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4 years ago

Which of the following does someone using fundamentals analysis look at

Business

1 answer:

slamgirl [31]4 years ago

8 0

Answer:

Well I don't see your specific choices, but usually said person would look at a Company's traits such as earnings per share and revenues.

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You have just purchased a new warehouse. To finance the purchase, you've arranged for a 25-year mortgage for 80 percent of the $

Ahat [919]

Answer:

7.67%

Explanation:

Monthly payments from mortgages are calculated with the compounding montly interest rate.

Thus, you can "calculate" the monthly rate and the multiply by 12 to obtain the APR (annual percentage rate).

The equation for the monthly payment is:

$Monthly\text{ }Payment=Loan\times \bigg[\dfrac{r(1+r)^t}{(1+r)^t-1}\bigg]$

Loan = 80% × $1,800,00 = $1,440,000
Monthly payment = $10,800
t = number of months = 25 × 12 = 300

Substitute:

$\$10,800=\$1,440,000\times \bigg[\dfrac{r(1+r)^{300}}{(1+r)^{300}-1}\bigg]$

You must find r but it is very difficult to make it the subject of the equation; thus, the best is to do succesive calculations:

Tests:

r monthyly payment

0.01 $15,166.43 > $10,800 ⇒ lower
0.005 $ 9,277.94 < $10,800 ⇒ increase
0.006 $10,362.08 pretty close; increase a little bit
0.00639059 $10,800 ↔ this is the number

Multiply the rate by 12 (to obtain the APR): 0.00639059 × 12 = 0.07668708 = 7.67%.

APR = 7.67% ← answer

5 0

4 years ago

1. Which ability does the following example represent? As a financial planner, you advise people about where to invest their mon

Ierofanga [76]

Answer:

I think I should be systematic

Explanation:

proper planning entails being systematic.

8 0

3 years ago

Read 2 more answers

Reinhardt Furniture Company has 40,000 shares of cumulative preferred 2% stock, $150 par and 100,000 shares of $5 par common sto

grigory [225]

Answer:

Reinhardt Furniture Company

The dividends per share for preferred and common stock for each year:

Year 1 Year 2 Year 3

Preferred $3.00 $3.00 $3.00

Common stock $0 $0.30 $2.00

Explanation:

a) Data and Calculations:

Cumulative preferred 2% stock = 40,000 shares

Cumulative preferred 2% share capital = $6,000,000 ($150 * 40,000)

Common stock = 100,000 shares

Common stock share capital = $500,000 ($5 * 100,000)

Cumulative preferred 2% annual dividend = 2% of $6,000,000 = $120,000

Total dividends Preferred dividends Common dividends

Amount distributed:

Year 1 $70,000 $70,000 ($50,000) $0

Year 2 200,000 $170,000 $30,000

Year 3 320,000 $120,000 $200,000

b) Dividend per share for preferred stock is $120,000/40,000 = $3.00 per annum. This is the amount of dividend per share because the shares are cumulative. The holders will always get paid at the next period when enough dividends are declared. For the common stock, the dividend per share depends on the actual dividends distributed to the holders, divided by 100,000 shares.

7 0

3 years ago

A 4-year project has an annual operating cash flow of $47,000. At the beginning of the project, $3,800 in net working capital wa

Sergeeva-Olga [200]

Answer:

$55,826

Explanation:

The computation of year 4 cash flow is shown below:

= Operating cash flow + required net working capital + after cash flow arise from salvage value

where,

Operating cash flow is $47,000

Required net working capital is $3,800

After cash flow arise from salvage value is

= Sale value - gain on salvage value × tax rate

The gain on salvage value is

= $5,400 - $3,800

= $1,100

So the after cash flow arise is

= $5,400 - $1,100 × 34%

= $5,400 - $374

= $5,026

Now the year 4 cash flow is

= $47,000 + $3,800 + $5,026

= $55,826

3 0

3 years ago

g Bob makes his first $ 800 deposit into an IRA earning 7.4 % compounded annually on his 24th birthday and his last $ 800 deposi

Gala2k [10]

Answer:

FV= $137,440.62

Explanation:

Giving the following information:

Bob makes his first $ 800 deposit into an IRA earning 7.4 % compounded annually on his 24th birthday and his last $ 800 deposit on his 39th birthday (16 equal deposits in all). With no additional deposits, the money in the IRA continues to earn 7.4 % interest compounded annually until Iob retirees on his 65th birthday.

First, 16 years:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {800*[(1.074^16)-1]}/0,074= $23,067.90

Next 25 years.

FV= PV*(1+i)^n

FV= 23,067.90*(1.074)^25= $137,440.62

6 0

3 years ago