Bola has accumulated $50,000 in her thrift savings plan at her job at the Federal Aviation Administration. The government puts in 1% of her pay and matches up to another 4% if she puts in 5% out of her pay. Bola earns $90,000 a year and plans to add ..
|
Assume the total cost of a college education will be $220,000 when your child enters college in 15 years. You presently have $85,542 to invest. What is the weekly rate of interest that you must earn to cover your child’s education? What is the EAR?
|
"What return on equity do investors expect for a firm with a $17 stock price, a dividend in year one of $2.00, a beta of 1.6, and a constant growth rate of 2%.
|
Louise Manufacturing uses 2,200 switch assemblies per week and then reorders another 2,200. The relevant carrying cost per switch assembly is $8.50, and the fixed order cost is $1,100. What are the current carrying costs?
|
Most firm's cash balances consist of transactions, compensating, precautionary, and speculative balances, and the optimal total cash balance is found as the sum of the amounts needed for each of these purposes. Some firms choose to hold highly liquid..
|
Assume 1 year has gone by and it is now Jan 1, 2012. Further assume you bought the bond for the price calculated in question 2 (Bond price $973.27) on Jan 1, 2011. Since then, market interest rates (and the discount rate) for this type of bond increa..
|
A hedge fund portfolio manager has two investments in her portfolio. She has different amounts invested in these two investments. The details are as follows: A – Standard deviation of 10%, $1,000,000 B – Standard deviation of 6%, $2,700,000. A and B'..
|
A car dealer will sell you the $16,450 car of your dreams for $4,329 down and payments of $339.97 per month for 48 months. Please provide the following information: a) amount to be paid b) amount of interest c) interest rate d) APR (rounded to the ne..
|
Times-Interest-Earned Ratio The Morris Corporation has $600,000 of debt outstanding, and it pays an interest rate of 9% annually. Morris's annual sales are $3 million, its average tax rate is 40%, and its net profit margin on sales is 6%.
|
What is true about the Accounts Receivable Turnover Ratio? Generally, higher is better. b. Generally, lower is better. c. It equals accounts receivable divided by credit sales. A low accounts receivable turnover ratio likely means that a company is d..
|
Prepare cash budget for the months of January, February and March. The difference between receipts and payments, net cash flow, for each month is: 5,000; (2,900); 7,200. Beginning and desired cash balance is $2,000.
|
If you were a construction and development lender, what evidence would you demand as assurance that a loan would be repaid on completion of construction?
|