The balance in the savings account at the end of the 8th year (i.e., after 8 deposits) is $99,256, and the interest earned on the 8 deposits is $27,256
The future value of annuity is a calculation that measures how a good deal a chain of fixed bills might be really worth at a specific date in the future whilst paired with a particular interest price. The word “value” in this term is the coin's potential that a sequence of future payments can gain.
The equation to find future value of the annuity:
Future Value = E ( ( 1 + r)^p - 1 ) / r
E = Annual deposit = $9,000
r = Interest rate = 9%
P = 8 years
FV = Amount available = 9,000 ( 1.09^8 - 1 ) / .09 = $99,256
Interest = 99,256 - 9000 * 8 = $27,256
Future value is the value of a current asset at a future date based on an assumed fee of growth. The future price is vital to investors and economic planners, as they use it to estimate how an awful lot of funding made today may be worth it in the future.
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Answer:
a. Suppose GP issues $ 100$100 million of new stock to buy back the debt. What is the expected return of the stock after this transaction?
b. Suppose instead GP issues $ 50.00$50.00 million of new debt to repurchase stock. i. If the risk of the debt does not change, what is the expected return of the stock after this transaction?
ii. If the risk of the debt increases, would the expected return of the stock be higher or lower than when debt is issued to repurchase stock in part (i)?
- If the risk of the debt increases, then the cost of the debt will increase. Therefore, the company will need to spend more money paying the interests related to the new debt which would decrease the ROE compared to the 18% of (i). Since we do not know the new cost of the debt, we cannot know exactly by how much it will affect the ROE, but I assume it will still be higher than the previous ROE.
Explanation:
common stock $200 million
total debt $100 million
required rate of return 15%
cost of debt 6%
current profits = ($200 million x 15%) + ($100 x 6%) = $30 million + $6 million = $36 million
if equity increases to $300 million, ROI = 36/300 = 12
if instead new debt is issued at 6%:
equity 150 million, debt 150 million
cost of debt = 150 million x 6% = $9 million
remaining profits = $36 - $9 = $27 million
ROI = 27/150 = 18%
Answer:
C. the money supply to fall.
Explanation:
According to my research on economics, I can say that based on the information provided within the question an increase in currency holdings will cause the money supply to fall. This is because if people begin to hold this causes the cash flow to decrease and money supply decreases because of the low cash flow.
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Spiritually, risky behavior can truly take a toll. If you are religious, your actions won’t be in line with your beliefs (most likely). There is a trickle down effect from there. Lots of times, risky behavior makes a person feel paranoid because a person is doing things s/he feels is wrong. All of that takes a toll on a person physically. When you compromise yourself, you will tend to be on an emotional roller coaster. Not a great way to live
Maidenform and its major brands have strong brand equity.
Explanation:
Brand stocks refer to the added value of a single company for the same commodity. This renders one substance better than others. Brand loyalty renders a company better or worse than other brands.
Apple: Apple's market share best example.
Brand equity includes three basic components: the understanding of customers, negative or beneficial consequences and the resultant valuation.
Name equity funds also operate in the same market or field.
