|
Net income-total profit margin and cash flow
: Brandywine Clinic, a not-for-profit business, had revenues of $12 million in 2012. Expenses other than depreciation totaled 75 percent of revenues, and depreciation expense was $1.5 million. What were Brandywine's net income, total profit margin, and..
|
|
What is the present value and value today
: What is the present value of $2,925 per year, at a discount rate of 8 percent, if the first payment is received 10 years from now and the last payment is received 23 years from now?
|
|
Desires to pay the remainder of the loan in a single payment
: Clay Harden borrowed $25,000 from a bank at an interest rate of 9% compounded monthly. The loan will be repaid in 36 equal monthly installments over three years. Immediately after his 20th payment, Clay desires to pay the remainder of the loan in a s..
|
|
You expect the price of the bond to be in two years
: You own a bond with the following features: 7 years to maturity, face value of $1000, coupon rate of 2% (annual coupons) and yield to maturity of 5.1%. If you expect the yield to maturity to remain at 5.1%, what do you expect the price of the bond to..
|
|
What is the effective interest rate per year
: A borrower accepts a loan of $550 and is required to pay $42 at the end of each week for 16 weeks. Find the interest rate per week. What is the nominal interest rate per year? What is the effective interest rate per year?
|
|
Use daily compounding-find the price of call option on stock
: The current price of a stock is $16. In 6 months, the price will be either $18 or $13. The annual risk-free rate is 4%. Find the price of a call option on the stock that has an strike price of $14 and that expires in 6 months. (Hint: Use daily compou..
|
|
Calculate NPV and IRR for the investment
: Calculate NPV and IRR for the following investment. Initial investment = $1,000,000 machine, the project term is 6 years, sales for year 1 are estimated to be $1,000,000, and will grow by 7.5% per year through year 5, sales for year 6 = $500,000, var..
|
|
Calculate the HPR and profit amount on your equity position
: On March 20, 2012 you bought 1,000 shares of Starwood Hotels & Resorts Worldwide Inc. (HOT) at $14.00 on 50% margin. The margin loan carries a 8% annual interest rate, paid every 3 months from the day of the purchase. You sold the stock on September ..
|
|
Analyzing two mutually exclusive projects
: A company is analyzing two mutually exclusive projects, S and L, whose cash flows are shown below. Project S: -1,500 (Year 0), 1000 (Year 1), 560 (Year 2), 50 (Year 3). Project L: -1,200 (Year 0), 0 (Year 1), 600 (Year 2), 1,500 (Year 3). The company..
|