Answer:
= r 
= -0.84
The mortgage will be 220.88
The interest amount will be 7.768
Explanation:
Regression model is used to identify the relation between two variables. In the given question the regression model fits best to identify the mortgage amount from interest rates. The interest rate and mortgage both are quantitative values so the regression model is most suitable for this.
Answer:
$46,900,000
Explanation:
Calculation for the erosion cost of adding the mid-range camper
Erosion cost = [(1,100 - 850) × $140,000] + [(2,200 -2,000) × $59,500]
Erosion cost =(250×$140,000)+(200×$59,500)
Erosion cost =$35,000,000+$11,900,000
Erosion cost = $46,900,000
Therefore the erosion cost of adding the mid-range camper will be $46,900,000
Answer:No, ACE cannot repossess the sailboat purchased by Wally.
Explanation:
Marina Inc. is a firm that sell and services sailboat in it's ordinary course of business, in the same vein ACE financing it's inventory is in line with normal course of business.
ACE cannot repossessed the sailboat from Waliy because selling sailboat it's Marina ordinary course of business.
ACE also knew before signing the inventory financing contract that Waliy will sell the inventory to third parties.
Answer:
$2.67 per share
Explanation:
To start with,we calculate the present worth of the company using the below formula:
present worth of the company=free cash flow*(1+g)/r-g
g is the growth rate of the free cash flow which is 3.0%
r is the cost of capital of 10%
present worth=$10 million*(1+3%)/10%-3%
=10.3/7%
=$ 147.14 million
However ,the value of total equity is computed thus:
equity=present worth+cash-debt
cash is $8.5 million
debt is $22 million
equity=$ 147.14 +$8.5-$22
equity=$133.64 million
value of each share=equity value /number of shares
number of shares is 50 million
value of each=$133.64 million/50 million=$2.67 per share
