunities. One will have a 10% rate of return on an investment of $500; the other will have an 11% rate of return on a principal of $700.
What do you think : Do you think a comparable spill of a water-insoluble liquid that has a density of 1.20g/mL would have been as harmful to waterfowl and aquatic mammals.
Calculate the final temperature of the mixture : A 17.0-g sample of ice at -19.0°C is mixed with 101.0 g of water at 87.0°C. Calculate the final temperature of the mixture assuming no heat loss to the surroundings.
Computing stock and portfolio beta : There are two stocks, stock A and stock B. The price of stock A today is $70. The price of stock A next year will be $50 if the economy is in recession, $80 if the economy is normal and $95 if the economy is expanding.
Price of bond of gator corporation : The Florida Investment Fund buys 90 bonds of the Gator Corporation through a broker. The bonds pay 8 percent annual interest.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Impact of corporate taxation on accounting

What impact does corporate taxation have on the accounting profession? What type of role do you see yourself playing with regard to corporate taxation?

  Question on maturity matching principle

Describe the maturity matching principle. What are the risks of not matching maturities? How would you characterize a firm that ignores the principle? Can you think of situations in which it would be advisable for an otherwise prudent firm to dev..

  Prepare an anti-aging drug

Godert pharmaceutical company has several scientists working in the labs trying to prepare an anti-aging drug. The cost of this research and development

  Iasb fasb convergence issues

Describe how influential you believe the IASB is over FASB. Describe whether or not you support the U.S. adopting International Financial Reporting Standards for publicly traded companies.

  Complete an accrual income statement

Set up the known information in a linear statement and find the missing cash sales by reversing the additive functions also complete an Accrual Income Statement.

  Variance between budget-actual amounts

A performance report for direct labor shows a variance between the budget and actual amounts. This difference is a:

  Important multiple choice question based on account

A business pays weekly salaries of $15,000 on Friday for a 5-day week ending on day. The adjusting entry require at the end of fiscal period ending on Thursday is;

  Budgeted costs of jason company

Jason Company determined that the budgeted cost of producing a product is $1.20 per unit. On June 1, there were 11,000 units on hand.

  Calculation of earnings per share for financial plans

Determine for each plan the earnings per share of common stock, assuming that the income before bond interest and income tax is $2,600,000. Discuss the advantages and disadvantages of each plan.

  Hamilton company of control policies

Identify the components of internal control to which each policy or procedure relates. For each item, identify one other policy or procedure for that internal control component that is not on the preceding list.

  Compensating nonprofit board members

Often Board and other committee volunteers for nonprofit organizaations are compensated for expenses during travel and meetings. Some think that this attracts volunteers for the wrong reasons.

  Discussion of value added taxes

What is a VAT? Give an example of VAT in other nations. What is the difference between centralized and decentralized government? What are the advantages of a federal system of government?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd