It is B. and now i have to type more to get this answer posted
Answer:
Paraguas should borrow at LIBOR + 2.000% and swap for fixed rate debt.
Lluvia should choose funding in floating rate
Explanation:
Paraguas wants the security of fixed rate borrowing; thus it should borrow at LIBOR + 2.000% and swap for fixed rate debt, in which Libor is 5.500%; their total cost at 7.5% is still lower than Fixed rate 12.0%
Lluvia prefer the flexibility of floating rate borrowing, and its rating is better; then it can enjoy lower cost of borrowing at 5%. However it may face the increase if LIBOR increase later; vice versa if LIBOR decrease, its cost of borrowing is able to reduce also.
Answer:
n= 65.27 years
Explanation:
Giving the following information:
Present value (PV)= $2,000
Future value (FV)= $4,500
Interes rate (i)= 1.25% annual compounding
<u>To calculate the number of years required to reach the objective, we need to use the following formula:</u>
n= ln(FV/PV) / ln(1+i)
n= ln(4,500 / 2,000) / ln(1.0125)
n= 65.27 years
Answer:
Project Size IRR
A $650,000 14.0%
B 1,050,000 13.5
C 1,000,000 11.2
D 1,200,000 11.0
Explanation:
Based on the information given the set of projects that should be accepted should be the project that has higher Internal rate of return (IRR) than the Weighted average cost of capital (WACC) percentage of 10.8% . Hence, the set of projects that should be accepted are: Project A,B,C,D
Project Size IRR
A $650,000 14.0%
B 1,050,000 13.5
C 1,000,000 11.2
D 1,200,000 11.0
Total $3,900,000
Based on the above we can see that Project A,B,C,D has a total of $3,900,000 which is higher than the retained earnings amount of $2,500,000.
Therefore the set of projects that should be accepted should be Project A,B,C,D
Explanation:
Earned income consists of income you earn while you are working a full-time job or running a business.
Passive income is income earned from rents, royalties, and stakes in limited partnerships.
Portfolio income is income from dividends, interest, and capital gains from stock sales.
