Questions: Community Hospital

1.) What is the marginal cost estimate of the Phase 4 hospital services, assuming that 60 percent of the designated costs are fixed and the remaining costs are variable?

The fixed cost is assumed that Larry has discovered the other fixed cost incurred. The total investment is $800,000. The worst case scenario assumes that Larry got a total line of credit from the bank in the amount of $400,000 and invested $400,000 from other source. The Notes payable – short term and the long-term debt is (11.8 + 3.7) = 15.5 % from Table F in the handout. The Loan interest and payment per year is ($400,000 * 0.155)= $62,000. The Income data from Table F indicates that there is a 0.4% of all other expenses net out of the total sales which equals to $109,908 (5,700,666 gallons * $4.82 *0.4%) .

Poor Dog, Inc. borrowed $135,000 from the bank today. They must repay this money over the next six years by making monthly payments of $2,215.10. What is the interest rate on the loan? Express your answer with annual compounding.

Southlake Corporation issued $900,000 of 8% bonds on March 1, 20X1. The bonds pay interest on March 1 and September 1 and mature in 10 years. Assume the independent cases that follow.

The company has an agreement with a bank that allows the company to borrow the exact amount needed at the beginning of each month. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. At the end of the quarter, the company will pay the bank all of the accrued interest on the loan and as much of the loan as possible while still retaining at least $50,000 in cash.

II.|Connie has an investment portfolio in excess of $450,000. She pays Chris $350 to do an analysis of her investments and make recommendations on restructuring the portfolio.|

What annual interest rate is needed to produce $200,000 after five years if only $100,000 is invested?

Date: Name: ID: Answer the following Questions: 1. Tower Inc. owns 30% of Yale Co. and applies the equity method. During the current year, Tower bought inventory costing $66,000 and then sold it to Yale for $120,000. At year-end, only $24,000 of merchandise was still being held by Yale. What amount of inter-company inventory profit must be deferred by Tower? A. $6,480 B. $3,240 C. $10,800 D. $16,200 E. $6,610 2. All of the following statements regarding the investment account using the equity method are true except A. The investment is recorded at cost B. Dividends received are reported as revenue C. Net income of investee increases the investment account D. Dividends received reduce the investment account E.

Therefore the annual interest rate is 8% and the effective annual rate compounded quarterly is 8.24%

a. How much would the payment be if rate of interest is 5% and you only financed the truck for 48 months?

After the calculations you end up coming out with a rate of 14.87%. The third and final part of question three asks what rate you will need if the interest is compounded semiannually. All you have to do is double the amount of terms and you will come out with a lower number of 7.177%. Since the interest is compounded semiannually that means that you will need to times that number by two and you come out with your final number of 14.35%.

As shown by Figure 2, the total return from these transactions will be $1861.72. Based on the input of own funds, the total annualized return on that transaction would be 6.076%. Figure 3 shows in addition the return on the overall employed funds.

In past time getting money in a flash is just like dream come true. But now all dreams can come true with Instant Cash Loans. These loans offer you a helping hand which would solve your financial issue in an instant. These loans can be availed in a short duration; therefore, it is an ideal solution for your interim fiscal shortcomings needs. With this swift fund you can basically meet your every month expenditures like attending unexpected home repair or a automobile repair, paying the pending grocery bills and other household expenses. Borrowers with poor credit status get the approval for instant cash even having bad credit history. The bad credit history of defaults, late payments, payment over dues, CCJs, IVA & so on is not more an issue. As it is a short term loan it carries a higher rate of interest as compared to other traditional loans. The rate of interest is higher due to the absence of placing any collateral as security against loan amount. So the risk is higher on the lender side so they charge higher rate of interest. Borrowers can grab these loans by applying online as it is a quickest and convenient mode of application. With online mode you don 't have to wait a long time, deal with faxing papers back and fill any long form. You simply just need to fill an online application form with your genuine personal information. And after submitting the form the lender verifies the details and within short span of time the amount is credited into your bank account.

2(a) Howard Brown is a large-scale cotton farmer. The land and machinery he owns has a current market value of $4 million. Bowen owes his local bank $3 million. Last year Bowen sold $5 million worth of cotton. His variable operating costs were $4.5 million; accounting depreciation was $40,000, although the actual decline in value of Bowen’s machinery was $60,000 last year. Bowen paid himself a salary of $50,000, which is not considered part of his variable operating costs. Interest on his bank loan was $400,000. If Bowen worked for another farmer or a local manufacturer, his annual income would be about $30,000. Bowen can invest any funds that would be derived, if the farm were sold, to earn 10 percent annually. (Ignore taxes.)

(c) Assume that G is now equal to 11, so output is given by your answer to (b). Compute private plus public saving. Is the sum of private and public saving equal to investment? Briefly explain.