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Karolina [17]
2 years ago
9

You have taken out a $225,000, 3/1 ARM. The initial rate of 5.8% (annual) is locked in for three years and is expected to increa

se to 6.5% at the end of the lock period. Calculate the initial payment on the loan. (Note: the term on this 3/1 ARM is 30 years.)
Business
1 answer:
RoseWind [281]2 years ago
8 0

Answer:

$1,320.19

Explanation:

Loan amount = $225,000

Rate = 5.80%

Years = 30

PMT = ?

Initial payment = PMT(Rate/12, Years*12, -225,000)

Initial payment = PMT(5.80%/12, 360, -225,000)

Initial payment = 1320.185230439806

Initial payment = $1,320.19

Therefore, the initial payment on the loan is $1,320.19

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Epley Industries stock has a beta of 1.25. The company just paid a dividend of $.40, and the dividends are expected to grow at 5
Volgvan

Answer:

A. 5.56%

B. 13.55%

Explanation:

In this question, we are asked to calculate the equity cost using the DCF method and the SML method

A. DCF approach

cost of equity =[ D0(1+growth )/ current price] +growth

= [.40 (1+.05) / 70 ] + .05

= [ .42 / 75] + .05

= .0056 +.05

= 0.0556 same as 5.56%

B)SML approach

Cost of equity = Rf +Beta (Rm-Rf)

= 5.8+ 1.25 (12 -5.8 )

= 5.8+ 1.25 *6.2

= 5.8 + 7.75

= 13.55%

6 0
3 years ago
Holding capital​ constant, when labor increases from 9 to 10​ units, output increases from 191 to 209 units. The marginal produc
Sophie [7]

Answer:

marginal product of n th worker =total output of n workers - total output of n-1 workers

MP(n)=TP(n)-TP(n-1)

MP(10)=209- 191

= 18

======

AP=TP/L

AP(10)=209/10=20.9 units

Explanation:

6 0
3 years ago
Dary Co. Produces a single product. Its normal selling price is $28 per unit. The variable costs are $18 per unit. Fixed costs a
aleksandr82 [10.1K]

Answer:

1. c. increase of $2,250

2. b. Yes

Explanation:

1. Calculation to determine what would be the impact on net income if the order is accepted

First step is to calculate the variable cost

Variable cost special order= ($18-$2)

Variable cost special order=$16

Now let calculate what would be the impact on net income if the order is accepted

Impact on net income=($17.50-$16)*1,500 units

Impact on net income=$1.50*1,500 units

Impact on net income= increase of $2,250

2. YES the special order should be accepted.

4 0
3 years ago
The principled leadership characteristic of team excellence is central to team effectiveness, influencing the team through four
Vika [28.1K]
Probably cognitive is NOT one of these.
3 0
3 years ago
Number Style Which of the following sentences apply correct number style? Check all that apply.
34kurt

Answer:

1. We prefer that our interns have completed Finance 201 and an advanced professional communication course.

• He hopes to have at least $2 million in his retirement account by the time he turns 40

b • She has scheduled the meeting for March 11, 2008, at 8 a.m.

c. The average salary increase for Division 45 employees was 2.8 percent last year.

d. Three-fourths of the respondents

Explanation:

It should be noted that the numbers from one to ten should be written in word form, while those from 11 and above can be written in figures.

The numbers such as percentages that starts a sentence needs to be written in words. Therefore, 57% should be written in words

Therefore, the correct options are:

• We prefer that our interns have completed Finance 201 and an advanced professional communication course.

• He hopes to have at least $2 million in his retirement account by the time he turns 40.

Other correct options to the question include:

b. She has scheduled the meeting for March 11, 2008, at 8 a.m.

For information that has to do with meetings, the numbers should be written in numerical form.

c. The average salary increase for Division 45 employees was 2.8 percent last year.

d. Three-fourths of the respondents

The number should be written in words since it begins the sentence.

3 0
3 years ago
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