A company took a loan on the May 15th and paid it back on the Oct 20th. The amount of interest they needed to pay was 1 808,34 € The interest rate of the loan was 2,8% Calculate the amount of the loan. Principal Start date End date Rate Time Days Interest Answer:
Q: X is indebted to Y in the amount of P25,000.00. In order to escape payment of his debt to Y he sold...
A: In Absolute Simulation the ownership of the thing is not transferred if the contract is not proved t...
Q: Goldman Sachs issues $10 million in three-year convertible bonds with a 8% yield to maturity and a 3...
A: A convertible bond is a fixed-income corporate financial asset that pays interest but may be exchang...
Q: Define time-series analysis
A: Time series analysis is an important technique used in statistics in finance. It has been defined in...
Q: 2. Linkline's stock is trading at 55 today and you have determined the outlook for the next year is ...
A: Binomial option pricing method will be used to determine the call price of the stock. Given: S0 = $5...
Q: Save The Simpson Company invested $20000 in a fund that was earning interest at a rate of 5% compoun...
A: Given data, Investment p = $20000 Rate of interest r = 5%= 0.05 compounded semi annually, so, n=2 T...
Q: how much can Marcus spend on a car (that is, what is the total cost of the car that Marcus can purch...
A: Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount...
Q: A company issued 10000, 10% debentures of 100 each on 1st April, 2003 to be matured on 1st April, 20...
A:
Q: Marcy borrowed P1M in a bank that charged 18% compounded monthly and agreed to make monthly payments...
A: Monthly Compounding: It is the interest of interest to the principal sum of a loan or deposit and o...
Q: The right side of the balance sheet shows the firm's liabilities and stockholders' equity. Which of ...
A: The accounting equation is Total assets = Total shareholders equity + Total liabilities
Q: A $90,000 reverse mortgage is for 10 years at 8% interest rate where payments are made monthly at th...
A: In reverse mortgage, the home owner receives monthly payments as income rather than payment which in...
Q: Market conditic characterized b
A: Since as in the given case, the cost of commercial paper is a recommended action, because it is econ...
Q: You are considering two ways of financing a spring break vacation. You could put it on your credit c...
A: The option with lower effective annual rate should be chosen.
Q: What does it mean by "acquisitions versus alliance" when pertaining to diversifying and managing acq...
A: A company or a corporate entity or an organization can diversify and grow using different strategies...
Q: For purposes of computing the WACC, if the book value of equity exceeds the market value of equity, ...
A: WACC is the weighted average cost of capital of the capital sources of a firm. It includes equity, d...
Q: You are an engineer proposing a potential investment and your company requires you to develop a cash...
A: Here, Initial Investment is Php 500000 Annual Revenue is Php 100000 Annual Expenses is Php70000 Mark...
Q: Based on the preceding information, your calculations, and your assumptions, which of the following ...
A: The following are the statements that will be included: (B) Cute camel woodcraft firm's ability to m...
Q: How do you think a compromise between the major stakeholders could be reached?
A: Stakeholders is a wider term. Stakeholders means those parties who have interest in a company's oper...
Q: Match each of the financial statement theory and concepts with the statement that best describes the...
A: Solution:- Maximizing shareholder’s wealth means providing maximum and higher returns to the common ...
Q: State whether the Portfolio Nature is Defensive/Aggressive. Weight on XOM Weight on PFE Portfolio R...
A: A defensive portfolio is made up of equities that have a low beta. The equities in this portfolio ar...
Q: A company issued 10000, 10% debentures of 100 each on 1st April, 2003 to be matured on 1st April, 20...
A: Market price = 80 Tax rate = 35% Face Value = 100 Coupon = Coupon Rate * Face Value = 10%*100 = 10 N...
Q: usra has a term loan that she still owes $15,483.58. The annual interest rate on this lo his month s...
A: Loans are paid by the monthly payment that carry the payment of principal amount and payment of inte...
Q: Differentiate between voluntary and involuntary liquidation of a company and outline the circumstanc...
A: Meaning and difference of voluntary and involuntary liquidation . Voluntary liquidation. It is not ...
Q: LEIC plc plans to acquire PEAR Plc. The timeline is as follows. Day 1- Market values for shares are ...
A: According to the Efficient Market Hypothesis (EMH), current stock prices adjust fast to new public i...
Q: Coco Kitchen has a WACC of 14%. It has 19% of return on equity, and 60% of debt-to-asset ratio (i.e....
A: WACC is the average cost of capital which is calculated by multiplying the weight with cost of funds...
Q: Is bond financing risky or safe for a company? Explain in details. Why bond investing safer for inve...
A: Bond financing is a sort of long-term borrowing that is Particulary used by various state and centr...
Q: Ql: you put $2500 in account bank , this bank gives interest 6.5% for the first 3 months of saving, ...
A: Since you have posted a multiple question so we will be solving the first question only. However, if...
Q: Gregorio bought a car with funds borrowed from a commercial bank. He intends to repay the note with ...
A: Par value (FV) = P750,000 Discount rate (r) = 12% Period (d) = 270 days
Q: Use the percentage of 18-49 year olds who agree with the statement "I would buy this product" to cal...
A: Total sample size of 18-49 years old = Sum of all the samples whether agree or disagree = 14 + 10 + ...
Q: ndholders. areholders. areholders and the federal government.
A: Interest tax sheild is the reduced cost of capital due to the advantages of tax deductions.
Q: 11. An elective project is currently under review. The first alternative requires an initial investm...
A: A cost-benefit analysis is a systematic process that businesses use to determine which decisions to ...
Q: What is the interest rate on a loan of $52,000 for 54 days that yields $780.00 interest? Group of an...
A: Loan (L) = $52000 n = 54 days Let r = Interest rate
Q: why is knowledge of the money market important for carrying out value maximizing working capital sho...
A: The money market is important for the organizations and the government to keep a smooth cash flow op...
Q: Your firm has taken out a $480,000 loan with 8.1% APR (compounded monthly) for some commercial prope...
A: The loans are paid the monthly payments that carry the payment for interest and the payment for the ...
Q: C) Present Worth Cost Method D) Equivalent Uniform Annual Cost Method
A: Out of all the available investment options a company will either choose the one that maximizes bene...
Q: Suppose stock returns have a 2-factor structure. You observe a broad stock market portfolio A which...
A: Portfolio A return (Ra) = 7.4% Portfolio B return (Rb) = 10.6% Beta of first factor for A (A1) = 0.5...
Q: hat sum of money must be deposited in a trust fund to provide a scholarship of $1520.00, quarterly f...
A: Present value of amount to be received in the future will give the value of the annuity amount depen...
Q: 2. The following are exercises in present values: a. $100 at the end of three years is worth how muc...
A: Since multiple questions are asked we will solve 1st question for you as per prescribed policy. Co...
Q: O s28 million O $12 million O Zero
A: Cost of acquisition is the amount paid above the value of company.
Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery ...
A: Formula's Calculations: Therefore; WACC is 6.24%
Q: Prepare a schedule for the following bond, including calculations, yearly income, end-of-year accumu...
A: Given:
Q: At what rate will you invest your money if you want it to tripple? 10% 20% 30% c...
A: For identifying the rate of interest at which money is to be invested, following informations are re...
Q: Suppose that shares of FC Inc. are trading at $100. Consider an American put option with strike pric...
A:
Q: The following were gathered for estimating the cost of equity of KKK Corporation: Return on Treasury...
A: Here, Return on Treasury Bond (Rf) is 4% Return on Market (Rm) is 10% Beta is 1.2
Q: On December 27, 2021, Roberta purchased four tickets to a charity ball sponsored by the city of San ...
A: Answer - a. Cash basis of accounting - Roberta can deduct ($200 x 4) - ($35 x 4) = $800 - $140 = ...
Q: If the rate of inflation is 4.8%, what nominal interest rate is necessary for you to earn a 2.2% rea...
A: Inflation rate = 4.8% Real rate = 2.2%
Q: Find the simple interest of P210,000 for 3 years at 5 %.
A: Simple interest is a quick and easy way to calculate a loan's interest charge. The daily interest ra...
Q: Brandon purchased a car using a 5-year car lease at 5.80% compounded quarterly that required her to ...
A: The cost of the car can be calculated by adding the downpayment and present value of the loan paymen...
Q: Compute for the Effective Interest Rate Payment Period = Monthly 10% Compounded Yearly = Blank 1...
A: An effective rate of interest is defined as the loan's rate of interest or financial product, which ...
Q: MM Approach of Capital Structure is similar to which other approach Net Income Approach O Gross Prof...
A: The Modigliani and Miller Approach (MM Approach) of the capital structure states that the value of t...
Q: Fowler, Inc., just paid a dividend of $2.40 per share on its stock. The dividends are expected to gr...
A: SOLUTION : GIVEN, Dividend = $2.40 Growth rate = 6.25% Required return = 12% Now, a. Calculating ...
Step by step
Solved in 3 steps with 2 images
- Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $500,000. The terms of the loan are 2.9% annual interest rate and payable in 8 months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May 20. Round to the nearest cent if required.Everglades Consultants takes out a loan in the amount of $375,000 on April 1. The terms of the loan include a repayment of principal in eight, equal installments, paid annually from the April 1 date. The annual interest rate on the loan is 5%, recognized on December 31. (Round answers to the nearest cent, if needed.) A. Compute the interest recognized as of December 31 in year 1. B. Compute the principal due in year 1.Whole Leaves wants to upgrade their equipment, and on January 24 the company takes out a loan from the bank in the amount of $310,000. The terms of the loan are 6.5% annual interest rate, payable in three months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on February 24, and the entry for payment of the short-term note and final interest payment on April 24. Round to the nearest cent if required.
- Sub-Cinema Inc. borrowed $10,000 on Jan. 1 and will repay the loan with 12 equal payments made at the end of the month for 12 months. The interest rate is 12% annually. If the monthly payments are $888.49, what is the journal entry to record the cash received on Jan. 1 and the first payment made on Jan. 31?Mohammed LLC is a growing consulting firm. The following transactions take place during the current year. A. On June 10, Mohammed borrows $270,000 from a bank to cover the initial cost of expansion. Terms of the loan are payment due in four months from June 10, and annual interest rate of 5%. B. On July 9, Mohammed borrows an additional $100,000 with payment due in four months from July 9, and an annual interest rate of 12%. C. Mohammed pays their accounts in full on October 10 for the June 10 loan, and on November 9 for the July 9 loan. Record the journal entries to recognize the initial borrowings, and the two payments for Mohammed.McMasters Inc. specializes in BBQ accessories. In order for the company to expand its business, they take out a long-term loan in the amount of $800,000. Assume that any loans are created on January 1. The terms of the loan include a periodic payment plan, where interest payments are accumulated each year but are only computed against the outstanding principal balance during that current period. The annual interest rate is 9%. Each year on December 31, the company pays down the principal balance by $50,000. This payment is considered part of the outstanding principal balance when computing the interest accumulation that also occurs on December 31 of that year. A. Determine the outstanding principal balance on December 31 of the first year that is computed for interest. B. Compute the interest accrued on December 31 of the first year. C. Make a journal entry to record interest accumulated during the first year, but not paid as of December 31 of that first year.
- Homeland Plus specializes in home goods and accessories. In order for the company to expand its business, the company takes out a long-term loan in the amount of $650,000. Assume that any loans are created on January 1. The terms of the loan include a periodic payment plan, where interest payments are accumulated each year but are only computed against the outstanding principal balance during that current period. The annual interest rate is 8.5%. Each year on December 31, the company pays down the principal balance by $80,000. This payment is considered part of the outstanding principal balance when computing the interest accumulation that also occurs on December 31 of that year. A. Determine the outstanding principal balance on December 31 of the first year that is computed for interest. B. Compute the interest accrued on December 31 of the first year. C. Make a journal entry to record interest accumulated during the first year, but not paid as of December 31 of that first year.Sunlight Growers borrows $250,000 from a bank at a 4% annual interest rate. The loan is due in three months. At the end of the three months, the company pays the amount due in full. How much did the company remit to the bank? A. $250,000 B. $10,000 C. $252,500 D. $2,500A company collects an honored note with a maturity date of 24 months from establishment, a 10% interest rate, and an initial loan amount of $30,000. Which accounts are used to record collection of the honored note at maturity date? A. Interest Revenue, Interest Expense, Cash B. Interest Receivable, Cash, Notes Receivable C. Interest Revenue, Interest Receivable, Cash, Notes Receivable D. Notes Receivable, Interest Revenue, Cash, Interest Expense
- A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an annual interest rate of 11%. If 6 months have passed since note establishment, what would be the recorded interest figure at that time? A. $7,150 B. $65,000 C. $14,300 D. $2,383Cost of Bank Loan On March 1, Minnerly Motors obtains a business loan from a local bank. The loan is a 25,000 interest-only loan with a nominal rate of 11%. Interest is calculated on a simple interest basis with a 365-day year. What is Minnerlys interest charge for the first month (assuming 31 days in the month)?Interest Receivable On June 1, 2016, MicroTel Enterprises lends $60,000 to MaxiDriver Inc. The loan will be repaid in 60 days with interest at 10%. Required Prepare the journal entry on MicroTels books on June 1, 2016. Prepare the adjusting entry on MicroTels books on June 30, 2016. Prepare the entry on MicroTels books on July 31, 2016, when MaxiDriver repays the principal and interest.