QUESTION Suppose you borrow $15000. The loans annual interest rate is 8%, and it requires four equal end-of year payments. Set up an amortization schedule that shows the annual payments, interest payments, principal repayments, and beginning and ending loan balances. 15000*.08=1200 interest payment1 year 15000/4=3750 principal —1 year 15000-3750=11250 11250*.08=900 interest payment 2 year 3750 […]
QUESTION 8) The marketing mixA. Includes four variablesPeople, Place, Promotion, and Price.B. Includes the target marketC. Helps to organize the marketing strategy decision areas.D. Includes four variablesadvertising, personal selling, customer service, and sales promotion.9) Product is NOT con 8) T he marketing mix A. Includes four variablesPeople, Place, Promotion, and Price. B. Includes the target […]
QUESTION You are discussing stock valuation techniques with your broker. You mention that yourFinance professor stated that a stock that will never pay a dividend is valueless. Yourbroker says this is not true because you can always sell the stock to someone else (thus, a capital gain is We cant argue with “a” . before […]
QUESTION Edward Johnson decided to open up a Roth IRA. He will invest $1,800 per year for the next 35 years. Deposits to the Roth IRA will be made via a $150 payroll deduction at the end of each month. Assume that Edward will earn 8.75% over the life of the IRA. How much will […]
QUESTION 4. St. Joe Trucking has sold an issue of $6 cumulative preferred stock to the common public at a price of $60 per share. After issuance costs, St. Joe netted $57 per share. The company has a marginal tax rate of 40 percent.a. Calculate the after-tax cost of this preferred stock offering assuming tha […]
QUESTION Lever Brothers has a debt ratio (debt to assets) of 20%. Management is wondering if its current capital structure is too conservative. Lever Brotherss present EBIT is $3 million, and profits available to common shareholders are $1,680,000, with 457,143 shares of common stock outstanding. If t 44) Lever Brothers has a debt ratio (debt […]
QUESTION Supply the missing dollar amounts for the income statement for each of the following independent cases. (Hint: In case B, work from the bottom up) Case A Case B Case C Net sales revenue $7,500 $5,500 $6,000 _____________________________ Beginning inventory $11,200 $6,500 $4,000 Purchases $5,000 $8,550 $9,500 ______________________________ Goods available for sale $16,200 $15,050 […]
QUESTION I currently have $7,500 in a money market account paying 5.65 percent annually. I plan to use this and my savings over the next four years to buy a car at the end of this year. The car will cost $12,000 in four years. How much should I invest in the money market account […]
QUESTION Identify each as increasing (+) or decreasing (-) cash flows fom operating activities, investment activities or financing activities.Decrease in inventoryNet income from operationsPayment of dividendsSale of Preferred stockIncrease in accrued expensesPurchase of new equipmentDecrease in depreciation Increasing ( ) Decrease in inventory Net income from operations Sale of Preferred stock Increase in Accounts Payable […]
QUESTION You have just won the state lottery and have two choices for collecting your winning. You can collect $50,000 today or receive $10,100 per year for the next seven years. A financial analysts has told you that you can earn 10% on your investments. Which alternative should you select and why? Solution: Option 1: […]
