1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
tigry1 [53]
3 years ago
15

Youve got your budget, credit history and savings in order. Whats the nest step

Business
1 answer:
Ksenya-84 [330]3 years ago
8 0
Try to find a mortgage to buy a house
You might be interested in
Up in Smoke Tobacco Shops' bond carries a 9 percent coupon, pays interest semiannually, and has 10 years to maturity. What is th
lara [203]

Answer:

10%

Explanation:

Since the bond is selling at a discount, it means that the coupon rate is blow the market rate, so the actual rate must be higher. Since there is only one option with an interest rate above 9%, we must check to see if it works.

10% yearly interest rate = 5% semiannual interest rate

we must determine the PV of the 20 coupons paid and the face value at maturity.

to calculate the PV of the 20 coupons ($45 each) we can use an excel spreadsheet and the NPV function with a 5% discount rate: PV of the coupons = $560.80

the PV of the face value in 10 years = $1,000 / 1.05²⁰ = $376.89

the present value of the coupons and the bond at maturity = $560.80 + $376.89 = $937.69. The PV using a 5% semiannual rate is very similar to $937.75, and since the question asked us to round up to the nearest whole percent, we can assume it is correct.

6 0
3 years ago
Question 2
laila [671]

Answer:

A

Explanation:

Calculate the payback period and net present value for each project assuming a 10 % discount rate

7 0
1 year ago
The decision-making process followed by consumers to maximize utility assumes thatA. consumers do not know how much marginal uti
Dmitry [639]

Answer:

The correct answer is option C.

Explanation:

The decision-making process followed by consumers assumes that consumers are rational beings who are trying to maximize their satisfaction using their limited income.  

So these consumers will consume the good or combination of goods that maximize their total utility derived from the consumption of these goods.

The consumers have limited income, they are aware of the marginal utility they derive from the consumption of an additional unit and they are also able to rank their preferences.

3 0
3 years ago
Change from the fair value method to the equity method Assume an investor company acquires for $256,000 an 8% investment in the
matrenka [14]

Answer:

Date         Account title and explanation      Debit        Credit

March 1    Equity investment                          $32,000

                ($612,000/17%)*8% - $256,000)

                       Unrealized holding gain                             $32,000

               (To adjust the value of equity investment)

Note: On 1 march, value of the investment value is increased which is unrealized based on 31 December fair value

6 0
3 years ago
For purposes of computing the WACC, if the book value of equity exceeds the market value of equity, then: the market value of eq
vagabundo [1.1K]

Answer:

The market value of equity should be used.

Explanation:

Their are only two methods which are book value method or market value method. The market value method is preferred because the reason is that the market value gives the more accurate numerical value that the securities of the company will give which is the required rate of return to its investors. However historic cost data is not useful because the value of stock and bonds keeps changing every second in the stock exchange and their is the risk that the WACC calculated is inaccurate which implies that the project appraised is also incorrect.

So the best way to calculate the weighted cost of capital is that we should use the fair value of the securities.

5 0
3 years ago
Read 2 more answers
Other questions:
  • Lang Warehouses borrowed $146,960 from a bank and signed a note requiring 10 annual payments of $19,032 beginning one year from
    7·1 answer
  • Rocket Shoe Company is planning a one-month campaign for August to promote sales of one of its two shoe products. A total of $11
    11·1 answer
  • Johnson Electronics is considering extending trade credit to some customers previously considered poor risks. Sales would increa
    6·1 answer
  • Sharon is very enthusiastic and energetic with teams. She uses her likability and infectious personality to motivate others towa
    12·1 answer
  • When companies watch both their buyers and their competitors, they are called ________ companies.?
    7·1 answer
  • A gas station with only one gas pump employs the following policy: If a customer has to wait to buy the gasoline, the price is $
    9·1 answer
  • Ticker IBS is traded on the Pacific, Gulf and Atlantic stock Exchanges. The sequence of bids in the consolidated record is:
    11·1 answer
  • At age 37 you start saving for retirement if your investment plan pays an APR of 6% and you want to have $.09 million when you r
    14·1 answer
  • Wage/price controls allow us to
    9·1 answer
  • A business plan is a document describing the start-up costs and operating expenses of a new business. Please select the best ans
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!