Annuity Payment and EAR

You want to buy a car, and a local bank will lend you $10,000. The loan would be fully amortized over 5 years (60 months), and the nominal interest rate would be 6%, with interest paid monthly. What is the monthly loan payment? Round your answer to the nearest cent.

$

What is the loan's EFF%? Round your answer to two decimal places.

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Future value of an annuity : Find the future value of the following annuities. The first payment in these annuities is made at the end of Year 1; that is, they are ordinary annuities. Round your answers to the nearest cent. |

What is the banks cost of preferred stock : Fifteenth Bank has an issue of 7% preferred stock with a $100.00 par value that just sold for $109 per share. What is the bank’s cost of preferred stock? (Show your work and round your answer to two decimal places). |

What is the current bond price-bonds make annual payments : Cee Co. issued 20-year, $1,000 bonds at a coupon rate of 7 percent. The bonds make annual payments. If the YTM on these bonds is 4 percent, what is the current bond price? |

Conservative financing plan instead of more aggressive plan : Hicks Health Clubs, Inc., expects to generate an annual EBIT of $750,000 and needs to obtain financing for $1,200,000 of assets. Their tax bracket is 40%. If the firm goes with a short-term financing plan, their rate will be 7.5 percent, and with a l.. |

Annuity Payment and EAR : Annuity Payment and EAR You want to buy a car, and a local bank will lend you $10,000. The loan would be fully amortized over 5 years (60 months), and the nominal interest rate would be 6%, with interest paid monthly. What is the monthly loan payment.. |

What is brrs unlevered cost of capital : Assume the assumptions underlying the APV are relevant. Brakes and Rakes Co. (BRR) has required return on levered equity equal to 20%, required return on debt of 9%, and corporate tax rate of 25%. The required return on the market is 15%. BRR has deb.. |

Time for a lump sum to double : How long will it take $200 to double if it is deposited and earns the following rates? Round your answers to the closest year. [Notes: (1) This problem cannot be solved exactly with some financial calculators. |

Future values of single cash flows for interest rates : Use both the TVM equations and a financial calculator to find the following values. Round your answers to the nearest cent. (Hint: Using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown var.. |

Future values of single cash flows for different periods : Find the following values, using the equations, and then work the problems using a financial calculator to check your answers. Disregard rounding differences. An initial $400 compounded for 2 years at 4.5%. Round your answers to the nearest cent. The.. |

## Stock is expected to pay a dividend-calculate forward priceA stock is expected to pay a dividend of $2.20 per share in 1 months and in 4 months. The current stock price is $51, and the risk-free interest rate is 6% per annum with continuous compounding for all maturities. An investor has just taken a long po.. |

## 1 suppose that there are two calls on the same stock one1. suppose that there are two calls on the same stock one with exercise price k of 30 the other 35. the market value |

## Determine the beta of one security by regressing the returnsDetermine the beta of one security by regressing the returns for the share on the returns for the FT ALL Share Index and determine the co-variances for each pair of securities in the portfolio |

## Wheeler corporation had retained earningsWheeler Corporation had retained earnings as of 12/31/10 of $15 million. During 2011, Wheeler's net income was $7 million. The retained earnings balance at the end of 2011 was equal to $20 million. |

## Suppose that annual income from a rental propertySuppose that annual income from a rental property is expected to start at $1,200 per year and decrease at a uniform amount of $35 each year after the first year for the 17-year expected life of the property. |

## Project will need an initial investmentNew Co is considering investing in a new hotel project. The project will need an initial investment of 1,000,000 in year zero and will generate 500,000 (after tax) cash flows for the four subsequent years. |

## Bond surrogate-compare these exercises to annuity-perpetuityChoice Properties REIT equity is a candidate for a “bond surrogate” because it pays a stable dividend supported by collecting rent on grocery stores. What is the current dividend (per share) of Choice Properties REIT? How often do they pay? Compare t.. |

## What is the bonds expected rate of returnThe market price is $900 for a 10-year bond that pays 8% interest semi annually. What is the bond's expected rate of return? If the required rate of return is 11%, is this bond overpriced, fairly priced, or underpriced? |

## What is the maximum profit and loss for this positionAn investor purchases a stock for $53 and a put option for $.65 with a strike price of $49. The investor also sells a call option for $.65 with a strike price of $60. What is the maximum profit and loss for this position? |

## What is the price of the bondA bond with 20 years until maturity has a coupon rate of 7.4 percent and a yield to maturity of 7.5 percent. What is the price of the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your resp.. |

## Time value of money important for individualWhy is the time value of money important for an individual to understand in regard to their private life? What can an individual do with this information? |

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