Answer:
Explanation:
Let's first determine the free cash flow of the firm
Particulars Years
1 2 3
EBIT 540 680 750
<u>Tax at 36% (0.36*540) (0.36*680) (0.36*750) </u>
Less: 345.6 435.2 480
Net Capital -
Spending 150 170 190
<u>Change in NWC 70 75 80 </u>
Less: 125.6 190.2 210
The terminal value at the end of T =(3 years) is:
= 2011.26
Finally, the value of the firm can be computed as follows:
Years Free Cash Flow PVIF PV
1 125.6 0.6589 107.88
2 190.2 0.7377 140.31
3 210 0.6336 133.06
<u>Terminal Value 2011.26 0.6336 1294.33 </u>
<u>Value of the firm ⇒ $1655.58</u>
Credit CARD Act
↓
Protects consumers from unfair credit card billing practices.
Patriot Act
↓
Prevents, detects, and prosecutes international money laundering
Identity Theft and Assumption Deterrence Act
↓
Criminalizes identity theft
Dodd-Frank Act
↓
Educates consumers so that they can protect themselves from unfair practices.
Unemployment insurance makes workers less likely to negotiate for job security when searching for a job and more likely to have a long job search.
Explanation:
Unemployment insurance is a compensation protection where people lost their jobs and follow all eligibility criteria without blame.
Unemployment insurance Workers who are self-employed and willingly fired do not have a career security policy and have to use discretionary funds to cover cases where there is no work available. State governments pay a jobless insurance
Unemployment insurance supports unemployed workers actively seeking work with cash scholarships. The Federal Unemployment Tax Act (FUTA) and state employment programs offer benefits for qualifying unemployed workers. There was a misunderstanding. Most employers pay FUTA tax on federal and state unemployment.
Answer:
(A) $1,055.35 (B) $2,180.53 (C) $780.07 (D) $412.08.
Explanation:
The tenor of the bond is 27 years i.e. (27 * 2=) 54 periods of 6 months each (n).
Face Value (F) = $1,000
Coupon (C) = 6% annually = 3% semi annually = (3% * 1000 face value) = $30.
The Present Value (PV) of the Bond is computed as follows.
PV of recurring coupon payments + PV of face value at maturity
= 
A) Yield = 5.6% annually = 2.8% semi annually.
= 830.25 + 225.10
= $1,055.35.
B) Yield = 1% annually = 0.5% semi annually.
= 1,416.64 + 763.89
= $2,180.53.
C) Yield = 8% annually = 4% semi annually.
= 659.79 + 120.28
= $780.07.
D) Yield = 15% annually = 7.5% semi annually.
= 391.95 + 20.13
= $412.08.
If Chloe did not pay off the loan, she will payout 263.75 x 12 = $3165.00
However, if Chloe pays off the loan with the sixth payment, she will pay out (263.75 x 5) + 1,786.20 = $3,086.95.
But the question is how much will she save? To get the answer just follow this: 3165.00 - 3086.95 = $78.05
Therefore, Chloe saves $78.05
