John wants to buy a property for $107, 500 and wants an 80 percent loan for $86, 000. A lender indicates that a fully amortizing loan can be obtained for 30 years (360 months) at 6 percent interest; however, a loan fee of $3,700 will also be necessary for John to obtain the loan. Required: How much will the lender actually disburse at closing? What is the APR for the borrower, assuming that the mortgage is paid off after 30 years (full term)? If John pays off the loan after five years, what is the effective interest rate? Assume the lender also imposes a prepayment penalty of 2 percent of the outstanding loan balance if the loan is repaid within eight years of closing. If John repays the loan after five years with the prepayment penalty, what is the effective interest rate?

Metallica Bearings, Incorporated, is a young start-up company. No dividends will be paid on the stock over the next nine years because the firm needs to plow back its earnings to fuel growth. The company will pay a dividend of $14 per share 10 years from today and will increase the dividend by 3.9 percent per year thereafter. If the required return on this stock is 11.5 percent, what is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. Current share price $ 166.17

The figure to the right illustrates the long-run average cost curve for a company that makes motors. Suppose the company produces 15 thousand motors per month. Is it experiencing economies of scale, diseconomies of scale, or constant returns to scale? If the company produces 15 thousand motors, then it experiences diseconomies of scale At what level of output does the firm experience the minimum efficient scale? The minimum efficient scale occurs when the firm produces (Enter your response as an integer.) thousand motors. Average total cost 48.00 Long-run average cost 44.00 40.00 36.00 32.00 28.00 24.00 20.00- 16.00 12.00- 8.00- 4.00- 0.00 0 2 4 6 8 10 12 14 16 18 20 Quantity (motors per month in 1,000s) G

vonconstant Growth Stock valuation Reizenstein Technologies (RT) has just developed a solar panel capable of generating 200% more electricity than any solar panel currently on the market. As a result, RT is expected to experience a 20% annual growth rate for the next 5 years. By the end of 5 years, other firms will have developed comparable technology, and RT's growth rate will slow to 5% per year indefinitely. Stockholders require a return of 10% on RT's stock. The most recent annual dividend (D), which was paid yesterday, was $2.95 per share. a. Calculate RT's expected dividends for = 1, 2, 3, 4, and r = 5. Do not round intermediate calculations. Round your answers to the nearest cent. D₁ = $ D₂ = $ D₂ = $ D₁ = $ D₁ = $ b. Calculate the estimated intrinsic value of the stock today, widehat(P), Proceed by finding the present value of the dividends expected at 1,1 = 2,1 = 3,1 = 4, and 5 plus the present value of the stock price that should exist at = 5, widehat(P). The widehat(P) stock…