Payment will go toward repayment of principal

Assignment Help Financial Management
Reference no: EM131575675

Your company has just taken out a 1-year installment loan for $72,500 at a nominal rate of 20.0% but with equal end-of-month payments. What percentage of the 2nd monthly payment will go toward the repayment of principal?

Reference no: EM131575675

Questions Cloud

What is their nominal yield to maturity and yield to call : What is their nominal yield to maturity? What is their nominal yield to call?
Assess the recent trends in direct foreign investment : Assess the recent trends in direct foreign investment (DFI) abroad by U.S. firms.
The terms of the bond were renegotiated overnight : Alpha announced financial problems, and the terms of the bond were renegotiated overnight.
Assess the recent trends in direct foreign investment : Assess the recent trends in direct foreign investment (DFI) abroad by U.S. firms.
Payment will go toward repayment of principal : What percentage of the 2nd monthly payment will go toward the repayment of principal?
What is amount of the cash flow to creditors : At the beginning of the year, long-term debt of a firm is $370,000 and total debt is $495,000. What is the amount of the cash flow to creditors?
Compute the current yield and capital gains yield : Compute the (a) current yield and (b) capital gains yield that the bond will generate this year.
What is project payback period : An investment project provides cash inflows of $690 per year for eight years. What is the project payback period if the initial cost is $5,700?
Compute the return firm should earn given its level of risk : Compute the return the firm should earn given its level of risk and determine whether the manager is saying the firm is undervalued or overvalued.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the value of share of preferred stock

What is the value of share of preferred stock that promises to pay $1.20 every year,indefinitely, if you have a required rate of return of 8.21%?

  The firm follows a residual dividend policy

A firm has Net Income of $600,000, capital expenditures of $500,000, and a target debt ratio of 60%. If the firm follows a residual dividend policy, then what is their payout ratio? when the firm buys back a set number of shares on a set date for a s..

  Nonrecurring items-indicate appropriate accounting treatment

For each of these nonrecurring items, give an example and indicate (match with) the appropriate accounting treatment.  Extraordinary item. Prior period adjustment. Change in accounting estimate. Shown net as a separate line item between net income an..

  The effective annual rate of non–free trade credit

Assuming there are 360 days in a year, the effective annual rate of non–free trade credit if the firm did not take discounts but did pay on the due date is?

  What rate of equity growth

A nursing home projects asset growth at 10 percent per year over the next 1o years. If it wishes to reduce its reliance on debt financing, what rate of equity growth over the 10 year period will be desired? Is it.

  How many shares does it have after the recap

Dye Trucking raised $280 million in new debt and used this to buy back stock. After the recap, Dye's stock price is $7.75. If Dye had 45 million shares of stock before the recap, how many shares does it have after the recap?

  What is the equity multiplier

The Corner Store has sales of $72,510, total assets of $60,400, a debt-equity ratio of 1.2, and a profit margin of 3 percent. What is the equity multiplier?

  Expressed as the annual effective rate of return

The spot price of the TECHWIG index at the Warsaw Stock Exchange in Poland is 1020 Polish Zloty (PLN). The risk-free interest rate for the next six month period is 1.98% (this is a six month rate, not annualized). Calculate his rate of return on this..

  Beta of project is to financed entirely with common equity

An investment project will have an initial, after-tax cash outlay of $50,000 an after-tax cash inflows of $7,190 per year for 10 years. In addition, it will have an after-tax salvage value of $10,000 at the end of Year 10. The risk-free rate is 6%, t..

  Amount for amortization of premium in the fourth coupon

The amount for amortization of premium in the fourth coupon was $1, 046.79. Find the price of the bond.

  Stock price after recapitalization

Lee Manufacturing's value of operations is equal to $900 million after a recapitalization (the firm had no debt before the recap). Lee raised $300 million in new debt and used this to buy back stock. Lee had no short-term investments before or after ..

  Consumer price indexes

During the past year, the consumer price indexes (CPI) of the United States and the Eurozone rose by 1 percent and 3.5 percent, respectively. If PPP holds, what is the percentage change in the value of the EUR over the same time period? (use p.pp%)

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd