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3 years ago

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You are buying a $62,000 house for 10% down, with the rest financed at 11 3/4% for 30 years with fixed monthly payments. you mus

t pay 2 points for the loan. what is your monthly loan payment?

1 answer:

Kitty [74]3 years ago

7 0

The answer would be 42 percent.

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Tammy, a resident of Virginia, is considering whether to purchase a $100, 000 North Carolina bond that yields 4.6% before tax. S

Degger [83]

Answer:

A. Virginia Bond: $4,500

North Carolina Bond: $4,451

B. Virginia Bond

Explanation:

A. Calculation to Determine the after tax income for Virginia Bond

Using this formula

After tax income for Virginia Bond=Face value*Virginia bonds of comparable risk

Let plug in the formula

After tax income for Virginia Bond=$100,000*4.5%

After tax income for Virginia Bond=$4,500

Calculation to Determine the after tax income for North Carolina Bond

Interest income before tax $4,600

(100,000*4.60)

Less State marginal tax ($230)

(5%*$4,600)

Interest income net of state tax $4,370

($4,600-$230)

Add Federal marginal tax $81

(35%*230)

After tax income for Noth Caroline Bond $4,451

Therefore the the after tax income from each bond will be:

Virginia Bond: $4,500

North Carolina Bond: $4,451

B. Based on the above calculation the options that will provide the greater after-tax return to Tammy will be VIRGINIA BOND reason be that it has high After tax income of the amount of $4,500 compare to Noth Caroline Bond which has After tax income of the amount of $4,451.

8 0

3 years ago

Dollar shave club asks men to "shave money, shave time" in its commercials; it offers high-quality blades available by mail for

scZoUnD [109]

Product differentiation.

Dollar shave club is distinguishing their products as unique in the shaving market because they are convenient and affordable.

5 0

3 years ago

It is recommended we consume half of our grains from whole grains. What part of the whole grain provides just energy?

Rufina [12.5K]

Answer:

Endosperm

Explanation:

Whole grain is considered as a health and nutrient food. Whole grain provides necessary protein and oil which helps to provide energy. In whole-grain endosperm is a part which is important to get energy as it helps to provide starch which is full of protein and nutrients. This why food made of grain is used to improve the energy level.

6 0

3 years ago

Rise Against Corporation is comparing two different capital structures: an all equity plan (Plan A) and a levered plan (Plan B).

Thepotemich [5.8K]

Answer:

a. Plan A

b. Plan B

c. $638,400

Explanation:

The formula to compute the earning per share is shown below:

Earning per share = (Net income - interest) ÷ (Number of shares)

a. For Plan A

EPS = ($500,000) ÷ (210,000 shares) = $2.38

For Plan B

EPS = ($500,000 - $182,400) ÷ (150,000 shares) = $2.12

The interest is computed below:

= $2.28 million × 8%

= $182,400)

Plan A has higher EPS

b. For Plan A

EPS = ($750,000) ÷ (210,000 shares) = $3.57

For Plan B

EPS = ($750,000 - $182,400) ÷ (150,000 shares) = $3.78

The interest is computed below:

= $2.28 million × 8%

= $182,400)

Plan B has higher EPS

c. Break-even EBIT

(EBIT) ÷ (Number of shares) = (EBIT - Interest) ÷ Number of shares

(EBIT) ÷ (210,000) = (EBIT - $182,400) ÷$150,000

After solving this,

The EBIT would be $638,400

3 0

3 years ago

If the margin of safety is 0, then a.the margin of safety cannot be less than or equal to 0; it must be positive. b.the company

sdas [7]

Answer:

d.the company is precisely breaking even.

Explanation:

Margin of safety is referred to current sales - Break even sales ratio to current sales as a percentage.

Basically it is quoted as follows:

$\frac{Current\ sales\ -\ Break-even\ Sales}{Current\ Sales} \times 100$

Therefore, when the current sales = Break even sales then only the company will have margin of safety = 0

Thus, at 0 margin of safety the company basically is at no profit no loss situation, that is break even.

3 0

3 years ago