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!
1. Start by drawing 2 boxes. Label them Firm A and Commercial Bank. Firm A gets a $300,000 loan from their neighborhood commercial bank. Each month for 5 years, Firm A must pay the commercial bank a principle payment and an interest payment of the principle times LIBOR + .06. (LIBOR stands for the London Interbank Offer Rate, it is a base interest rate used when banks lend money to each-other. It is common practice to base commercial and mortgage loan interest rates off of LIBOR instead of the US Federal Funds Rate. LIBOR is a more volatile rate than the Fed rate.) Firm A’s monthly payment: prin + prin * (LIBOR + .06) Draw the flows between Firm A and the commercial bank.
What is the default risk premium for Firm A?
a. LIBOR
b. 2%
c. 5%
d. 6%
e. 0.6%
2. The only asset Bill purchased during 2017 was a new seven-year class asset. the asset, which was listed property, was acquired on June 17 at cost of $50,000. The asset was used 40% for business, 30% for the production of income, and the rest of the time for personal use. Bill always elects to expense the maximum amount under &179 whenever it is applicable. The net income from the business before the &179 deduction is $100,000. Determine Bill's maximum deduction with respect to the property for 2017.
A. $1,428
B. $2,499
C. $26,749
D. $33,375
E. None of the above
Sincery Station Corp needs to raise $ 527000 to improve its manufacturing plant. It has decided to issue 1000 par value bond with an annual coupon rate of 11.1 percent with interest paid semi-annually and a 15 yrs maturity. Investors require a rate o..
Ignoring any tax effects, what will the balance sheet look like after the dividends are paid?
The projected cash flow for the next year for Minesuah Inc., is $175,000, and FCF is expected to grow at a constant rate of 5%.
New York State is widely acknowledged as one of the toughest, most highly regulated states in the country. Discuss the costs and benefits of regulations.
What exercise price leaves you indifferent between holding the put or exercising it now?
Suppose the 360-day forward exchange rate is 1.657 dollars per British pound, and the current spot rate is 1.625 dollars per British pound. If the 360-day interest rate in the United States is 5% and the 360-day interest rate in Great Britain is 3%, ..
Consider a four-year project with the following information: initial fixed asset investment = $484680; straight-line depreciation to zero over the four-year life; zero salvage value; price = $33; variable costs = $23; fixed costs = $181848; quantity ..
New Grow Venture Inc. is a new newly listed young firm that is going through a very heavy expansion phase. what is current price per share of stock right now.
Classify the costs as variable costs or fixed costs. Explain the importance of distinguishing between variable and fixed costs.
What areas needed to be changed in the financial data in the health care organization to improve your short term in a 1 year profits
A fund of funds divides its money between five hedge funds that earn –5%, 1%, 10%, 15%, and 20% before fees in a particular year. The fund of funds charges 1 plus 10% and the hedge funds charge 2 plus 20%. The hedge funds’ incentive fees are calculat..
Martha owes Verizon $2,500 in past due cell phone charges. Verizon may do which of the following to collect the balance due
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