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Evgesh-ka [11]
3 years ago
14

Find the EAR in each of the following cases. (Do not round intermediate calculations and enter your answers as a percent rounded

to 2 decimal places, e.g., 32.16. Use 365 days in a year.)
Stated Rate (APR) Number of Times Compounded Effective Rate (EAR)
9.25 % Quarterly %
16.75 Monthly %
15.25 Daily %
11.25 Semiannually %
Business
1 answer:
inna [77]3 years ago
4 0

EAR = (1 + periodic interest rate)^N - 1

<u>9.25 % Quarterly %</u>

EAR = (1+\frac{0.0925}{4})^{4}  - 1 = 0.09575 or 9.58%

<u>16.75 Monthly % </u>

EAR = (1+\frac{0.1675}{12})^{12}  - 1  = 0.1809766 or 18.10%

<u>15.25 Daily % </u>

EAR = (1+\frac{0.1525}{365})^{365}  - 1  = 0.1647053 or 16.47%

<u>11.25 Semiannually %</u>

EAR = (1+\frac{0.1125}{2})^{2}  - 1  = 0.115664 or 11.57%

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pantera1 [17]

<h2>Yes it could be done to discourage people from consuming tobacco or alcohol.</h2>

Explanation:

  • Normally government encourages or discourages use of goods by reducing or increasing the tax on the goods.
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3 0
3 years ago
Using the following information, determine the location quotient for Motor City: employment in motor vehicle manufacturing withi
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Answer:

15.7

Explanation:

In this question we have the following information

Employment in Motor Vehicle manufacturing within city = 12643

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We get the location quotient as

(12643/560379)/152750/106201232

0.02256/0.001438

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Therefore the location quotient = 15.7

7 0
3 years ago
Regal Financial Institution specializes in home loans. What type of financial institution is it? savings and loan bank credit un
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3 0
3 years ago
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Shoe Box Stores is currently an all-equity firm with 25,000 shares of stock outstanding. Management is considering changing the
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Answer: d. Sell 210 shares and loan out the proceeds at 8 percent

Explanation:

Because the Firm wants to use a Debt to Equity Capital structure instead of an All Equity structure, she can lend money out at the company interest rate to NEGATE the conversion.

She can do this by selling 35% of her portfolio and loaning it out at 8%

35 % of her Portfolio would be,

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So she can sell 210 shares and loan at the proceeds at 8% to offset the Company's conversion

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3 years ago
Three Waters Co. is a small company and is considering a project that will require $700,000 in assets. The project will be finan
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Answer:

15.00%

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The formula to compute the return on equity is shown below:

Return on equity = (EBIT × 1 - tax rate) ÷ (total equity)

                            = ($140,000 × 0.75) ÷ ($700,000)

                            = ($105,000) ÷ ($700,000)

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It shows a relationship between the earning after tax and total equity in respect of assets required for the project so that the accurate return can come

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