Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
You received an annuity as a legacy gift from your beloved grandmother. It pays you annually $14000 per year (end of the year) for the next 15 years, You however, have other ideas than receiving just $14000 per year, and would like to get a larger amount of cash upfront against the annuity. One of the local financial firms has offered you $67000 for the annuity.
a. You are evaluating the offer, and would like to calculate the implied interest rate that the firm is charging for the above deal.
b. Also, after calculating this, please come up with a reasonable benchmark interest rate that you would be comfortable with given your risk profile, with which you can compare the implied interest rate you just calculated above against. This process will help you make the right decision about the offer of $67000. What is your conclusion?
c. At that "reasonable benchmark rate of interest, please calculate the value of the firm's offer as it "should be" for you. You can use this number as a counter offer to the firm.
Your first budget-priced condo that you purchase sells for $30,000. Your loan is for 30 years and is at an interest rate of 8% per year. What will be monthly payment (also commonly called the Principal and Interest, or P&I) be? What part of that paym..
What is the compound annual rate implied by this 20 percent rate charged for only two weeks?
Hair Re-Growth Company has developed a new product and is selling its product as fast it can be produced. As a result, the company is predicting growth of 20% per year for the next four years. After four years, competitors will produce the same produ..
Suppose the spot exchange rate for Narnianly currency is trading for $2/N and one year later it can go up to $2.5/N, an increase of 25 percent, or down to $1.80/N, a decrease of 10 percent. assume intiallly that the U.S. interest rate is 1 percent an..
How much does Cartwright need to borrow and when? Explain by citing specifics from the forecast - Does Cartwright have the ability to pay the interest expense? Explain by citing specifics from the forecast.
What are the drivers of change in the motorcycle industry? For example: the level of innovation required, the level of technology required, speed of change and changes in cost and efficiency.
Upon hearing that you were thinking about delaying the wedding a year, your future spouse goes bonkers. You decide to offer an alternative, to get married as soon as the $25,000 wedding costs are saved and borrow to pay for the honeymoon ($10,000) wi..
In light of the securities fraud committed by Bernard Madoff and others, write an essay of one to two pages indicating what the SEC could have or should have done to prevent this type of fraud. In your essay indicate whether the failure of the SEC to..
A common stock pays an annual dividend per share of $5.25. The risk-free rate is 9% and the risk premium for this stock is 6%. If the annual dividend is expected to remain at $5.25, what is the value of the stock?
The required rate of return is 20 percent. The net present value is
After successfully completing your corporate finance class, you feel the next challenge ahead is to serve on the board of directors of Schenkel Enterprises. Unfortunately, you will be the only individual voting for you.If Schenkel has 550,000 shares ..
Delta Ray Brands Corp. just completed their latest fiscal year. The firm had sales of $16,589,900. Depreciation and amortization was $817,800, interest expense for the year was $836,900, and selling general and administrative expenses totaled $1,590,..
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd