QUESTION I am 30 years old and I want to retire at 65 with 2 million dollars. The interest rate on my savings account is 5%.How much do I need to set aside each year to make sure I have 2 million dollars by age 65. According to the given problem,Future value = $2,000,000NUmber of […]
Date: September 2nd, 2020
QUESTION Assume that today is December 31, 2008, and that the following information applies to Vermail airlines:-After-tax operation income [EBIT(1-T) for 2009 is expected to be $500 million.-The depreciation expense for 2009 is expected to be $100 million.-The capital expenditures for 2009 are expected to b¦ Net cash flow during 2009 = EBIT(1-T) cap. […]
Date: September 2nd, 2020
QUESTION week 68. Kamins Corporation has two bond issues outstanding, each witha par value of $1,000. Information about each follows. Supposemarket interest rates rise 1 percentage point across the yield curve.What will be the change in price for each of the bonds? Does this tellus anything about the relatio¦ a) Calculating the Present value of […]
Date: September 2nd, 2020
QUESTION Question 14Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows.AnswerSA projects regular IRR is found by compounding the cash inflows at t Question 14: A projects regular IRR is found by compounding the cash inflows at the […]
Date: September 2nd, 2020
QUESTION week 13A supplier is offering your firm a cash discount of 2 percent ifpurchases are paid for within ten days; otherwise the bill is due atthe end of sixty days. Would you recommend borrowing from abank at an 18 percent annual interest rate to take advantage of thecash discount offer? Explain Supplier is offering […]
Date: September 2nd, 2020
QUESTION Atlas Corp is considering two mutually exclusive projects. Both require an initial investment of $10,000 at t=0. Project S has an expected life of 2 years with after-tax cash inflows of $6,000 and $8,000 at the end of Years 1 and 2, respectively. Project L has an expected life of 4 years with after-¦ […]
Date: September 2nd, 2020
QUESTION week 103. a.Find the IRR of a project that returns $17,000 three years fromnow if it costs $12,000.b. Find the IRR and MIRR of a project if it has estimated cash flowsof $5,500 annually for seven years if its year 0 investment is$25,000. a)pleas go throug hthe file years Cash flow 0 -12000 1 […]
Date: September 2nd, 2020
QUESTION Chase Bank holds a $200 million loan to Argentina. The loans are being traded at bid-offer prices of 91-93 per 100 in the London secondary market.a. If Chase has an opportunity to sell this loan to an investment bank at a 7 percent discount, what are the savings after taxes compared to selling the […]
Date: September 2nd, 2020
QUESTION 2. Using the following information determine the size of the demand deposits component of the Ml money supply.Currency $350 millionTravelers checks $ 10 millionOther checkable deposits $200 millionSmall time deposits $ 100 millionMl money supply $800 million M1 represents the narrow measure of money supply and includes only the currency, demand deposits and all […]
Date: September 2nd, 2020
QUESTION Explain what it means for a firm to have a current ratio equal to 0.50. Would the firm be better off if the current ratio were 1.50? What if it were 15.0? Explain your answers. If firm have current ratio is .50 that means our current liability is double of our current assets. that […]
Date: September 2nd, 2020
