9. Assume your cost is 55% of your revenue of a certain product/services, what is your profit

What is the effective annual rate (EAR) of a mortgage that is advertised at 8.5% (APR) over the next twenty years and paid wi

svp [43]

Answer:

1. What is the effective annual rate (EAR) of a mortgage that is advertised at 8.5% (APR) over the next twenty years and paid with weekly payments?

8.87%

2. What is the effective annual rate (EAR) of the mortgage at 8.5% APR with weekly payments? nothing% (Round to two decimal places.)

8.86%

Explanation:

1.

APR = 8.5%

Weekly Payment

Number of years = 20

m = 52 x 20 = 1040

EAR = ( 1 + ( 0.085 / 1040 )^1040)-1

EAR = 0.0887

EAR = 8.87%

2.

APR = 8.5%

Weekly Payment

Number of years = 1

m = 52 x 1 = 52

EAR = ( 1 + ( 0.085 / 52 )^52 ) - 1

EAR = 0.0886

EAR = 8.86%

7 0

3 years ago

The Modigliani and Miller hypothesis suggests that capital structure doesn't matter. All of the following conditions need to be

Dmitriy789 [7]

Answer:

The false statement is letter "B": all corporate net income is paid out as dividends.

Explanation:

The Modigliani-Miller Theorem or M&M is used in financial and economic studies to analyze the value of a firm such as a business or a corporation. The M&M theorem states that a firm's value is based on its ability to earn revenue plus the risk of its underlying assets. This value is independent of the way the company distributes its profits or finances its operations.

In that case, dividends have nothing to do with how the M&M theorem values a business.

6 0

2 years ago

Aubrey uses her credit card to buy some clothes for $552.86. She can pay up to $195 on the credit card each month. What is the t

Gemiola [76]

<span>She makes the purchase for $552.86. After one month, she owes $552.86 + the interest of that month. One month's interest is 27.3%/12 on the balance, so $552.86 * 0.273/12 = $12.58 At the end of the first month, she owes $552.86 + $12.58 = $565.44. She pays $195. Now she owes $565.44 - $195 = $370.44 After the second month, she owes $370.44 + interst of that month. One month's interest is 27.3%/12 on the balance, so $370.44 * 0.273/12 = $8.43 At the end of the second month, she owes $370.44 + $8.43 = $378.87 She pays $195. Now she owes $378.87 - $195 = $183.87 After the third month, she owes $183.87 + interest of that month. One month's interest is 27.3%/12, so $183.87 * 0.273/12 = $4.18 At the end of the third month, she owes $183.87 + $4.18 = $188.05 She pays $188.05 and pays it off. The total amount she paid was $195 + $195 + $188.05 = $578.05</span>

7 0

3 years ago

Mega Media Cable TV is able to purchase an exclusive right to sell a premium sports channel in its market area. Let's assume tha

Montano1993 [528]

Answer:

A) If Mega Media sets the price at $25, 23,000 sports viewers will subscribe to their sports channel. Their profit will = (23,000 x $25) - $100,000 = $575,000 - $100,000 = $475,000

B) If Mega Media sets the price at $150, only 3,000 sports viewers will subscribe to their sports channel. Their profit will = (3,000 x $150) - $100,000 = $450,000 - $100,000 = $350,000

C) Since Mega Media is not able to price discriminate, then it should charge only $25 a year for the subscribing to the sports channel since at that price their profit will be $475,000.

D) If Mega Media could price discriminate, its profit = (20,000 x $25) + (3,000 x $150) - $100,000 = $500,000 + $450,000 - $100,000 = $850,000

6 0

3 years ago

The accountant for TI Company is preparing the company's statement of cash flows for the fiscal year just ended. The following i

dem82 [27]

Answer:

$213,500.

Explanation:

Retained earnings balance at the beginning of the year $ 166,000

- Cash dividends declared for the year 52,000

+ Net income for the year 99,500

6 0

1 year ago