PFIN 7:STUDENT EDITION-MINDTAP (1 TERM)
7th Edition
ISBN: 9780357033647
Author: Billingsley
Publisher: CENGAGE L
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Chapter 7, Problem 2LO
Identify the various sources of consumer loans.
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Please correct answer and don't used hand raiting
Problem 16-8 Calculating Payments [LO 3]
Sexton Corporation has projected the following sales for the coming year:
Sales
Q1
$ 300
Q2
$ 390
Q4
$ 540
$ 480
Sales in the year following this one are projected to be 25 percent greater in each quarter.
Calculate payments to suppliers assuming that the company places orders during each quarter equal to 35 percent of projected sales
for the next quarter. Assume that the company pays immediately.
a. What is the payables period in this case?
Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.
Answer is complete and correct.
Payables period
0
What are the payments to suppliers each quarter?
Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.
Answer is complete but not entirely correct.
Q1
Payment of accounts
$
170.63
Q2
Q3
Q4
236.25 $
210.00
$
164.06
Consider the following information about three stocks:
Rate of Return if State Occurs
State of
Probability of
Economy
State of Economy
Stock A
Stock B
Boom
Normal
0.25
0.32
0.44
Bust
0.40
0.35
0.24
0.22
0.02
-0.24
Stock C
0.60
0.20
-0.40
a-1. If your portfolio is invested 30% each in A and B and 40% in C, what is the portfolio expected return? (Do not round
intermediate calculations. Enter the answer as a percent rounded to 2 decimal places.)
Portfolio expected return
%
a-2. What is the variance? (Do not round intermediate calculations. Round the final answer to 8 decimal places.)
Variance
Chapter 7 Solutions
PFIN 7:STUDENT EDITION-MINDTAP (1 TERM)
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- Hi, I am stuck on this corporate finance problem. PetCare Lrd. is starting a new project. The value of the project will be $100 million at the end of the year if the project is successful, or $80 million if the project fails. PetCare Ltd. can do 100% equity financing or they can take on debt. The debt at the end of the year will be $50 million. Assume that this project takes place in a perfect capital market, beta is 0 and the risk free rate is 6%. What is the value of the project with debt financing and without debt financing?arrow_forwardPlease correct answer and don't used hand raitingarrow_forwardPlease correct answer and don't used hand raitingarrow_forward
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