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3 years ago

13

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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Purchasing marketable securities with cash will have no effect on a company's acid-test ratio.

slava [35]

Answer:

given statement is true

Explanation:

given statement of purchase marketable security with the cash have not effect on the organization acid test ratio is true because

the cash and marketable security both will be considered for the calculation of acid test ratio and there is not effect

because change by the cash to the marketable securities

so as that given statement is true

3 0

2 years ago

An example of a nondepository financial institution is which of the following?

Nostrana [21]

The answer is C - Brokerage Firm

7 0

2 years ago

Read 2 more answers

If the annual growth rate in Real GDP is 4 percent, then it will take 25 years for the economy to double in size.

AVprozaik [17]

Answer:

False

Explanation:

The growth of 4% for 25 years would nominally signify a 100% increase and you might think that the economy has double its size. But you must take into account that’s this is a compound growth then the economy would reach the double of its size before 25 years.

Think that he initial size of the economy is 10 and it grows 4% then an annual growth will be 10,4 now the compound grow is adding up 0,4 to the initial size of 10. Then you recalculate a growth of 4% for the second year this means 10.816 grow.

If you notice the extra 0.016 increase for the second year is the effect of calculating the 4% increase based on the previous size 10 plus 0.4.

5 0

2 years ago

Avicorp has a $15.5 million debt issue outstanding, with a 6.3% coupon rate. The debt has semi-annual coupons, the next coupon i

Studentka2010 [4]

Answer:

a) Pre-tax cost of debt is 8.45%

b) After tax cost of debt is 5.07%

Explanation:

a) Given:

Debt issue outstanding = $15.5 million

Semi-annual coupon rate = 0.063 / 2 = 0.0315

Assumed par value (FV) = $1,000

Coupon payment (pmt) = 0.0315 × 1000 = $31.5

Current bond price (PV) = 92% of $1,000 = $920

Time period (nper) = 5 × 2 = 10 periods

Calculate semi-annual rate using spreadsheet function =Rate(nper,pmt,PV,FV)

Semi-annual rate = 4.14%

Pmt and FV are negative as they are cash outflows.

YTM = 4.14 × 2 = 8.28%

Effective annual rate = $(1+\frac{Rate}{compounding\ periods}) ^{2} -1$

= $(1+\frac{0.0828}{2}) ^{2} -1$

= 0.0845 or 8.45%

b) Tax rate is 40%

After tax cost of debt = Pre tax cost of debt × (1 - 0.4)

= 0.0845 × 0.6

= 0.0507 or 5.07%

4 0

3 years ago

Nathan Herrmann has completed the basic format to be used in preparing the statement of cash flows (indirect method) for CEO Con

yarga [219]

Answer:

Ending cash balance is -$41,000.

Explanation:

This can be prepared as follows:

Nathan Herrmann

Cash Flow Statement

for the year ended ...

<u>Details $ $ </u>

Net income 69,000

Adjustment to reconcile net income

Depreciation expense 13,000

Loss on sale of land 12,000

(Increase) decrease in current assets

Increase in inventory (35,000)

Increase in prepaid rent (7,500)

Increase in accounts receivable (47,000)

Increase (decrease) in current liabilities:

Increase in accounts payable <u> 15,000 </u>

Net cash from operating activities 19,500

<u>Cash flows from investing activities: </u>

Cash received from the sale of land 7,500

Purchase of equipment <u> (229,000) </u>

Net cash flows from Investing activities (221,500)

<u>Cash flows from financing activities: </u>

Payment of dividends (31,000)

Repayment of notes payable (49,000)

Issuance of common stock <u> 241,000 </u>

Net cash from financing activities <u> 161,000 </u>

Increase / (Decrease) in cash (41,000)

Beginning cash balance <u> - </u>

Ending cash balance <u> (41,000) </u>

7 0

2 years ago