Two financing options are being evaluated. Which should I select? Option 1 60% equity at 12% and a loan for the balance at 9% OR 20% equity and the balance load at 12.5% per year? Type out the correct answer with proper explanation of it. Will give you thumbs up only for the correct answer.thank you
Q: wo capital goods manufacturing companies, Rock Island and Davenport, are virtually identical in all…
A: According to bartleby guidelines, if question involves multiple subparts, then 1st sub 3 parts needs…
Q: Your company is deciding whether to invest in a new machine. The new machine will increase cash flow…
A: Net present value refers to the present value of cash inflows compared with the outflows. It is…
Q: An S&P 500 index linked CD matures in 4 years, with the face value the same as the current S&P 500…
A: We need to value the CD. It comprises of two part: a plain vanilla CD plus 60% value of a call…
Q: te of the economy Probability T-Bills Phillips Pay -up Rubber-made Market Index Recession…
A: A stock that performs well irrespective of the state of overall stock market is termed as defensive…
Q: rich uncle has just given you a high school graduation present of $1,600,000. The present, however,…
A: Present value is the equivalent value of future cash flow that is to be recieved in the future time…
Q: You want to calculate the 30 Day 95% VaR for the following portfolio. You invest $5 million in the…
A: We have to find the 30 day 95% VaR of a portfolio of two assets.
Q: You have a portfolio with a standard deviation of 25% and an expected return of 18%. You are consi…
A: The standard deviation measure the risk and uncertainty about the project. It also measures the…
Q: llowing are prevent reimbursements, EXCEPT: pas for a. Run expense reimbursements per employee loc…
A: An overstated expense is a legitimate expense but in that amount are increased by the employees. An…
Q: The current price of Kinston Corporation stock is $10. In each of the next two years, this stock…
A: An option is a type of financial instrument that is based on the value of underlying securities,…
Q: I answred question 1 below butneed help with question 2. I've included my answer to question 1 since…
A: Concept. Net present value is calculated by deducting initial investment from present value of cash…
Q: Determine how much is in the account on the basis of the indicated compounding after the specified…
A:
Q: Joan has savings of $12,000 on June 1. Since she may need some of the money during the next three…
A: We have two investment options. We need to find how much more is possible in one option over the…
Q: Suppose Bank A offers a 201,000, 20 year , 2.1 % fixed rate mortgage with closing costs of 1900 plus…
A: Closing cost are very important in mortgage and are to be paid while closing of the mortgage loans.…
Q: What is the expected return of the stock investment? % (Round to two decimal places.)
A: An economy goes through different cycles and periods of boom, recession etc. The return from a…
Q: You currently have a loan outstanding on one of your investment properties. The current balance of…
A: We have to find the incremental cost of refinancing. For that we will have to find the incremental…
Q: Calculate the accrued interest in dollars, and the total purchase price and dollars of the bond…
A: Clean price is the price which is quoted or published, whereas dirty price is the the price which…
Q: Some portfolio manages consistently outperform the market. support weak-form market efficiency
A: given Some port filo manages consistently outperform the market.
Q: Calculate the purchase price of the $1,000 face value bond using the information given below. (Do…
A: Given Face value of bond $1000 Coupon rate is 5.40%Market rate is 7.2%
Q: The market value of a home in Boston, MA. is $330,000. The assessment rate is 30%. What is the…
A: The market Value of Boston is $330,000 The assessment rate is 30% To Find: Assessed Value
Q: Calculate the net present value of the strip mine if the cost of capital is 3, 9, 11, 77, 87, and 92…
A: Net present value is a capital budgeting tool that helps understand the feasibility of a project.
Q: Suppose Bank A offers a $201,000, 20-year, 2.1% fixed rate mortgage with closing costs of $1900 plus…
A: We have to find the closing cost in the loan transaction.
Q: current balance of home is 43,000 at 6.5 % how much is needed to pay off in 11 years ?
A: The current Balance is $40,000 The interest rate is 6.5% The time period is 11 years To Find:…
Q: The First Bank of Lending lists the following APR for loans. Determine the APY, or effective…
A: The effective rate of interest is the effective rate of interest per annum including the effect of…
Q: Use the following amortization chart: Selling price of home Down payment Principal (loan) Rate of…
A: Number of monthly payment periods = Number of years*12 = 30×12 = 360
Q: Determine the interest earned after 8 years if $3000 is invested in each of the following accounts.…
A: A). Daily interest rate = Annual rateFrequency of compounding in a year =0.0529365= 0.0001449315…
Q: 2. A company's convertible bonds of par value Rs. 1,00,000/- are convertible at a price of Rs. 5/-…
A: A convertible bond is a bond that offers the option for the bondholder to convert the bond into a…
Q: Molly Lincoln, a 30-year-old personal loan officer at First National Bank, understands the…
A: The concept of time value of money will be used here. Money invested today grows because of the…
Q: For the data given below, what would the naive forecast (without a trend) be for period 5? Period…
A: In finance we often use different forecasting methods and techniques to project variables for…
Q: help
A: 1. All of the following are practices derived from McKinsey & Company’s study to identify a…
Q: what is the net present value of the stadium investment if the new stadium ticket prices grow at 2%…
A: CAPACITY =75000 CHARGES $85 NO OF GAMES =10 NEW STAIUM COST = 600 MILLIONS ---->$ 200AT 0 YEAR,$…
Q: Assume we have a $1 million 15 year mortgage with monthly payments beginning in exactly one month;…
A: We have a mortgage here. We need to find the monthly payment, pay rate and the accrual rate.
Q: million
A: The PAT +D (Depreciation) is the cash flow for the first year. Amount…
Q: ike Jones bought a new split-level home for $150,000 with 20% down. He decided to use Quicken Loans…
A: Mortgage loans are secured loans because the home is collateral and lender can sell the home and can…
Q: he Hartley Hotel Corporation is planning a major expansion. Hartley is financed 100 percent with…
A: IRR is internal rate of return and is the one of the fundamental capital budgeting method that is…
Q: 1. What is the total present value of the cash receipts X today (at time 0) if interest is 4.4%…
A: An annuity is a fixed cash flow received at fixed intervals. Present value of Annuity = Cash flows ×…
Q: The risk-free return is 5%, Company x has a beta of 1.5 and an expected return of 20%. Calculate the…
A: Solution:- Capital Asset Pricing Model (CAPM) is an equity model which calculates the required rate…
Q: Yara owns a home that was recently appraised for $183,000. The balance on the existing mortgage is…
A: To find out this solution we need to find the loan to value ratio(LTV). LTV ratio measures the…
Q: The risks below faced the financial institutions: Credit Risk Liquidity Risk Interest Rate Risk…
A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…
Q: Determine the value of an ordinary annuity if $100 is deposited each month into an account earning…
A: Deposit amount (P) = $100 Monthly interest rate (r) = 0.041/12 = 0.00341666666666667 Monthly periods…
Q: You audited the financial statements of PIS Corp. for the first time in 2022. The company started…
A: P104,000, P140,000 and P160,000 in 2020, 2021, and 2022 - Income Prepaid insurance…
Q: A firm of investment looking for optimal investment portfolio for its client The client wants to…
A: We have to find the optimal investment portfolio for the client that maximizes the return but…
Q: Pitt Company is considering two alternative investments. The company requires a 12% return from its…
A: IRR is the internal rate of return and is one of the most used capital and is based on the time…
Q: Classify and journalize the different transactions in the corresponding fund Exercise 1 The City…
A: Need to do Journal entry relating to transactions below
Q: “Increasing financial leverage increases both the cost of debt (rdebt) and the cost of equity…
A: Given that Buggins Inc is financed equally by debt and equity (Before repurchase) Market value =…
Q: K's Warehouse has a market value of $900,000. The property in K's is assessed at 45% of the market…
A: The market value of the Warehouse is $900,000 The assessment rate is 45% The tax rate is $62.40 per…
Q: Compute the value of Better Mousetraps for assumed sustainable growth rates of 6% through 9%, in…
A: Given: Growth rate is increased from 6% to 9% in increments of 0.5%. Growth rate is increased from…
Q: Hedging using forward rates: Assume the hypothetical spot rate between the USD and GBP was 1.6187…
A: Worth of contract in Pounds (GBP)= 200000 So its value in USD($)=200000*1.6187=$ 323740
Q: You have a Bond paying 5.48% semi-annual coupon and maturing on 14-Jul-2029 and currently trading at…
A: 5.48% s - semi-annual coupon 6.22%p.a. -T+1 basis
Q: Limitations of Capital Budgeting Although capital budgeting provides a lot of insight into the…
A: We have to explain the limitations of capital budgeting techniques.
Q: Blue Sky Ltd. is considering the replacement of one of its older machines that is still capable of…
A: New Machine = 150000 Annual operating cost = 50000 Tax Rate = 28%
Two financing options are being evaluated. Which should I select? Option 1 60% equity at 12% and a loan for the balance at 9% OR 20% equity and the balance load at 12.5% per year?
Type out the correct answer with proper explanation of it. Will give you thumbs up only for the correct answer.thank you
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Your financial advisor from Bluerock recommends you to invest in one of the plan. You want to compare and verify which of the following is the best investment option. Investment Plan A: Deposit $125,000 at the beginning and obtain $175,318.97 after 5 years.Investment Plan B: Deposit $243,000 at the beginning and obtain $319,771.42 after 7 years.Investment Plan C: Deposit $314,000 at the beginning and obtain $530,496.39 after 9 years. 1. Compute interest rate for all 3 plans. Which investment plan provides you the highest rate? 2. Your advisor updated the investment plan information yesterday. While the interest rate did not change for all 3 plans, future values of each investment are 210382.76, 415702.85, 742694.95, respectively. What would be the investment period for each plan? 3. Your advisor thinks it would be a good investment if you make an investment portfolio using all 3 investment plans suggested. He recommends investing in all 3 plans at year 0 and reinvest the money to…1. What will be the present value, if $6,800 is discounted back 4 years at an interest rate of 4% compound semi-annually? 2. as the Fund manager for bank of Trinidad and Tobago Limited, you are to advise the following two clients based on their respective financial situations a) your best friend has asked to assist him in making the best investment out of the following options. which would you advise him to choose and why Option 1 $12,000 in 5 year's time at 6% interest Option 2 $15,000 in two year's time at 9% Option 3 $15,000 today. no strings attached Option 4 $5,000 each year for 2 years at 7% percent compounded semi- anuallyYou are offered the right to receive $1,000 per year forever, starting in one year. If your discount rate is 6%, what is this offer worth to you? This offer is worth $ View an example (Round to the nearest dollar.) Get more help - O search D m/Player/Player.aspx?cultureld=&theme-finance&style=highered&disableStandbyIndicator=true&assignmentHandlesLocale=true 4- A www. Clear all 16
- You are thinking about purchasing an investment from Get-Rich-Quick Investmemnt company. If you buy the investment, you will receive $50 every month for five(5)years. Payment will be made at the end of each month. If your required rate of return is 9% how much should you be willing to pay for this investment? Group of answer choices $4,632.87 $2,735.25 $2,525.10 $2,408.67Find the interest earned on $5,750 deposited into a savings account for 3 1/2 years at an annual interest rate of 4 1/2% a. What formula should be used? b. What are you trying to find and what variable does it represent in the formula? c. Solve the problem showing all of your work (must show all steps!!) d. Interpet your answer using a complete sentence You may use the box below to upoload a picture of your written explanation or type it out in the box. Use the "mountain" button to add pictures.1.You have a client that plans to put $100,000 into a brokered 5‐year CD with you. You see two 5‐year CD options on your screen that she could invest in. Which of the options provides more total return, and by how much? East Coast Bank: 6% simple West Coast Bank: 6% monthly A. West Coast; $1,062 B. East Coast; $1,062 C. East Coast; $4,885 D. West Coast; $4,885
- Course dashboard You are offered the choice of two payment streams (a) $150 paid one year from now and $150 paid two years from now; (b) $130 paid one year from now and $160 paid two years from now. How much payment streams do options (a) provide? Yanıt. SONRAKİ SAYFA acerDirection: Solve what is being asked and show your complete and neat solution. (ROUND OF PV FACTORS TO 4 DECIMAL PLACES, ROUND OF FINAL ANSWER TO TWO DECIMAL PLACES. IN MCQs CHOOSE THE BEST ANSWER) 1.) A.) Which of the following statements is most correct? a. A 5-year P100 annuity due will have a higher present value than a 5-year P100 ordinary annuity. b. A 15-year mortgage will have larger monthly payments than a 30-year mortgage of the same amount and same interest rate. c. If an investment pays 10 percent interest compounded annually, its effective rate will also be 10 percent. d. Statements a and c are correct. e. All of the statements above are correctuestion 1: Solve the following TVM problems using Excel formulas. You MUST use Excel formulas (FV or PV) to receive credit. ou can assume that all payments are made at the beginning of the period and use "1" for the "type" argument in the formula. A. Suppose you invest 11,400 today. What is the future value of the investment in 29 years, if interest at 7% is compounded annually? B. Suppose you invest $ 11,400 today. What is the future value of the investment in 29 years, if interest at 7% is compounded quarterly? C. Suppose you invest $ 570 monthly. What is the future value of the investment in 29 29 years, if interest at + 5% is compounded monthly? 5 6 7 8 19 20 21 22 23 24 25 26 27 28 29 Question 1 Question 2 + Ready Accessibility: Investigate MAR 17 A 国 W X
- You are offered the choice of two payments streams A. $150 paid one year from now, and $150 paid two years from now. B. $140 paid one year from now and $164 paid two years from now. a. Which payment stream would you prefer if the interest rate is 9 percent? (Prefer Stream B/Prefer Stream A)? b. Which payment stream would you prefer if the interest rate is 12 percent? (Prefer Stream A/Prefer Stream B)?8) Special Retirement PlanYou set up a retirement plan where you will invest $20,000 per year in an account with a guaranteed rate of return of ? = 0.05. The plan requires that you start investing immediately at year t=0, and make fifteen (15) additional payments of $20,000 in years t=1, t=2, ..., t=10. You make 11 investments in total. a. What will be the value of this stream of investments in year t=50? b. What is the maximum you can withdraw per year over the twenty (20) year period from t=51, t=52, ..., t=70? You have to withdraw the same amount each year. c. What is the maximum that you can withdraw per year forever if you start to make withdrawals in year t=51. You have to withdraw the same amount each year. 19)8. You are evaluating five different investments, all of which involve an upfront outlay of cash. Each investment will provide a single cash payment back to you in the future. Details of each investment appears here: 2. Calculate the IRR of each investment. State your answer to the nearest basis point (i.e., the nearest 1/100th of 1%, such as 3.76%). Review Only Click the icon to see the Worked Solution (Calculator Use). Click the icon to see the Worked Solution (Spreadsheet Use). The yield for investment A is %. (Round to two decimal places.) The yield for investment B is %. (Round to two decimal places.) The yield for investment C is %. (Round to two decimal places.) The yield for investment D is %. (Round to two decimal places.) The yield for investment E is %. (Round to two decimal places.) 2: Data Table Initial Future End of Investment Investment Value Year A $1,800 $6,387 14 B $9,500 $14,353 11 $600 $3,091 17 D $3,500 $4,505 3 E $5,800 $12,092 12 (Click on the icon located on the…