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Llana [10]
3 years ago
12

A $25,000 bank loan is to be repaid in equal yearly payments of $2745 over 15 yr at an effective annual interest rate of 7%. The

borrower uses the loan money to earn an annual effective return of 10% in the stock market. All money earned is kept in the stock fund. What is most nearly the present-day value of the earnings over 15 yr as a result of this loan and investment venture
Business
1 answer:
ohaa [14]3 years ago
5 0

Answer:

The present-day value of the earnings over 15 years as a result of this loan and investment venture is:

= $24,998.51.

Explanation:

a) Bank loan = $25,000

Annuity Payment = $2,745 yearly

Period of loan = 15 years

Effective annual interest rate = 7%

Effective annual return = 10%

Future value of $25,000 at 10% for 15 years = $25,000 * 4.1777

= $104,425

The present-day value of $104,425 over 15 years at 10% effective annual return, using an online financial calculator =

N (# of periods) = 15 years

I/Y (Interest per year) = 10 years

PMT (Periodic Payment) = 0

FV (Future Value) = $104,425

Results

PV = $24,998.51

Total Interest $79,426.49

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A company's corporate code of ethics is a document given to a newly hired employee on the first day of work. Usually he is asked
harina [27]

Answer:

Answer is explained in the explanation section below.

Explanation:

Solution:

A Corporate Code of Ethics represents a set of business principles designed to regulate employee behaviour and to ensure that the mission and objectives of the company do not conflict. The most important ethical codes are listed below:

Integrity is a virtue.

Objectivity is a virtue.

Competence in the field.

Trustworthiness.

Professional conduct.

These are extremely important for us to maintain because they not only mark us as individuals, but also make us responsible employees of any organization that wishes to keep us together in the long run. WE MUST OBEDIENT TO THEM in order to ensure that, regardless of what we say or think, there will be a code of ethics that will help us to change over time and contribute to the progressive nature of things in our environment. This will also identify the IT firm employee, helping us to get a clearer understanding of the situation.

3 0
2 years ago
A corporation declares a cash dividend on Friday, December 5th, payable to holders of record on Friday, December 19th. The local
andrew11 [14]

Answer: Thursday December 18

Explanation:

The ex date for regular way trades will be set at Thursday December 18. The ex date for regular way trades is typically set a day before the record date.

In this case, we are told that the corporation declares a cash dividend on Friday, December 5th, which was payable to the holders of record on Friday, December 19th.

Since the record date is the question is Friday, December 19th, then the ex date for the regular way trades will be set at Thursday December 18 which is a day before the 19th.

5 0
3 years ago
Before you can reasonably expect people to share their perceptions and opinions, particularly about things they believe need to
Annette [7]
Well said, you've been in the workforce or heard the war stories.
5 0
3 years ago
What is an example of a flame
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6 0
3 years ago
Frantic Fast Foods had earnings after taxes of $900,000 in 20X1 with 301,000 shares outstanding. On January 1, 20X2, the firm is
Semmy [17]

Answer:

A.$2.99

B.$1.15

Explanation:

Frantic Fast Foods

A.Computation of the earnings per share for the year 20X

Using this formula

Earnings per Share=Earnings after Taxes/Shares Outstanding

Let plug in the formula

900,000/301,000

=$2.99

The earnings per share for 20X1 will be $2.99

B. Computation of the earnings per share for the year 201X

Earnings after Taxes= 301,000 * 1.28 = 385,280

Shares Outstanding=301,000 + 32,000 = 333,000

Hence,

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385,280 / 333,000 = $1.15

Therefore the earnings per share for 20X1 will

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