You had a balance of $2,100 last month after your payment on your credit card. You charged one pair of shoes on the 10th for $210. Your card has a minimum finance charge fee of $5 per month and an APR of 8%. What is your total balance due this period if the card's fees are calculated via the adjusted balance method? Total balance due $ 2,319
Q: ou own 1,000 shares of a company, M&N Limited which is all-equity financed with 10,000 outstanding.…
A: The Modigliani Millier proposition I without taxes: The Modigloani-Miller proporsition I states…
Q: You are evaluating a project for a superior pickleball paddle. The company has spent $65,000 on…
A: Capital budgeting techniques such such determining Net Present Value (NPV), Internal Rate of Return…
Q: invest in each stock to maxime you You should invest s into Marky Inc. $ into JohnJohn Ltd, and s…
A: Information Provided: Total investment = $93,000 Investment in Garretts Spaghetti = $19,000 MarkyB…
Q: When considering the time value of money in making an investment decision, an investor would…
A: Present Value: It represents the current value of any investment or project taken by an investor.…
Q: Limited is a manufacturing company and it has a capital structure of 65% debt and 35% equity. The…
A: Weighted average cost of capital is the weighted cost of debt and weighted cost of equity and is the…
Q: Suppose Tyler initially pays $76,000 toward the purchase of $108,000 worth of stock, borrowing the…
A: Initial margin percentage is the percentage of purchase price of stock that must be used as…
Q: what is the interest rate before tax based on the above calculations?
A: Companies take loans and debts from the banks and financial institutions and these charge the…
Q: A variety of interested parties-including existing and prospective creditors (such as lenders and…
A: Liquidity ratios These ratios measure the company's ability to meet its short term obligations.…
Q: Giant Sales marked their flat screen down by 15% to the discount price of $840. What was the…
A: The company offers a discount to increase sales by attracting more customers. The discount attracts…
Q: On June 1, you borrowed $220,000 to buy a house. The mortgage rate is 8.25 percent. The loan is to…
A: Here, Amount of principal in second payment =?
Q: Determine the risk-neutral value for a European put option (for a FLB (First Local Bank) share) that…
A: Given: Strike price = R500 Current price = R650 Interest rate = 11% Volatility = 0.026 Period = 8…
Q: The Ferico store is a neighborhood convenience store. The accountant is preparing its activity-based…
A: concept. activity based costing method allocates indirect cost and overheads on the basis of…
Q: information on its 2015 income statement: Sales = $215,000; COGS= $117,000; o Other operating…
A: Cash Flow Statement is the Statement of cash receipts and cash payments for the period. There are…
Q: You are analyzing a stock. The stock's most recent dividend paid was $2.6 per share. You expect that…
A: Given The recent dividend is $2.6 per share Required return is 6%
Q: Assess the potential conflict of needs and objectives among Tesco's stakeholders and the possible…
A: A stakeholder is a party with an interest in a business who has the potential to influence or be…
Q: Nominal Rate 5% compounded semi annually 5% compounded quarterly 5% compounded bi monthly 5%…
A: Nominal Rate Compounding Period 5% Semi-annual 5% Quarterly 5% Bi Monthly 5% Continuously
Q: Stock R has a beta of 1.8, Stock S has a beta of 0.55, the expected rate of return on an average…
A: Beta of stock R = 1.8 Beta of stock S = 0.55 Market return = 9% Risk free rate = 3%
Q: USE 4 DECIMAL PLACES Nominal Rate 5% compounded semi annually 5% compounded quarterly 5% compounded…
A: Effective annual rate is the interest actually earned on the investment or paid on the loan, as a…
Q: All outcome between a loss of -$60 million to a gain of $140 million are equally likely on a one…
A: The outcomes on a portfolio are uniformly distributed. We have to calculate the 99% VaR. VaR…
Q: Assuming an interest rate of 6.88% compute how much income you will have each month if you save $500…
A: Annuities A fixed amount of money paid to an individual throughout, without any end is known as an…
Q: firm has EBIT of $4.5 million, interest expense of $400,000, and pays taxes of $1.2 million. If…
A: EPS is earning per share that is available after doing all payments and that is available for each…
Q: a. Calculate the future value of the fund on March 15th, 2014. Round to the nearest cent b. On March…
A: Future value The value of today's investment in the future at a particular interest rate is known as…
Q: Describe the rules and discuss the main disadvantages of the following models: Asset Based…
A: Answer - Rules of Asset-based valuation model - It considers companies' prospective earning…
Q: What is the APR for a fed ra
A: APR means annual percentage rate. APR means the borrowing cost incurred by the borrower for a…
Q: Postal Express has outlets throughout the world. It also keeps funds for transactions purposes in…
A: The exchange rate is the number of domestic currency units an individual require to purchase one…
Q: An insurance company is expected to pay out $300 million in 5 years’ time. Which of the following is…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Is there a way to set this up in Excel, please?
A: Face Value $ 1,000.00 Time Period (Years) 10 Price of Bond $ 311.05
Q: A 13-year, 6 percent coupon bond pays interest semiannually. The bond has a face value of $1,000.…
A: Number of periods to maturity = Number of years*Frequency of payment in a year = 13*2 = 26…
Q: Bare trees united issued 20 year bonds 3 years ago at a coupon rate of 8.5 percent. The bonds make…
A: Information Provided: Remaining Bond Maturity = 17 years (20 years - 3 years) Annual Coupon Rate =…
Q: A bond has a Modified Duration of 8 years, annual coupon payment with the YTM at 10%. What is the…
A: A Bond refers to a concept that is defined as an instrument that represents the loan being made by…
Q: After spending $9,600 on client-development, you have just been offered a big production contract by…
A: In the NPV analysis, we compute the present value of all future benefits. This present value is then…
Q: A project has an initial cost of $65,000, expected net cash inflows of $12,000 per year for 8 years,…
A: The NPV of a project is a measure of its profitability. It uses the concept of TVM to discount the…
Q: Compute the yield to maturity on a bond with a $1000 par value, a coupon rate of 3.75% with…
A: The yield to maturity rate of return realized by holding the bond till the maturity of bond and…
Q: What is the bond's duration in years? Information from prior You see a five-year bond trading in…
A: Duration of bond show the sensitivity of bond prices to change in interest rates.
Q: Suppose Josh’s current salary is $72, 000 per year, and she is planning to retire 25 years from now.…
A: The FV of a payment series determines the value that the asset has at the time of maturity…
Q: You are required to answer the following: (a) What is the current market value of the company? (b)…
A: Current market value means the market value of the company which the buyer and seller will purchase…
Q: Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing her graduation…
A: Stephanie Carter has tried to put together her investment philosophy and the possible investment…
Q: Wonder Plc is considering two investment projects in another city and the estimated cash flows are…
A: Capital Budgeting: Using capital budgeting, investors determine the value of new investment…
Q: (Common stock valuation) The common stock of NCP paid $1.50 in dividends last year. Dividends are…
A: a). Stock's expected rate of return is calculated using following equation Expected return on stock…
Q: 1.Current Ratio 2. Acid Test or Quick Ratio 3. Cash Ratio
A: As per Bartleby guidelines,If a question with multiple sub-parts are posted, first 3 sub-parts will…
Q: 76 is what percent of 354?
A: The percentage refers to the comparison of the two pieces of numerical values of data given and…
Q: You are thinking of investing in Tikki's Torches, Inc. You have only the following information on…
A: Information Provided: Net Income = $600,000 Total debt = $13,000,000 Debt ratio = 40%
Q: Name Phil de Cel Manuel Labor Phyllis Stein Adam Sapple Al Nino Chris P. Bacon Douglas S. Halfemptee…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Cooperton Mining just announced it will cut its dividend from $4.06 to $2.62 per share and use the…
A: We will calculate required return using dividend discount model then using this required return we…
Q: In Question 7 consider the following data Acquirer Target Premium Synergy Pre-deal value Debt…
A: We have to find the leverage post the transaction of the combined entity. As a first step, we will…
Q: Using the CAPM theory, if the Volatility of a stock is twice as great as the market, the market…
A: Using CAPM, we have to estimated he expected return from a security.
Q: The interest rate required for a $2,050 investment to double in 5 years can be found from this…
A: We have to solve the given equation to get the value of r.
Q: 9. Amir also needs to calculate the commissions paid each month. If the company earns $275,000 or…
A: A financial modeling excel spreadsheet has been presented. We need to design the excel formula that…
Q: Kaiser Industries has bonds on the market making annual payments, with 14 years to maturity, a par…
A: Price of bond is present value of coupon payment +Present value of par value of bonds taken on yield…
Q: A disadvantage of holding TIPS is A If inflation does not occur then the value of holding TIPS…
A: Several statements have been given as disadvantages of TIPS. We have to find the correct one.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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?American Signs allows customers to pay with their Jones credit card and cash. Jones charges American Signs a 3.5% service fee for each credit sale using its card. Credit sales for the month of June total $328,430, where 40% of those sales were made using the Jones credit card. Based on this information, what will be the total in Credit Card Expense at the end of June?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.
- 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.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.Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts receivable balance of $844,260, and an ending accounts receivable balance of $604,930. Compute the accounts receivable turnover ratio and the number of days sales in receivables ratio for 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Starlight Enterprises if the industry average is 1.5 times and the number of days sales ratio is 175 days?
- Millennial Manufacturing has net credit sales for 2018 in the amount of $1,433,630, beginning accounts receivable balance of $585,900, and an ending accounts receivable balance of $621,450. Compute the accounts receivable turnover ratio and the number of days sales in receivables ratio for 2018 (round answers to two decimal places). What do the outcomes tell a potential investor about Millennial Manufacturing if industry average is 2.6 times and number of days sales ratio is 180 days?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.Cost 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)?
- 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. $2,383You had a $1,500 dollar balance last month after you paid on your credit card. You charged a Gazebo on the 10th for $1100 (aluminum top model). Your card has a minimum finance charge of $3.00 a month and 12% APR. What is the balance due at the end of the month using the Adjusted Balance Method What is the balance due at the end of the month using the Average Daily MethodOn October 22, you plan to purchase a $3,000 computer by using one of your two credit cards. The Silver Card charges 18% interest and calculates interest based on the balance on the first day of the previous month. The Gold Card charges 18% interest and calculates interest based on the average daily balance. Both cards have a $0 balance as of October 1. The closing date is the end of the month for each card. Your plan is to make a $1,000 payment in November, make a $1,000 payment in December, and pay off the remaining balance in January. All your payments will be received and posted on the 10th of each month. No other charges will be made on the account. Based on this information, calculate the interest charged by each card for this purchase. Which card is the better deal and by how much?