Answer:
$4,953
Explanation:
Given by the question, we have:
+) Present value of annuity = $17,400
+) Return on the investment = annual interest rate on the loan = 9.4%
The type of this annuity is annuity due.
We have the equation to calculate the present value of annuity due as following:
PV Annuity Due = P × [1 - (1 + r)^(-N)]/r × (1+r)
=> P = PV Annuity Due ÷ {[1 - (1 + r)^(-N)]/r × (1+r)}
In which:
+) P: Annual payment
+) r: annual interest rate = 9.4% = 0.094
+) N: Number of payments = 4 (As the loan is repaid in 4 payments)
+) PV Annuity Due = 17,400
=> P = 17,400 ÷ {[1 - (1 + 0.094)^(-4)]/0.094 × (1+0.094)} ≈ $4,953
Answer:
Return on Equity = 13.17%
Explanation:
We solve for cost of equity using the MM model with taxes.
r_a = retrun on asset or unlevered return =0.12
D/E = 0.60
r_d = cost of debt = 0.09
taxes = 35% = 0.35
re = return on equity = 0.1317 = 13.17%
Answer:
listen to him and try and talk about it with him and dont tell nobody else about it...
Explanation:
A car has many small parts such as the battery, radiator, brakes, axle, shock absorbers, etc.
<u>Explanation: </u>
These parts need repair from time to time. Our car does not work properly if any of such part is gone. This means if any part is damaged then the car will not move smoothly.
Suppose if the battery is dead then it will affect the voltage that the battery gives to the car. So we need to fix it. If the axle is broken, then driving can be hazardous. If the Radiator is leaking then the engine will overheat. This indicates the leakage of the radiator.
Answer:
It is a violation of NASD rules against guaranteeing a customer against loss.
Explanation:
In this case the RR is guaranteeing the customer against loss. The customer initially bought the shares for $20 the new price is $10. The RR now coming in to buy the shares above market value is a way to guarantee the customer against loss, and its a NASD violation.