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:
10%
Explanation:
Data provided in the question
Purchase value of the stock = $80
Number of years = 15
Times = 4
So, the return on owning this stock is
= Number of times^(1 ÷ number of years) - 1
= 4^(1÷15) - 1
= 4^0.0666666667 - 1
= 1.0968249797 - 1
= 0.0968249797
= 10% round off
All other things that are mentioned in the question is not relevant. Hence, ignored it
Answer:
A). Lower
B). Lower
C). Higher
I think so not sure of my answer
Answer:
The Estimated Monthly Mortgage Payment
= $2,810.81
Explanation:
Data and Calculations:
House price = $475,000
Down payment = $100,000
Percentage of down payment = 21.05% ($100,000/$475,000 * 100)
Finance period = 15 years = 180 months (15 * 12)
Nominal annual interest compounded monthly = 4%
The estimated monthly mortgage payment using an online finance calculator:
Monthly Pay: $2,810.81
House Price $475,000.00
Loan Amount $380,000.00
Down Payment $95,000.00
Total of 180 Mortgage Payments $505,946.54
Total Interest $125,946.54
Mortgage Payoff Date Jan. 2036
Answer:
A) 32 percent interest B) Yes it will be paid
Explanation:
23 times 42 divided by 7
