In 2018, a football player signed a contract reported to be worth $66.6 million. Thecontract was to be paid as $9.2 million in 2018, $10.5 million in 2019, $11.6 million in2020, $11.7 million in 2021, $11.7 million in 2022, and $11.9 million in 2023.If the appropriate interest rate is 12 percent, what kind of deal did the player snag?Assume all payments are paid at the end of the year. (Do not round intermediatecalculations and enter your answer in dollars, not millions of dollars, rounded to 2decimal places, e.g., 1,234,567.89.)Present value

Amount to be paid in 2018 (C1) = $9.2 million C2 = $10.5 million C3 = $11.6 million C4 = $11.7…

Answered: In 2018, a football player signed a…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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In March 2018, the Buffalo Bills signed Star Lotulelei to a contract reportedly worth $50 million. Lotulelei's salary (including bonuses) was to be paid as $17.1 million in 2018, $8.9 million in 2019, $7.5 million in 2020, and $8.25 million in 2021 and 2022. If the appropriate interest rate is 11 percent, what kind of deal did the defensive tackle sack? Assume all payments are paid at the end of each year. (Do not round intermediate calculations and enter your answer in dollars, not millions, rounded to 2 decimal places, e.g., 1,234,567.89.) Present value
Sheridan Ltd. entered into a lease on June 1, 2023. The lease term is six years and requires annual rental payments of $27,900 at the beginning of each year. Sheridan's incremental borrowing rate is 5% and the rate implicit in the lease is 9%. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE. (a) Your answer is correct. Calculate the capitalized amount of the right-of-use asset if Sheridan follows IFRS. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 2 decimal places, e.g. 5,275.75.) (b) Leased asset eTextbook and Media * Your answer is incorrect. 136421.24 i Attempts: 1 of 3 used Calculate the capitalized amount of the leased asset if Sheridan follows ASPE. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 2 decimal places, e.g. 5,275.75.) Leased Asset $ 148701.42
D is obliged to give C P50,000.00 with interest at 12% per annum on December 31, 2020 pursuant to a contract of loan. Question: What are the requisites of obligation? Discuss and apply your answers to the problem given above.
In 2021, a basketball player signed a contract reported to be worth $60.8 million. The contract was to be paid as $8.2 million in 2021, $9.7 million in 2022, $10.6 million in 2023, $10.7 million in 2024, $10.7 million in 2025, and $10.9 million in 2026. If the appropriate interest rate is 10 percent, what kind of deal did the player dunk? Assume all payments are paid at the end of the year. Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89. Present value
In March 2018 Daniela Motor financing dmf offered some securities for sale to the public. Under the terms of the deal, dmf promised to repay the owner of one of these securities $1,000 in March 2043, but investors would receive nothing until then. Investors paid DMF $350 for each of these securites; so they gave up $350 in March 2018, for the promise of a $1,000 payment 25 years later. A. assuming you purchased the bond for $350, what rate of return would you earn if you held the bond for 25 years until it matured with a value of $1,000 ? answer= 4.28% B. Suppose under the terms of the bond you could redeem the bond in 2024. DMF agreed to pay an annual interest rate of 1.4 percent until that date. How much would the bond be worth at that time?_________ C. In 2024 instead of cashing in the bond for its then current value, you decide to hold the bond until it matures in 2043. What annual rate of return will you earn over the last 19 years?___________
Damoah's Pizza Co. borrowed $200,000 on January 1, 2020, and signed a two-year note bearing interest at 12%. Interest is payable in full at maturity on January 1, 2022. In connection with this note, Damoah's should report interest expense at December 31, 2020, in the amount of: Question 23 options: $0 $24,000 $48,000 $50,880
On January 1, 2021, Labtech Circuits borrowed $300,000 from First Bank by issuing a three-year, 6% note, payable on December 31, 2023. Labtech wanted to hedge the risk that general interest rates will decline, causing the fair value of its debt to increase. Therefore, Labtech entered into a three-year interest rate swap agreement on January 1, 2021, and designated the swap as a fair value hedge. The agreement called for the company to receive payment based on an 8% fixed interest rate on a notional amount of $300,000 and to pay interest based on a floating interest rate tied to LIBOR. The contract called for cash settlement of the net interest amount on December 31 of each year. Floating (LIBOR) settlement rates were 8% at inception and 9%, 7%, and 7% at the end of 2021, 2022, and 2023, respectively. The fair values of the swap are quotes obtained from a derivatives dealer. These quotes and the fair values of the note are as follows: January 1 December 31 2021 2021 2022 2023…
A baseball player is offered a 5-year contract that pays him the following amounts: Year 1: $1.26 million Year 2: $1.87 million Year 3: $2.49 million Year 4: $2.54 million Year 5: $3.15 million Under the terms of the agreement all payments are made at the end of each year. Instead of accepting the contract, the baseball player asks his agent to negotiate a contract that has a present value of $1.63 million more than that which has been offered. Moreover, the player wants to receive his payments in the form of a 5-year ANNUITY DUE. All cash flows are discounted at 12.00 percent. If the team were to agree to the player's terms, what would be the player's annual salary (in millions of dollars)? (Express answer in millions. $1,000,000 would be 1.00)
Bha
A basketball player is offered the following contract today, Jan. 1, 2020: $2 million immediately, $2.40 million in 2020, $2.90 million in 2021, $3.60 million in 2022, and $3.80 million in 2023. Assume all payments other than the first $2 million are paid at the end of the year. If the appropriate discount rate is 10 percent per year, what is the present value of the deal? Please show in Excel
During 2022, Angel Corporation issued 780,000 coupons which entitles the customer to a $5.60 cash refund when the coupon is submitted at the time of any future purchase. Angel estimates that 75% of the coupons will be redeemed. 259,000 coupons had been processed during 2022. Angel recognizes coupon expense in the period coupons are issued. What is the amount of liability Angel should report for unredeemed coupons in its December 31, 2022 balance sheet? Multiple Choice $2,188,200. $1,825,600. $585,000. $2,917,600.

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