Exercises E14-2‚ E14-3‚ E14-5‚ E14-18 E 14–2: Determine the price of bonds in various situations LO14–2 Determine the price of a $1 million bond issue under each of the following independent assumptions: 1. Interest for 100‚000 @ 5.65022 is $565‚022 Principle 1M @ 0.32197 is 321‚970 PV would be 886‚992 2. Interest for 50‚000 @ 11.46992 is $573‚496 Principle 1M @ 0.31180 is 311‚800 PV would be 885‚296 3. Interest for 60‚000 @ 12.46221 is $747‚733 Principle 1M @
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The importance of the concept of cash-flow for the business finance Definition: Cash flow is the movement of money into or out of a business‚ an account or an investment. Normally‚ when the cash inflow is greater than the cash outflow it is a sign of a good financial situation because cash flow is essential for the survival of a business or even to any individual financial condition. If the company can meet its obligations and keep a healthy inflow of cash it has a healthy situation and the
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information has become increasingly more common. This ability to search for information and view content through the internet is currently protected in the United States under a set of laws that are commonly referred to as Net Neutrality regulations. Although many people are unaware of what the concept of net neutrality is‚ it is understood that the results of any change to current internet regulations would affect have long-lasting effects on all internet users. “Net Neutrality” is a concept that was defined
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3 2.1.Conservative consumer banking behavior 3 2.1.1.Low level of credit card usage 3 2.1.2.The availability of ATMs for cash withdrawals 3 2.2.Internet usage in Japan 3 2.3.The competitive situation 4 2.3.1.Competition from traditional banks 4 2.3.2.Competition from domestic Internet banks 4 2.3.3.Competition from international Internet banks 4 3. Japan Net Bank’s competitive advantages 5 3.1.24/7 availability 5 3.2.Competitive interest rate 5 3.3.Customized services 5 3.4
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deposit $1‚500 today‚ how much will you have in 3 years‚ given that interest is 9%‚ compounded monthly 2. You just won $150‚000 scholarship. What is the value of this scholarship if the payment wil be made of $50‚000 per year for the next 2 years‚ followed by payments of $25‚000 per year for the next two years. The appropriate interest rate is 8% per year 3. A level-coupon bond has par value of $1‚000 that pays $120 per year and has 10 years to maturity. If the yield for similar bonds is
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the WACC has increased‚ and their cash flows will not be affected by the change in economic conditions. Under these conditions‚ which of the following statements is CORRECT?Answer | | | | | Selected Answer: | You should recommend Project S‚ because at the new WACC it will have the higher NPV. | Correct Answer: | You should recommend Project S‚ because at the new WACC it will have the higher NPV. | | | | | Question 2 2 out of 2 points | | | Which of the following statements
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1.Sachin has asked his flat mate Jason for a $500 loan to cover a portion of his rent and utility costs. Sachin proposes repaying the loan with $300 from each of his next two financial aid disbursements‚ the first 4 months from now and the second 12 months from now. Jason’s alternative is to earn 5% annually in his money market account. Assume there is no risk of default‚ and that compounding is monthly. What is the NPV of the loan? (Enter just the number without the $ sign or a comma; round off
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1.1 Explain the sequence and rate of development from birth to 19 years. Sequence of children’s development is the gaining of skills in all aspects of the child’s life. There are different types of development‚ but they are split into five areas; social and emotional‚ physical‚ communication/language‚ intellectual‚ and moral. Physical Development (0-3 years) At this stage its usually very rapid‚ babies depend on reflexes for movement‚ but they are visible‚ sucking‚ feed‚ grasping‚ and rooting
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Propeller Constant-Speed Propeller Appendix 1 References Abstract: _This text outlines the fundaments operations and aspects of aircraft propellers. It details the components‚ forces and workings of a propeller as well as discussing the difference between the different propeller types._ Introduction: Propeller types are defined by blade pitch as being fixed or variable which will be further detailed later in the text. To fully appreciate the differences and understand the advantages
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When the cash flows are uniform The cost of a proposal is $ 10‚000. The cash flows are as follows: Year Cash flows 1 2500 2 2500 3 2500 4 2500 5 2500 6 2500 Calculate Pay Back Period (PBP) When the cash flows are not uniform 1. There are two Proposals. Proposal A and Proposal B. Both cost the amount of $ 60‚000. The discount rate is 10%. The cash flows before depreciation and tax are as follows: Year Proposal A Proposal B $ $ 0
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