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Tpy6a [65]
3 years ago
12

Find the EAR in each of the following cases (Use 365 days a year. Do not round intermediate calculations and round your final an

swers to 2 decimal places. (e.g., 32.16)):
Stated Rate (APR) Number of Times Compounded Effective Rate (EAR)
8.3 % Quarterly %
17.3 Monthly
13.3 Daily
10.3 Infinite
Business
1 answer:
DENIUS [597]3 years ago
8 0

Answer:

8.3/4= 2.075%

EAR= ((1+R)^4)-1

1.0275^4= 1.085-1

=8.5% is the EAR

17.3/12=1.441%

1.01441^12 -1=1.1873

EAR= 18.73%

13.3/365=0.0364%

1.000364^365=1.142

14.2%

For infinite compounding

EAR= E^rt

R= 10.3

t=1

E^10.3

=1.108

= 10.8%

Explanation:

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Answer: $690,044

Explanation:

First calculate WACC.

Total capital = 10 + 8 = $18 million

WACC = (Weight of debt * after-tax cost of debt) + (weight of equity * cost of equity)

= (8/18 * 3%) + (10/18 * 15%)

= 9.67%

Using the WACC, find the present value of the cashflows for the next 5 years. This will be an annuity.

= 180,500 * (1 - (1 + r) ^-n)/r

= 180,500 * ( 1 - ( 1 + 9.67%) ^ -5)/9.67%

= $690,044.67

= $690,044

They should pay no more than this present value.

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filing suit against violators of equal opportunity laws

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5 0
2 years ago
"which group of organizational participants has the most vague job description?"
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6 0
3 years ago
When a country allows trade and becomes an importer of jet skis,
Delvig [45]
The best answer for this question would be:

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3 years ago
The Endot Manufacturing Company, a manufacturer and wholesaler of widgets, has provided you with the following financial informa
Katyanochek1 [597]

Quick ratio = 1.30 (Option C)

<u>Explanation:</u>

Quick ratio or acid test ratio is calculated as follows:

(Cash plus marketable securities plus accounts receivable ) divide by total current liabilities

In our question, we have been given with the data:

Cash = 45 million

Marketable securities = 33 million, accounts receivable = 66 million, total current laibailities = 111 million

So, let us now put the given values in the above stated formula:

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3 0
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