Answer:
She invested $2,167
Explanation:
As interest rate is not compounded, the 9-month interest of a 8% annual interest is simply:
8% * 9 / 12 = 6%
Let A be the amount of money she invest. After 9 month she will receive:
A * 0.06 dollars.
And the actual amount is $130. So she invested
A = $130 / 0.06 = $2,167
Answer:
d. Tax impact x Capital structure impact x EBIT / Sales
Explanation:
The net profit margin ratio could be computed by dividing the net income from the sales and the net income is come when the expenses are deducted from revenues
Also the capital structure is the combination of equity, preferred stock, debt.
So mainly it is broken into tax impact, capital structure impact and net profit margin ratio
Therefore the option d is correct
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.
<span> making on time payments on a debt
</span><span> purchasing a large kitchen appliance with cash
</span><span> saving 25% of every paycheck</span>
Answer:
$1,241
Explanation:
For computing the net advantage to leasing first we have to determine the total cash flow from leasing and total cash flow from buying which is shown below:
For leasing:
Year Lease payment PVF at 5.8% Present value
1 $6,500 0.9452 $6,144
2 $6,500 0.8934 $5,807
3 $6,500 0.8444 $5,489
Total outflow $17,440
For buy:
Year Outflow or inflow PVF at 5.8% Present value
0 ($23,000) 1 ($23,000)
1 $1,610 0.9452 $1,522
2 $1,610 0.8934 $1,438
3 $1,610 0.8444 $1,359
Total outflow $18,681
Now the net advantage to leasing is
= Buy outflow - leasing outflow
= $18,681 - $17,440
= $1,241