Answer:
a) quota: $ 802.43
b) 500 and then, 484.88 for interest
302.43 and 317.54
C) total interest: 984.88
D) the interest will decrease and the amortization over time will increase
E) as the loan has a given date. At that date the principal outstanding must be zero therefore, after each payment the principal is reduced making interest decrease as well. This decrease in interest is replaced with an increase in the amortization-
Explanation:
PV 10,000
time 20
rate 0.05
C $ 802.426
Interest on first quota:
10,000 x 0.05 = 500
Amortization on first quota:
802.43 - 500 = 302.43
Interest in second quota:
(10,000 - 302.43) x 0.05 = 484,8785
amortization on second quota:
802.42 - 484,88 = 317,54
Interest for the year:
500 + 484.88 = 984.88
Answer:
The cost of common equity from reinvested earnings is 11.84%
Explanation:
The constant growth model of DDM or DCF approach is used to calculate the price of a stock today whose dividends are expected to grow at a constant rate forever. The model values the stock based on the present value of the expected future dividends form the stock.
The formula for price today under this model is,
P0 = D0 * (1+g) / (r - g)
Where,
- P0 is price today
- D0 is the dividend today
- r is the cost of equity
- g is the growth rate in dividends
Plugging in the available values for all the variables, we can calculate the r or cost of common equity to be,
22.5 = 0.8 * (1+0.08) / (r - 0.08)
22.5 * (r - 0.08) = 0.864
22.5r - 1.8 = 0.864
22.5r = 0.864 + 1.8
r = 2.664 / 22.5
r = 0.1184 or 11.84%
In the USA, a GED functions exactly the same way as a high school diploma.
A proficiency certificate also allows minors to be employed without a work permit or other restrictions.
A GED or similar is not sufficient to be accepted to university alone, but most tertiary education institutions require a diploma or equivalent. To get into any place of prestige you'll need a competitive GPA at a community college or high school, extracurriculars, good SAT/ACT, the works. Same as anyone else.
GED stands for:General Education Development
Answer:
after-tax cost of debt 5.2725%
Explanation:
We will solve for the market rate of the bonds which is the one that makes the maturity and coupon payment equal to its current market price:
We sovle it using a financial calcualtor or excel goal seek tool
C 110.000 (1,000 x 11%)
time 10 years
<em>rate 0.070304812</em>
PV $771.5066
Maturity 1,000
time 10 years
<em> rate 0.070304812</em>
PV 506.90
PV c $771.5066
PV m $506.9034
Total $1,278.4100
Now that we find that market rate is 7.03%
we calcautle the after tax cost of debt:
7.03 x (1 - 25%) = 5.2725%
Answer:
Member B: Works 10 hours per week at $5.85 per hour
Member D: Works 9 hours per week at $6.35 per hour