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- A sports mortgage is the brainchild of Stadium Capital Financing Group, a company headquartered in Chicago, Illinois. It is an innovative way to finance cash-strapped sports programs by allowing fans to sign up to pay a “mortgage” over a certain number of years for the right to buy good seats at football games for several decades with season ticket prices locked in. The locked-in price period is 50 years in California. Assume you and your brother went to UCLA. Your brother, Harold, purchases a $45,000 mortgage and pays for it now to get season tickets for $290 each for 50 years, while you, being a three-time alumnus of the same university, are able to buy season tickets at $390 in year 1, with prices increasing by $20 per year for 50 years. What should Harold have been willing to pay UCLA upfront for the mortgage to make the two plans exactly equivalent economically if the rate of interest is 8% per year? (Assume Harold has no reason to give extra money to UCLA at this point and that…Compare the market multiple, LBO, and DCF models and discuss which one you prefer when it comes to the valuing of a private company. Explain.A sports mortgage is the brainchild of Stadium Capital Financing Group, a company headquartered in Chicago, Illinois. It is an innovative way to finance cash-strapped sports programs by allowing fans to sign up to pay a “mortgage” over a certain number of years for the right to buy good seats at football games for several decades with season ticket prices locked in. The locked-in price period is 50 years in California. Assume you and your brother went to UCLA. Your brother, Harold, purchases a $50,000 mortgage and pays for it now to get season tickets for $290 each for 50 years, while you, being a three-time alumnus of the same university, are able to buy season tickets at $390 in year 1, with prices increasing by $20 per year for 50 years. NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. Which of you made the better deal at an interest rate of 8% per year? The present worth of Harold's investment is $− , and the present…
- What's the taxable equivalent yield on a municipal bond with a yield to maturity of 3.5 percent for an investor in the 33 percent marginal tax bracket? (Round your answer to 2 decimal places.)Which of the following income received by an individual from a corporation cannot be apportioned between onshore and offshore under salaries tax? Select one: a. Income from pension other than Hong Kong Government pension b. Income from office c. None of the above d. Income from employmentAssume a consumer who has current period income y = 200 , future-period income y' = 150, current and future taxes t = 40 and t' = 50, respectively and faces a market real interest rate ofr 005, or 5% per period. The consumer would like to consume equal amounts in both periods, that is, he or she would like to set c = c', if possible. However, this consumer is a faced with a credit market imperfections, in that he or she cannot borrow at all, that is, s>or=20. (a) Show the consumer's lifetime budget constraint and indifference curves in a diagram. (b) Calculate his or her optimal current period and future-period consumption and optimal, saving, and show this in your diagram.
- Assume a consumer who has current period income y = 200 , future-period income y' = 150, current and future taxes t = 40 and t' = 50, respectively and faces a market real interest rate ofr 005, or 5% per period. The consumer would like to consume equal amounts in both periods, that is, he or she would like to set c = c', if possible. However, this consumer is a faced with a credit market imperfections, in that he or she cannot borrow at all, that is, s>or=20. (a) Show the consumer's lifetime budget constraint and indifference curves in a diagram. Calculate his or her optimal current period and future-period consumption and optimal, saving, and show this in your diagram. (b) Suppose that everything remains unchanged. except that now t = 20 and t' = 71. Calculate the effects on current and future con sumption and optimal saving, and show this in your diagram (d) Now, suppose alternatively that y = 100. Repeat parts (a) and (b), and explain any differences.Zambian banks have been using the Basel I framework for purposes of determiningregulatory capital. You work for a Zambian commercial bank and your Chief ExecutiveOfficer (CEO) has just received communication from the Bank of Zambia (regulator) tothe effect that come January 2020, all banks will be required to comply with theprovisions of the Basel Il framework for purposes of regulatory capital computation.Under the standardized approach of Basel Il, is the need to use External creditassessments. In this vein, your CEO has requested you to provide him with a briefwrite-up by answering the questions below. This is will help him understand the conceptof external credit assessment institutions as envisaged under the Basel Il framework.A. What is an External Credit Assessment Institution?B. Outline and describe three types of External Credit Assessment Institutions. Giveexamples. C. Explain why market participants use and rely on External Credit AssessmentInstitutions.8. Question 1 Fatu took out an endowment policy. The first annual payment was Rx, whereafter it increased yearly by R1 700. After 20 years the policy paid out R1 005 962. The applicable yearly interest rate is 10%. The value of x is approximately A. R11 816. B.R17 564. C.R6 500. D.R564. Question 2 Daniel asks to reschedule the compensation in three payments,the first payment now ,the second payment twice the size of the first payment for four years from now and the third payment three times the size of the first payment nine years from now.The boxing fund agrees on condition that the interest rate changes to 10.95% per year compounded monthly .The amount to the nearest hundred rand that Daniel can expect to receive four years from now is A R 864 000 B.R 557510 C.184 800 D.369 600
- The DCFs is the net-present-worth (or net-present-value) (NPW or NPV) method.True or false?Finance Which of the following deductions can be made from a retirement fund member’s fund benefit? Choose the correct option. a. An outstanding housing loan granted by a pension fund to a member. b. A computer loan by a provident fund member’s employer on which the member still owed the employer R250 when the member left employment. c. Damages caused by a pension fund member to his employer following an accident with the employer’s pool vehicle, to which the member admitted liability in writing. d. Compensation to a provident preservation fund member’s employer as a result of the member’s fraud, in respect of which the employer obtained a court judgment. e. None of the above.Discuss the difference between an entreprenuer and non entreprenuer