Payday loans are very short-term loans that charge very high interest rates. You can borrow $500 today and repay $580 in two weeks. What is the compounded annual rate implied by this 16 percent rate charged for only two weeks?
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The Lory Bookstore used internal financing as a source of long-term financing for 85% of its total needs in 2011. The company borrowed an additional 25% of its total needs in the long-term debt markets in 2011. What were Lory's net new stock issues i..
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Suppose that you have a bond that is currently trading for 1,234.56, has just paid its coupon, has a time-to-maturity of 14 years, has an annual coupon rate of 7.1%, and a face value of $1,000. This bond is unique in that the issuing firm has the r..
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Dynamic Systems has an outstanding bond that has a $1,000 par value and a 7 percent coupon rate. Interest is paid semiannually. The bond has 11 years remaining until it matures. Today the going interest rate is 10 percent, and it is expected to remai..
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In the third column, calculate the difference by subtracting 2008 data from 2009 data. For instance, with cash, this would be $22,995 - $41,851 = -$18,856. In the fourth column, calculate the percentage change from the 2008 number. For instance, with..
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A firm has the balance sheet accounts, common stock, and paid-in capital in excess of par, with values of $40,000 and $500,000, respectively. The firm has 40,000 common shares outstanding. If the firm had a par value of $1, the stock originally sold ..
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You are evaluating two different silicon wafer milling machines. The Techron I costs $258,000, has a three-year life, and has pretax operating costs of $69,000 per year. The Techron II costs $450,000, has a five-year life, and has pretax operating co..
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An investor purchases an asset on October 26 2011 for $50,000, and sells it for $85,000 the next year. The asset generated cash flows of $10,000 over this period. What is the portfolio standard deviation? What is the expected (use arithmetic average)..
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which security has the greatest total risk? Explain which security has the least systematic risk? Explain which securities' volatility are greater than that of the market explain. which security will require the greatest return ? Explain
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Assume you have a subsidiary in Australia. The subsidiary sells mobile homes to local consumers in Australia, who buy the homes using mostly borrowed funds from local banks. Your subsidiary purchases all of its materials from Hong Kong. Explain wheth..
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Doug and Lynn bought their home three years ago. - What would their annual savings be if they refinance? They are in a 15% marginal tax rate bracket.
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The department of revenue estimates that the average tax revenue from each citizen is as follows: income tax, $800; sales tax, $150; personal property tax, $250. In addition, the average corporate tax is $7,500 per company. Develop a model that will ..
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