Thorough break down for easiest comprehension

Assignment Help Financial Management

Reference no: EM131336164

You borrow $85,000; the annual loan payments are $8,273.59 for 30 years. What interest rate are you being charged? Please give a thorough break down for easiest comprehension.

Reference no: EM131336164

Questions Cloud

One advantage of the residual dividend policy : A lockbox plan is. One advantage of the residual dividend policy is that it leads to a stable dividend payout, which investors like. An increase in the stock price when a company decreases its dividend is consistent with signaling theory as postulate..

Explain the accounting for related unrealized holding gain : A marketable security is initially classified as a trading security, or an available-for-sale security, or a held-to-maturity debt security. Subsequently, a security can be transferred between categories. Explain the accounting for a related unrealiz..

Calculate minimum transfer balance required : The cash manager of Verematic, Inc., is contemplating the choice between using a wire transfer and an EDT. He estimates that his investment opportunity rate is 9%. The bank's ECR is currently 4%, and the reserve requirement is 12%. Calculate the mini..

What are the effects on cash flow : A project currently generates sales of $7 million, variable costs equal 60% of sales, and fixed costs are $1.4 million. The firm’s tax rate is 40%. Assume all sales and expenses are cash items. What are the effects on cash flow, if sales increase fro..

Thorough break down for easiest comprehension : You borrow $85,000; the annual loan payments are $8,273.59 for 30 years. What interest rate are you being charged? Please give a thorough break down for easiest comprehension.

When calculating the at salvage value of an asset : When calculating the AT salvage value of an asset, we need to determine whether there's a gain or a loss on the sale, and what the tax liability will be. How is all that determined?

Sunk cost-allocated cost and opportunity cost : Describe and give an example of each: a sunk cost, an allocated cost, an opportunity cost. When should these costs be included and when should they be ignored in developing project cash flows?

Capital structure weight of the firms preferred stock : S&W has 21,000 shares of common stock outstanding at a price of $29 a share. It also has 2,000 shares of preferred stock outstanding at a price of $71 a share. The firm has 7 percent, 12-year bonds outstanding with a total market value of $386,000. T..

Formula to price call option ck for the volatility values : Give S0=100 (initial stock price), K=106 (strike price), T=t=1 (year) and r=0.03 (interest rate), use the Black Scholes formula to price a call option Ck for the volatility values wn=0.06n (2≤n≤6). Use these five observations to plot a graph of C ver..

User Account

All Pages