Answer:
Market price today $955.1347
Explanation:
To know the current market price we will calculate the present value ofthe cuopon payment and the maturity at the yield to maturity rate of 8.73%
<u>Present value of the annuity</u>
Cupon Payment: 1,000 face value x 8% / 2 payment per year = 40
time = 9 years x 2 payment per year = 18
rate = 8.73% = 0.0873 = 0.0873/2 = 0.04365
PV $491.6747
<u></u>
<u>Present value of the maturity</u>
Maturity = face value = 1,000.00
time 18.00
rate 0.04365
PV 463.46
<u>Now we add both together to get the present value of the bond</u>
PV c $491.6747
PV m $463.4599
Total $955.1347
The proceeds that UWD received will be as follows:
Number of shares 1,350,000
share price $24.62
Amount realized from the shares:
1,350,000×24.62
=33,237,000
Total amount to be deducted will be:
(Commission+Accounting fees+legal fees+printing costs+selling expenses)
commission=$1,661,850
Accounting fees=$450,000
legal fees=$1,225, 000
printing cost=$275,000
selling expenses=$300,000
Total=(1,661,850+450,000+1,225,000+275,000+300,000)
=$3,911,850
The amount received will be:
33,237,000-3,911,850
=$29,325,150
It’s 38 because if it doesn’t work out it means it will not be at least 38
Answer: 38
20% down will be $50,000 so the balance will be $200,000 to take out a mortgage for. The higher the down payment the lower the mortgage required and lower payments would ensue also. Also, once one has a mortgage it ie wise to pay it by the week to reduce the interest. Over time this practice makes a difference.
Solution :
Estimated revenues = $1,530,000
Other financing sources - bond proceeds = $402,500
Appropriations = $1,100,000
Est other fin uses = $502,500
Budgetary fund balance = $195,000
Appropriations = $1,100,000
Est other fin uses = $502,500
Budgetary fund balance = $195,000
Est Rev = $1,530,000
Other fin sources bond proceeds = $402,500
