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tatiyna
3 years ago
13

A loan of $105,487.80 is to be amortized over a 10-year term at 6% interest compounded monthly with monthly payments and a $20,0

00 balloon payment at the end of the term. Calculate the monthly payment.
The monthly payment is $
(Do not round until the final answer. Then round to two decimal places as needed.)
Business
1 answer:
SOVA2 [1]3 years ago
3 0

Answer:

  $1049.09

Explanation:

The present value of the balloon payment is ...

  $20,000/(1 +.06/12)^(12·10)) = $10,992.65

So, the effective amount of the loan is ...

  $105,487.80 -10,992.65 = $94,495.15

The amortization formula gives the payment as ...

  A = P(r/n)/(1 -(1 +r/n)^(-nt)) = $94,495.15(.06/12)/(1 -(1 +.06/12)^(-12·10))

 = $94,495.15(.005)/0.450367 = $1049.09

The monthly payment is $1049.09.

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Quantitative Problem 2: Hadley Inc. forecasts the year-end free cash flows (in millions) shown below.
Katarina [22]

The stock price is mathematically given as

P=$57.64

<h3>What is the stock price?</h3>

Generally, the equation for is Value after year  mathematically given as

V=\frac{(FCF for year 5*Growth rate)}{(WACC-Growth rate)}\\\\V = \frac{(55.4*1.05)}{(0.09-0.05)}

V= $1454.25

Hence, the current value is mathematically given as

I=Discounting factor equal to the future cash flows multiplied by their present value

I=\frac{-22.76}{1.09} + \frac{38.8}{1.09^2}+ \frac{43.4}{1.09^3}+\frac{52.3}{1.09^4}+\frac{55.4}{1.09^5}+\frac{1454.25}{1.09^5}

I=$1063.508769

current value for ordinary stock

I'=$1037.508769million

In conclusion, the stock price is

P=(1037.508769/18)

P=$57.64

Read more about the stock price

brainly.com/question/15021152

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5 0
2 years ago
________ is money that is borrowed with the promise to pay it back.
Zielflug [23.3K]
B - credit because that's the money you pay back to make sure that you make se credit for yourself
7 0
4 years ago
A company issued 60 shares of $100 par value common stock for $7,000 cash.
jolli1 [7]

Answer:

b) Debit Cash $7,000; credit Common Stock $6,000; credit Paid-in Capital in Excess of Par Value, Common Stock $1,000.

Explanation:

When shares are issued and paid for, the entries required are debit to cash account and  a credit to common stock. However, when the amount received is higher than the par value of the stock issued, the excess received is recorded as a share premium or Paid-in Capital in Excess of Par Value.

As such, where the par value is $100 and 60 shares were issued, value of common stock issued

= $100 * 60

= $6,000

Paid-in Capital in Excess of Par Value = $7,000 - $6,000

= $1,000

4 0
4 years ago
All firms in an industry are price takers: Select one:
AfilCa [17]

Answer: Option B

                                     

Explanation: In simple words, perfect competition refers to a market structure in which there are large numbers of buyers and sellers each operating at a minor level in the market. Due to high number of participants and low level of operations no firm can individually affect the price.

In such a structure the prices are determined by the market forces of demand and supply.

Hence the correct option is B .

3 0
3 years ago
While wines from the United States have won prizes in international blind taste tests, the perception of American wines is gener
emmasim [6.3K]

Answer:

Country of origin effects.

Explanation:

Country of origin effect can be defined as the effects the country manufacturing or producing a particular product has on how a potential customer tends to view the product.

A country image can greatly influence the perception of the customer towards the product, or could be a negative perception or a positive perception.

Some customers may tend to favor goods that are produced from their own country. For example most individuals favor clothes and shoes that are produced in Italy than the ones produces in Spain.

7 0
3 years ago
Read 2 more answers
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