Answer:
<em>Miller-bond</em>:
today: $ 1,167.68
after 1-year: $ 1,157.74
after 3 year: $ 1,136.03
after 7-year: $ 1,084.25
after 11-year: $ 1,018.87
at maturity: $ 1,000.00
<em>Modigliani-bond:</em>
today: $ 847.53
after 1-year: $ 855.49
after 3 year: $ 873.41
after 7-year: $ 918.89
after 11-year: $ 981.14
at maturity: $ 1,000.00
Explanation:
We need to solve for the present value of the coupon payment and maturity of each bonds:
<em><u>Miller:</u></em>
C 80.000
time 12
rate 0.06
PV $670.7075
Maturity 1,000.00
time 12.00
rate 0.06
PV 496.97
PV c $670.7075
PV m $496.9694
Total $1,167.6769
<em>In few years ahead we can capitalize the bod and subtract the coupon payment</em>
<u>after a year:</u>
1.167.669 x (1.06) - 80 = $1,157.7375
<u>after three-year:</u>
1,157.74 x 1.06^2 - 80*1.06 - 80 = 1136.033855
If we are far away then, it is better to re do the main formula
<u>after 7-years:</u>
C 80.000
time 5
rate 0.06
PV $336.9891
Maturity 1,000.00
time 5.00
rate 0.06
PV $747.26
PV c $336.9891
PV m $747.2582
Total $1,084.2473
<u />
<u>1 year before maturity:</u>
last coupon payment + maturity
1,080 /1.06 = 1.018,8679 = 1,018.87
For the Modigliani bond, we repeat the same procedure.
PV
C 30.000
time 24
rate 0.04
PV $457.4089
Maturity 1,000.00
time 24.00
rate 0.04
PV 390.12
PV c $457.4089
PV m $390.1215
Total $847.5304
And we repeat the procedure for other years
If a company’s own cash records show a balance of $3,200 and service fee charged by the bank $ 100 after reconciliation, the correct balance of cash is: $4500.
<h3>
Correct balance of cash </h3>
Using this formula
Correct balance of cash = Bank balance for cash + Deposits outstanding- Checks outstanding
Where:
Bank's balance for cash = $4000
Deposits outstanding = $2300
Checks outstanding = $1800
Let plug in the formula
Correct balance of cash =$4000+ $2300 - $1800
Correct balance of cash =$4500
Therefore we can conclude that the correct balance of cash for the company is the amount of $4500.
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Answer:
To hold home prices down, we need to increase elasticity of supply.An inelastic supply is one that cant change quickly to adapt to market changes. An elastic supply in housing means there are house to spare when market demand increases. In an attempt to create an elastic supply in housing, increase spare capacity can be worked on. Reduction in Tax rate for developers and shortening permit processes for building new homes would definitely create additional housing for purchase. To increase elasticity, we must supporting inventories of raw materials. The Lumber and concrete suppliers can be ensure to receive concessions to encourage them to supply additional raw materials.
The reinforcement schedule that is used when he receives a paycheck at the end of every week is known as a fixed interval schedule.
<h3>What is a
fixed interval schedule?</h3>
This schedule are those that occurs when the first response is rewarded only after a specified amount of time has elapsed.
As the weekly schedule is followed, then, the reinforcement schedule s known as a fixed interval schedule.
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Bryan invested in Bryco stock when the firm was financed solely with equity. The firm now has a debt-equity ratio of .3. To maintain the same level of leverage he originally had, Bryan needs to:--- sell some shares of Bryco stock and loan out the proceeds
Debt-to-equity ratio:
The debt-to-equity ratio is a financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets. Closely related to leveraging, the ratio is also known as risk, gearing or leverage
How is debt equity ratio calculated?
The formula for calculating the debt-to-equity ratio is to take a company's total liabilities and divide them by its total shareholders' equity. A good debt-to-equity ratio is generally below 2.0 for most companies and industries
The question is incomplete. Missing option are given below:
(a) borrow some money and purchase additional shares of Bryco stock.
(b) maintain his current position in Bryco stock.
(c) sell some shares of Bryco stock and hold the proceeds in cash.
(d) sell some shares of Bryco stock and loan out the proceeds
(e) sell half of his Bryco stock and invest the proceeds in risk-free securities.
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