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!
M Leasing Company signs an agreement on January 1, 2014, to lease equipment to C Company. The following information relates to this agreement. 1. The term of the noncancelable lease is 8 years with no renewal option. The equipment has an estimated economic life of 8 years. 2. The cost of the asset to the lessor is $558,000. The fair value of the asset at January 1, 2014, is $558,000. 3. The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $95,000 none of which is guaranteed. 4. C Company assumes direct responsibility for all executory costs. 5. The agreement requires equal annual rental payments, beginning on January 1, 2014. 6. Collectibility of the lease payments is reasonably predictable. There are no important uncertainties surrounding the amount of costs yet to be incurred by the lessor. The rate of return is 10% A. Calculate the monthly payment establish by the lessor B. Create an amortization table for the first two year.
A Car Dealer sells a car with a Competitive Price of $20,000 to a Car Buyer, whose competitive rate of interest is 7%. The car dealer also provides a loan for this transaction, with the Loan Amount set at $20,500 and the contractual rate of interest ..
Hook Industries' capital structure consists solely of debt and common equity. It can issue debt at rd = 8%, and its common stock currently pays a $3.50 dividend per share (D0 = $3.50). The stock's price is currently $29.50, its dividend is expected t..
Woidtke Manufacturing's stock currently sells for $40 a share. The stock just paid a dividend of $1.00 a share (i.e., D0 = $1.00), and the dividend is expected to grow forever at a constant rate of 5% a year. What stock price is expected 1 year from ..
You are the portfolio manager for a mutual fund. Your fund has an expected return of 15% with a standard deviation of 24% and the T-bill rate is 3%. What is the reward-to-volatility ratio (Sharpe ratio) of the fund? What is the expected rate of retur..
Mississippi River Shipyards is considering the replacement of an 8-year-old riveting machine with a new one that will increase earnings before depreciation from $27,000 to $44,000 per year. The new machine will cost $80,000, and it will have an estim..
Enter the missing values in the financial statements. Assume the company started operations January 1, 2013, and all transactions involve cash.
Explain why an MNC may invest funds in a financial market outside its own country. Explain why some financial institutions prefer to provide credit in financial markets outside their own country.
Why is it more important to get the maximization of value ("value maximization") that the maximization of profit ("profit maximization") as a goal of enterprise management?
What are the ethical issues?
JJ Industries will pay a regular dividend of $1.50 per share for each of the next four years. At the end of four years, the company will also pay out a liquidating dividend. If the discount rate is 9 percent, and the current share price is $58, what ..
All companies have a cost of capital and you do as well on a personal level. From a personal perspective, what do you believe is an acceptable cost of capital? How are you basing answer or what are you measuring it against? What are the disadvantages..
Suppose you and most other investors expect the inflation rate to be 7% next year, to fall to 5% during the following year, and then to remain at a rate of 3% thereafter. Calculate the interest rate on 2-year Treasury securities. Calculate the intere..
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